Common IP Disputes: Causes and How to Resolve Them

Intellectual property disputes are becoming increasingly common in today’s competitive business environment. Whether you’re a startup with a new product or a multinational with an extensive patent portfolio, IP disputes can disrupt operations, drain resources, and damage reputations.

Understanding the causes of intellectual property disputes and how to resolve them effectively is crucial for businesses, creators, and legal teams alike.

In this blog by Axis Solicitors, we explore the major types of IP disputes, what triggers them, and what legal remedies are available under UK law.

Understanding Intellectual Property and Why Disputes Arise

To understand how intellectual property disputes unfold, it’s important to first understand what intellectual property (IP) is and why it holds so much value.

What Is Intellectual Property?

Intellectual property refers to creations of the mind that have commercial value and are protected by law. In the UK, the main categories of IP include:

• Copyright – protects original works such as music, books, films, software, and art.

• Trademarks – protect brand names, logos, slogans, and other identifiers.

• Patents – protect inventions and technical innovations.

• Design Rights – protect the visual appearance of a product.

• Trade Secrets – cover confidential business information not publicly disclosed.

These rights can be owned, licensed, or sold — just like physical property. However, because intellectual property is intangible, it’s often more difficult to monitor and enforce, making it highly susceptible to disputes.

Why Do IP Disputes Happen?

There are several reasons why intellectual property disputes arise. Common causes include:

• Infringement – when a third party uses your protected IP without permission.

• Ownership conflicts – when multiple parties claim rights to the same IP.

• Licensing disagreements – disputes over the terms or extent of IP usage.

• Employee or contractor issues – questions about who owns the work created.

• Territorial conflicts – issues around IP rights in different jurisdictions.

These conflicts often arise due to misunderstandings, unclear agreements, or outright infringement. The consequences can be severe — including financial loss, court injunctions, and reputational harm.

The Most Common Types of Intellectual Property Disputes in the UK

UK businesses encounter various forms of intellectual property disputes, each involving different legal principles and consequences. Below are the most frequent categories, along with real-world implications.

1. Trademark Disputes

Trademark disputes are among the most visible and commercially damaging IP conflicts. These typically involve one party alleging that another is using a mark that is:

• Identical or confusingly similar to a registered trademark

• Being used in a way that misleads consumers

• Damaging to the reputation or distinctiveness of the original brand

Example:

A new clothing line using a logo similar to Adidas could be accused of passing off, even if the name is different.

Causes:

• Poor trademark searches before registration

• Expansion into new markets without rechecking local trademarks

• Similar-sounding brand names or logos

Legal Remedies:

• Injunctions

• Cease and desist letters

• Damages or account of profits

• Application to invalidate the infringing trademark

2. Copyright Infringement

Copyright protects original artistic, literary, musical, and software works. Disputes often arise when someone:

• Copies or reproduces work without a licence

• Distributes copyrighted material without consent

• Adapts work (e.g., turning a book into a screenplay) without permission

Example:
A website using stock images without paying the licence fee may face copyright claims from the image owner.

Common Sectors Affected:

• Publishing

• Music

• Tech/software

• Film and media

Legal Remedies:

• Injunctions to stop the infringing use

• Monetary damages

• Delivery up or destruction of infringing copies

• Criminal prosecution in severe cases

3. Patent Disputes

Patent disputes tend to be complex, involving deep technical detail and high financial stakes. Common scenarios include:

• An invention being used or sold without the patent holder’s consent

• Disagreements over who invented or filed first

• Challenges to a patent’s validity

Example:
A company reverse-engineering a patented drug formula and releasing a generic version before patent expiry may be liable for infringement.

Legal Actions:

• Patent litigation in the High Court or Intellectual Property Enterprise Court (IPEC)

• Defence of invalidity

• Revocation proceedings

• Settlement via cross-licensing agreements

4. Design Right Disputes

Design disputes centre around the appearance of a product — its shape, patterns, or ornamentation. Both registered and unregistered design rights can be enforced under UK law.

Typical Conflicts:

• Furniture designs

• Packaging and product shapes

• Fashion items

Example:
If Company A produces a chair with a unique shape and Company B releases a near-identical version, A may sue for infringement of design rights.

Resolution Options:

• Enforcement through IPEC or High Court

• Mediation to reach a commercial settlement

• Claim for damages or account of profits

5. Trade Secret and Confidential Information Disputes

Trade secrets, while not registered IP, are legally protected if confidentiality can be proven. Disputes here usually involve:

• Former employees using confidential information

• Misappropriation by business partners

• Data breaches or leaks

Example:
An ex-employee starting a rival business using your client list and proprietary methods could be liable under breach of confidence laws.

