My Lords, I thank my noble friend the Minister for setting out the scheme. I have just one or two questions so as to gain a greater understanding of the background.
The Explanatory Note, which forms part of the statutory instrument, states on page 69:
“An impact assessment has not been published for this instrument as no, or no significant, impact on the private, public and voluntary sectors is foreseen”.
The Explanatory Memorandum then sets out precisely what the costs are. If the department has not conducted an impact assessment, how can it be sure that no significant costs will arise? If a design is not reregistered, will it lapse? In the view of my noble friend and the department, is a deadline of nine months following exit day for reregistering a design sufficient, given the sheer volume of designs that I understand are in play? There seem to be different figures for the costings, and it would be helpful to know what those costings are.
Paragraph 7.10 on page 5 of the Explanatory Memo-randum, under the heading “Deferred publication”, says:
“Rights holders with a deferred design at EUIPO that request deferment in the UK will not be able to defer publication for more than 30 months overall”.
Therefore, there is a discrepancy, with one deadline being nine months and the other being 30 months. Does that mean that rights holders will have an extension between nine and 30 months? Presumably this would not be affected by something subsequently being negotiated in the event of a deal being agreed, as with earlier statutory instruments. Paragraph 7.10 goes on to say:
“As these designs will already be examined by the EUIPO, no formal examination … will take place at the UK IPO”.
That seems sensible indeed.
4.15 pm
The 16th report of Sub-Committee B of the Secondary Legislation Scrutiny Committee concludes that a preliminary estimate of £375,000 is deemed to be the cost of converting some 700,000 RCDs owing to the comparable UK right. That is a major exercise. Clearly, this cost will not be a charge laid at the door of the IPO. The report goes on to state that it will be part of the fees. Does my noble friend or his department envisage a big increase in the level of the fees because of this? The figure of £375,000 was given as a preliminary estimate. However, on page 12 of the Explanatory Memorandum, an estimate of £63,000 a year is given for the average cost,
“in other fees associated with holding a registered design right”.
I would like the Grand Committee to have an idea of what the overall fees will be. On page 11, at paragraph 12.3, it is repeated that:
“Holders of RCDs will face the additional cost of renewing the new comparable right in addition to the original RCD”.
It goes on to say that, based on the UK renewal costs, the cost is estimated to be £500,000 a year.
We have two different costs: one of £375,000 and one of £500,000. It might be difficult for my noble friend to say what the projected costs will be. Is this something that should cause concern? Is it a one-off cost or an annual cost? Might it stifle future designs?