Someone at RWS must not be very happy today. The leading patent translation company in the world (number 7 in our Ranking of Top 20 Translation Companies), other LSPs like McElroy Translation, and to a lesser extent Japan-based Honyaku Centre (number 13 in our ranking) will likely be affected by this week’s ratification by the French Senate of the London Agreement. The move will make it easier for inventors to file patent applications that are valid across Europe. It may also revive the idea of the Community Patent, after numerous failed attempts.

According to current practice, European patent holders need to submit translations of their patents in the languages of all nations in which they intend to commercially exploit their rights. Ratification of the agreement means that patent applicants will have to submit their patents in just 1 of the 3 official languages — French, English, or German — recognized under the European Patent Convention.

France had blocked the adoption of the London Agreement since its signature in 2000. Opponents to the measure are in a battle against the preponderance of English in business relations — or as they call it le tout-anglais — and claim that MEDEF pressured politicians by exaggerating the cost of translations in patent filings. According to MEDEF, the cost of translation represents 40% of the filing expenses, when another study shows that it is in average less than 15%. The EPO places the average figure for translation at around €3,800; depending on the technical field in which the patent has been granted, costs can go substantially higher. Critics in France contend that this measure is just another gift to multinational conglomerates like Philips that file over 4,000 patents every year.

Others celebrate the ratification of the agreement by claiming that it enshrines French as one of the 3 official languages of the EPO. That’s a good thing for francophiles since statistics show that 70% of the filings are English, 25% German, and just 5% French. So, no matter what, French researchers already deal with that reality.

Translation companies don’t need to despair yet. The “claims” section of every patent will still have to be filed in English, German, and French. And in case of patent disputes, the courts will still require full translations. Further, changes like this take time. It took about a year for California LSPs to feel the consequences of changes in the Workmen’s Compensation legislation implemented in 2003 that virtually eliminated the need for interpretation services for insurance purposes. That gives RWS, McElroy, and Honyaku some time to come up with their own innovations.