Resolution Options:

• Immediate injunctions

• Internal investigations and audits

• Breach of contract or fiduciary duty claims

Causes of IP Disputes: A Closer Look

Intellectual property disputes don’t emerge in a vacuum. They often stem from overlooked legal checks, commercial pressure, poor documentation, or changes in business relationships. Below are the most common root causes, along with insights into how they escalate.

1. Poor IP Management and Documentation

A major cause of disputes is inadequate record-keeping around IP creation, ownership, and usage. Businesses that fail to formally document how IP is developed or transferred often face legal uncertainty later.

Typical Oversights:

• No written agreements with contractors or freelancers

• Missing inventor declarations in patent filings

• Lack of clarity in joint ventures or collaborations

Why It Leads to Disputes:

Without proper documentation, multiple parties may claim ownership, or former collaborators might exploit the IP independently.

2. Lack of IP Due Diligence

Businesses often rush product launches, marketing campaigns, or international expansion without conducting proper IP clearance. This opens the door to infringement claims.

Scenarios:

• Using a brand name already trademarked in another region

• Launching a product with a patented feature you didn’t know existed

• Integrating third-party software without verifying licensing

Result: Legal action, product withdrawal, reputational damage.

3. Competitive Pressures and Imitation

Fast-moving industries like fashion, technology, and consumer goods see competitors regularly pushing the line between inspiration and imitation. This often leads to IP battles.

Tactics That Cause Disputes:

• Reverse-engineering of patented products

• “Lookalike” packaging

• Domain name squatting

• Brand hijacking on online marketplaces

These may be strategic decisions — but they carry serious legal risks.

4. Cross-Border Complexity

The global nature of modern business adds another layer of risk. IP rights are territorial, meaning protection in the UK doesn’t always extend abroad.

Common Problems:

• Products infringing overseas patents being imported into the UK

• Parallel imports undercutting domestic licencees

• Varying laws around fair use, parody, and public domain

International disputes often require multi-jurisdictional strategy and expert coordination.

5. Internal Conflicts and Departing Employees

A surprising number of intellectual property disputes are internal — between co-founders, employees, or ex-business partners.

Common Triggers:

• Founders leaving and taking branding with them

• Employees launching a spin-off with trade secrets

• Ownership disagreements during company sales or restructures

These cases are emotionally charged and often more difficult to resolve amicably.

How to Resolve Intellectual Property Disputes Effectively

The way an intellectual property dispute is handled can determine whether a business emerges stronger or suffers lasting harm. Resolution isn’t just about legal wins — it’s about protecting commercial interests, maintaining brand value, and avoiding drawn-out conflict. 

Below are the key methods available under UK law, ranked from least to most adversarial.

1. Internal Assessment and Early Case Review

Before launching any formal action, it’s vital to assess the facts and risks internally. This stage often determines whether a dispute will escalate or be contained.

Steps to Take:

• Gather all documentation proving ownership or licence rights

• Review contracts, emails, and communications

• Identify key witnesses or creators

• Consider commercial context (e.g., is the infringer a customer, supplier, or rival?)

Early legal advice at this point can make the difference between resolution and escalation.

2. Cease and Desist Letters

A well-drafted cease and desist letter can stop infringement without costly litigation. It puts the alleged infringer on notice and signals seriousness.

Contents Should Include:

• Proof of your IP rights

• Details of the infringing activity

• A clear request to stop, remove, or rebrand

• Deadline for compliance

• Intent to escalate if ignored

Advantages:

• Low-cost

• Can be resolved quickly

• Creates a record of proactive enforcement

However, these letters must be legally accurate. Making groundless threats of infringement (especially under the Trade Marks Act 1994 or Patents Act 1977) can backfire and lead to counterclaims.

3. Negotiation and Settlement

Many intellectual property disputes are resolved privately through direct negotiation, especially when commercial relationships are involved.

When Negotiation Works Best:

• Ongoing business or supplier relationships exist

• There’s mutual interest in avoiding publicity

• Both sides have something to lose from a legal battle

Common Settlement Terms:

• Financial compensation or royalties

• Ceasing use or modifying materials

• Licensing agreements

• Confidentiality clauses

Using legal representatives in these talks can help frame offers, preserve leverage, and draft enforceable agreements.

4. Mediation

Mediation is a structured process where a neutral third party helps both sides reach an agreement. It’s private, non-binding, and increasingly encouraged by UK courts.

