By Ian Lewis, Head of Intangible Assets
In a world where intangible assets are critical to the success of organisations globally, having IP rights in place are crucial for accelerating and protecting innovation. However, the complexity and constant evolution of IP law create significant challenges and uncertainties for businesses, large or small.
2024 was a transformative year for the intellectual property arena, and 2025 is also expected to bring important changes. We focus on five significant trends that could affect organisations worldwide.
1. The decisive role of the Unified Patent Court
Since opening its doors 18 months ago, the Unified Patent Court (UPC) has had a huge impact on patent litigation in Europe. A single patent litigation case now has an impact across all 18 member states. As of 1 January 2025, it had already received 635 cases at first instance, including 239 patent infringement actions. It has also already issued both interim and permanent injunctions against manufacturers.
The remedies available at the UPC also make it attractive for non-practising entities (NPEs). Also known as patent trolls, these companies develop and/or acquire patent portfolios which they enforce against alleged infringers. Targets of NPEs include companies in sectors with complex products such as telecoms, semiconductors, automotive medical devices and the Internet of Things. A number of cases brought by NPEs are pending, with decisions expected in 2025.
2. AI raises new questions
AI is creating a number of complex questions, many relating to IP rights infringement through the development and use of AI-generated content. The ongoing court case of Getty Images v Stability AI in the US and UK is a prime example of this, with the dispute concerning alleged trademark and copyright infringement by an image generation tool. Disputes such as these highlight the need for robust IP protection as advancements in AI continue to be made.
In addition, recent and proposed regulatory changes such as the EU AI Act and the UK AI Opportunities Action Plan will impact decisions on AI development and investment and may lead to further cases being filed.
3. The interplay between politics and IP
There were elections in more than 100 countries in 2024, many of them – including those in the UK and US – leading to a change in government and potentially big changes in IP policy.
The appointment of the new Director of the United States Patent & Trademark Office may be critical in shaping IP policy in the next four years, particularly as there are calls to clarify the scope of patentable subject matter. In fact, we are already seeing proposals before Congress to strengthen US patents.
In Europe, too, significant IP proposals are being discussed, notably the European Commission’s proposal for a regulation on standard essential patents (SEPs) which aims to improve the framework for including patent-protected technologies into standards and the licensing process of those technologies.
4. Trade secrets becoming more important
Partly as a result of concerns about patentability, especially in fields such as software, many companies depend on trade secrets or confidential information laws to protect key intangible assets. However, given the ease with which data can be transferred, the mobility of workers and globalisation, the risk of loss of trade secrets is greater than ever.
It’s likely therefore that we’ll see more litigation over trade secrets. These cases often arise when a senior executive moves to a rival or following a demerger or the ending of a joint venture. They can be very disruptive for businesses as they often impact core business activities and processes. Going to court – with all the cost and publicity involved – can also bring extra challenges.
5. Don’t overlook branding
Trademarks, as well as design rights and copyright, have a vital role to play in many industries where branding is key, including consumer goods, pharmaceuticals, retail and e-commerce.
Trademark infringement cases are often complex and the consequences can include having to re-brand entire product lines. Trademark rights can also help small and medium-sized companies to compete against much bigger rivals. For example, on 20 January 2025, the Court of Appeal found that Aldi had infringed a trademark owned by family-run cider producer Thatchers. The ruling could lead to an injunction and/or damages award.
With trademark applications in the UK on the rise, as reported by the UK Intellectual Property Office, the risk of potential infringements will inherently increase for businesses.
Mitigating risks
The risks associated with IP are rising, becoming more challenging and creating an uncertain landscape to navigate in 2025 and beyond. IP disputes can also lead to enormous disruptions for businesses and be incredibly costly. For example, a recent High Court dispute between Pfizer and GSK in the UK over two patents relating to RSV vaccines has so far resulted in nearly £10 million in costs.
The ongoing developments in IP highlight the need for businesses to have adequate protection in place against losses arising from findings of infringement and defending or asserting IP rights.
From coverage for court attendance, damages and investigation costs to adverse media costs, professional fees and business interruption loss, IP insurance protection provides certainty in an increasingly uncertain world.