The Intellectual Property Office (IPO) has published two reports which show the value of investments made by businesses in products and services that are protected by intellectual property rights.

Intellectual property comprises copyright, patents, trademarks, designs and indirectly confidentiality and even domain names. Whether such intellectual property is developed or as a result of a technology transfer. Each of the above require different approach and protection. In order to identify the intellectual property rights that protect and add value to your business it is necessary to carry out an intellectual property audit. 

The first IPO report is on The Role of Intellectual Property Rights in the UK Market Sector and looks at what proportion of knowledge investment is protected by intellectual property and how much economic growth is consequently due to such investment. One of the conclusions it reaches is that the role of assets protected by intellectual property rights is not fully appreciated and that their role as a driver of growth deserves greater consideration in both measurement and policy. The second IPO report is on Film, Television & Radio, Books, Music and Art: UK Investment in Artistic Originals and shows the value of investments made by businesses in products and services that are protected by intellectual property rights. It also reviews the definition of artistic originals and official estimates of investment in originals as recorded in the UK national accounts, and finds that a significant amount was not taken into account in the figures for 2008. 

The first report investigates what is the proportion of knowledge investment which is protected by intellectual property and how much economic growth is consequently due to such investment.  

Its key findings include the following:

·         In 2008, UK businesses invested £65 billion in assets protected by intellectual property rights. This compares with £28 billion in 1990 and is broken down into £26 billion for copyright-protected assets, £11.7 billion for trade-mark-protected assets, £23.3 billion for design-right-protected assets and £4.2 billion for assets protected by patents.

·         In 2008, approximately 62% of the stock of knowledge assets in the UK market was protected by intellectual property rights.

·         On average, between 1990 and 2008, 10.6% of growth in labour productivity was due to growth in the use of assets protected by intellectual property rights, similar to the 11.1% contribution of information technology equipment. The contribution of knowledge capital not protected by intellectual property rights was 10.3%, slightly less than that of protected assets.

One of the conclusions reached by the authors of the report is that the role of assets protected by intellectual property rights is not fully appreciated and that their role as a driver of growth deserves greater consideration in both measurement and policy.

The second report reviews the definition of artistic originals and official estimates of investment in originals as recorded in the UK national accounts. It has found that an additional £1.1 billion was invested in original artistic work in the UK in 2008 than had previously been estimated. Taking account of new depreciation rates, this amounts to around £3 billion that was not included in the figures for 2008. As a result, the IPO is working with the Office of National Statistics to adjust Gross Domestic Product starting in 2012.

The IPO is working alongside the Office for National Statistics to provide the figures in these two reports on a annual basis and highlight the growth of intellectual property.

All articles are for general purposes and guidance only and do not constitute legal or professional advice.

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