Advantages:

• Faster and cheaper than litigation

• Keeps control in the hands of the parties

• Protects reputations by staying confidential

When to Use Mediation:

• Both sides are open to compromise

• There’s a relationship worth preserving

• The facts are unclear or highly subjective (e.g., design similarities)

Organisations like the Intellectual Property Office (IPO) and Centre for Effective Dispute Resolution (CEDR) offer IP-specific mediation services.

5. Litigation

When early resolution fails — or the stakes are too high — going to court may be the only option.

Key Venues for IP Litigation in the UK:

• Intellectual Property Enterprise Court (IPEC): handles less complex claims (up to £500,000 damages cap).

• High Court (Chancery Division): deals with high-value or technically complex disputes.

• Court of Appeal or Supreme Court: for appeals in precedent-setting cases.

What Litigation Involves:

• Pleadings and evidence disclosure

• Expert witnesses (especially in patent disputes)

• Cross-examination and legal submissions

• Final judgment and possible enforcement

Risks:

• Legal costs (often six figures)

• Public proceedings

• Reputational exposure

• Potential loss of IP rights if validity is challenged

However, litigation can clarify legal positions, deter future infringers, and in some cases recover substantial damages or force market exits.

6. Arbitration (in Contractual IP Disputes)

Where parties have an arbitration clause — often in licensing or joint venture agreements — disputes may be resolved privately through binding arbitration.

Benefits:

• Confidential

• Can be faster than court

• More flexible procedures

Limitation: It may not be suitable where public injunctions or precedent are required (e.g., mass infringement cases).

To search more about more ways to fix this you can visit the government website GOV.UK

Preventing IP Disputes: Best Practices for UK Businesses

Many intellectual property disputes arise from simple but avoidable missteps. Whether you’re a startup or an established brand, implementing strong preventative measures can dramatically reduce the risk of costly legal conflicts.

1. Register Your IP Early and Strategically

Unregistered IP is harder to enforce. Where possible, businesses should secure formal protection through the appropriate UK or international bodies.

Key Registrations to Prioritise:

• Trademarks with the UK Intellectual Property Office (UKIPO) or EUIPO

• Patents for inventions via the UKIPO or European Patent Office

• Registered Designs for aesthetic features of products

• Copyrights (while automatic in the UK) can be documented with timestamps or third-party registration services

Strategic Tip: Don’t just register your current brand or invention — think ahead. Consider covering future product names, potential logo variants, and international markets.

2. Conduct Proper IP Audits

Regular IP audits help businesses identify what they own, where the risks lie, and what protections are missing.

Audit Checklist:

• Ownership: Who created the IP? Is it documented?

• Scope: What territories and categories are covered?

• Licensing: Are there existing rights granted to others?

• Vulnerabilities: Are there any infringements or gaps in protection?

Conducting an IP audit at key milestones — fundraising, product launches, mergers — can prevent disputes and improve valuation.

3. Use Clear Contracts with IP Clauses

Many disputes stem from ambiguity in contracts. Every agreement involving creative or technical output should contain clear IP ownership and usage clauses.

Key Clauses to Include:

• Who owns the IP created

• Whether the IP is assigned or licensed

• Duration and scope of licence (territory, medium, exclusivity)

• What happens on termination of the agreement

• Confidentiality obligations

Applies To:

• Employees

• Freelancers

• Developers

• Consultants

• Collaborators

Use written contracts — not just verbal promises or email chains.

4. Monitor for Infringement

Infringement can go unnoticed for months — even years — if no one is actively monitoring. Setting up alerts and enforcement strategies is essential.

Tools to Use:

• Google Alerts for brand and product names

• Image tracking tools (e.g., TinEye)

• Marketplace monitoring (Amazon Brand Registry, eBay VeRO)

• Domain monitoring for cybersquatting

• Customs watches for counterfeit imports

What To Do When You Spot a Problem:

• Record the infringement (screenshots, copies)

• Identify the party and their location

• Seek legal advice before making contact

Taking swift and informed action increases the chance of a favourable outcome.

5. Train Staff and Stakeholders

IP protection isn’t just a legal issue — it’s a cultural one. Staff should understand how to create, handle, and safeguard intellectual property responsibly.

Training Topics Should Include:

• Recognising IP and trade secrets

• Correct use of third-party assets (e.g., stock images, software)

• Contract obligations around confidentiality

• Reporting suspected infringement

This is especially important for marketing, product development, design, and IT teams.

