Patents not worth the paper for small businesses

Small companies in the UK are calling for better protection for their intellectual property, saying they cannot afford to pursue breaches in the courts.

The Forum of Private Business, a UK trade association representing a range of SMEs, wants the government to make it easier and less costly for small companies to defend patent rights. In a submission to the current Hargreaves Review of intellectual property (see UK announces wide reform of intellectual property laws) the Forum says its members have complained that breaches are going unpunished because of the steep costs involved in pursuing them in court.

In addition, the Forum says innovations are often manufactured under license outside the EU – with significant transfer of knowledge abroad, but no control over how it is used.

One Forum member John Collier of Monument Tools Ltd in Wallington, Surrey, has developed a new type of pipe cutting tool. Its biggest market is in the US but he has experienced a number of patent and IP problems involving bigger companies bringing in similar products he believes should be protected designs. “There have been cases where we’ve had IP protection but importers just ignore it,” said Collier. “The tool is made in Asia, for example, put into the UK market and then they sit there waiting to be sued – in the full knowledge that small businesses can’t afford to sue them.”

Collier added, “There’s nothing you can do about it because you can’t afford to – they are the big company and you are not. “

In addition to steep litigation fees, the Forum is concerned that patent costs, a lack of clarity over R&D tax credits and a lack of support within the UK’s public procurement process are combining to hinder innovation-led growth.

“Entrepreneurs are the UK’s real innovators and this innovation is one of the key elements that we need to nurture to drive economic recovery and growth,” said Alex Jackman, Senior Policy Adviser at the Forum.

While several of the measures outlined in the Hargreaves Review are welcome, SMEs will remain at a disadvantage when it comes to protecting IP. “Specifically, we want small business owners to be able to secure their intellectual property more efficiently and cost-effectively, including through greater overseas protection of UK patents and IP,” Jackman said.