The Morning Report business team on Radio New Zealand National interviewed General Manager Craig Kirk on the recent disturbing trends with patent trolls and counterfeiting and the steps New Zealand business needs to take to be able to defend their intellectual property. Andrew McCrae reports:
New Zealand companies are increasingly being challenged to defend their intellectual property, incurring steep costs in the process.
A report by specialty insurer Delta Insurance says export companies are particularly vulnerable in China and the United States, where it’s finding an increase in predatory behaviour.
Delta’s General Manager Craig Kirk says some New Zealand companies have been careful to register patents and trademarks but many aren’t doing enough.
He says the cost of registering intellectual property is only part of the investment required, but the cost to defend those assets can run into millions.
“If we look at probably the key area where we are seeing significant litigation, it’s with patents and in the US in particular.
“There’s quite a big trend there around patent trolls, which is big business in the US, attacking new entrants going into that market and from a loss point of view they generally run into the millions of dollars if they get you in their sights. They throw a lot of money to essentially try to extort cash and block you from that market.
“China as well is a major problem, particularly around counterfeit products and we’re definitely seeing an increase in activity in that area.”
The interview starts at 2:50 min.