6. Use NDAs and Confidentiality Agreements

When discussing ideas with outsiders — from investors to contractors — use non-disclosure agreements (NDAs). These can be simple but enforceable.

NDAs Should Cover:

• What information is protected

• How it must be handled

• Duration of confidentiality

• Consequences of breach

NDAs are especially crucial in industries where speed to market matters — such as tech, biotech, and consumer products.

7. Build an IP-Centric Business Mindset

Finally, prevention comes down to awareness. Businesses that treat IP as a core asset rather than a legal afterthought are less likely to face disputes.

Adopt This Mentality:

• IP should be considered in every new product or campaign

• Legal teams should be involved early, not reactively

• Protecting IP should be part of business strategy, not just compliance

Frequently Asked Questions

What are intellectual property disputes?

Intellectual property disputes are legal conflicts that arise when one party believes another has used their protected creations—such as trademarks, copyrights, patents, or designs—without permission. These disputes can involve ownership claims, unauthorised use, infringement, or breach of licensing terms. In the UK, such disputes are addressed through civil litigation, mediation, or negotiated settlements.

How do intellectual property disputes typically arise?

Most intellectual property disputes begin when:

• A business uses a similar brand or logo already protected by trademark law

• Content or code is copied without proper licensing

• An invention is replicated before a patent expires

• Partners or employees claim shared ownership of IP

In many cases, the dispute results from unclear agreements, lack of IP audits, or a failure to monitor infringement.

What steps should I take if I’m involved in an intellectual property dispute?

If you’re facing or suspect you’re about to face an intellectual property dispute:

1. Preserve evidence — Collect contracts, screenshots, emails, and any proof of use or ownership.

2. Avoid contact with the other party without legal advice.

3. Consult a solicitor experienced in IP law.

4. Review your registrations (trademarks, patents, designs) for legal standing.

5. Avoid retaliatory actions, especially online.

Getting legal advice early improves your chances of a favourable resolution.

Can I settle an intellectual property dispute without going to court?

Yes. Many intellectual property disputes are resolved without litigation through:

• Cease and desist letters

• Commercial negotiation

• Mediation with a neutral facilitator

• Arbitration (if contractually agreed)

Avoiding court can save time and cost, preserve business relationships, and protect confidentiality.

What are the legal consequences of losing an intellectual property dispute?

Losing an intellectual property dispute in the UK can lead to:

• Court injunctions stopping the use of IP

• Monetary damages or account of profits

• Legal cost orders against your business

• Loss of IP rights if validity is successfully challenged

• Reputational damage from public rulings

This is why expert legal guidance is essential in every IP conflict.

How long do intellectual property disputes take to resolve?

The duration of intellectual property disputes varies:

• Cease and desist negotiations: 2–8 weeks

• Mediation: 1–2 months

• IP litigation in IPEC: 6–12 months

• High Court litigation: 12–24 months or more

Early action, strong documentation, and legal strategy often shorten the timeline.

What is the cost of resolving an intellectual property dispute in the UK?

Costs depend on the complexity and resolution method:

• Cease and desist process: £750–£3,000

• Mediation: £2,000–£10,000+

• IPEC litigation: £15,000–£60,000

• High Court litigation: £75,000–£250,000+

Costs can often be recovered from the losing party, but not always. Early resolution is more cost-effective.

Can I prevent intellectual property disputes?

Yes. Preventative steps include:

• Registering your IP (trademarks, designs, patents)

• Using robust contracts with clear IP ownership terms

• Monitoring infringement with tools and alerts

• Conducting IP audits regularly

• Training staff on IP handling and misuse

Proactive IP management significantly reduces the chance of intellectual property disputes.

What courts handle intellectual property disputes in the UK?

In the UK, intellectual property disputes can be heard by:

• Intellectual Property Enterprise Court (IPEC) – faster, lower-cost option for simpler claims

• High Court (Chancery Division) – for complex or high-value disputes

• Court of Appeal / Supreme Court – for appeals and precedent-setting cases

Each court has different procedures and cost thresholds, so choosing the right forum is key.

Why Choose Axis Solicitors?

Intellectual property disputes are more than legal skirmishes — they’re battles for brand value, innovation, and market position. Understanding the causes, recognising the warning signs, and acting decisively can protect your business from financial loss and reputational harm.

Axis Solicitors is here to help you take control of your IP landscape — with expertise, urgency, and strategic clarity.

Need advice on an IP dispute or want to protect your intellectual property? Contact Axis Solicitors today.