The Alliance Against IP Theft Summer Newsletter

The Alliance Against IP Theft have released the Summer IP Update.
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ACID’s RESPONSE TO GOVERNMENT’S REVIEW OF UK INTELLECTUAL PROPERTY (IP)

Anti Copying in Design’s recent IP poll indicates that 89.7% of designers believe IP infringement to be deliberate and blatant.

ACID welcomes the opportunity of the UK Review into Intellectual Property and Growth to raise awareness about, in particular, the difficulties which affect the UK’s designers and the uncertainty experienced by micro firms and SME’s in effectively enforcing IP infringement. We hope that the IP Review team will consider the following key points and recommendations based on evidence/case studies supporting the ACID submission.

• ACID would like to see evidence of design and design issues as a key feature in future UK Intellectual property policy and included in the UK’s IP Crime and Growth strategies.
• Many micro firms and SME’s are the pioneers of innovation; they are leaders not followers and the true champions of the UK economy. The IP framework does not lead innovation and growth, however, it does provide the legal vehicle and platform with which to protect, register and commercialise tradable IP. An effective IP framework should focus on all the above and provide a tangible focus on resolving infringement uncertainty, providing an IP seed bed for investment and investor visibility to those who can successfully translate tradable knowledge and ideas into commercial reality
• ACID believes that there should be provision of hands-on, practical, sector-led IP advice and information for micro firms and SME’s to help them maximise, protect and commercialise their IP
• ACID has presented an arguable case to bring unregistered design right in line with copyright. Current UKIPO policy is that design infringement may be inadvertent but, to date, have provided little or no evidence to support this.
• ACID supports the view held by many others that the UK has no dedicated law of unfair competition which currently provides little confidence (especially for micro firms and SME’s) against copying and the deliberate sale of lookalikes
• 89.7% of designers surveyed in a recent micro “IP scoop” believe IP infringement is blatant.
• If unregistered design right infringement was on a par with copyright infringement, design stakeholders could take part in positive discussions on the UK’s Crime strategy.
• The majority of the UK’s SME IP creators rely on unregistered rights and IP Protection generally for designers needs to be at a sufficiently high level to stimulate innovation and growth
• There is a need to improve awareness and understanding of the potential of design among policy makers and design customers in the UK and globally
• There is clear evidence of the “dog that didn’t or couldn’t bark” in the cost and complexity of enforcing IP rights in the UK and internationally for micro firms and SME’s
• Mediation has a key role to play in IP disputes
• We support many IP stakeholders who believe there is a need for a further review of the system of damages to dissuade the protagonists
• Easier access should be available to user-friendly sector led services to help SME’s protect and exploit their IP The current tried and tested IP framework for copyright should not be changed to suit current political and commercial aspirations which protect certain industries over others.
• Bona fide businesses need to have robust support to deter and challenge the damage done by illegal businesses and services
• The weight of arguments from the majority of IP lobbying stakeholders in music, film and media are foreign owned with UK subsidiaries and/or offices. The majority of designers and ACID members are UK based and owned.
• 2010/2011 has seen a marked increase in copying incidents at UK exhibitions/trade fairs and it is time for the exhibition industry to be made more accountable. At best, the Government should be looking at invoking some statutory powers to control matters. A minimum recommendation should be a commitment by exhibition organizers to remove products from sale where rights ownership can be confirmed by a stand owner and an infringing product is being unlawfully marketed.
• ACID questions whether future IP policy would not be better served in BIS with its own Minister of State. This would put IP on a more influential radar within Government ensuring that future IP policy would be created from a broader influence. This would ensure that future policy recognises the all the commercial needs of UK innovation to maximise growth potential.
• Further consideration should be given to the US initiative of appointing a national IP Tsar in the form of an Intellectual Property Coordinator. By placing IP as a top priority as the “US’s single most important asset”, The President of the United States has put emphasis on an IP framework which will not only provide a robust legal framework but will also concentrate on advancing and delivering growth, jobs and revenue by bringing together all IP stakeholders together as an all encompassing IP model.

