Intellectual property rights (IPR) are individual rights relating to the ownership of intellectual property, for example, copyright, design rights, registered trademarks, patents and know how; such rights are a vital tool in encouraging and protecting innovation.
Some of the rights are automatic (for example copyright is afforded to the producer of a piece of writing, photo, film, web page or piece of music for example, as soon as it is created), but some require formal registration, such as trademarks. Whatever the case may be, intellectual property is a key asset to most businesses and must be closely guarded but of course any rights are useless if the owner cannot protect them and it is owner’s responsibility to police IPR infringement.
Until recently the ability to effectively protect intellectual property rights has probably been the domain of only affluent businesses; brands like ‘Coco Cola’ – and rather topically ‘London 2012’ are names we usually hear on the offensive. High costs have often put British companies at a disadvantage against other European countries, where IPR litigation costs have traditionally been less expensive – particularly Germany. But, as the world becomes more competitive and reliant on initiative and technology, inventions, brands and ideas are becoming more and more precious, and we need a way to enforce IPR.
Businesses will therefore be relieved to hear that the Government has stepped in to make it easier and cheaper for businesses of all sizes to protect their intellectual property by changing the litigation system, making it more accessible, streamlined and cost effective.
Earlier in 2011, the Patents County Court, became the Intellectual Property County Court, which, it is said offers a more cost effective court process, particularly for lower value or less complex claims such as trademark infringements, passing off actions, copyright and design right infringements. A number of changes in the way IPR claims are handled have also been introduced, the most significant being a £50,000 cap on costs against the losing party if the proceedings go to trial. Other changes include:
- A scale of costs, with a maximum amount recoverable for each of the main procedural stages of the claim. (A party may incur costs that exceed these caps, but will not be able to recover the excess costs from the losing party).
- Emphasis on the significance of the parties’ statements of case, each of which must set out all the facts and arguments on which the serving party relies.
- Extending the timetable for exchanging statements of case.
- No automatic right to further disclosure, or to other evidence common to IP disputes, product or process descriptions, experiments, witness statements, experts’ reports, cross-examination at trial, written submissions or skeleton arguments.
- Where possible, the court will determine the claim solely on the basis of the parties’ statements of case and oral submissions and if it orders any further evidence it will only relate to specific and identified issues – and only if the benefit of the further evidence is likely to justify the cost of producing and dealing with it.
- A trial of no longer than 2 days.
- Active case management by the Judge.
It is hoped that these changes will help to stimulate innovation and creativity, encouraging small and medium sized businesses and individuals, who might previously have shied away from the courts, to enforce and protect their intellectual property rights without having risk financial ruin.
For further advice and information on how to protect your intellectual property rights, please contact our commercial law specialist Kiley Tan on 0114 256 4782 or email Kiley@wosskowbrown.co.uk
