Elizabeth Gutteridge, Intellectual Property Partner at Deloitte comments on the Gowers Review of Intellectual Property, announced today as part of the Pre-Budget Report.
 
"Gowers has recommended tweaks rather than fundamental change to the IP regime, recognising that 'if it ain't broke, don't fix it'.  While wholesale change is not on the cards, Gowers has identified a series of reforms that could have an important impact on UK business:

• In recognition of the digital age we now live in, Gowers has acknowledged the rights of the consumer on the one hand by recommending an extension of their right to format shift (for example, if this were to be implemented, I would be allowed to convert my latest Razorlight CD purchase into an MP3 file).  On the other hand, he has recognised the rights of the music industry by acknowledging that a large proportion of copyright theft happens via digital infringement, and he has recommended appropriate penalties to act as deterrents to this activity;
• Gowers has not extended copyright for sound recordings and performers' rights. However, he has made recommendations to strengthen the enforcement remedies related to piracy and counterfeiting - an ongoing costly problem in the music industry;
• The international recommendations could have far-reaching consequences for UK competitiveness: Gowers has highlighted the Community Patent and the EPLA initiatives (whereby a single European court would be created to adjudicate European-wide disputes thus acting as a stepping stone to creating a harmonised Community Patent).  If a UK company could easily enforce its IP rights across the European Union, this would give a huge boost to its global competitiveness;
• The consultation on damages goes further than we had expected and Gower's recognition of the link between the value of IP rights and the enforcement rules to protect them is an important one;
• Gowers also recommended that the DTI should consider whether guidance for firms on reporting the value and nature of intangible assets could be improved. This is helpful, but only one piece of the bigger puzzle of IP governance issues faced by companies looking to protect, maximise and communicate the value of their intangibles.

"Gowers has made a series of strong recommendations that could have a really positive impact on UK business (particularly those that are heavily reliant on IP) but the proof of the pudding is in the eating. Most importantly, we should not miss out on the opportunity to showcase the gold standard of the UK's IP system internationally to drive harmonisation in Europe and beyond."

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Notes to editors:

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