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Comment & Opinion

IP in 2026: What’s changing and why it matters

“Intellectual property law continues to evolve amid technological innovation, market shifts, and regulatory changes. As we enter the new year, we have identified the key issues you need to focus on to ensure your IP strategies remain effective over the next 12 months.”

Eleanor Hunt, Associate, Intellectual Property, Trade Marks & Designs
Eleanor Hunt

Intellectual property law continues to evolve in response to technological innovation, market trends, and regulatory changes. From the UKIPO’s consultation on design protection to the implications of AI on copyright and contract drafting, businesses face a rapidly shifting landscape.

This article explores six key developments shaping IP strategy you need to know for the year ahead, including design law reform, the fallout from Getty v Stability AI, the rise of AI clauses in contracts, upcoming UKIPO fee changes, portfolio management considerations, and the future of lookalike products following the Court of Appeal’s judgment in Thatchers v Aldi.

Design consultation

Following an initial consultation dealing with post-Brexit issues in 2022, the UKIPO launched a further consultation in 2025 looking at changes to the UK designs framework. It has been noted that the current system is overly complex and open to abuse and going into 2026, attention will certainly be focused on the outcomes of this consultation. The key topics explored in the consultation include:

  • Improving the validity of registered designs via novelty checks and bad faith provisions
  • Introducing a formal deferment provision to the Registered Designs Act 1949
  • Protection for emerging forms of designs including those which are animated or virtual
  • Increasing legal certainty for businesses and simplifying the current system in respect of unregistered designs
  • Protection for computer-generated designs and the use of AI
  • Introduction of criminal sanctions for design infringement
  • Allowing design infringement cases to be heard in the small claims track of the IPEC

Copyright and AI – the fallout of Getty Images v Stability AI

The judgment turned out to be less of a landmark ruling than many hoped. This is largely because Getty had to drop its primary copyright infringement claim following a failure to evidence that Stability AI had committed any acts of unauthorised copying in the UK.

Consequently, it remains possible for AI developers to avoid infringing copyright under UK law by using a training process for their AI models which does not involve the tool having to store or reproduce this training data.

Nonetheless, this judgment has reignited the debate over the current lack of certainty regarding the use of copyright works to train AI models. How the government responds, and how AI policies may develop, over the course of 2026 will certainly make for an interesting watch.

Meta-trend – AI clauses in contracts

As AI becomes more of a cornerstone for day‑to‑day operations, we’re likely to see a sharp rise in AI‑specific clauses appearing in commercial and IP‑heavy contracts throughout 2026. Businesses don’t want surprises, especially around ownership, data use or liability. Consequently, contracts are starting to include explicit wording to deal with these points.

Some examples of current trends and potential expansions in this area include:

  • Many vendors still try to claim broad rights over anything their systems produce. As a result, businesses are pushing for full ownership, or at least perpetual licences, to avoid disputes down the line. Going forward, we should expect to see clearer rules on who actually owns AI‑generated outputs.
  • Increasingly, businesses want guarantees that their data, and even their prompts, won’t be re-used to train or refine the vendor’s model, which helps avoid privacy, confidentiality and IP headaches later. Zero‑retention and no‑training clauses are therefore becoming essential.
  • IP infringement warranties and indemnities are becoming non‑negotiable, especially after recent claims over training data dragged end‑users into the fray.
  • More businesses are demanding bias, accuracy and human‑oversight commitments, particularly when they operate in high‑risk sectors such as hiring or lending.
  • Businesses are pushing back against vendors’ increasingly broad data‑usage rights, tightening limits so providers can’t freely re-purpose customer data.

The takeaway here is that AI clauses are fast becoming the new standard for managing risk and staying ahead of regulatory changes.

Reminder of changing UKIPO fees

If you’re planning to make new filings at the UKIPO this year, circle 1 April 2026 on your calendar. That’s the date when filing fees for patents, trade marks, and designs will increase for the first time since 1998 for trade marks, 2016 for designs and 2018 for patents!

To make the most of the current rates, planning ahead will be essential for brand owners. If you would like more information on this, please see our article on this topic. 

Refinement of IP portfolios

Current data suggests that 2025 is set to be a record year for trade mark filings at the UKIPO. Will this trend continue in 2026 with more and more trade marks being filed or will businesses rationalise their existing portfolios? With this in mind, we wanted to remind you of the importance of reviewing your IP portfolios.

Whilst it is essential to seek registered IP protection where possible, it is also key to ensure that your IP portfolio is reflective of your current brand, particularly considering the rising costs associated with maintaining a global IP portfolio.

The future of lookalikes following the CoA decision in Thatchers v Aldi

The Court of Appeal’s (CoA) decision to overturn the High Court’s judgment earlier this year marks a significant win for businesses who invest heavily in building their branding, only to see it undermined by lookalike products. Notably, Aldi admitted that it used Thatcher’s product as a benchmark when developing the packaging for its own cloudy lemon cider, suggesting that other well-known brands may also serve as direct inspiration for its product designs.

This decision signals a shift in favour of brand owners. If you’ve previously hesitated to challenge lookalike products, this judgment offers you renewed confidence and could encourage more proactive enforcement by brand owners in 2026.

How we can support you

If any of these developments could impact your business, or if you’d like tailored advice on protecting your IP in 2026, please get in touch with our team. We’re here to help you stay ahead of the curve.

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Eleanor
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