UK Spring Budget: lawyers welcome £270m tech commitment
Lawyers have welcomed the announcement that the UK government will introduce a £270 million ($327 million) fund to support research and innovation across the country.
Chancellor of the Exchequer, Philip Hammond, announced the Spring Budget for 2017 yesterday.
The government will initially invest £270 million in a bid to kick-start the development of “disruptive technologies that have the potential to transform the UK economy”.
One of the first technologies that the Industrial Strategy Challenge Fund (ISCF) will focus on is leading world development in the design and manufacture of batteries that will power the “next generation” of electric vehicles.
Artificial intelligence and robotic systems will be developed to operate in “extreme and hazardous environments”, while accelerated access to new drugs will be achieved by developing new medicine technologies.
Kristina Cornish, partner at law firm Kilburn & Strode, told WIPR: “It is a proactive step from the government to commit £270 million to the new ISCF for disruptive technology development for areas such as robotics, batteries and biotech.”
She added that new research in these technologies will undoubtedly lead to the creation of IP for platform technologies.
Platform technologies are used as a base on which other applications and processes are developed.
“However, this initial fund will not stretch as far as needed for the UK to remain at the forefront of Europe in innovative technology and the necessary continual commitment to IP protection,” Cornish added.
Karl Barnfather, chairman of IP firm Withers & Rogers, added: “Whilst this funding boost is a positive step, it is also important that more is done to increase awareness of the value of IP at grassroots level to ensure that the UK feels the full economic benefit of its investment.”
As part of the budget, the research and development (R&D) tax review found that the UK’s R&D tax regime is an “effective and internationally competitive element” of the government’s support for innovation.
“The government will continue to keep the competitiveness of the UK environment for R&D under review to ensure that the UK is profoundly pro-innovation,” said the budget.
Cornish believes that the R&D tax regime review could have gone “much further in trying to put the UK above other European countries with highly competitive R&D tax regimes”.
Peter Brownlow, partner at law firm Bird & Bird, added: “The government will legislate in the Finance Bill to amend the patent box rules for R&D cost-sharing arrangements to ensure that such arrangements do not give rise to an unfair advantage/disadvantage.”
He explained that following consultation, the draft legislation will be revised to narrow the definition of a cost-sharing arrangement and to better align the treatment of payments.
“We are awaiting revised draft legislation in this respect,” said Brownlow.
Kristina Cornish is a WIPR Leader for 2017. Her profile is available here.
Peter Brownlow is a WIPR Leader for 2017. His profile is available here.
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