{"id":52314,"date":"2015-01-09T09:00:45","date_gmt":"2015-01-09T09:00:45","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=080e819dc96a6cd8567512ac9bba531f"},"modified":"2015-01-09T09:00:45","modified_gmt":"2015-01-09T09:00:45","slug":"speech-intellectual-property-priorities-in-business-innovation","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=52314","title":{"rendered":"Speech: Intellectual property priorities in business innovation"},"content":{"rendered":"
\n

Introduction<\/h2>\n

Shortly after the end of the Second World War Winston Churchill said that Britain had nothing left except the abilities of her people. Even then, this may have been something of an exaggeration, though an understandable one, but it encompasses an important truth. Britain has fewer major natural resources than many other countries. It follows that to earn our way in the world we have to rely more on brains than on nature.<\/p>\n

This is the fundamental reason why for us in the UK<\/abbr> the protection of inventions in the broad sense, intellectual property in the current jargon, is so important. According to one calculation, we in the UK<\/abbr> invest much more in intangible than in tangible assets. Whatever the truth of that I do believe the trend is for intangible assets to become relatively more important. <\/p>\n

Overall it seems fair to conclude that worldwide intellectual property, which I will call IP<\/abbr> from now on, is becoming increasingly important relative to other forms of property and, for the UK<\/abbr>, it is especially important. These trends and tendencies seem likely to become even more pronounced as far ahead as we can see, with digital technology and indeed digital crime giving this an added relevance.<\/p>\n

All this is clear enough. But we with responsibilities in the area of IP<\/abbr> also face real difficulties. It is complicated – a bit geekish might be the best description – and for many, probably most, people it is not very interesting. <\/p>\n

One cannot see senior ministers of this, or indeed any other, country being convinced of the case for their making a major speech on the subject, however important it might be objectively speaking. A speech on something with more appeal is always likely to seem more compelling. <\/p>\n

Now as a relatively new minister in the area of IP<\/abbr>, I am surrounded by talented people who are fascinated by the complexities of the subject and feel passionately about it. That is of course all to the good. However it is ministers who have to make the case for action on IP<\/abbr> and, for the reasons I have indicated that is not always easy.<\/p>\n

Though I believe I have just set out the realities accurately, it is true to say that we have made significant progress in recent years. It has come to be better appreciated within Her Majesty\u2019s government that the protection of IP<\/abbr> is a vital component of innovation and scientific advance; and that many of the benefits of invention will be lost if the resulting IP<\/abbr> is not protected. <\/p>\n

And we have put a lot of effort into improving the legal framework. Indeed, according to the Taylor Wessing Global IP<\/abbr> Index<\/a>, in 2013 the UK<\/abbr> had the top rated IP<\/abbr> regime in the world. It suggests we are doing something right. <\/p>\n

And this is important because in my view one contribution government can and must make to business innovation is to get the IP<\/abbr> legal framework right. <\/p>\n

Improving the ecosystem<\/h2>\n

This reform of the legal IP<\/abbr> framework is an essential element in supporting innovation, but more is needed.<\/p>\n

To encourage the production, flow and sale of legitimate goods and digital products we also need to reach out to businesses and give priority to enforcement and education. People need to understand the value of ideas that can so easily be stolen and the costs of counterfeits and IP<\/abbr> theft. Indeed the relevant UK<\/abbr> enforcement authority, Border Force, has estimated that IP<\/abbr> crime costs the UK<\/abbr> economy around \u00a31.3bn each year. And we also know that better protection of legitimate ideas encourages innovative investment.<\/p>\n

So what have we done to improve the ecosystem? The steps we have taken include:<\/p>\n

Through our Intellectual Property Office<\/a>, we have been trying to help businesses identify and make the best of their IP<\/abbr>. We have created a
\nsuite of mainly on line tools for SMEs<\/abbr> and business advisers to understand IP<\/abbr> better, what protections rights offer, and whether IP<\/abbr> is relevant for
\nindividual businesses. <\/p>\n

We have also negotiated new advisory services from around 250 specialist IP<\/abbr> advisers to help businesses take forward the recommendations of IP<\/abbr> Audits.<\/p>\n

We are collaborating with the British Library<\/a> and other key libraries across the UK<\/abbr> to build a network of Business and IP<\/abbr> Centres. They are centres of expertise where people can come together to access free or low-cost advice and support in starting, developing and running a business or protecting a business idea.<\/p>\n

We have set up an IP<\/abbr> attach\u00e9 network to help UK<\/abbr> companies operate more effectively overseas. Last year the attach\u00e9 network supported over 3,700 UK<\/abbr> businesses.<\/p>\n

Setting the future agenda<\/h2>\n

We have also established a research programme to increase the understanding and valuation of IP<\/abbr> rights, to analyse the efficiency of complex IP<\/abbr> systems and to examine possible future challenges.<\/p>\n

