The Intellectual Property Act 2014 introduced a new appeal regime for designs. The system of appeals to an Appointed Person acts as an alternative to the route of appealing to the High Court.
This case was significant because it was the first design case decision handed down by the UK Intellectual Property Office (UK IPO) under the Appointed Persons regime in a registered design law case.
The Union Jack designs that were at centre of this appeal were found to be invalid under the new Appointed Persons regime on account of the fact that the two registered designs were said to lack individual character because of the existing prior art (similar designs have been sold in the London souvenir market for many years). The UK IPO therefore dismissed the appeal.
Source: http://bit.ly/2r7cL0l