The Impact of Patent Abuse on Technological Innovation in the EU: Challenges for Innovative SMEs and Legislative Regulatory Pathways

Abstract

Patent abuse poses significant challenges to the European Union’s innovation ecosystem, undermining the balance between intellectual property protection and technological progress. While patents are designed to incentivize innovation, their misuse—manifesting as practices like patent trolling, evergreening, and the creation of patent thickets—stifles competition, inflates costs, and restricts access to essential technologies. These issues disproportionately impact Small and Medium-sized Enterprises (SMEs), which are critical drivers of EU innovation but lack the resources to navigate complex patent landscapes. This paper explores the multidimensional impacts of patent abuse on technological innovation in the EU, highlighting the specific vulnerabilities of SMEs. It also proposes a comprehensive framework of legislative and regulatory pathways to address these challenges. Recommendations include strengthening patent examination standards, implementing anti-trolling measures, harmonizing patent laws, promoting collaborative licensing models, and providing targeted support for SMEs. By adopting a holistic approach, the EU can mitigate patent abuse, foster equitable innovation, and achieve its strategic goals of green and digital transformation.