by Bob Sherwood  and  Nikki Tait
July 30 2004

Companies will be given help to fight rivals that infringe their patents under proposals for a government - backed insurance scheme to provide them with funds for litigation

The patent office is concerned that the high costs of legal action often prevent smaller patent holders from defending their intellectual property against competitors that are better financed.

The idea,which has the support of Lord Sainsbury,science minister,surfaces at a time of mounting concern in  the government over Britain's record on innovation and IP protection.

In a study released last night aimed at improving IP rights enforcement ,the Patent Office called for the creation of a mutual insurance association to provide a fighting fund of &50,000,and possibly much more ,for each member,to allow companies to take patent infringers to court.

It acknowledged that the scheme,likely to be similar to the Medical Defence Union,would almost certainly need government funding until enough companies joined to make it self-sustaining.

Peter Lawrence,the officer's director IP and innovation,said the idea had support from som larger organisations that already protected their IP,"If you can get the big boys in,there are considerable advantages."

The  agency insisted that the subscription - funded mutual would provide cover against damages awarded if the case were lost,or the costs of defending legal actions brought against members accused of infringing others' patents.

(www.news.ft.com 2004/08/01 QingJunMei)