Brexit vote result: what it means - Taylor Vinters

Here’s what you need to know from the experts at international law firm Taylor Vinters:

Jo Eales, Associate, Commercial Technology, on new trademark risks: “The Brexit vote plunges UK trade mark law into uncharted territory, potentially affecting thousands of UK businesses’ if they rely on a European Union Trade Mark (EUTM) for brand protection in the UK.

Last year, 12,527 British companies registered EU trade marks, the UK the second-largest EU member country(1) to do so, at an estimated cost of Eur10.6million (2) (£8million).

“Now that the UK has voted to leave, British businesses will need to re-asses their trade marks. Though there will likely be some transitional negotiations to ensure that existing trade mark rights are not lost, once the UK is no longer an EU member state, an EUTM will no longer cover businesses in the UK, and the UK will not be part of the European Union Intellectual Property Office (EUIPO) system.

“In the short-term, it will be important for UK business’ to review their current trade mark portfolios to ensure they understand the scope of registered trade mark protection they have and in which territories. Business owners wishing to protect their trade marks in the UK will need to ensure they have protection by way of a UK national registration, rather than relying on the EUTM.”

“Currently, businesses looking to protect their brand from counterfeiters or competitors choose which territory to register a trademark in whether that’s the UK, EU or International designations. A registered trade mark is a crucial element of brand protection for any business across any sector, but is especially pertinent for high-growth businesses considering expansion overseas, increasing market share through licensing deals or positioning the business for funding or M&A activity"

Ed Hooper, Partner, Corporate Finance, on UK M&A activity: “There was a flurry of activity to conclude M&A and fundraising deals ahead of the vote. Those that could not complete within that timeframe were waiting in a holding pattern on the result. This dynamic arose as any deals that need external funding will typically require a stable environment, which was not as strong in the period prior to the vote.

“However, the outcome of the leave vote is straightforward. If a growing business has solid commercial reasons to expand overseas, it will continue to do so despite any potential change in regulation that arises from Brexit. Therefore, we expect to see a continued pipeline of M&A and fundraising deals following the natural break over the summer period.”

Tom McGuire, Partner, Commercial & Technology, on UK inward investment: “In the short term, leaving the EU is unlikely to make the UK less attractive to companies looking to expand overseas. We have a strong financial sector, diverse investment community, strong entrepreneurial culture, and tax advantages for investors into growth and knowledge intensive companies.

“Despite the leave vote, these attributes are unlikely to change any time soon, so we expect to see a steady stream of companies from Europe and further afield still making inward investment into the UK and setting up offices here.”

Henry Goodwin, Partner, Head of Asia, on the view from Asia: “Most Asian investors will be disappointed to see that the UK has voted to leave the EU.

“In the 1960s, British businesses faced a very bleak competitive landscape but subsequent EU membership allowed the UK to liberalise trade, access a much larger marketplace on its doorstep, and forced British companies to compete by producing innovative new products and services.

“Asian businesses recognise the UK as an English speaking, business friendly gateway to Europe, just as Singapore acts as a gateway to the newly created ASEAN Economic Community launched at the end of 2015.  Like the UK, Singapore’s success has been largely due to a focus on high productivity sectors and maintaining strong ties with key trading partners in the global marketplace.”


 
(1) Of EU member countries, behind Germany. Source: http://ec.europa.eu/eurostat/documents/2995521/7237244/9-25042016-AP-EN.pdf/7e673318-4893-46f7-9ee6-f293196c8dc6

(2) First Class EUTM fee @Eur850 multiplied by the number of EUTM applications in 2015: https://euipo.europa.eu/ohimportal/en/eu-trade-mark-regulation-fees

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Media Contact:

Anna Lawlor, Media Relations at Social i Media: Anna.Lawlor@Social-i-Media.co.uk or call 07983 875 537.

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