We hope this will provides valuable insight into how the knowledge economy and the IP<\/abbr> regime can better work to support business innovation. Indeed IPO<\/abbr> have produced some fascinating reports on patent data in areas such as robotics, life sciences and genomics and agri-science as part of the government\u2019s innovation work on great technologies that can drive growth.<\/p>\n

A new report on 3D printing and IP<\/abbr> issues will be published later this month which considers the current state of the market, its likely development and what this means for the UK<\/abbr> IP<\/abbr> system.<\/p>\n

Getting businesses to make the most of their IP<\/abbr> is vital, but making sure there is a sophisticated and responsive marketplace for IP<\/abbr> is equally key.<\/p>\n

We have provided start-up funding for the Copyright Hub<\/a> that is creating a marketplace and boosting trade in IP<\/abbr>. It signposts users to relevant supplier websites so it is easy to obtain permission rights, vital in the music industry and to making legitimate use easy.<\/p>\n

We have also welcomed other industry-led solutions to strengthen the marketplace for the licensing and trade in IP<\/abbr> rights, for example ACID<\/abbr> which stands for \u2018anti-copying in design, is a safe online trading platform where design buyers can view the latest designs created by its members.<\/p>\n

We have driven up the standards of practice of Collecting Societies by introducing a backstop power to make sure the minimum standards for the industry are met. We have also put in place an Orphan Works Licensing scheme that has opened up access to culturally valuable pieces of creative work where rights holders cannot be found.<\/p>\n

The IPO<\/abbr>\u2019s \u2018Banking on IP<\/abbr>\u2019 project is aimed at raising awareness of IP<\/abbr> as an asset. Once finance directors start looking at IP<\/abbr> as a positive addition to the balance sheet, rather than just a cost line covering patent and other registrations, we will be getting somewhere. The advent of our Patent Box, a tax break to encourage R&D<\/abbr> spending, will help here by focusing the finance men and women on this area. <\/p>\n

To help the 60% of students in the UK<\/abbr> who think they do not understand enough about IP<\/abbr> to support them in their future careers, we are working with universities to support academics teaching many different courses and on their students through an online tool.<\/p>\n

We are also recognising and rewarding strong examples of entrepreneurship and the development of ideas. We have a well established competition, Fast Forward, which has given out some \u00a33 million in support of outstanding projects to develop and commercialise the use of IP<\/abbr>. <\/p>\n

Encouraging commercialisation<\/h2>\n

And we support UK<\/abbr> institutions from the inception of their ideas through to commercialisation. IP<\/abbr> is often initially generated during research projects and the IPO<\/abbr> has developed a toolkit to help universities and businesses manage IP<\/abbr> created in these collaborative research projects. The Lambert Toolkit contains a series of model IP<\/abbr> agreements designed to facilitate negotiations between potential collaborators, reduce the
\ntime and effort required to secure agreement and provide examples of best practice.<\/p>\n

We also work with the younger generation, for example in partnership with Aardman Animations, and their Wallace and Gromit Children\u2019s Charity, targeting 4 to 16 year olds and covering all forms of IP<\/abbr>. The \u2018Shaun in the City Schools Programme\u2019<\/a> featuring the popular animated character Shaun the Sheep, is being marketed to schools nationwide with a cross curricular education pack and a design competition that will encourage children to think about design, innovation and intellectual property.<\/p>\n

As part of our work to build understanding and respect for IP<\/abbr> rights, the government is also working with the creative industries, including the Motion Pictures Association, Sky and BT, as they fund a major 3 year education and advertising campaign to alert consumers when they are accessing infringing content online and build up an understanding of the value and potential of IP<\/abbr>.<\/p>\n

Protecting IP<\/abbr>
\n<\/h2>\n

Of course there is no point encouraging and supporting businesses innovation if you cannot protect it. So I am cautiously gratified that, according to the US<\/abbr> Chamber of Commerce<\/a>, the UK<\/abbr> has the best enforcement regime in the world.<\/p>\n

We have made significant reforms to the system of Patents Courts. Our renamed IP<\/abbr> Enterprise Court<\/a> makes it easier for rights holders and other businesses to access justice at a fair cost with a scale of recoverable costs, capped at \u00a350,000, hearings limited to 1 or 2 days and a Small Claims Track for cases under a value of \u00a310,000.<\/p>\n

We also offer a range of Opinion and mediation services, designed to help resolve disputes more effectively. As part of the IP<\/abbr> Act, we expanded the Service to provide opinions on a much wider range of patent disputes and Supplementary Protection Certificates.<\/p>\n

The City of London IP<\/abbr> Crime Unit<\/a> has had some notable success in its first year, taking down more than 2,000 infringing websites and investigating more than \u00a328 million of IP<\/abbr> crime.<\/p>\n

Last year\u2019s IP<\/abbr> Enforcement Summit which we hosted in London brought together more than 300 representatives from governments, industry and enforcement agencies from across the world. It demonstrated the importance of collaboration, locally, nationally and internationally, if we are to tackle the growing issue of IP<\/abbr> crime.<\/p>\n

