Employee benefits…but when?

• A ground-breaking provision and the arrival of two cases in quick succession.
• Legislation: connected and unconnected persons.
• Ancillary arguments.

In 1977, a ground-breaking provision was introduced which enabled employees to claim compensation if they invent something of outstanding benefit to their employer.

Section 39 of the Patents Act 1977 provides that an invention made by an employee in the course of his employment belongs to his employer, but s 40 entitles the court to award the employee compensation if the invention is of outstanding benefit to the employer (having regard among other things to the size and nature of the employer’s undertaking) and it is just that the employer should compensate him for it.

Section 41 provides that the award of compensation should be such as will secure for the employee a fair share of the benefit, taking into account (among other things):

• the nature of his duties;
• his remuneration and other benefits;
• the effort and