The number of small and medium-sized businesses (SMEs) launching legal battles to protect their intellectual property has jumped by 68 per cent, according to new figures. The number of claims has risen to 339 in 2016 up from 202 in 2015. IPEC handles small business claims worth up to £500,000 and caps costs recoverable from the losing side at £50,000. It also streamlines procedures in order to ensure that cases reach a speedy conclusion – and do not take up too much of smaller businesses’ time and resources.  

More accessible

The cost effectiveness of the new IPEC (re-launched in 2010) is designed to make the court more accessible to SMEs, giving them greater confidence to bring a claim in order to protect their IP. Partner Tracey Singlehurst-Ward of law firm Hugh James, says of the rise:  'The number of cases being brought before the IPEC is growing at an impressive rate. This is largely due to the increasing awareness of the value of intellectual property in the technology sectors, the online presence of SMEs and the growing financial incentives to protect IP.'  She said that an online presence could put SMEs at a much higher risk of having certain IP stolen – including digital images, styles and designs. 'This means they have to be extra vigilant and careful. They have to think about what the value is in their business before they launch it and also have to react quickly when their IP comes under threat.'

Online presence

Original designs and images or video content sitting on social media pages, business or retail websites or stock photo websites can easily be reproduced, reused or re-sold without the permission of the copyright holder. This can be damaging to a business’ brand, unless they take swift action to protect and enforce their intellectual property.   Ms Singlehurst-Ward pointed out that businesses were increasingly able to leverage the value of their IP to secure funding – enabling them to invest in planning and future growth. This provides them with a second major incentive to take both pre-emptive action in investing in protection of any intellectual property and enforcement of any infringements of it to preserve the value.  'In parallel, whilst previously a business’ most valuable asset tended to be physical it is more often than not now found in some intangible intellectual property. That could be patents, designs, trademarks and goodwill in their brands or other works attracting copyright. We no longer have an economy focused in manufacturing, but rather have a fast pace technology sector driven to reach the next intellectual creation first,' she said,