IPEC cases record high driven by increased IP awareness
The number of cases being brought at the UK’s specialist IP court has hit a record high, driven in part by an increased awareness among small and medium-sized enterprises (SMEs) of the need to protect their IP.
Law firm Hugh James reported that parties brought 367 claims to the Intellectual Property Enterprise Court (IPEC) in 2017, an increase of 8% from 2016, and up by 28% over the last five years.
The latest year-on-year increase is smaller than in 2016, when claims hit 339, an increase of nearly 70% from 2015.
The IPEC, which was called the Patents County Court until 2013, is a specialist court set up to help small businesses protect their IP, and covers claims worth up to £500,000 ($703,445).
As it stands, damages and costs are capped at £50,000 and disputes are heard by the same judge. Trials usually last no more than two days.
Jill Bainbridge, head of IP at Blake Morgan, noted that historically, the costs of enforcing IP rights through the courts have put smaller businesses off pursuing a case.
“SMEs are embracing the streamlined and cost-effective process offered by IPEC for resolving IP disputes. There is a greater awareness of the process driven by some very sensible recent decisions on issues such as damages,” she noted.
Bainbridge added that the IPEC process gives some certainty on costs liability because each stage of proceedings is cost-capped.
According to Hugh James, the increase in cases is driven in part by an enhanced awareness of the need to protect IP.
Tracey Singlehurst-Ward, partner at Hugh James, said: “Small businesses are increasingly showing that they are prepared to go all the way to the courts to protect their IP.”
A growing number of technology companies are using the court, said Singlehurst-Ward, although manufacturing companies continue to make up a large proportion of the SMEs bringing cases.
“IP, as opposed to a tangible, physical product, is increasingly central to businesses’ brands, particularly in the technology sector. As a result, there is more at stake for companies to protect their IP,” she said.
Bainbridge added that small businesses are “easy targets” for IP infringement, and when you’re setting up a business, IP protection may seem like a luxury rather than a necessity.
“But the reality is disclosing business plans, pitching new ideas and proposing new designs all put entrepreneurs at risk—so it is vital that they have appropriate protection in place,” concluded Bainbridge.
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