Breathing New Life into the German Utility Model System in the Industry 4.0 Era

Abstract

Abstract Key players of Industry 4.0, high-tech firms and individual inventors, do not use patents to exclude others due to the open source philosophy and the risk of a counter-infringement assertion. These key players have developed new uses of patents: (1) defensive use to avoid litigation and (2) proactive use to promote open innovation. They want to be rewarded with the freedom to operate instead of monopoly profits through exclusivity. To better serve the key players in light of these new uses, the German utility model system should be reformed by incorporating a statutory license to implement the open source philosophy and adopting a simplified claiming and disclosure format. The current German translation requirement should be removed to globalize the system.