New IP initiative could help to resolve disputes

Peter Singfield, associate and intellectual property specialist, says the introduction of a new small claims system to help protect intellectual property rights is good news for many small businesses. 

Intellectual Property (IP) relates to the ownership, the right to exploit and to benefit from, everything from trademarks, designs, inventions and copyrighted material (such as musical, film or literary works, but also technical plans such as architectural drawings or even databases). It can therefore apply to anything from a trading name or website address, to complex designs for chemicals, and very much in between. 

New plans, which involve changes to the way IP matters are to be dealt with in the court system, will benefit 150 small businesses a year and boost business by £350,000 a year according to the government. Could your business benefit? 

The change is set to come about as a result of the Hargreaves Report which was commissioned to look into whether or not the current system is up to the job in a modern setting. It was found not to be. 

Currently the cost of preventing a trader from using the same name as your company name as his own, causing confusion to customers and suppliers, for example, has been in the region of £20,000 - £30,000. The legal costs involved in even a simple IP matter, relating to the protection of a drug patent or something similarly complex, can run to in excess of £750,000. These are figures which, even if they are within the financial capacity of the business in question, are not easy to justify spending, and are sums that are simply not available to many businesses. For many businesses a claim is therefore prohibitively expensive. As Jonathan Djanogly, Justice Minister, indicated, the high costs of bringing such an action means that '1 in 6 (17 percent) of small and medium sized businesses had given up attempting to enforce their rights'. 

However, the government has recently confirmed that a new small claims service will be introduced at the Patents County Court, helping small and medium sized businesses protect their copyright, patents, trade marks and designs. This new system will provide for capped costs and damages will be limited to £5,000. 

Talking of this proposed new system, which the government hopes to have operational by late 2012, Minister for Intellectual Property Baroness Wilcox said, 

"This is great news for small and medium sized businesses as it will give them the confidence to stand up and protect their intellectual property rights. A small claims process means businesses will not have to fight through lengthy court battles instead of concentrating on growing their business." 

While people tend to believe this kind of legal work is reserved for big household brands, it is in reality very often small, or start up firms, that most need protection. These are exactly the businesses who, under the current system, are likely to be put off by the large legal costs associated with such legal action. The government proposals must therefore be welcomed. 

This is an excellent step forward for the justice system generally, and particularly good news for the South West which is home to a great many small and newly established innovative businesses. 

For further information or advice on intellectual property matters, Peter can be contacted on 01392 685362 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it