18th November 2011
Federation Against Software Theft welcomes the new Intellectual Property Court process
– New small claims service will help protect IP rights’ in the SMB sector –
The new small claims service being introduced at the Patents County Court (PCC) in 2012 will help small and medium sized software businesses protect their copyright, trademarks and designs, reports the Federation Against Software Theft (FAST).
Julian Heathcote-Hobbins, General Counsel at FAST, stated: “The recommendation for a small claims track to resolve IP disputes was made by Lord Justice Jackson in his Review of Civil Litigation Costs in January 2010. It was then endorsed in the Hargreaves Review of Intellectual Property and Growth in May 2011. So the news that it will be implemented at some stage in 2012 is to be warmly welcomed not just by SMB companies in the software sector, but any small company daunted by the costs associated with protecting their intellectual property.”
The Hargreaves Report stated: ‘The Government will, subject to establishing the value for money case, introduce a small claims track in the Patents County Court for cases with £5000 or less at issue, initially at a low level of resource to gauge demand, making greater provision if it is needed.’
Julian continued: “We have plenty of experience in working with small companies often put off from enforcing their Intellectual Property (IP) rights by high costs. The new process will limit fixed costs and allow damages of up to £5000 per case.”
Recent figures produced by the Intellectual Property Office (IPO) estimate that around 150 firms will benefit from the service every year, providing an annual boost to UK business of £350,000.
In the Government announcement itself, the Minister for Intellectual Property, Baroness Wilcox said: “This is great news for small and medium sized businesses as it will give them the confidence to stand up and protect their intellectual property rights. A small claims process means businesses will not have to fight through lengthy court battles instead of concentrating on growing their business.”
Evidence presented to the recent Hargreaves Review, Digital Opportunity: A Review of Intellectual Property and Growth, indicated that around 1 in 6 (17 per cent) of small and medium sized businesses had given up attempting to enforce their rights due to high court costs.
Notes to editors
- The Intellectual Property Office (IPO) is an executive agency of the Department for Business, Innovation, and Skills (BIS) and is responsible for the national framework of Intellectual Property rights, comprising patents, designs, trademarks and copyright.
- Its role is to help manage an IP system that encourages innovation and creativity, balances the needs of consumers and users, promotes strong and competitive markets and is the foundation of the knowledge-based economy.
- It operates in national and international environments and national and international law., Various international treaties relating to Intellectual Property (IP), to which the United Kingdom is a party, govern its work.
- Changes to the legal system for IP cases since June 2010 have included new limits on costs (£50,000) and damages (£500,000) in the Patents County Court.
- The limits were implemented following a report by Lord Justice Jackson in his review of Civil Litigation Costs on 14 January 2010.
- Although recent reforms have improved the cost of taking smaller IP cases to court, a business with a legal case worth less than £5,000 could still face costs of up to £50,000 to get a judgement against an infringer.
- In the past some companies were put off protecting their rights due to the cost. Supporting evidence to the Hargreaves Review of Intellectual Property and Growth highlighted that around 1 in 6 (17 per cent) of small and medium sized businesses had given up attempting to enforce their rights.
- The Central London County Court is designated as a Patents County Court.
About The Federation Against Software Theft
The Federation Against Software Theft (FAST) was formed in 1984. FAST is a not-for-profit organisation limited by guarantee and wholly owned by its members. It was the first organisation to protect software publishers’ rights and advances its mission through education, enforcement and policy initiatives, together with promoting standards and best practice in the professional management of software. FAST advocates IP for growth. www.fast.org.uk
