Archive for the 'Legislation & Regulations' Category

Intellectual Property explained

Intellectual Property (IP) refers to creations of the mind, which can be protected and exploited in similar ways to physical property.

The creations of architects, writers, designers and software makers… Unique visual designs, inventions, products and processes… The way products look or feel… The names, signs, symbols or slogans that make products, services and businesses distinctive…. These things are valuable to their owners, and they have a right to protect them. These things are IP.

In many ways protecting IP is a moral imperative. Others should not be allowed to freely copy or steal your ideas and creations without your consent or compensation. But protecting IP is also a commercial imperative. By protecting IP you can protect your interests, establish a competitive advantage and maximise your success and profitability. And like physical property, IP can be exchanged, traded, licensed or sold, offering the potential for further value to be realised from the creative process.

A framework of regulations exist in the UK that seek to protect the interests of IP owners. The regulations fall broadly into four main types of IP: patents, trade marks, copyrights and designs.

• Patents protect new inventions, giving the owner the right to prevent others from making, using, importing or selling an invention without permission. An invention must be new or inventive, and must be capable of being made or used in industry.

• Trade marks grant protection of a sign or symbol - including names, logos, slogans, domain names, shapes, colours or sounds - that are distinctive and that distinguish a business’s goods or services from those of competitors.

• Copyright protects creative or artistic works from being copied or used without permission. Works are automatically protected by copyright as soon as the work is ‘fixed’. This could mean when the work is written down, recorded, published on the Internet or stored electronically. There is no application process or fee for copyright, but owners may need to provide proof of copyright in the case of a dispute.

• Design protection focuses on the appearance of an item resulting from its features or the way it looks, rather than on how it works. Characteristics such as an item’s colour(s), shape, texture, material composition, contours and lines may contribute to a product’s appearance. There are several different forms of protection for designs available in the UK, all of which require that a design must be both new and individual in character.

There may be additional requirements and steps to take when registering different types of protection. In some cases (as with patents) it may be necessary to seek professional or legal guidance. It is also important to remember that IP rights are territorial. In other words, some types of IP protection are only valid in the countries where they are granted or registered. Even if you don’t trade abroad, it may be important to protect your IP from being stolen or used in other countries.

For more information, select from the following resources:

Guide - Protecting intellectual property

Guide - Intellectual property protection overseas

Interactive Tool - Find out how to protect your ideas

More info - Other IP resources

Link - UK Intellectual Property Office Website

Scams - The grey area

The most unscrupulous scams offer nothing in return for your money. Cleverly designed, tightly organised and often impervious to the law, they add up to a billion pound global industry.

Beyond (or beneath) the scam is another, similar type of practice. One that does offer something in return for your money, but misleads you in the process. Crafty, if only because it is difficult to even define the process as a scam.

For almost ten years, the European City Guide (ECG) - a directory of companies, activities and services - has offered businesses the chance to be listed in their guide. Thousands of companies took this opportunity - which appeared largely above board - only to find that as a result they had unwittingly entered into a legally binding contract. One which lasted several years and demanded further, unexpected payments.

In 1999 the Advertising Standards Authority upheld complaints that the ECG mailing was misleading, because it implied that directory entries were free and did not make clear that signing and returning the mailing would commit to subsequent payments. And according to the ‘Stop the ECG’ website, over 1,300 business would agree - all stating in a poll that when returning the ECG mailing, they did not believe they were entering into a binding contract.

So the issue here is not that the ECG takes money for nothing - there is a guide, and registered businesses are (usually) listed in it. The issue is that the ECG uses misleading tactics to trap people into making unexpected payments and entering into unintended agreements.

Sounds like a scam, surely? Well, probably. But the rub here is the grey area between a scam, and a legitimate, legally binding contract. So much so that in this case, it was ECG that were shouting loudest for their money, not the victims themselves. According to reports online, hundreds of businesses were hounded by bailiffs and court orders for money owed to ECG. In many cases, firms simply gave up fighting and paid out their contracts, for fear of being taken to court or damaging their credit status.

It may seem pedantic to make the narrow distinction between a scam and misleading marketing. Both exist to con you in some way or another. The difference is, misleading tactics may be employed not just by hardened scammers, but by otherwise legitimate companies delivering seemingly ‘real’ products and services. As a result, their tactics may be harder to spot than a traditional scam. And if you fall into the trap, it may be much trickier to escape.

