Tag Archives: reform

Patents - Novelty or Reform?

Patent Registration – Does It Lead To Greater Innovation?

Patents - Novelty or Reform?Patent registration is the first form of IP many businesses want to explore when they have an idea for something new. A patent is defined in the dictionary as a sole right to make, use or sell an invention for a set period.

The key word here is ‘invention’ which presumes innovation.. Therefore, patents should lead to the spread of knowledge and greater novelty. However, arguably the patent system has the effect of setting innovation back according to a recent article by the Economist.

Problems with patents

The article suggests that stronger patent systems do not result in more private research or an increase in productivity. The broadening of the patent regime in the 1980s following the USA’s recognition of the potential of crop science failed to galvanise progress in agriculture, and the article  also highlights how patent litigation is on the rise.

As a popular article recently stated: “most of the wonders of the modern age, from mule-spinning to railways, steamships to gas lamps, seemed to have emerged without the help of patents. If the Industrial Revolution didn’t need them, why have them at all?”

What is worse, as we wrote in our previous post “Patent Troll Problems – The Good, The Bad, And The Ugly”, the system has created a ‘web’ of trolls and defensive patent-holders which exist solely to exploit rights in patents often obtained from another company to block innovation.

Too expensive

The patent system is extremely expensive and even if individuals can afford to register a patent, any litigation afterwards is likely too costly to fund. This is also noted by Rubin who points out how “most inventors barely have enough money to file for a patent application. Even if the inventor can afford to get the patent to grant, patent litigation is exorbitantly costly, frequently requiring millions of dollars to fund. Individual inventors, and even small or medium-sized companies, cannot afford such fees without another company to finance the litigation or at least to license or buy the patent…The inventor may never realise any benefit from his toils.”

If patents lead to innovation and are so expensive to uphold, then it turns out innovation is expensive – probably more expensive than it should be. As innovation “fuels” the knowledge economy, it is the engine of development, and perhaps what we need is a “clear, rough-and-ready patent system” – to  encourage novel and fresh ideas. One that does not set innovation back.

Read the full Economist article

Intellectual Property Reforms Prove Successful – From Zero To Hero

IP Reform is SuccessfulAn independent report commissioned by the IPO entitled Evaluation of the Reforms of the Intellectual Property Enterprise Court 2010-2013 was published very recently examining the effect of the recent reforms in the Intellectual Property Enterprise Court (IPEC), the former Patents County Court (PCC).

The primary objective of the recent changes were to improve the litigation procedures and reduce litigation costs and, as a result, to increase access to justice in IP matters with special focus on individual claimants and SMEs who struggled financially to fight IP cases. Yassine Lefouili, one of the co-authors of the report, affirms the positive developments following the changes resulting in qualitative and quantitative evidence that there has been large increase in the number of intellectual property cases.

Governmental support

Introducing the report, IP Minister Baroness Neville-Rolfe praised the changes and confirmed that small and medium sized businesses and entrepreneurs now have better chances to actually defend their IP rights. This is good news, especially following a recent FSB research we wrote about in our article “SMEs And IP – FSB Reports They Struggle To Protect Their Intellectual Property” which revealed the struggle of SMEs and start ups to protect their IP.

The improvements come as a result of the costs cap and the 2010 active case management process. These amendments speed up the litigation process and also serve as an awareness tool for litigants to understand better their exposure before filing a claim. What is more, as Chloe Smith underlines for the Law Gazette, changes have opened up IPEC for patent and trade mark attorneys who are now able to represent their clients in court more often.

This suggests that reforms have paid off and, as the PatLit suggests, with the introduction of the Small Claims track we might as well have even better news in a following report.