Common IP Disputes: Causes and How to Resolve Them
Common IP Disputes: Causes and How to Resolve Them
Blog Article
Intellectual property disputes are becoming increasingly common in today’s competitive business environment. Whether you’re a startup with a new product or a multinational with an extensive patent portfolio, IP disputes can disrupt operations, drain resources, and damage reputations.
Understanding the causes of intellectual property disputes and how to resolve them effectively is crucial for businesses, creators, and legal teams alike.
In this blog by Axis Solicitors, we explore the major types of IP disputes, what triggers them, and what legal remedies are available under UK law.
Understanding Intellectual Property and Why Disputes Arise
To understand how intellectual property disputes unfold, it’s important to first understand what intellectual property (IP) is and why it holds so much value.
What Is Intellectual Property?
Intellectual property refers to creations of the mind that have commercial value and are protected by law. In the UK, the main categories of IP include:
- Copyright – protects original works such as music, books, films, software, and art.
- Trademarks – protect brand names, logos, slogans, and other identifiers.
- Patents – protect inventions and technical innovations.
- Design Rights – protect the visual appearance of a product.
- Trade Secrets – cover confidential business information not publicly disclosed.
These rights can be owned, licensed, or sold — just like physical property. However, because intellectual property is intangible, it’s often more difficult to monitor and enforce, making it highly susceptible to disputes.
Why Do IP Disputes Happen?
There are several reasons why intellectual property disputes arise. Common causes include:
- Infringement – when a third party uses your protected IP without permission.
- Ownership conflicts – when multiple parties claim rights to the same IP.
- Licensing disagreements – disputes over the terms or extent of IP usage.
- Employee or contractor issues – questions about who owns the work created.
- Territorial conflicts – issues around IP rights in different jurisdictions.
These conflicts often arise due to misunderstandings, unclear agreements, or outright infringement. The consequences can be severe — including financial loss, court injunctions, and reputational harm.
The Most Common Types of Intellectual Property Disputes in the UK
UK businesses encounter various forms of intellectual property disputes, each involving different legal principles and consequences. Below are the most frequent categories, along with real-world implications.
1. Trademark Disputes
Trademark disputes are among the most visible and commercially damaging IP conflicts. These typically involve one party alleging that another is using a mark that is:
- Identical or confusingly similar to a registered trademark
- Being used in a way that misleads consumers
- Damaging to the reputation or distinctiveness of the original brand
Example:
A new clothing line using a logo similar to Adidas could be accused of passing off, even if the name is different.
Causes:
- Poor trademark searches before registration
- Expansion into new markets without rechecking local trademarks
- Similar-sounding brand names or logos
Legal Remedies:
- Injunctions
- Cease and desist letters
- Damages or account of profits
- Application to invalidate the infringing trademark
2. Copyright Infringement
Copyright protects original artistic, literary, musical, and software works. Disputes often arise when someone:
- Copies or reproduces work without a licence
- Distributes copyrighted material without consent
- Adapts work (e.g., turning a book into a screenplay) without permission
Example:
A website using stock images without paying the licence fee may face copyright claims from the image owner.
Common Sectors Affected:
- Publishing
- Music
- Tech/software
- Film and media
Legal Remedies:
- Injunctions to stop the infringing use
- Monetary damages
- Delivery up or destruction of infringing copies
- Criminal prosecution in severe cases
3. Patent Disputes
Patent disputes tend to be complex, involving deep technical detail and high financial stakes. Common scenarios include:
- An invention being used or sold without the patent holder’s consent
- Disagreements over who invented or filed first
- Challenges to a patent’s validity
Example:
A company reverse-engineering a patented drug formula and releasing a generic version before patent expiry may be liable for infringement.
Legal Actions:
- Patent litigation in the High Court or Intellectual Property Enterprise Court (IPEC)
- Defence of invalidity
- Revocation proceedings
- Settlement via cross-licensing agreements
4. Design Right Disputes
Design disputes centre around the appearance of a product — its shape, patterns, or ornamentation. Both registered and unregistered design rights can be enforced under UK law.
Typical Conflicts:
- Furniture designs
- Packaging and product shapes
- Fashion items
Example:
If Company A produces a chair with a unique shape and Company B releases a near-identical version, A may sue for infringement of design rights.
Resolution Options:
- Enforcement through IPEC or High Court
- Mediation to reach a commercial settlement
- Claim for damages or account of profits
5. Trade Secret and Confidential Information Disputes
Trade secrets, while not registered IP, are legally protected if confidentiality can be proven. Disputes here usually involve:
- Former employees using confidential information
- Misappropriation by business partners
- Data breaches or leaks
Example:
An ex-employee starting a rival business using your client list and proprietary methods could be liable under breach of confidence laws.
Resolution Options:
- Immediate injunctions
- Internal investigations and audits
- Breach of contract or fiduciary duty claims