Summary
- A UK trade mark registration covers the United Kingdom only, so a business that sells into the European Union or the United States must file separately in each of those markets.
- Copyright arises automatically when you record an original literary, dramatic, musical or artistic work, and the UK operates no copyright register.
- A registered design lasts up to 25 years, while UK unregistered design right expires 15 years after creation or 10 years after first marketing, whichever comes first.
- Your contracts decide who owns the intellectual property your people create, because the default rules treat staff and contractors very differently: an employer owns what an employee creates in the course of employment, but a contractor keeps copyright unless the contract assigns it.
- LegalVision does not advise on patents, so a business with a new product or process should instruct a patent attorney registered with the Chartered Institute of Patent Attorneys before it discloses the invention publicly.
Tips for Businesses
Audit what your business owns. Register your trade mark in every country where you trade, not only the UK, and file a design application within the 12-month grace period if you have already shown the product publicly. Add written assignment clauses to every contractor agreement, and keep confidential information behind access controls. If you need help protecting your intellectual property, our experienced intellectual property lawyers can assist. Call 0808 196 8584.
Your business probably owns more intellectual property than you realise. The name above your shopfront, the code behind your app, the shape of your packaging and the customer list in your database can all attract legal protection, and each one works in a different way. Some rights arise automatically the moment you create something. Others exist only if you apply for them and pay a fee, and you lose them if you disclose the work too early. The distinction matters commercially, because investors, buyers and licensees all ask what a business owns before they commit. This article explains the main types of intellectual property a business can use in the United Kingdom, how each right arises and what it protects.
Trade Marks
Trade marks, either registered or unregistered, are one of the most commonly used mechanisms for IP protection for businesses. These can take many forms, including:
- logos;
- symbols;
- colours;
- words; or
- any mix of these and more.
You can register a trade mark with the Intellectual Property Office. To achieve successful registration of a trade mark for your business, it must be unique and distinctive. This prevents businesses in the same industry from having similar logos or business names. This could easily confuse consumers and muddle your brand with another.
The main difference between registered and unregistered trade marks is how they receive protection. This will also affect how your rights are enforced. Unregistered trade marks are identifiable through the ™ symbol. This is in contrast to the ® symbol, which is reserved by law for registered trade marks.
To challenge a business that has attempted to copy your unregistered trade mark, you will have to prove that:
- the mark is yours;
- you have built up goodwill in the relevant industry; and
- you have been harmed in some way by another business’ use of your mark.
In contrast, when you register your trade mark with the Intellectual Property Office, your legal rights will be automatically granted, as the IPO will have accepted that your mark is unique. Therefore, you are granted complete exclusivity within the selected area or areas of industry.
Patents
If your business has invented something, you may wish to apply for patent protection. This type of IP protection grants exclusive use to the grantee. Competitors are, therefore, unable to manufacture, copy, or sell your invention for the duration of your patent.
Patent applications are the most expensive form of IP protection. This is due to their complexity and potentially extended processing times. However, if your invention is highly marketable and you have a strong commercial plan in place, you will need a patent to protect your product.
If a business were to manufacture your invention while you have a patent in place, you could challenge this in court. The court may grant you compensation or a costs order for any financial loss that has been incurred as a result.
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Design Rights
Design rights, like trade marks, exist in both unregistered and registered forms. Again, the main difference is the ease of proving your rights, as with unregistered design rights, you will have to prove when you designed a product and that you were the initial creator, which can be difficult without a log of evidence.
If you register your design rights with the Intellectual Property Office, however, you gain exclusive rights to that design and can easily enforce your rights against a competitor attempting to infringe your intellectual property rights. The requirements are that your design must be:
- your own creative work;
- original;
- new to the public; and
- inoffensive.
The law will protect an unregistered design for up to 15 years, and a registered one for 25 years. You must renew your design registration every 5 years to qualify for the 25 years of protection.
“Many businesses assume the work a contractor creates belongs to them because they paid for it. It does not, unless the contract says so in writing. Check that every contractor agreement assigns the IP before the work starts.”
Copyright
Copyright protects your work from being used without your permission, otherwise known as copyright infringement. It is a type of intellectual property that applies automatically upon creating a new literary, dramatic, performative or written piece of work. Composers, authors, and software designers are examples of those who commonly use this type of intellectual property protection.
Your work will generally be copyrighted for the length of your or the creator’s lifetime with an additional 70 years, depending on the type of work created. Therefore, you can protect your intellectual property rights for long periods through copyright protection.
Due to the fact it is an automatic right, there is no requirement to register or pay a fee for the protection given by copyright in England. You can, however, license your material to permit others to use it in specific ways that you have mapped out for them.
Trade Secrets and Confidential Information
Not all IP can or should be registered. Trade secrets can include proprietary processes, formulas, customer lists and business strategies. You can protect them indefinitely through confidentiality obligations, NDAs and internal access controls.
The Trade Secrets (Enforcement, etc.) Regulations 2018 protect trade secrets in the UK. They define trade secrets and provide remedies for unlawful acquisition, use or disclosure. To rely on this protection, businesses must show they took reasonable steps to keep the information confidential. This includes:
- restricting access to sensitive information; and
- using confidentiality clauses in employment and supplier contracts.
These measures are essential if you want to enforce your trade secret rights.
IP Ownership in Employment and Contractor Relationships
A common issue for businesses is determining who owns IP created by employees or freelancers. Under the Copyright, Designs and Patents Act 1988, IP created by an employee in the course of their employment generally belongs to the employer.
However, this default position does not automatically apply to independent contractors. Without a written assignment clause in the contract, the contractor may retain ownership. Businesses should ensure their employment contracts and consultancy agreements address IP ownership explicitly.
LegalVision’s Trade Mark Essentials Guide provides valuable information for any business looking to register or enforce a trade mark.
Key Takeaways
There are several types of intellectual property businesses in England can use. The most commonly used are trade marks, patents, design rights, and copyright. Each offers a distinct type of protection for specific products or creations. Therefore, depending on your industry, you must decide which type of intellectual property best suits you. Not all IP requires registration. Trade secrets and confidential information can be protected indefinitely without any formal process, provided you take reasonable steps to keep the information secret and have appropriate contractual safeguards in place.
IP ownership is not always straightforward. While IP created by employees in the course of their employment will generally belong to the business, this does not automatically extend to independent contractors. Ensuring your employment contracts and consultancy agreements contain clear IP assignment clauses is essential to avoid disputes over ownership
If you need help with an intellectual property application or query, LegalVision provides ongoing legal support for all businesses through our fixed-fee legal membership. Our experienced intellectual property lawyers help businesses manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision’s legal membership, call 0808 196 8584 or visit our membership page.
Frequently Asked Questions
What type of intellectual property is best for my business?
The best type of IP will depend on your area of trade. If you have invented something new, for example, you will be best placed to apply for patent protection. However, this does not mean you cannot apply for other forms of IP.
Do I have to register my trade mark?
You do not have to register your trade mark with the Intellectual Property Office, but it is advisable to do so in order that you can easily challenge another business that attempts to infringe your IP rights.
Who owns the intellectual property my employees create?
Your business owns copyright and designs an employee creates in the course of employment, and it owns inventions an employee makes in the ordinary course of their duties. Contractors are different: a contractor keeps copyright unless your contract assigns it to you in writing.
How long does design protection last in the UK?
A registered design lasts five years, and you can renew it four times, to a maximum of 25 years. UK unregistered design right runs for 15 years from creation or 10 years from first marketing, whichever ends first. Supplementary unregistered design right lasts three years.
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