IP lawyers in the UK are bracing themselves for a major shake-up in the way they practise, following an agreement on the creation of an EU-wide patent court after 30 years of negotiations.

The surprise move was announced by the Council of Ministers' Competitiveness Committee on 3 March, when it not only backed a single community patent, but also agreed to establish a dedicated patents court in Luxembourg.

The patent will cover all 15 member states, with all the litigation being handled by the new court. The reforms go further than previous expectations that national courts would retain their role as courts of first instance under the directive, with a unified EU court only for appeals.

IP lawyers are already predicting that UK firms will be forced to set up offices in Luxembourg, while the establishment of a European patents court with an emphasis on paper submissions, rather than advocacy, will inevitably channel some work away from the Bar. Continued wrangling over requirements to translate patents into European languages is also expected.

Kevin Mooney, head of IP at Simmons & Simmons, said the decision was groundbreaking and could ultimately have a wider impact on the conduct of litigation within the EU.

"This is the first time you will have a court within the European Court of Justice that deals directly with private disputes. The long-term feeling is that this is just the first of a number of matters that the EU is going to take jurisdiction of."

Under the timetable proposed by the committee, the EU patent will come into effect in 2006, with the court up and running in 2010.

And although companies and inventors will still have the choice of registering their patents in individual jurisdictions – or certain selected EU jurisdictions under the existing European patent system – IP lawyers believe that the new EU patent is likely to take off.

Linklaters IP partner Roland Mallinson said: "I think it will prove attractive to clients because of the potential for cost savings and the potential for doing away with conflicting judgments in different jurisdictions."

Bristows IP partner Edward Nodder predicted that UK firms would benefit from the changes, given their ability to pitch for work from US clients.

He added that firms would have to think seriously about setting up branches in Luxembourg.

"Things will not change overnight, but serious firms will use this time to plan. Without a doubt, we will open a representative office in Luxembourg," he said.