ACID has submitted several case studies which demonstrate the difficulties faced by micro firms in affording the time and money to enforce IP infringement, many of whom simply go out of business because they cannot fight their corner. The case studies also highlight the vulnerability of SME’s who respond to tenders/pitches only to find that either their products are given to a third party to produce more cheaply or their work is stolen and changed sufficiently so that it is difficult and costly to legally challenge. Government could lead on this within its own procurement terms and conditions by encouraging respect for IP at the tender/pitch stage as an industry standard.

A couple of the case studies demonstrate the current culture of some major high street retailers who follow SME innovators, select products which have a proven market success and then copy them. They are then sent out to China to manufacture cheaply and brought back to flood the market. There is no level playing field in micro v macro legal challenges and current practice is to stonewall challenge and perpetuate litigation.

Further case studies highlight issues at the exhibition/trade fairs where, unlike EU counterparts, UK exhibition organisers do not take a tough stance on copying. A trade fair is usually the first point of market entry for new, innovative products and whilst it is a valuable platform it is also vulnerable to copyists. The UK Exhibition industry is worth £9.3 billion. Among other issues faced by micro firms is the difficulty to protect, register and enforce their IP rights in BRIC countries; the difficulties in accessing sector specific IP training and education and up to 89.7% also believe that IP infringement in the UK is blatant.

Other issues faced by SME’s is the increasing occurrence of walking off with entire businesses and creating copycat trading companies using every aspect of the original brand owners identity, including its look and feel, text, brand voice and communication platform.

ACID LOBBY INFORMATION

The creative industries have grown twice as fast as the rest of the economy in recent years and account for 7% of GDP; an integral measure of economic activity in the UK. According to the Design Council, design intensive companies outperformed the FTSE 100 by 200% over a ten-year period – there is every indication that this growth will continue. Every single aspect of the creative economy is underpinned by intellectual property, intellectual capital, know how and ideas – it is the lifeblood running through the veins of the future prosperity of a Creative Britain. In order to make it easier for creative people to build on their success it will be equally important to raise awareness about the protection, exploitation and commercialisation of IP. If we are entering what is said to be the most challenging economic period this century has experienced there will be many who will seek the fast track to market through IP theft.

ACID Lobby core objectives (view Word document)

Introduction of a new law of unlawful imitation (view Word document) – the case for.. 1) 2) Addressing the disparity between copyright owners and design right owners (view Word document)

Supporting a move to see “groundless threats” removed

Government promotion of mediation as a real alternative to IP litigation – A National Mediation Scheme

Educate to Protect - National IP education for SME’s. ACID has submitted a bid to the DCMS in response to Commitment 17 of the Creative Economy Programme (CEP)   ”We will promote better under standing of the value and importance of Intellectual Property”

Raising awareness regarding IP Crime at grass roots and at strategic levels.

ACID is proud to be an associate member of the Alliance Against IP Theft Providing a single voice for those  who share an interest in preventing intellectual property theft in the UK. ACID is also a member of IPAN (Intellectual Property Awareness Network) the Innovations Support Network and the Parliamentary Group for Design and Innovation ACID is part of the UK IPO CREATE group (view Word document)

Recognition of “design right” in IPRs and included in UK IP Crime strategy!

Declared Corporate Responsibility to IP

Increase in exemplary damages (view Word document)

ACID welcomes all support for its initiatives to raise intellectual property awareness in the UK and improve legislation to allow designers to fully exploit and capitalise their creative talent.

Good design, recognised as a market differentiator, doesn’t happen by chance. It takes years to create a brand with a pedigree of creative excellence not only to lead on visual elements but on essential ingredients/components such as quality engineering, high specification raw materials, health, safety and environmental compliance and skilled craftsmanship. Talent alone will not be the route to design success, a huge investment is necessary to develop top quality designs and products to obtain and maintain a place as a market leader and innovator. Design leaders need and demand to maintain their market position without being threatened by look alikes and copies.

Copyright the Future consultation – view ACID’s submission document

Nick Kounoupias from ACID Accredited law firm DMHStallard has been appointed as Chief legal counsel advising ACID on lobbying issues  including the latest copyright consultation.