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21 July 2022PatentsStaff writer

UK blocks Chinese company from acquiring university’s IP

Tech presented ‘national security risk’ | Business minister uses new powers for the first time | University says it voluntarily referred the deal for scrutiny.

The UK government has issued an order preventing the acquisition of IP covering vision sensing technology by a Chinese company in the UK’s first use of new national security powers.

In an announcement shared yesterday, July 20, UK Business Minister Kwasi Kwarteng said the order would prevent Beijing Infinite Vision Technology Co from buying IP from the University of Manchester and using it to develop, test and verify, manufacture, use, and sell licenced products.

Beijing Infinite Vision Technology was planning to acquire IP related to Scamp-5 and Scamp-7 technology, which was developed by the university and can be used in a variety of devices, including toys.

The order was issued under the National Security and Investment Act, which was introduced in January this year. The act gives the government powers to scrutinise and intervene in business transactions to protect national security.

According to Kwarteng, the technology has more than one use and “there is potential that the technology could be used to build defence or technological capabilities which may present [a] national security risk to the UK”.

The order added: “Those risks would arise on the transfer of the intellectual property to the acquirer.”

Kwarteng considered the order “necessary and proportionate to mitigate the risk to national security”.

A University of Manchester spokesperson said: “We have thorough internal processes in place to look at proposed international agreements. These were followed in this case and, in line with the legislation, we voluntarily referred this agreement to the UK government. We will, of course, abide by the decision that has been made.”

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