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Last week I visited Estonia and was immediately reminded of Wales. It is another small country on the Western seaboard of the landmass of which it forms part. It has a larger territory but a much smaller population than Wales. Although almost everyone speaks fluent English and many Estonians also speak Russian, the country has its own euphonic language the use of which was discouraged for much of its history Like Wales, Estonia has a strong choral tradition. The events by which Estonia regained its independence are called "the Singing Revolution."
Estonia has been very successful in establishing and growing new businesses. Examples of Estonian companies that have become household names are Skype, Bolt and Starship Technologies. Although I had come to Estonia primarily to watch ballet I was also on the lookout for pointers to Estonia's success. In this article, I have gathered information and pointed to resources that might be of use to UK entrepreneurs. I will leave it to readers to consider whether Estonia has any lessons for the UK or for any of its nations and regions.
Many of Estonia's new businesses are in such activities as software development, fintech, electronics and robotics. Those activities require a highly developed digital infrastructure. In an article for Wired dated 28 Oct 2016, Matt Reynolds described Estonia as "the world's most digitally advanced society." It launched the first 5G mobile network in 2020 and offers very fast broadband to homes and businesses throughout the country. Those activities also require a highly educated workforce and perhaps another reason for Estonia's success is that it scores high marks consistently in the OECD's PISA (Programme for International Student Assessment) (see PISA 2022 results: Estonia’s education is the best in Europe Invesr Estonia.
Estonia is party to the European Patent Convention and has its own Patents Act which was enacted in 1994. It is also party to the Paris Convention, Patent Cooperation Treaty, the Patent Law Treaty and TRIPs. Estonia also protects inventions as unitiltu models under the Utilities Models Act 1994. Other intellectual property statutes to be noted are the Trade Marks Act 2002, the Industrial Design Protection Act 1997, the Layout-Designs of Integrated Circuits Protection Act 1998 and the Copyright Act 1992 which also protects rights in performances and database rights, Estonia has acceded to the Berne and Rome Conventions, the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty. Geographical indications are protected by Regulation 2019/787 and Regulation 2024/1143.
The Estonian Patent Office at Tatari 39 in Tallinn keeps comprehensive databases of inventions, trade marks, industrial designs and geographical indications. It also keeps a list of patent attorneys. A service that sounds as though it would be very useful to startup founders and other small business owners is pro bono advice on patent and utility model applications by patent examiners between 15:00 and 17:00 on Tuesdays (see "Free Consultations" on the Patent Office website.
Precedents for establishing, investing in and advising new businesses are available from the Startup Estonia page. These include agreements for assigning and licensing intellectual property rights which I have reviewed and believe to be sound. Non-residents of Estonia who want to incorporate and run a company in that country remotely can apply for a status called e-residency, Successful applicants receive a digital identity which enables them to access many government and private services that would otherwise be reserved for Estonian nationals and permanent residents.
Estonia is a civil law country. The court system is divided into civil and administrative law branches. Civil courts determine commercial disputes in accordance with The Estonian Commercial Code. The County Court is the court of first instance for all matters including intellectual property disputes. According to Taylor/Wessing's Patent Map Estonia does not have a specialist patents court though, as I mention below, there is at least one County Court judge with patents expertise. Typical costs of a patent trial where infringement and validity are an issue are €25,000 to €45,000, Appeal lies to the Circuit Courts and ultimately the Supreme Court which is also a court of cassation.
Estonia has ratified the Unified Patent Court Agreement and has adapted the unitary patent (see the UPC Member States Map on the Unified Patent Court website). Estonia falls within the Nordic-Baltic Regional Division of the Court of First Instance which also includes Sweden, Latvia and Lithuania. Kai Härmand who is also a member of the Estonian judiciary sits in that Regional Division. One of the hearing centres of the Nordic-Baltic Regional Division is in Tallinn at Lubja 4.
As far as I could judge prices in Estonia seem to be about the same as in the United Kingdom although hotels and restaurants in the old town can be expensive. A good tip from a dancer friend is to eat in the food court of the Solaris shopping centre which is just across the road from the Estonian National Opera House. That is where the locals eat. I bought a very nourishing meal of chicken, chips and sparkling mineral water at The Lido for €6.80 before watching my friend dance in Cinderella. I would never get away with that in Covent Garden.
Anyone wishing to discuss this article should call me on 020 7404 5252 during office hours or send me a message through my contact page.
