Nexus: Brexit and brands

UK IPO Brexit Transition Guidance declares business as usual for IP, for now...

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The IPO in Wales - the new epicentre for IP lobbying
after Brexit?

The AmeriKat has been having a blissful few weeks away from the UK and the Brexit nightmare. Her head has instead been filled with palm trees, ocean waves and beautiful Pacific blue skies. That was until she looked at her email yesterday with news from the UK Intellectual Property Office alerting her to new guidance entitled "Intellectual Property and the Transition Period".

Tomorrow is Brexit Day. What does that mean for IP lawyers? It means that after tomorrow we will be in what is called the "the transition period". The period starts as of 1 February 2020 and will end on 31 December 2020. The UK will remain in both the EU customs union and the single market, and, for IP, business will continue as normal, e.g., the UK will remain part of the EU trade mark, registered and unregistered Community design systems.

As the Guidance states:

"There will be no disruption to IPO services or changes to the UK IP system during this transition period. The IPO will convert almost 1.4 million EU trade marks and 700,000 EU designs to comparable UK rights at the end of the transition period. These will come into effect on 1 January 2021.

The arrangements in the IP section of the Withdrawal Agreement take effect at the end of the transition period. These arrangements provide legal certainty and protect the interests of rightsholders and users of the IP framework.

The Withdrawal Agreement ensures continued protection of existing EU-level IP rights in the UK after the end of the transition period.

This will ensure existing UK IP rights can be managed appropriately in line with existing domestic arrangements."

Tim Moss, CEO of the Intellectual Property Office (IPO) said:

“We can reassure our customers that there will be no immediate impact when the UK departs from the EU on 31 January 2020.

Our updated guidance is intended to help businesses and individuals navigate through the transition period to 1 January 2021, when almost 1.4 million EU trade marks and 700,000 EU designs will be converted to UK rights.”

The status of each of the rights during the transition period is spelled out clearly in the Guidance, but the big question is what will happen after the transition period. In written responses to questions from the AmeriKat, the UK IPO had this to say:

"Clarity over the long-term coverage of EU Trade Marks and Registered Community Designs has been a clear priority in the Government’s work on Brexit. The Withdrawal Agreement provides clear provisions for the conversion of these rights into UK rights.
The government will provide holders of existing EU rights with a comparable UK trade mark or design at the end of the transition period.
Government will produce updated information for businesses and share this on gov.uk/transition in due course.
We are in constant discussions with key stakeholders, including businesses and representatives of IP professional organisations and we are taking their views into account as we look to begin negotiations on the future IP framework".

It is the final point that is crucial, particularly when it comes with issues such as exhaustion of rights post-Brexit. So although it is business as "normal" in some respects after tomorrow, the next 11 months won't be. IP lawyers and IP-rich industries will be intensely devoted to lobbying the UK Government to ensure their rights remain clear and certain from 1 January 2021. There is a lot to do. So, perhaps it is finally time to join the AmeriKat and move to that tropical island...?

Brexit and Brands: 536 days and counting – what is the UK going to do?

By 0x000216

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Darren Meale (Simmons & Simmons also recently named Young Innovator of the Year by the Financial Times), returns with another Brexit and Brands update [see previously here and here], this time with news of the UK’s position in the great Brexit battle.

Here’s what Darren writes:

“As previously reported here, the first meeting of the Financial Services Brexit and Brands Roundtable took place late last month, with Steve Rowan, Director Tribunals – Trade Marks and Designs of the UK Intellectual Property Office, attending to outline the hard work the Office is undertaking to get the UK’s IP assets ready for action when B-Day arrives just 536 days from now. Here are the big points – both on what has happened since the Brexit vote, and what might be happening next.

More UK trade marks – up 21% this year

1. There has been a significant uptick in UK trade mark filings last financial year – 21% more, equating to about another 10,000 applications on the 2015/16 figure.

2. There is a much larger spike in the number of applications for registered UK designs – these are up 125%.

3. The demographic of filers has shifted slightly – there are now more international applications, and more applicants are represented than before (perhaps the two go hand in hand). Applications from the US and China have doubled.

4. There are signs of “double banking” – applicants applying for UK and EU trade marks at the same time (in my view, this must be as a Brexit-protection strategy), although not everyone is doing this.

5. The UKIPO is still working hard to process the increased numbers, and continues to hit its KPIs.

6. The opposition rate for applications remains stable at 4%, however more applications means overall more oppositions, and increased pressure on resources. The office has recruited extra staff to deal with the increase in workload.

All options on the table for what happens on B-Day – including automatic “cloning” of EUTMs/RCDs and other unitary rights

7. The UK government has not taken any official position on how it wants to deal with IP rights, notwithstanding that the EU has done so. Although IP is in some sense “technical”, it is rolled up with the other Brexit issues which are being negotiated, so there is no timetable for the UK government telling us either its primary or fall back positions (one surmises the rationale is not to give too much away).

*Many* options on Greg's table

8. The UKIPO is planning to be ready for all possibilities, and is working out how its IT systems will have to change depending on each possible outcome.

9. One option is to negotiate to stay part of the EU IP machine, with no change to present arrangements.

10. The Tuvalu and Montenegro options remain contenders, as outlined in my first Brexit blogpost here. In essence these options involve – to use the UKIPO’s preferred term – “cloning” of EU unitary rights into UK equivalents (I have previously referred to this process as “division” – don’t call it conversion, as that is something else). Tuvalu sees cloning on request, Montenegro clones everything on Brexit day whether the trade mark owners like it or not. This will see something like a million EUTMs cloned to the UK register and 700,000 or so RCDs, if this option is implemented.

11. The UKIPO is and continues to be very keen to consult informally, so if you have views, put them forward – it is not clear at this stage whether there will be a formal consultation. One might think that Tuvalu raises some issues, such as deprivation of rights if no opt-in (which may have human rights impacts), the cost of opt-in and the burden of administrating the process. It might be said that Montenegro will lead to cluttering of the UK register, although to the extent that becomes the case, this should gradually solve itself as cloned marks come up for renewal.

12. Cloned rights present obvious challenges, which the UKIPO's discussions with user groups seem to be exploring in some depth. These include: non-use issues, what to do about pending applications and ongoing oppositions, should the EUIPO decision on an EUTM application be honoured in respect of a cloned UKTM, or a separate decision reached, how to deal with seniority/priority claims, how to deal with EUTMs with non-English specifications, how to communicate with a million EUTM owners who suddenly have UKTMs too. And so on.

13. On the subject of exhaustion – the issue is being discussed with user groups.

14. The UKIPO does understand that IP owners want certainty, and that they want to plan for changes.

15. On geographical indications, this is a Defra lead.

So: plenty to think about. One of the biggest frustrations of Brexit in almost all areas is that, whether you think leaving the EU is a good idea or an absolutely crackers one, we don't know what Brexit actually looks like. And while we still have a while to go, business needs to plan ahead. Not just the brands and IP owners we act for – big or small – but us solicitors and trade mark attorneys too. Never mind the UKIPO's IT systems, could your trade mark management database handle the sudden cloning of your entire EUTM and RCD portfolio? How will it be done? Who will pay for it?

Leaving you with those thoughts, I say thank you UKIPO for your attention to the detail here. To the politicians: please get on and tell us what you want our IP system to look like!

The Brexit and Brands Roundtable still has room for more brand owners to get involved – drop me a line if you'd like to know more.”

Nexus

UK IPO Brexit Transition Guidance declares business as usual for IP, for now...

Brexit and Brands: 536 days and counting – what is the UK going to do?

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