UK Businesses Often Lose IP In Deals, Survey Reveals

by Robin Pilgrim, LawAndTax-News.com, London

24 June 2005

According to the results of a survey published this week by the UK Patent Office, more than 70% of British businesses risk losing their intellectual property rights when signing deals with other businesses.

The research conducted by the Patent Office found that 40% of businesses think that they automatically own the copyright if they ask a sub-contractor to develop software for their business, while an additional 30% of businesses do not know who owns it.

However, the patent authority revealed that the ownership of the copyright actually rests with the sub-contractor unless the commissioning business clearly states in a written contract before work is carried out that ownership is theirs.

Head of Marketing at the Patent Office, Lawrence Smith-Higgins warned that:

"All businesses need to be aware of how to handle intellectual property because they all own some and should value it. When you sell a business or have it valued, it is often assets such as trade marks, copyright, patents and design registrations which command a great deal of the value. You can not afford to let these assets slip through your fingers from lack of knowledge."

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