As the modern economy changes ever more rapidly, traditional assets are giving way to intellectual ones.
In fact, intellectual property (IP) is so important to modern business that The Economist magazine believes up to 75 per cent of the assets of US public companies are now intangible.
Addressing the issue
Traditionally, lawmakers worldwide have struggled to keep up with the pace of change.
However, the UK Government recognises that, to attract innovators, it needs to keep ahead when it comes to protecting IP.
Innovation has never been more important to economic competitiveness in the UK.
Gowers Review
To this end, the chancellor of the exchequer commissioned a comprehensive report into the UK’s IP framework with a view to ensuring that the country is equipped to deal with the modern business environment.
The Gowers challenge
The Gowers Review, released in December 2006, described the current IP framework as “broadly satisfactory”, but it also stressed that certain areas could be adjusted.
According to the report, any modifications to Britain’s IP laws and their enforcement should meet the “twin challenges of global and technological change”.
These mean that “innovation has never been more important to economic competitiveness in the UK, and an effective IP regime is essential to support that innovation and investment”.
A swift response
The report’s recommendations hope to reduce the cost of litigation to businesses in IP disputes by using mediation and consulting on the back of a fast-track litigation system.
This is important news for companies doing business in the UK, given that many firms see the cost of enforcing IP rights as the biggest obstacle to securing those rights.
£5 million has been committed to Trading Standards to help enforce IP rights and prevent IP-related crime.
While some of the report’s recommendations are out of the UK Government’s hands because they are governed by European law, the Government has taken the report seriously.
Funds allocated
In particular, some £5 million has been committed to Trading Standards to help enforce IP rights and prevent IP-related crime.
The Patents Office has also changed its name to the UK Intellectual Property Office (UK-IPO), to reflect the fact that intellectual property is now a much broader area than traditional patents.
In recognition of the importance of IP to business, an independent advisory board will also be set up to advise the UK-IPO on IP issues.
Business leaders are the people who matter
Simon Baker, chief executive officer of propertyfinder.com, understands the importance of IP in the modern economy.
Like any internet-based business, IP is of critical importance to us.
Simon Baker
CEO
propertyfinder.com
His company is the second-largest portal for buying and selling real estate in the UK.
He says that, “like any internet-based business, IP is of critical importance to us… investment in IP, and the underlying technology that supports it, is what differentiates brands.”
For someone whose business relies on IP so heavily, Baker is particularly impressed that the Government has chosen to involve business leaders in advising the UK-IPO.
The Government is “going to the people who matter,” he says.
“The ones who need the real protection of IP laws.”
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