04 February 2009
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There has been a significant reduction in the value of the GB Pound versus the Euro, and also with respect to the US Dollar and the Yen over the last six months. Initially commentators were suggesting that this might be a short term blip as a result of speculation. However, commentators are now suggesting that this is much more likely to be a general realignment that will endure.
The exchange rates at 22 January 2009 compared to the exchange rates one, two, three and four years ago and the percentage changes are set out in the table below and in the accompanying chart. It can be seen that the US dollar and the Yen have strengthened with respect to both the GB Pound and the Euro. The Euro has in turn strengthened with respect to the GB Pound.
YEAR |
GBP/EURO |
YR ON YR (%) |
GBP/US$ |
YR ON YR (%) |
GBP/YEN |
YR ON YR (%) |
|---|---|---|---|---|---|---|
| 22 Jan 09 | 1.06 |
-20.90 |
1.37 |
-30.10 |
121.93 |
-41.79 |
| 22 Jan 08 | 1.34 |
-12.42 |
1.96 |
-1.01 |
209.45 |
-12.83 |
| 22 Jan 07 | 1.53 |
5.52 |
1.98 |
10.61 |
240.28 |
-17.42 |
| 22 Jan 06 | 1.45 |
1.40 |
1.79 |
-4.43 |
204.64 |
6.03 |
| 22 Jan 05 | 1.43 |
1.87 |
193.01 |
SO WHAT DOES THIS MEAN IN PRACTICE?
Firstly, it is more important than ever for all IP rights owners to have a well thought out International IP strategy, both as regards where to obtain and enforce IP rights and how and where to handle the obtaining and enforcement of those rights. We at D Young & Co are very experienced in advising on this, and we work closely with our clients to maximise the return for their IP investment.
For example, for UK and Euro-zone rights owners, we advise on the choices to be made with regard to strategy and budgets, given that unit costs outside Europe, and in particular unit costs outside the UK, have increased significantly in Euro and, in particular, in GB Pound terms.
For US and Japanese rights owners, the cost of obtaining European and UK rights and also of enforcing those rights has reduced.
Indeed, given that D Young & Co is UK-based within the GB Pound area, the cost of the services of D Young & Co have reduced significantly with respect to practices based in the Euro zone (to the tune of 20% over the last year). This offers our Japanese, US and Euro-zone clients all the advantages of prosecuting European patent applications in English with the quality and service provided by D Young & Co at substantially lower cost than a year ago (about 40%, 30% and 20%, respectively).
So, even in these difficult and stormy times, there is a silver lining to the cloud.
If you have any questions, please do not hesitate to contact your usual correspondent at D Young & Co.