UK businesses at risk of losing billions by neglecting overseas patents

British firms are missing out on billions of pounds in potential revenue by not filing international patents as aggressively as their competitors in other countries, industry experts have warned.

A report from the Chartered Institute of Patent Attorneys (CIPA) reveals that UK companies are filing patents in crucial markets such as Europe and China at rates up to 40% lower than their French and German counterparts. The World Intellectual Property Organisation (WIPO) also ranks the UK between 16th and 20th in its Global Innovation Index, specifically in measures related to patents, highlighting the country’s underperformance in this area.

This concerning trend indicates that British businesses and entrepreneurs are not adequately protecting their inventions and discoveries on the global stage. According to the Society of Chemical Industry, this oversight could cost the UK billions of pounds in lost revenue, as other nations take the lead in science and technology-based applications. Sharon Todd, the society’s chief executive, warns that the lack of UK patent filings is a clear sign that the nation’s science-based industries are under strain. “We risk losing billions of value to our international competitors,” she stated.

The new government is being urged to address this issue as a matter of urgency, with calls for closer collaboration with industry to resolve the challenges surrounding patent protection. Todd emphasised the need for the UK to remain competitive in sectors like green technology, new medicines, and food production, which are vital for economic growth and job creation. The Society of Chemical Industry is advocating for the establishment of a “science and innovation growth council” to provide expert advice to the government on policies necessary to bolster innovative industries.

Matt Dixon, president of CIPA, affirmed the institute’s commitment to partnering with the government to tackle the UK’s patent shortfall. He stressed that only through close cooperation between businesses and the government can the UK capitalise on the economic opportunities presented by intellectual property and patent protection.

Founded in 1882, the Chartered Institute of Patent Attorneys is the UK’s largest intellectual property organisation, representing over 4,500 members, including 1,100 trainee patent attorneys. The institute plays a critical role in supporting small and medium-sized enterprises, universities, and large corporations in safeguarding their innovative technologies worldwide.