More info on Avoiding Scams

Find out more about Misleading Advertising at the ASA website
http://www.asa.org.uk/asa/about/short_guide/

The law - Data protection

The Data Protection Act has two aims. First, it provides a framework for handling personal information. Second, it gives individuals the right to know what information is held about them.

1 - Handling personal information - 8 data protection principles

Anyone who processes personal information must make sure it is:

  • Fairly and lawfully processed
  • Processed for limited purposes
  • Adequate, relevant and not excessive
  • Accurate and up to date
  • Not kept for longer than is necessary
  • Processed in line with the individuals’ rights
  • Secure
  • Not transferred to other countries without adequate protection


2 - Individuals’ rights under the Act

  • Right to access. Individuals have the right to know if you, or someone on your behalf, hold information about them. This extends to knowing what information is processed, why, and who it may be disclosed to. Individuals can request a copy of this information, and are entitled to know about the source of the information.
  • Right to prevent direct marketing. Individuals can request you don’t use their information for direct marketing. You must comply within a reasonable time period (In most cases, 28 days).
  • Right to have information corrected. Personal information that is factually incorrect or misleading must be changed upon request. If you don’t, the individual can impose a court order to correct or destroy the information.
  • Right to compensation. Damage claims can be made if your breach of the Act has led to damage or distress (the latter can’t usually be claimed on its own).
  • Right to prevent automated decisions. Individuals can stop important decisions about them being made solely by automated means. For example, recruitment decisions resulting exclusively from automated computer tests may be unfair and subject to prevention.

How to comply

Although the principles of Data Protection legislation are relatively straightforward, implementation of processes to ensure compliance may require some planning.

The comprehensive Business Link guide ‘Comply with the Data Protection Act’ includes:

  • Background information about the 8 DP principles.
  • Information on how to fairly and lawfully use personal information.
  • Information on access rights.
  • Guidance about monitoring employees.
  • Information about the Information Commissioner’s Office (the independent body that enforces the Data Protection Act).
  • A case study entitled ‘How I complied with the Act’.

More info - Comply with the Data Protection Act

In Brief - Have your say on better regulation; UK businesses see bright future; Online transactions with Government

Have your say on better regulation

You can have a direct influence on how regulations are devised and delivered by letting the Government know how you want regulation to work better.

An easy to use, up-to-the-minute, online suggestion site gives any business, third sector organisation or public sector employee the chance to influence the way regulation affects them.

William Sargent, Executive Chair of the Better Regulation Executive said:

“This is not just paying lip service; we are really serious about hearing ideas. We will respond to all suggestions and look for ways we can help make those suggestions a reality. That is why all government departments will have to openly publish their response to any suggestions.”

Have your say on regulation by going to www.betterregulation.gov.uk

UK businesses optimistic about future success

A survey conducted by KPMG found 64 percent of small and medium sized enterprises were optimistic about the outlook for businesses over the next year, the highest level of optimism since 2004. Another survey undertaken by the Small Business Research Trust and HSBC Bank found almost half of small businesses expect sales growth in the second quarter of 2007.

Business Link Business Adviser Peter Weeks says “Look at budgets and review your business plans for the year ahead. With an optimistic outlook and solid plans, businesses can focus on turning confidence into results.”

More info - Budgeting and business planning

Online transactions with Government

We explain how online transactions with Government can save you time and money.

File returns online
Why use Internet transactions to pay business taxes? This guide explains how it helps your business.

Online transactions
This interactive tool identifies online transactions available to your business and explains how to register and enrol.

HR Focus - Workplace absence; Discrimination

Workplace absence rises; one in three employees exaggerate sickness

According to a CBI / AXA survey workers took an average of seven days off sick in 2006, amounting to 175 million days at a cost of £13.4bn. The research suggests the most important factor affecting absence is the size of an organisation. Findings show that employers with less than 50 staff had on average 4 days absence per employee compared with double that figure in companies with over 5,000 employees.

A further independent survey commissioned by business consultancy firm Croner finds that a third of employees admit to exaggerating their sickness to justify taking time off. Results show that 91 per cent of employers felt cold and flu was a suitable reason for sickness compared to 81% of employees. Croner’s research suggests a possible disparity between employer and employee about what is or is not a justified reason for sickness.

