CBI Presents IP Six-Point Plan

In the next couple of weeks, the Confederation of British Industry (CBI) is about to launch a report on intellectual property (IP). In anticipation of the launch, it has published a six-point plan to encourage businesses to utilise their IP more effectively and so pull the UK economy out of recession a bit faster.

As the CBI rightly argues that IP is an important issue for UK companies because

• As a service economy, IP is often their most lucrative asset.
• Apparently, many companies don't protect their IP well enough.

1. Set up an Intellectual Property Office to act as a champion for IP in the UK.
2. Work to create a common patent that protects IP across the EU.
3. Create tax incentives for companies to base their R&D operations in the UK.
4. Channel more students into the subjects that are most likely to promote the creation of IP assets.
5. Encourage academia and commerce to work together on creating IP by making it easier for them to share the royalties.
6. Encourage more venture capital funding into IP intensive companies.

• There are already a number of organisations that oversee the protection of IP assets, so do we need another one? Perhaps the existing ones should make more effort to champion the role of IP and perhaps more importantly, define what IP actually is, so that business leaders can use what they have more effectively.
• There is a common form of trade marking in the EU and a common patent system will simplify the way we do business within the Euro-zone. It's a global market and this initiative would be a step forward. However, a central patent office wouldn't be able to police patent infringements over so many countries. It would be up to companies to track new patents to make sure others aren't trying to claim their IP.
• There are already healthy tax incentives to set up R&D operations in the UK -- do we need to implement more?

He warns:

• When developing new products or services with third parties, make sure it's understood who owns the IP. If necessary, contractors should sign non-disclosure agreements. Patent rulings typically view the innovator as the owner of the IP. Just because you paid for the development doesn't automatically make the IP yours.
• The same when working with bigger companies. It's common for blue chip companies to prospect a number of small businesses, either as a collaborator or a potential acquisition. For a SME, it might be flattering to get that sort of attention, but the temptation is to give away sensitive information about your IP. Many will not have the funds to challenge ownership if they see that blue chip using their ideas.