Intellectual Property Bill [Lords]

Debate between Iain Wright and Jim Dowd

Monday 20th January 2014 Commons Chamber

[Mr Wright]

I think the hon. Gentleman is pitching for that job, so he should have declared his interest. However, he makes an important point. During deliberations in Committee, it will be important to table amendments to consider what the Intellectual Property Office will do to promote innovation and jobs in the UK economy. Having some sort of IP champion, IP tsar, or whatever the hon. Gentleman wishes to call the role, needs to be considered closely, and hopefully we will do that in Committee.

Let me turn at last to manufacturing. High-value manufacturing is dependent on innovative design to produce comparative advantage. Indeed, high-value manufacturing in the 21st century requires a blend of design, creativity, innovation and production to compete and succeed. Modern means of research, development, production and distribution all emphasise in the modern age open, innovative models and the sharing of ideas. That makes IP more, not less, important.

The increased proportion of intangible assets on the balance sheets of many firms means that there is an ever-growing importance to securing returns from those assets. That in turn means that companies need to pay more attention to IP issues. In the 21st century, a strong intellectual property regime is needed. IP should not be seen as regulation or bureaucracy, with all the negative connotation that that entails. IP is not regulation but a legal right, and it would be wrong to suggest that, in an era of globalisation and digitisation, IP is irrelevant or an anachronism that needs somehow to be swept away. Businesses will not invest if their innovation or creativity is not protected. If somebody has created or invested in something, they should have the right in law to derive benefit from that creation or investment. That right should be protected and enforced by the legal system.

The Minister rightly referred to the recent global IP index, produced last year by Taylor Wessing. It should be a source of pride to the House that the UK was placed No. 1 in the world for IP. We need to protect, maintain and enhance that position as much as possible. However, the difference between the top three ranked nations in that report—the UK, Germany, and Netherlands—was only 0.2%, showing intense global competition and the perils of introducing proposals that might undermine our position as No. 1 in the world.

[Jim Dowd (Lewisham West and Penge) (Lab)]

My hon. Friend says that the UK is the No. 1 place in the world for IP, but the ranking in that survey was actually for the enforcement of copyright and trademarks. It was ranked only in second place for patents and in fifth place for design. IP is not a single entity; there are a lot of activities, and we protect some better than others.

[Mr Wright]

My hon. Friend makes an important point. There is a second consideration. We might have the best framework in the world, but if it is not enforced properly, it is largely redundant. We need to ensure that enforcement is maintained.

It is important to retain our position as No. 1 in the world for IP. We should also reinforce the need to avoid needlessly tinkering with the system. The House will agree that IP needs to adapt to take account of changing circumstances such as globalisation; growing collaboration across firms; and new, often disruptive, technologies such as 3D printing and digitisation. All of those bring many challenges. However, it is also important to be mindful of avoiding changes that undermine business certainty and thereby deter investment and innovation.

It is in that context that the House considers the Bill, which is brief and flimsy. It gives the impression of being the remnants of a much larger piece of legislation—perhaps it is the remnants of the much vaunted but hitherto unseen communications Bill. That reinforces the notion that the Government do not have a strong and clear vision on how to proceed with IP, leaving industry with uncertainty. Ministers could be accused of tinkering and making piecemeal changes that could undermine confidence and investment in our economy.

In many respects, the Government are continuing the approach they used last year with the Enterprise and Regulatory Reform Act 2013, several sections of which are devoted to IP and copyright. They were not discussed with stakeholders, and subsequently there was much alarm within the creative industries. The Act deterred investment in the UK economy. We should avoid that when possible.

As the Minister has said, the Bill is meant to simplify and to provide greater clarity and certainty on the IP framework, but it often does not do so. For example, the Government’s recent design consultation asked whether the Registered Designs Act 1949 should be amended by providing greater consistency between joint ownership provisions for both registered and unregistered designs. All or most respondents to the consultation agreed with the move to greater clarity and consistency in principle, but for whatever reason the Government have decided not to change the law in that regard.

Clause 13, to which I will return, has been mentioned a number of times. It provides a significantly different approach to registered and unregistered design rights. It is as if the Government are saying, “We like consistency in certain areas, but not in others,” which merely provides inconsistency by a different name. The measure is a new inconsistency, so it provides greater complexity and subsequent uncertainty to business. We will want to scrutinise the Government on those inconsistencies in Committee.

That said, much in this slight Bill is to be commended, and the Opposition will not oppose it this evening. For example, clause 8 is welcome. It allows UK implementation of The Hague agreement, which allows for the protection of design rights throughout the EU with a single application rather than multiple applications in each country. That should help small and medium-sized firms to cut down on costs.

I am pleased that, in another place, the Government moved away from implementing that measure via the negative procedure, and that they listened to my noble Friends on the Opposition Front Bench and the recommendations of the Delegated Powers and Regulatory Reform Committee and moved to the affirmative procedure. I hope that that listening exercise will continue in Committee.

Clause 17 enables the establishment in the UK of the unified patent court. The use of the court throughout Europe will provide a consistent and welcome framework in participating European country. It is particularly pleasing for the UK economy that part of the court will be based in London, with the prospect of another part of the country—perhaps Hartlepool—being the location for a second part. I commend the Prime Minister, good European that he is, for helping to secure that.