Select Committee on European Scrutiny First Report


PROPOSED INCREASE IN THE NUMBER OF JUDGES IN THE COURT OF FIRST INSTANCE


(a)
(20182)
8198/99

Report of the Court of Justice and the Court of First Instance on the new intellectual property cases with regard to the Community trade mark.

(b)
(20586)
9614/99

Draft Council Decision amending Decision 88/591/ECSC, EEC, Euratom establishing a Court of First Instance of the European Communities.
Legal base: (a) —
(b) Article 225 EC, Article 32d ECSC, Article 140a Euratom; for procedure, see paragraph 2.5 below
Forwarded to the Council: (b) 14 June 1999
Deposited in Parliament: (b) 20 August 1999
Department: Foreign and Commonwealth Office
Basis of consideration: Minister's letter of 20 August 1999 and EM of 2 November 1999
Previous Committee Report: (a) HC 34-xxvi (1998-99), paragraph 1 (14 July 1999)
(b) None
To be discussed in Council: (b) No date set
Committee's assessment: Legally and politically important
Committee's decision: (a) Cleared
(b) Not cleared; further information requested

Document (a)

  2.1  On 14 July 1999, we considered a communication from the European Court of Justice (the ECJ) and the Court of First Instance (the CFI), which contained proposals specifically related to the effect on the functioning and resources of the CFI of new Community trademark cases appealing decisions of the Boards of Appeal of the Office for Harmonisation in the Internal Market (trademarks and designs).

  2.2  We recognised that the increased jurisdiction of the CFI entailed increased resources, if it was to continue to function effectively, and shared the Government's belief that an effective and efficient Court was vital to the functioning of the EU.

  2.3  We questioned, however, whether the current caseload statistics supported the CFI's forecast of 200 to 400 trademark actions per annum and, with respect to a key element of the Communication, the proposed appointment of six additional judges, asked the then Minister of State at the Foreign and Commonwealth Office (Joyce Quin) to explain further and justify the Government's policy on the system of appointment of those judges which appears to be based exclusively on individual nomination by specified Member States without taking merit into account.

Document (b)

  2.4  The ECJ has now submitted to the Council a draft Decision amending the Decision establishing a Court of First Instance of the European Communities[22]. It would increase the number of judges from 15 to 21.

  2.5  Article 225 EC provides that judges of the CFI shall be appointed by common accord of the Governments of the Member States for a term of six years.

The Government's view

  2.6  Our questions on the Court's report, document (a), were answered in a letter dated 20 August 1999 from the then Minister of State at the Foreign and Commonwealth Office (Mr Hoon). On the projected volume of appeals, the Minister informed us:

    "Your Committee may welcome, as background information to this decision, further statistical information on the number of appeals before the Boards of Appeals, and cases subsequently brought before the CFI. The number of trademark appeals currently before the CFI is 8 (1 case has already been decided by the CFI). The number of cases currently before the Alicante Boards of Appeal is 676, of which 425 were lodged this year. The turnover of appeals by the Boards of Appeal has so far been quite slow: in 1998 there were 77 decisions and 68 in 1999 up to 31 May. The turnover rate can, however, be expected to increase, with the prospect of further appeals to the CFI. The Court's expectation that there will be no fewer than 100 cases appealed to the CFI next year, with 200-400 appeals in subsequent years as the judicial process in Alicante comes up to full speed, seems reasonable. The above figures are based upon the most recent information available to us."

  2.7  In his EM of 2 November 1999 on the draft Decision, document (b), the Minister of State at the Foreign and Commonwealth Office (Mr Vaz) comments:

    "The Government supports the principle behind the Court's proposal for the appointment of the 6 additional judges. The Government is very keen to secure one of the additional positions in the CFI for a British judge. We will press for political agreement that the UK will always nominate one of the additional judges, using the precedent created by the nomination of the Advocates General in the ECJ.

    "The Government is aware of the additional and as yet unquantified costs that will arise from the increase in the number of judges of the CFI. The Government will continue to press the Court to ensure value for money on any additional resources provided from the Community budget for the provision of the additional judges. At the same time it will encourage the Court to continue its efforts to use its existing resources in an efficient manner."

  2.8  On the system of appointment of additional judges, Mr Hoon explained:

    "The Government believes that the most appropriate mechanism for the appointment of the additional judges is through the nomination of suitable candidates by Member States, with the final decision being taken by the common accord of the Member States in accordance with Article 225(3) of the EC Treaty.

    "The House of Commons European Scrutiny Committee has suggested that a separate judicial appointments board be established to oversee the appointment of the additional judges. This suggestion is interesting, and one which we shall consider further. However it would take time to set up such a system, and it would require Treaty amendment and funding from the Community budget. The Government would not wish consideration of such a system by the Member States to delay the appointment of the additional judges to the CFI covered by the draft decision under consideration."[23]

Conclusions

  2.9  The volume of trademark cases is clearly not increasing as fast as originally predicted, because of delays in handling cases in the Office. On its current performance, a prediction of 100 cases appealed to the CFI next year is over-pessimistic and it will clearly take several years to build up to the estimated total of 200-400 appeals per annum. Nonetheless, the pressures on the CFI can only increase and it is sensible to begin now the procedures for providing additional judicial resources to meet them.

  2.10  On the nationality of the additional judges, the Minister does not give any reason for supposing that other Member States will agree with the UK proposal that it will always nominate one. Is it because the United Kingdom, as a large Member State, is entitled to a second judge? Or is it because relevant expertise is to be found in the legal professions of the United Kingdom? Nor does the Minister explain how it can be ensured that the appointment mechanism favoured by the Government (nomination of suitable candidates by individual Member States, decided upon by common accord) will produce judges of the right calibre, given that some at least of the additional judges ought to have extensive intellectual property experience. Is he prepared to withhold his consent to an unsuitable nomination from another Member State?

  2.11  We invite the Minister to explain further his views on the system of appointment of additional judges and in the meantime do not clear document (b). Document (a) has been overtaken, and we now clear it.


22  Council Decision 88/591/ECSC, EEC, Euratom, OJ No. L 11, 14.1.94, p.1. Back

23  A copy of the draft decision was attached to the Minister's letter of 20 August. Back


 
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Prepared 7 December 1999