My Lords, intellectual property plays a vital role in the UK’s knowledge economy, and this will continue to be the case after our departure from the European Union. Ensuring strong and balanced IP protection and enforcement is central to the Government’s aim of encouraging businesses to innovate and develop new ideas and technologies, which forms part of the industrial strategy. As I said in the debates on earlier regulations, our intellectual property system is consistently rated as one of the best in the world. These regulations are part of the work being delivered by the Intellectual Property Office to ensure that the system governing intellectual property rights in the UK continues to function in the event of no deal being agreed when we leave the EU in March. This is essential to ensure a smooth transition for business and to provide maximum certainty and clarity.
It is possible to obtain trade mark protection in the UK under the domestic regime and in the European Union under the European Union trade mark regulation. The majority of UK and EU trademark law is harmonised. Much of our domestic legislation derives from EU directives, which were implemented through the Trade Marks Act 1994. The EU trade mark regulation offers the possibility of retaining EU-wide trademark protection in the form of a single registration at the EU Intellectual Property Office. This system runs in parallel to our domestic system, so prior to exit, protection in the UK may be obtained by registration under both the EU and UK systems. After exit, protection in the United Kingdom for trademarks registered under the EU regulation will be lost. The draft instrument before the Committee today uses the powers provided by the withdrawal Act to address deficiencies in the UK trademark law which would arise from exit. EU directives providing for harmonisation of national law relating to domestic trademarks are also aligned in many respects with the EU regulations providing for EU-wide trademarks.
I shall focus in particular on how the Government are ensuring the continued protection of EU trademark rights in the UK on exit. Noble Lords may recall that the EU Intellectual Property Office was established in 1994 as the Office for Harmonisation in the Internal Market before being renamed in 2016. Its goal is to help further harmonise EU trademark law and provide an EU-wide trademark right. Around 1.3 million EU-registered trademark rights are at present in force. These EU trademark rights have protection in the
UK. Indeed, many products and services in this country will bear the names of registered EU trademarks and are owned by UK companies. If we do not act, the protections afforded to those rights will be lost. Many of those in this Room will be familiar with the brands which use these types of trademarks, from food and drink retailers to global clothing firms, luxury car manufacturers and everything in between.
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The draft instrument further explains the approach that will be taken for EU trademark applications which are pending registration at exit day, of which there are an estimated 85,000. Those with such pending applications will be able to file a new application in the UK claiming the earlier filing date of the EU trademark application. To claim the earlier filing date, an application must be submitted to the UK Intellectual Property Office within nine months of exit. The IPO has ensured that businesses and trademark practitioners have been made aware of these changes through technical notices. It will provide full business guidance once the draft instruments are made.
The framework for EU trademarks is set out in EU regulation 2017/1001, which falls within the definition of retained EU law under the withdrawal Act and will be revoked its entirety in the UK on exit day.