The United Kingdom’s Intellectual Property Office (IPO) on Monday outlined an ambitious plan to modernize its services, expand the use of artificial intelligence and increase support for small businesses, alongside a significant rise in fees to fund the transformation.

The IPO Corporate Plan 2026 to 2027, the final year of the agency’s current strategy, highlights the growing economic role of IP in a system that already holds more than 3 million registered IP rights across patents, trademarks and designs.

Officials said the reforms are aimed at strengthening the UK’s position as a global hub for innovation and creativity, while making it easier for businesses to protect and commercialize their ideas.

Fees, finances and service pressures

To support its modernization programme, the IPO confirmed that fees for its services rose by an average of 25 percent starting April 1, 2026, marking the first increase in decades for some categories, including trademarks, where fees had not changed since 1998.

The agency expects the changes to boost total income to £215.7 million (US$270 million) in 2026-27, up from £181.6 million (US$228 million) in 2025-26, according to financial projections in the plan.

Operating spending is forecast to increase to £190.5 million (US$239 million), reflecting higher staffing costs and continued investment in digital systems.

An additional £20.5 million (US$26 million) in non-operating spending is earmarked for capital investment and the ongoing transformation programme.

The IPO said recent years have seen a significant increase in trademark applications, alongside steady growth in patent and design filings, placing pressure on its systems and contributing to backlogs in tribunal and hearing services.

While demand is expected to stabilize in the coming year, officials said it will take time to resolve existing delays, particularly as new digital systems are introduced.

Despite those challenges, the agency aims to maintain customer satisfaction levels of at least 85 percent, in line with its published service standards.

Central to the IPO’s strategy is the rollout of AI-driven tools and a broader digital overhaul through its One IPO Transformation Programme, which seeks to integrate services across patents, trademarks and designs into a single digital platform.

The IPO has already launched a new patents service and search tools, with further expansion planned. Officials said the transformation will replace legacy systems, reduce administrative costs and improve access for users.

The agency also plans to embed AI across operations to automate routine processes, improve efficiency and enhance customer experience.

Support for small businesses

The plan places particular emphasis on small and medium-sized enterprises, which account for more than 99 percent of UK businesses and play a central role in innovation and job creation.

Officials said efforts will focus on helping smaller firms better understand the value of intellectual property, access professional advice and use IP assets to secure financing.

The IPO is also working to strengthen the IP-backed finance ecosystem, enabling companies to use patents and other rights as collateral to raise capital.

Beyond services, the IPO will continue developing policy in areas such as artificial intelligence, copyright and industrial design.

The UK design sector alone contributed £97.4 billion (US$122 billion) to the economy in 2019, equivalent to 4.9 percent of total gross value added, underscoring the importance of maintaining an effective IP framework.

Officials said planned reforms to design regulations and standard-essential patents are intended to reduce uncertainty, improve transparency and make the UK more competitive for innovation-led industries.

The agency also plans to expand enforcement efforts against intellectual property crime, including counterfeiting and piracy, through enhanced intelligence-sharing and cooperation with law enforcement partners.

At the international level, the IPO will continue supporting trade negotiations and assisting UK businesses in navigating foreign IP systems.

The 2026-27 plan comes as the IPO marks 150 years since the UK’s first trademark registration, highlighting the long-standing role of intellectual property in the economy.

Officials said the coming year will focus on completing major reforms and laying the groundwork for a new long-term strategy beyond 2027.

- Cathy Li