This is complemented by the government\u2019s huge programme to tackle cybercrime with 60% of small business reporting a breach in the last year. This can be very costly. Think of the potential targets \u2013 and what has already happened the destruction of data at the Saudi Petroleum company and of course the Sony incident. The one advantage was that it made the public case for our national cyber security programme.<\/p>\n

Contrasts with the US<\/abbr>
\n<\/h2>\n

Given our audience this evening it would be wrong not to comment on the differences between IP<\/abbr> law here and in the US<\/abbr>. <\/p>\n

Much that is different stems from the fact that the US<\/abbr> is more litigious than the UK<\/abbr>. This is exemplified by the emergence of the term \u2018patent troll\u2019 which you may have heard – companies whose business model relies on asserting patent rights and sitting on them. I am told that patent trolls are more common in the US<\/abbr>, partly because software and business method patents have been more widely available there than in the UK<\/abbr>, where a more strictly defined position reduces the legal uncertainty on which trolls can thrive. And the costs regime in the UK<\/abbr> is also a clear disincentive for trolls \u2013 here, the loser pays the winner\u2019s costs which is not the case in the US<\/abbr>, at least for the time being. <\/p>\n

The US<\/abbr> has tackled one of the problematic issues around copyright protection through a non-compulsory register of copyright works. <\/p>\n

And the US<\/abbr> approach to trade marks differs in requiring commercial use of a mark for validity but no compulsion to register it, although doing so gives a stronger legal footing if you wish to defend it against infringement.<\/p>\n

Looking forward we believe that there is much to be gained from a more global approach to IP<\/abbr> as trade and the flow of ideas knows no boundaries. We need forums in which to discuss IP<\/abbr> issues, both the development of parallel legal structures and international enforcement and education.<\/p>\n

I am glad to say that are making progress on the issue of patent harmonisation. For example, the US<\/abbr> currently has a 12 month \u2018grace period\u2019 in which an inventor can make his or her invention public without compromising the right to file a patent. There is no such provision in Europe currently but there are on-going discussions on how to remedy this difference in protocol. The IPO<\/abbr>\u2019s Chief Executive John Alty chairs Group B+, an international group looking at potential areas for patent harmonisation, which amongst other things is considering harmonisation of the grace period. <\/p>\n

Challenges over the next 5 years<\/h2>\n

So what are the challenges for the next 5 years? Our focus will continue on strengthening the UK<\/abbr> IP<\/abbr> framework to maximise support for business innovation and help drive growth.<\/p>\n

There will be an increasing concentration on the European and international scene.<\/p>\n

We are working with the EU on the successful delivery of the unitary patent and the Unified Patent Court, with its pharmaceutical division to be based here in London. <\/p>\n

And we will be making sure that proposed copyright reform and digital single market meets the interests and needs of the UK<\/abbr>.<\/p>\n

Looking beyond Europe, we will continue the work around harmonisation of the international framework. China will remain a priority because of its strategic importance in terms of UK<\/abbr> trade and investment.<\/p>\n

I visited China in September to open the 2nd UK<\/abbr>-China IP<\/abbr> Symposium. I was struck by the progress the Chinese are making. Chinese industries are moving up the value chain and domestic innovation is driving the need to further strengthen their IP<\/abbr> system. IP<\/abbr> is no longer a foreign concern but a key issue for both the Chinese government and Chinese businesses. This is clearly illustrated by the fact that in 2013 less than 2% of IP<\/abbr> related court cases were brought by foreign companies. <\/p>\n

I met 8 ministers during my visit and it is clear that the government is intent on creating an economy in which IP<\/abbr> plays a fundamental role. As former Premier Wen Jiabao often said, \u201ccompetition in the future is competition in IP<\/abbr>.\u201d<\/p>\n

So what does this look like in practice? The largest number of patents per year are now filed in China, and the Chinese authorities have recently announced their intention to increase this, with an aim to triple patent filings by 2020. Their whole IP<\/abbr> framework is being reformed and developed rapidly. Whilst we recognise that there are still IP<\/abbr> risks involved in investing in China, the IP<\/abbr> reforms are positive for British businesses and I hope
\nthat the UK<\/abbr>, like the US<\/abbr>, seizes the opportunity to engage in this fast-moving market. <\/p>\n

Conclusion<\/h2>\n

But I would like to conclude with a challenge that harks back to my opening remarks.<\/p>\n

We have a cultural problem in improving the understanding and value of IP<\/abbr> in the UK<\/abbr> business environment. Lawyers understand the area well and its complexity suits the legal mind, but companies must realise that IP<\/abbr> asset management is important. They must find IP<\/abbr> literate employees and directors who understand its value. <\/p>\n

Perhaps this evening\u2019s distinguished gathering can help us to decide how we can do this better?<\/p>\n

Ladies and gentlemen, I look forward to your comments and questions and of course to Sir Richard Arnold\u2019s response.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Speech by Baroness Neville-Rolfe at the intellectual property annual seminar mentor dinner in London.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/52314"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=52314"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/52314\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=52314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=52314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=52314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}