More info - Manage absence and sickness 

Regulation updates - Unlawful discrimination

Preventing unlawful discrimination on grounds of religion or belief in goods, facilities and services
From 30 April 2007, the law will require that you provide your normal service in a non-discriminatory way.

Preventing unlawful discrimination on grounds of sexual orientation in goods, facilities and services
From 30 April 2007, sexual orientation laws will require that you treat customers in a non-discriminatory way.

For information about upcoming regulation changes, including sector specific changes, visit the Regulation updates section of the Business Link website.

Regulation update - Consumer Credit Act 2006

The Consumer Credit Act 2006 affects a wide range of businesses - from money lenders and debt collectors to companies where credit is secondary to their main business activity (such as car dealers or retailers).

Under the new rules, businesses must follow proper procedures when dealing with consumer credit related complaints. If they don’t, customers have the right to refer unresolved disputes to the Financial Ombudsman Service.

The newly introduced ‘unfair relationships’ test provides a single standard of conduct to consumer credit licensed businesses. Talking about the new rules, the Office of Fair Trading said “The Act will enable borrowers to challenge credit agreements in court on the grounds that the relationship between the parties is unfair.”

To foster improved communication between lender and borrower, the law introduces new requirements for keeping customers adequately informed on the state of their credit accounts. Information including annual statements, arrears notices and information on fees and charges must be sent to customers. Lenders must also include additional information in default notices and give notice before applying post-judgement interest.

The Act also gives the Office of Fair Trading greater powers to investigate cases of misconduct, and the ability to issues sanctions, including fines of up to £50,000 or the suspension of licenses for breach of the rules.

Business Link Business Adviser Peter Weeks says “The Office of Fair Trading is looking to weed out rogue businesses, and customers now have greater rights to resolution through the Financial Ombudsman. If you want to maintain your consumer credit status, find out more about the changes and implement procedures as soon as possible”.

In detail - More information on the Consumer Credit Act 2006

More info - Does my business need consumer credit licensing?

Information about upcoming regulation changes - including regulations affecting specific sectors - can be found at the Regulation updates section on the Business Link website.

Protecting your Intellectual Property

Intellectual property (IP) protection could help your business copyright printed or digital content, secure visual designs, patent technical aspects of your product or service, and protect trade marks. Even beyond these key areas IP protection exists to protect and nurture innovation and creativity.

Protecting IP can be critical to ensuring success. It’s therefore essential for any business to review what IP assets they own, decide how valuable IP is to their business, and what they need to do to protect it.

Government action

A recent independent review of intellectual property reported to the Government in December 2006, suggesting a number of reforms to ensure the UK’s Intellectual Property system is compatible with the digital age.

The review highlighted the need to tackle IP crime in the creative industries. From April 07, Trading Standards Officers will have the authority to enforce copyright offences. In addition, IP crime has been recognised as an area for Police action in the updated National Community Safety Plan.

The government also wants to help businesses “recognise, protect and maximise the value of their intellectual property”. As part of the Patent Office’s Innovation Support Strategy, a pilot scheme offering IP health checks to small businesses began last month and will report on its progress in 2008.

Further consultations are taking place reviewing areas including:

  • options for implementation of the recommendations on UK copyright exceptions,
  • Patent Office fees,
  • fast-track services for the grant of patents and registration of trade marks,
  • civil damages and fast track litigation,
  • accelerated examination of a patent application where examination has already taken place in another country.

Source - Budget 2007 - Economic and Fiscal Strategy Report, Chapter 3

More info: Protecting intellectual property

Maternity, paternity and adoption regulation changes

Employers must comply with important new employment rules that come into force this week.

The changes involve a major overhaul of regulations affecting employees’ maternity, paternity and adoption rights. Whilst new flexible working laws mean that employers must now consider requests for flexible working from those who care for adults.

The new regulations offer employers help in terms of planning staff cover. An employee intending to return early from maternity or adoption leave must now give her employer eight weeks’ notice of her intended return dates.

A further significant change is the introduction of a right for employers to maintain ‘reasonable contact’ with employees, who are on maternity leave.

Read more about the April 07 Maternity and Adoption regulation changes