UK govt backs ventilator makers against potential IP complaints
The UK government will indemnify ventilator manufacturers from the financial burden arising from any potential IP breaches, as health services around the world scramble to up their capacity of the devices.
UK minister for the Cabinet Office Michael Gove announced the commitment in a letter, now made public, to the chairs of two parliamentary committees earlier this month. Gove did not specify the financial value up to which manufacturers would be indemnified.
David Knight, partner at Fieldfisher in London, said despite the lack of clarity on the monetary value, it was “nonetheless welcome news that manufacturers can meet increased public demand without the fear of facing costly and time-consuming litigation”.
In particular, the news will come as a boost to firms such as Dyson and Rolls Royce, who have scaled up ventilator production in order to meet heightened demand during the COVID-19 pandemic.
The UK government’s call for manufacturers to start mass-producing ventilators had previously raised questions over whether patents rights and IP could be an obstacle.
According to Andrew Pitts, patent attorney at Mewburn Ellis, the news could be a win-win for both manufacturers and IP owners.
“The contractors can now proceed without fear of legal or financial risk and the rights holders can try to claim reasonable compensation from the government later, if they so wish,” he said.
Pitts added: “As only a few rights holders are likely to be affected, and the scope of the move seems to be limited to these new ventilator systems, this appears to be a pragmatic approach with minimal impact on the wider IP landscape.”
The government has the power to issue compulsory (or Crown) licences in certain circumstances, but for now has opted to assure manufacturers that they will be protected from financial liabilities arising out of any potential IP breaches.
“Manufacturers may also derive some additional comfort from the fact that in the current climate, IP rights holders will perhaps be less likely to bring a claim against a manufacturer which is producing life-saving devices during a time of national crisis,” Knight said.
“This should see the market opening up to more manufacturers who are able to copy patents and design rights of existing models,” he added.
Canada recently introduced measures to allow for the compulsory licensing of IP rights to provide for the production of medicines and medical devices to deal with the pandemic, while other countries like Brazil are also considering such a move.
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