26 law IP protection is a must


for small businesses Writes Simon Deans, corporate partner, B P Collins LLP


Counterfeiting and intellectual property (IP) infringements have been around for a long time. And smaller firms are at high risk because sharing business plans and pitching new products is necessary to win a key contract or to encourage investment from third parties. However, there are cost-effective and practical tactics which can be implemented to discourage infringement.


Consider relationships between stakeholders – It’s worth considering the relationship between business owners and who owns the IP from the outset. It could save hundreds of thousands of pounds of litigation in the long run and encourage business owners to face any difference of opinion from the beginning rather than further down the line when a lot more money is at stake.


Confirm IP ownership in employees’ contracts – Current legislation implies that IP rights


developed by an employee in the course of employment will belong to the employer. However, employees are better deterred from infringement if their obligations regarding IP are included in their contract.


Ensure all contractors have written contracts – Always ensure there is a clause in the contract that transfers ownership of IP created during the contractor’s tenure to you, the employer, otherwise it is likely they will own the IP in the works they create for you.


Always ask new clients, business partners or investors to sign a non-disclosure agreement (NDA).


Before presenting to an external party, ask them to sign a non-disclosure agreement to maintain strict confidentiality. This will also confirm that you are the owner of the design or idea. If making a presentation, ensure the trademark, copyright


Companies must take steps on anti-slavery laws


Thames Valley businesses have been advised about new guidance which requires them to take steps to ensure their supply chains do not involve human trafficking or slavery.


Allan Briddock, who heads the immigration team at Oxford and Reading law firm Blake Morgan, says organisations need to be aware of recently-issued Home Office guidelines relating to the Modern Slavery Act 2015.


Companies which supply goods or services and have an annual turnover of £36 million or more are required to produce an annual “transparency in supply chains” statement which is clear about the steps they have taken to ensure suppliers do not use slave labour or engage in human trafficking.


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Briddock, a specialist in advising corporate clients on compliance with human rights legislation, said: “A turnover of £36m is not a high threshold and the requirement to produce a modern slavery and human trafficking statement is likely to hit medium-sized businesses hard, particularly in the retail sector.


“In addition this will affect many companies whose turnover is under the £36m threshold, if they are suppliers to larger businesses. We are likely to see big businesses including a clause in all contracts that all suppliers must not have modern slavery or human trafficking in their supply chains.”


The annual transparency statement may include information such as the


notice and/or branding is across all material.


Protecting copyright – Copyright protection exists automatically in the UK. The challenge is to prove which party created the copyrighted content first. Computer files can confirm this. Or post a copy to yourself (without opening) as the postmark is proof of date.


Register your patents – Even though patent protection is supposed to last for 20 years, it can be expensive to register and to maintain this protection if IP rights are challenged. But having the patent does give a supposed monopoly, which can be a huge commercial advantage in the long run.


Monitoring the competition – Regular online searches will help smaller businesses identify perpetrators and take action to prevent them from any further breaches.


Contacting the perpetrator directly – A legal letter to a UK competitor containing solid evidence of IP infringement and requesting an immediate cessation, could be enough to discourage any further violation.


Considering where the business will trade – If a


small business has a good idea as to where it intends to trade globally, then it should consider how IP rights are protected in those markets and whether it risks infringing someone else’s IP in that country. Fees for translating all relevant documents into the local language to secure IP registration, should also be considered.


Terms and conditions (T&Cs) – If licensing the IP, it’s tempting to replicate T&Cs from a previous contract to speed things up and finalise the deal. But it’s essential that all T&Cs are tailored to each business transaction. They should also be incorporated into the contract from the outset and agreed by both parties rather than falling into the trap of printing legal terms on the back of an invoice only to find they are not enforceable.


Details: Simon Deans 01753-279022 simon.deans@bpcollins.co.uk www.bpcollins.co.uk


Those whose year-end is after that date will need to produce their statement “as soon as practicable” after the end of the current financial year – Briddock advises that a six-month window would be acceptable.


He added: “All organisations which will be required to prepare the statement should start thinking about whether they have sufficient practices in place to ensure compliance.


Allan Briddock


organisation’s structure, business and supply chain, its policies in relation to slavery and human trafficking, the steps it takes to reduce and manage the risk, and the relevant training given to staff.


Organisations whose financial year ends before March 31, 2016, will not be required to produce the statement until the end of the following financial year.


“That includes the organisation looking at the questions it asks its suppliers and its own procurement policies, how it treats its staff, and training.


“The home secretary, Teresa May, has stated that peer and consumer pressure will be the driving force in eliminating modern slavery and human trafficking in supply chains. The success of the new requirement may, however, rest with the willingness and ability of the Home Office to enforce it.”


THE BUSINESS MAGAZINE – THAMES VALLEY – DECEMBER 15/JANUARY 16


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