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December 2011

New service set to cut costs of IP court cases

A new small claims service is to be introduced at the Patents County Court (PCC), helping small and medium-sized businesses to protect their copyright, trade marks and designs.

With small firms often put off enforcing their intellectual property (IP) rights by high costs, the new process, which is set to be operational by next November, will limit fixed costs and allow damages of up to £5,000 per case. The Intellectual Property Office (IPO) estimates that around 150 firms will benefit from the service every year, providing an annual boost to UK business of £350,000.

Announcing the move on 15 November, Minister for Intellectual Property Baroness Wilcox said: “A small claims process means businesses will not have to fight through lengthy court battles instead of concentrating on growing their business.

“Businesses know how important it is to protect their rights and have been calling for changes to be made to the system. The government is acting on these concerns because a strong intellectual property system will enable innovative small companies to grow and support the UK economy. We hope to have the new system in place by this time next year.”

Justice Minister Jonathan Djanogly said: “It is clearly much better for the economy if businesses are spending their time and money on trading and growth, rather than on unnecessarily complicated legal processes. That is why we are modernising the justice system in order to provide simpler, quicker and more cost-efficient ways to resolve disputes."

The recommendation for a small claims service was made in the Hargreaves Review of Intellectual Property and Growth.Evidence presented to the review indicated that around one in six (17 per cent) of small and medium sized businesses had given up attempting to enforce their rights due to high court costs.

LINK: Intellectual Property Office