Are you aware of the problem?

Software and business process patents ("soft patents") may not seem like a direct threat to your business. In 2006 RIM, producer of Blackberry got into serious trouble. Even Microsoft had to make changes to its well-known Office and Internet Explorer products. Problems due to general eCommerce patents like Amazon one-click remain unsolved. You need to understand what is happening. Over 50,000 soft patents have been granted by the EPO. These patents endanger all European companies. Today, national courts decide on whether specific patents are valid or not.

So today, you can already be sued by one of thousands of firms, even though soft patents are not formally enforcable in most European countries. Your choices when you are sued: fight, cut functions, or pay a license.

The cost of fighting a patent suit can be up to 500,000 Euro. In the US, the average cost is $4M.

What is your risk?

If you are a major company, and your business depends on software in any way, you are most likely infringing a number of soft patents, even if you do not know them.

If you are making profits, you are a good target for a patent-specialising firm. These firms are backed by good funds (typically $1M or so, enough for several lawsuits), and work with the very best patent lawyers in each country.

Most patent suits are settled quietly. You should ask other managers at industry and trade forums - have they been hit by patent suits? The answer will probably be quite frightening.

Have you asked for legal advice?

It's worth asking a lawyer these questions:

• How much would it cost to fight an unfair patent claim in court?
• Do the courts tend to favour patent claims, or defending parties?
• If a patent looks trivial and obvious, does that mean I still have to fight it in court?
• How much would it cost to oppose a patent that has not yet been granted?

Again, the answers will probably be quite frightening.

Even the most obvious and trivial patents can be supported in court if you cannot prove black-on-white that there is documented prior art. The cost of opposing a patent, before its "opposition window" closes, is anything from 50,000 to 100,000 Euro. You can count half of that for research, and half for the court procedings at the EPO Board of Appeal. You would oppose a patent in Munich.

Do you have your own patents?

If so, you have probably wasted your money. A single EPO patent costs you approximately 60 000 EUR. Owning patents does not help when someone sues you, unless that person makes products that infringe on your patents. Pure patent firms don't make products, so they are very hard to sue.

What does it cost to survive soft patents?

Usually, patent firms only want a part of your profits. So you may be able to survive by accepting patent claims, even unfair ones, because it is cheaper than fighting them.

But as long as you are profitable, you will be the target of other patent firms. There are thousands of firms that specialise in using patents to take away your profits. It is a good business.

What it costs to survive soft patents is, eventually, to stop making profits in the EU. Move your business overseas, close your main offices, let your employees go, and maintain a skeleton organisation that makes no profits and is not worth suing.

How can the FFII help you?

We propose an alternative vision. Soft patents are a political problem. The EU law-making processes are weak and do not protect the public interest as well as they could. But laws are made by people, by democratic participation, and this is the key to a solution.

We provide you with a framework to take action. The FFII organises individuals and companies of all sizes, and creates a single voice to speak to politicians, both at the national and international levels. By speaking through the FFII, your voice is much louder than it would be alone.

What you can expect, concretely, from the FFII:

• Information about upcoming laws long before they are public news. For example, we were informing our corporate supporters about the ComPat and IPRED2 directives six months before these were announced.
• Access to world-class information sources, like our Gauss Database of soft patents.
• Access to experts, and expert opinion. With six years of experience and a network that covers twenty countries, the FFII is one of the best informed organisations when it comes to software patents.
• Participation in conferences and seminars. There is no better way for you or your top people to learn about the soft patent problem than to come to an FFII event and meet the experts.

Next steps

1. Join the FFII as a member if you want to be involved in specific activities. For example, it can be useful to organise industry work groups to discuss and organise action against soft patents. If you are a member of the FFII you can speak on behalf of the organisation at such work groups.
2. Contribute to the FFII. Some of our activities are very expensive and need your support. We recommend that an active corporate supporter pay 100 Euro per employee, or 0.01% of gross turnover, per year.
3. Contact your local FFII chapter and discuss how to organise the movement against software patents in your country and in your sector.

Urgent corporate inquiries will get quickly answered by email to corporate@ffii.org, for address of FFII see also Contact