In comparison, applications by overseas businesses rocketed up 14 per cent.
Patent box
According to RPC figures, patent applications to the UK Intellectual Property Office from within the UK reached 15,370 in 2012, a miniscule increase on 2011’s figure of 15,343.
However, overseas applications reached 7,865, a significant increase from 6,916 in 2011.
According to RPC, the three countries with the most patents filed in the UK in 2012 all saw significant increases on 2011. These were the US (26 per cent increase), Japan (19 per cent increase) and Germany (27 per cent increase).
The ‘patent box’ tax relief - announced in the Chancellor’s 2011 Autumn Statement - means that businesses can pay a preferential 10 per cent rate of corporation tax on profits derived from patents from 1 April. The relief will be available to profits from patents that are already registered. However this has not fed through into more patent applications within the UK.
Falling behind
Paul Joseph, intellectual property and technology partner at RPC, commented: ‘The patent box means that the UK is now one of the world’s most favourable tax jurisdictions for businesses with profits from research and development. However, the very favourable incoming regime doesn’t appear to have fed through into more British businesses registering patents in anticipation of exploiting the tax break.
‘These figures show that foreign companies, which are unlikely to be able to benefit from the patent box, are being more proactive in registering their patents in Britain. The UK is in danger of falling behind.’
RPC adds that the patent box is likely to change the way businesses approach patent applications, leading to increases in applications in future years.
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