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29 July 2015Patents

'Substantial' rise in IPEC cases, says report

There has been a “substantial” increase in infringement claims filed at the Intellectual Property Enterprise Court (IPEC), a report has claimed.

The report, called “Evaluation of the Reforms of the Intellectual Property Enterprise Court 2010-2013”, was published last month but revealed by the UK Intellectual Property Office today, July 29.

In 2010, there were 110 cases filed at the IPEC (then known as the Patents County Court), compared to 272 in 2013.

In the same year, the court placed a cap on recoverable legal costs at £50,000 ($78,100). Since 2011, parties asserting a claim at the IPEC can be awarded a maximum of £500,000 in damages.

The rise in cases since 2010 has helped to fulfil "one of the key aims" of such reforms, the report said.

"Importantly, we find that this effect is driven by changes at the extensive (more claimants) and intensive (more cases per claimant) margins of litigation behaviour at the IPEC," it added.

Baroness Lucy Neville-Rolfe, the UK's IP minister,  said: “The report shows that the reforms made to the old Patents County Court through the introduction of IPEC have been successful. Access to justice has greatly improved for all rights holders, but particularly for small and medium-sized businesses and entrepreneurs.”

The authors of the report are Christian Helmers, assistant professor at Santa Clara University; Yassine Lefouili, professor at Toulouse School of Economics; and Luke McDonagh, a lecturer at Cardiff University.

Graham Johnson, partner at patent and trademark attorney firm Appleyard Lees, said the IPEC has "undoubtedly improved access to justice".

"Not only are more businesses able to afford their day in court, the availability of quick and affordable court proceedings means that infringers must take the threat of litigation more seriously than ever before.

"The IPEC has heard an impressive number of cases and consistently delivered good judgments, but the hidden statistic is the number of extra claims that we have seen being made and settled before they even reach the IPEC’s door," he added.

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