Explanatory note

This Order sets out the financial limits in relation to a claim for damages or an account of profits made in proceedings in a patents county court in England and Wales concerning relevant disputes over intellectual property rights such as copyright and trade marks. The Order does not apply in relation to proceedings falling within the special jurisdiction of a patents county court under section 287(1) of the Copyright, Designs and Patents Act 1988 which covers patents and designs. The financial limits relating to such proceedings are set out in the Patents County Court (Financial Limits) Order 2011 (S.I. 2011/1402).

Article 3(1) of this Order specifies that in proceedings in a patents county court relating to a relevant claim, the amount or value of the claim must not exceed £500,000. In calculating the amount or value of a relevant claim, any interest or costs claimed in the proceedings are not to be taken into account (article 3(4)).

Article 3(2) specifies the sum of £500,000 as the county court limit, as defined by section 147(1) of the County Courts Act 1984, for the purposes of section 17 of that Act. This latter section allows a claimant to abandon part of a relevant claim in excess of £500,000 to enable the action to be heard in a patents county court. Any damages the claimant receives will be in full and final satisfaction of his action.

Article 3(3) allows the parties to agree in writing to the jurisdiction of a patents county court to hear and determine a relevant claim in excess of £500,000 to the full value of the claim.

The Order also makes transitional provision, in the circumstances specified in article 4, to enable the patents county court to continue to hear and determine proceedings in which a relevant claim has been made for damages or an account of profits for an amount or value exceeding £500,000 (disregarding interest and costs).

Article 5 of this Order amends article 2(1) of the High Courts and County Courts Jurisdiction Order 1991 to reflect the amendments made to the financial limits in relation to relevant proceedings in a patents county court.

A full impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from the Copyright and IP Enforcement Directorate Room 3B49, Intellectual Property Office, Concept House, Newport, South Wales, NP10 8QQ and is published with the Explanatory Memorandum alongside the instrument on www.legislation.gov.uk