Dutch patent law overhaul promises to better support innovation

The Dutch government plans to overhaul the current patent system, requiring all applications to undergo rigorous evaluation by the Patent Office. This aims to tackle the current system's lack of scrutiny, which has led to patents being granted for innovations that already exist or lack value.

The new regulation, proposed by the outgoing Minister of Economic Affairs, Vincent Karremans, aims to address the shortcomings of the current system, which grants patents, even to foreign entrepreneurs, without thoroughly assessing the technical innovation. This lack of substantive examination has led to legal uncertainties and hindered innovation. By mandating that the Netherlands Patent Centre (Octrooicentrum Nederland) assess all patent applications against specific criteria, the government intends to ensure that only genuine, novel inventions receive patent protection.

Minister Karremans emphasized the urgency of these changes, stating, "The business climate in the Netherlands is under pressure, for example, due to unnecessary rules that discourage rather than stimulate entrepreneurship, or even worse, that could undermine the competitiveness and innovative strength of our companies."

The Minister believes the current patent system, which does not substantively test applications, results in illegitimate patents. A thoroughly vetted patent offers greater certainty of its value, facilitating collaborations through licensing and attracting investments, thereby improving the financial environment for entrepreneurs.

Valuable patents, less bureaucracy

With the implementation of this new system, the government hopes to eliminate the possibility of automatically obtaining a patent in the Netherlands for technical innovations that are not new or lack significant value. This measure is expected to foster a more competitive, innovation-driven business environment, protect legitimate innovations, and encourage further investment in novel technologies. The changes also include simplifying or eliminating eight patent-related rules to reduce regulatory burdens on entrepreneurs.

The Dutch Council of Ministers, acting on the proposal of Minister Karremans, has agreed to comprehensively revise the National Patent Law. The draft legislation will now be submitted to the Council of State for advice before being presented to the House of Representatives and the Senate for consideration. The law's jurisdiction also extends to Curaçao, Sint Maarten, and the Caribbean Netherlands (Bonaire, Sint Eustatius, and Saba), and a proposal is under consideration to broaden its scope to include the North Sea and the waters surrounding these islands, particularly with respect to economic activities at sea.

As part of Minister Karremans' initiative to reduce regulatory burdens, the government proposes to simplify or eliminate eight patent-related rules through this legislative amendment. The goal is to eliminate or reduce the burden of 500 regulations by the summer of 2026.