Business Toolkit: Unblocking the power of IP - How to protect and profit from your ideas

A landmark UK Supreme Court judgment delivered on February 11, 2026, in the Emotional Perception AI case has reshaped patent law for computer-implemented inventions, including AI technologies. The Court discarded the long-standing Aerotel framework and aligned UK practice with the European Patent Office's 'any hardware' approach. This makes patenting easier for innovations involving any physical hardware component, even minimal, removing previous hurdles that often excluded software and AI from protection.

The ruling comes at a time when AI adoption is accelerating across industries, raising the stakes for companies to secure exclusive rights to their innovations. Failure to protect IP can erode market advantages, deter investors, and expose firms to unchecked copying.

Compounding this, the UK Intellectual Property Office concluded a significant consultation in November 2025 on overhauling the designs protection system. Expected reforms in 2026 aim to streamline processes, curb bad-faith registrations, strengthen enforcement against design theft, and potentially introduce criminal penalties in some cases. These target sectors prone to imitation, from consumer products to tech hardware.

Official fees for patents, trade marks, and designs are rising sharply from April 1, 2026—the largest adjustment in decades—with patent fees up by around a third on average. This creates a clear window for businesses to act before expenses increase.

Broader uncertainties persist around AI and copyright, with pending appeals and expected government guidance following 2025 consultations. Together, these developments make robust IP management essential for maintaining competitiveness, generating licensing revenue, and supporting growth in an innovation-driven economy.