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29 July 2016Copyright

Reaction to Brexit: views from around the world

What the IP offices say

Despite the uncertainty and worry in the wake of Brexit, the British government has a clear and positive message for anyone with a stake in the IP system: “The UK has one of the best IP regimes in the world and our work continues to support and develop that. The referendum result will not change this.” The UK Intellectual Property Office added that it will continue to deliver “high quality rights-granting services, lead the world in IP enforcement, and engage in international IP discussions”.

Unsurprisingly, the official line was followed by Baroness Lucy Neville-Rolfe, the UK’s IP minister, speaking at the summer reception for the Union of European Practitioners in IP in London in June. However, Neville-Rolfe admitted that “it’s clear that there are many questions—not all of which can yet be answered”, before stating that the UK will continue to do business with the EU “as normal” until the UK has officially left the union.

Over in Europe, on the day after the referendum, European Patent Office president Benoît Battistelli declared that, regarding the unitary patent and Unified Patent Court (UPC), “the office expects that the UK and the participating member states will find a solution as soon as possible which will allow a full implementation of these so long-awaited achievements”.

But only days before, Battistelli had told WIPR that if the UK voted to leave the EU “it is not clear what happens, and the implementation of the unitary patent system could be delayed”. The UPC preparatory committee, in charge of implementing the UPC, has stated that while the resulthas given rise to questions concerning the UPC and unitary patent protection, at this stage it is too early to assess what the eventual impact of the vote could be.

WIPR contacted several other IP offices from Europe and around the world, but many of them were keeping quiet about their position on Brexit, most notably the European Union Intellectual Property Office and the US Patent and Trademark Office.

What the brands think

Several brands told us about their IP position following the vote. Ericsson, despite agreeing that it is too early to say exactly what Brexit will mean for various IP stakeholders and relevant projects such as the UPC, reminded us that negotiations are just beginning.

“Ericsson expects the EU and the UK to engage in a dialogue to continue a close collaboration in the future, as IP rights holders and users of IP-protected technology clearly benefit from a harmonised IP law.”

“We are confident that we can run our business despite the external circumstances we may face in any market by doing the right things in the right way, as usual.”

IP director at AIG, Elizabeth Pearce, who WIPR interviewed last year, told us that Brexit has been a fascinating study in the connection between European Union trademark (EUTM) and UK trademark protection.

“Many of our core trademarks had UK national registrations before the EU was formed. Out of an abundance of caution, I have continued to renew those over the years. Many of my trademark cohorts scoffed at what they saw as an unnecessary expense, but I am glad I did it. My primary concern at that point was litigation and the positive effect that having both a national registration and a EUTM registration would have before a court. It just goes to show that you never can tell what might happen.”

IBM, which consistently tops the rankings of US patent owners, was among a number of technology companies that responded to WIPR with a statement about its post-Brexit stance, even if it didn’t directly address IP. A spokesperson said: “Looking ahead to forthcoming negotiations, we urge leaders on all sides to prioritise areas of policy vital to harnessing the power of data to drive innovation, economic growth and job creation.”

In a short statement, Qualcomm told us simply that “it will take time to understand the full political and economic consequences of the historic vote in the UK”, while Canon revealed it is “considering what the consequences of this decision will be for the business in practice” and “once this is fully understood an action plan will be put into place”.

Sony Europe was more upbeat: “We are confident that we can run our business despite the external circumstances we may face in any market by doing the right things in the right way, as usual.”

Nestlé explained that “the practical consequences of this decision will become clearer in the coming months. Nestlé will continue to operate in the normal course and will follow developments closely”. Unilever, Apple, Toshiba, Microsoft, LG and Samsung featured on a list of brands that declined to comment on Brexit and IP.

What the IP bodies make of it

IP organisations were, mostly, forthcoming about their action plans. On the day of the vote’s announcement, the International Trademark Association (INTA) said it had assembled a “rapid response group” to advise members following the referendum, with a report to be published in the “coming weeks”.

INTA chief executive Etienne Sanz De Acedo said that although Brexit initiates a period of uncertainly for brand owners, it is important to note that nothing will change immediately.

“This is the beginning of a process during which the UK and the EU will negotiate the terms of the separation. During this time, the UK will continue being a full member of the EU, subject to all its rules and regular activity,” he added.

Uwe Over, chairman of Marques, said the organisation would remain on top of any developments. He added that for the time being it is clear that all existing EU laws and EUTM rights will remain fully in force in the UK during the Brexit negotiation process, and this may take some time, “so it is unlikely that any major changes to your IP rights will occur in the immediate future”.

Europe’s other leading IP organisation, the European Communities Trade Mark Association (ECTA), told WIPR it was an “unprecedented situation”.

“ECTA asks its members to stay calm. The vote gives us a chance to think again and anew and there will be time to plan for each IP owner. ECTA will of course keep its members informed regularly on the developments and the consequences for IP owners and practitioners following the result.”

The International Association for the Protection of Intellectual Property, a leading global IP organisation, chose not to comment.

Next steps

There is undoubtedly a sense of concern among IP owners about what happens next. This sense was underlined by the flood of newsletters and guides on the IP implications that numerous law firms have released since June 24. To paraphrase former US secretary of state for defence Donald Rumsfeld, there are known knowns, known unknowns and unknown unknowns right now.

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