Thousands of small businesses are being overcharged to renew their patents because of undeclared commissions between legal specialists, a court claim is set to allege.
A group action claiming tens of millions of pounds in damages is set to be issued in the High Court in London today targeting two of the biggest firms in the lucrative field of intellectual property renewal services.
Behind the expected legal action is a group called Commission Recovery Limited, which claims that CPA Global, an intellectual property management company, and Marks & Clerk, a specialist patent legal practice, have colluded unlawfully.
The expected legal action, which is led by Peter Rouse, the campaigning lawyer, comes nearly three years after The Times first revealed allegations about CPA’s business deals, which some claimed were crippling innovation.
It is understood that the High Court claim will allege that Marks & Clerk referred its clients’ patent, design and trademark renewals work to CPA Global in return for undeclared commissions. Businesses must renew their patents in a range of jurisdictions to keep them current and the process is frequently outsourced to specialists.
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Marks & Clerk’s referred clients were unaware of the alleged commissions.
A spokeswoman for Marks & Clerk said: “Marks & Clerk categorically denies any wrongdoing. If any proceedings are issued, we will defend them vigorously.” A CPA spokeswoman said: “Clarivate, who acquired CPA Global in 2020, categorically and emphatically denies any wrongdoing in our business. Clarivate emphasizes that claims asserted by Commission Recovery Limited are without legal or factual merit and will defend against any such claims vigorously.”
