British Businesses could lose Intellectual Property Rights

More than 70% of British businesses risk losing their intellectual property rights when signing deals with other businesses, according to a new survey from the Patent Office.

In the research conducted by the Patent Office, 40% of businesses think that they automatically own the copyright if they ask a sub-contractor to develop software for their business while an additional 30% of businesses do not know who owns it.

The ownership of the copyright actually rests with the sub-contractor unless the commissioning business clearly states in a written contract before work is carried out that ownership is theirs.

Head of Marketing at the Patent Office Lawrence Smith-Higgins said:

"All businesses need to be aware of how to handle intellectual property because they all own some and should value it. When you sell a business or have it valued, it is often assets such as trade marks, copyright, patents and design registrations which command a great deal of the value. You can not afford to let these assets slip through your fingers from lack of knowledge."