Economic pressure leads to cut in product development & “borrowing” of competitor designs
More intellectual property (IP) disputes are reaching court as businesses fight to defend their profit margins and market share in the recession.
The number of IP cases launched in the High Court increased by a third in the last year, according to the latest judicial statistics.
In 2008, there were 562 IP cases in the High Court, compared to 422 in 2007, and 230 in 2006.
The majority of cases involved disputes with importers, wholesalers and retailers rather than overseas manufacturers. Claims relating to copyright and design right showed the highest jump of 66% from 172 in 2007 to 286 in 2008.
Mark Finn, intellectual property specialist at EMW Picton Howell, says: “The economic pressure has heightened the threat of IP infringement as companies look to cut product development costs by “borrowing” competitors’ designs.”
“Traditionally claims used to be made against manufacturers but an increasing number of IP cases are now being launched against importers, wholesalers and retailers.
With manufacturing moving to overseas countries like China and India, where the enforcement of foreign companies’ IP is generally poor, companies are finding it more effective to bring their claims against UK businesses which subsequently handle those goods.”
Finn expects to see further growth in IP cases involving telecoms: “The number of IP disputes in mobile telephony has exploded since the introduction of 3G technology.
“As mobile phones become ‘smarter’, they will incorporate more IP rights. This is likely to support a continued trend in IP litigation.”
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