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19 September 2014Copyright

Scottish devolution to raise IP concerns

The likely devolution of more powers to Scotland after the nation’s vote to remain part of the UK means that while some IP concerns have been alleviated others remain, lawyers have told WIPR.

Following an historic referendum that was at times too close to call, the vote for a ‘no’ to independence was around 55%, it was announced this morning (September 19).

As WIPR had previously reported, several IP concerns had been raised in the run-up to possible independence, including the status of  registered UK patents and trademarks and Scotland’s membership of the European Union (EU).

Following the vote, Prime Minister (PM) David Cameron said he was delighted the UK would remain together but added that commitments to extra devolved powers would now be honoured.

The PM also acknowledged that the people of England, Wales and Northern Ireland must have a bigger say over their affairs and said draft legislation would be in place in time for the 2015 election, the BBC reported.

Peter Watts, partner at the London office of Hogan Lovells, said while a ‘no’ vote meant some of the more complicated issues had been solved significant questions had still been raised by Cameron’s pledge.

“Devolving functions or creating different regimes applicable to various parts of the UK inevitably raises the possibility of divergence,” said Watts, adding that institutions in Scotland or other parts of the UK taking on more responsibility for policy making could cause businesses to face additional burdens.

“These burdens will arise both in the need to engage with an increased range of public bodies on development of policy and regulation and in complying with a more complex patchwork of regulation. Business will need to act swiftly to understand and engage with the proposals as they emerge in the coming weeks and months."

Chris McLeod, director of trademarks at Squire Patton Boggs, said there had been “considerable concern” that transitional provisions towards separate legislation would have had to be drawn up in haste, resulting in a lack of consultation.

He added that there was also concern that, “because this would apply to UK and Community trademarks,” there could be consequences such as a reduction in trademark applications and work for UK practitioners.

“Whilst IP is only a relatively small part of the overall picture, it is likely to be a relief for those practising IP in the UK that there will be no disruption to the landscape for the time being,” McLeod added.

Paul Chapman, partner in the Edinburgh office of Marks & Clerk LLP, said that Scotland is recognised for its “proud history of innovation” and that he looked forward to seeing more in the years to come.

However, he added: “It is important that we all continue to work to ensure the system of IP protection we have in place works for IP owners, the wider market and the wider population.”

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