header-logo header-logo

Inventor’s ‘outstanding benefit’ worth £2m

23 October 2019
Issue: 7861 / Categories: Legal News , Intellectual property , Health & safety
printer mail-detail
A professor who invented a device vital to diabetes treatment has won a landmark patent case on the determination of ‘outstanding benefit’.

In a unanimous ruling this week, the Supreme Court held Professor Shanks is entitled to compensation under the Patents Act 1977, s 40, on the basis the patents for the product he invented in 1982 have been of outstanding benefit to his employer and he is entitled to a fair share of that benefit, in Shanks v Unilever Plc [2019] UKSC 45.

Professor Shanks initially received a salary of £18,000 and a Volvo car for his work on biosensors, during which he conceived a system for measuring the glucose concentration in blood, serum or urine. He built the prototype at home using Mylar film and slides from his daughter’s toy microscope kit and bulldog clips to hold the assembly together. He accepts the rights to his inventions were owned by his employer, which sold them to Unilever for £100. The Shanks patents would later be worth more than £19m, and Unilever’s total earnings from the patents were about £24m.

The court considered the meaning of ‘outstanding benefit’ and what percentage of earnings should be allocated.

Giving the lead judgment, Lord Kitchin held it was fair to apply a 5% share of the £24m, which gave Professor Shanks £2m.

He said the statutory test required the benefit to be ‘outstanding’, which is ‘an ordinary English word meaning exceptional or such as to stand out and it refers here to the benefit (in terms of money or money’s worth) of the patent to the employer rather than the degree of inventiveness of the employee’. In determining the ‘benefit’ to Unilever, Lord Kitchin said the court must consider what is the employer’s undertaking for this purpose, and ‘what is the relevance of that undertaking’s size and nature?’

MOVERS & SHAKERS

Freeths—Ruth Clare

Freeths—Ruth Clare

National real estate team bolstered by partner hire in Manchester

Farrer & Co—Claire Gordon

Farrer & Co—Claire Gordon

Partner appointed head of family team

mfg Solicitors—Neil Harrison

mfg Solicitors—Neil Harrison

Firm strengthens agriculture and rural affairs team with partner return

NEWS
Conveyancing lawyers have enjoyed a rapid win after campaigning against UK Finance’s decision to charge for access to the Mortgage Lenders’ Handbook
The Crown Prosecution Service (CPS) has launched a recruitment drive for talented early career and more senior barristers and solicitors
Regulators differed in the clarity and consistency of their post-Mazur advice and guidance, according to an interim report by the Legal Services Board (LSB)
The dangers of uncritical artificial intelligence (AI) use in legal practice are no longer hypothetical. In this week's NLJ, Dr Charanjit Singh of Holborn Chambers examines cases where lawyers relied on ‘hallucinated’ citations — entirely fictitious authorities generated by AI tools
The Solicitors Act 1974 may still underpin legal regulation, but its age is increasingly showing. Writing in NLJ this week, Victoria Morrison-Hughes of the Association of Costs Lawyers argues that the Act is ‘out of step with modern consumer law’ and actively deters fairness
back-to-top-scroll