Business competitor threatening legal action

[AnnaBegins]

Hi, wondering if anyone might have any advice for my DP. Sorry if I am rather vague, feel free to PM for further details.

DP has recently set up a new company making a product for which there is a gap in the market. There are similar products on the market, these are more high-end, his is a cheaper alternative. He was approached about making the product by a company, so there clearly was a need.

A competitor has contacted DP, saying that they are going to take legal action against DP's company for "stealing their idea" basically.

The product is so generic no patent would be able to be taken out, as there is nothing special about it, and no patent has been applied for. DP's product is also different in significant ways to theirs.

We therefore think that they are refering to the layout of the front of the product. This bears very little resemblance to their design, DP had not seen their product before producing his and has emails between him and a business contact deciding on the wording/layout etc. The only similarity is a symbol which is a worldwide accepted symbol for this product (sorry for being vague, but basically, any similarities would be down to logical layout needs and generally accepted symbols).

We also know that this competitor stole their layout from elsewhere lol, but this is by-the-by.

This competitor seems to think they can throw money at this and bankrupt DP through legal fees rather than actually aiming to win any case. They have said as much in their letter.

So, my question is, can this competitor accuse DP of breaching their "copyright"? Would they even be able to have copyright on a layout involving written simple instructions and a generic worldwide symbol? Is the law likely to be on their side or is this simply an unsubstantiated threat?

I'm sorry, this is so vague, I just don't want to post identifiable stuff especially as it is DP's company not mine. If this is far too vague to give any advice on, I really do apologise.

Thanks.

Sounds bollocks - ignore it.

The design of the front panel layout could be protected provided it has sufficient content and is not simply driven by functional requirements. Assuming they have not registered the design protection is limited. To win the competitor would need to show that your DP had copied his design. It is not enough that the design is similar. However, civil cases are decided on the balance of probabilities so if the designs are identical or very similar your DP will need to show that he produced his design independently without seeing their product. If the competitor's design is not original it cannot be protected.

However, the competitor is talking about your DP stealing their idea, not their design. Design rights do not protect the idea, nor does copyright. Patents protect ideas. If there is no patent the idea is unprotected.

I am not an expert on intellectual property law but, on the basis of the information posted, it sounds to me like the competitor's claim is without merit. If you want detailed advice you need to consult a solicitor who specialises in intellectual property law.

I have no idea if thsi case has merit or not - but what I do know is that this has become standard practice in the business world unfortunately. Billions are being spent on so called 'patent wars' in the US between big tech companies hoping to dominate the internet.

Its a way of stopping small competitors entering the market. Only big companies can afford the legal fees so they ultimatley dominate the market.

You might want to think about whether you really want this fight. They can bankrupt you if they want to.

This is the UK, not the US. The big tech companies generally don't enter into patent wars in the UK. There is a reason for that. In addition, it seems the competitor in this case does not have any patents so any protection will be pretty limited. It is not obvious to me that the competitor can bankrupt the OP.

Its the way the UK court system works that is the problem.

I knew a couple who who ran a small business and went to court over a trade name they owned because a big company was using it without asking them. The big company knew exactly how much money the young couple had and pushed the case long enough to the point that the small company could not aford to go on or take the risk of losing - they were starved into accepting the big company offer which was only enough to cover the legal fees they had spent so far. They lost their trade name and their business.

Its not about fairness.

I can't advise on whether the claim has any merit but I'll assume it doesn't.

Unfortunately there is not a huge amount you can do to protect yourself from cynical vexatious litigation like this. Your best bet is to sound completely unworried and say you are absolutely sure you have in no way breached any IP rights of theirs and any claim will be vigorously defended. If you can hint that you have plenty of money to fight any claim (even if not true!) that will also help.

Here are a few ideas for if you do get sued.

1. You don't need to use lawyers. Of course, if you don't, you will need to navigate the legal system yourselves (the main thing is not to miss any deadlines), and your arguments may not be as polished. However if the claim is clearly without merit, then the courts should (hopefully) see that no matter how unpolished your arguments are. The burden of proof is on the claimant, not on you - they have to prove their arguments are correct.

2. You can try to get free legal advice from the CAB or from local free legal advice centres. They are all stretched to breaking point though . Failing that, websites like this one or moneysavingexpert often have lawyers on who will give bits of advice.

Or you could try writing to some of the bigger law firms in your local city which have an IP department and seeing if any trainee/junior lawyers would like to help you with the case on a pro bono basis (they just might do as it would be a good experience for them). Best to ask via a local legal advice centre though, as they often have links to the bigger law firms.

3. If you do get sued, you can make a strike out application. Basically this is where the court looks at the claim at a very early stage and says "this case has no hope" and dismisses it. You obviously have to be able to show that the case is hopeless to win this application but sounds like you could. Of course this still costs money (if you use lawyers) but not as much as fighting a full length court claim.

4. You can also make a "Part 36 offer". This is where you send a letter (headed "without prejudice save as to costs, Part 36 offer") making an offer of settlement, for example "I will offer you £20 in full and final settlement of all your claims". If the other side rejects the offer, and carries on with the case, and then they lose or get less than £20, they will have to pay all your legal costs as well as theirs. So making this kind of an offer can make someone think twice about pursuing a totally without-merit claim.

Thankyou very much everyone for your advice,am on phone but will reply properly later.

We do think their claim has no merit due to lack of patent,dp is going to see a lawyer on monday with evidence of his product development process.

Thankyou once again for your wisdom.