The findings from a recent UK Patents Court judgment have clarified the extent of litigation sanctions imposed when there is a failure to record a patent transaction at the Patent Office. The UK patents system may deprive a successful plaintiff of its entitlement to recover its full legal costs in these circumstances. This case will also affect trademarks and registered designs, as these statutes have identical provisions. This decision will impact potential litigants and future commercial transactions; they must make sure they register an interest and make sure their due diligence in corporate and commercial transactions consider this potential situation.