header-logo header-logo

23 October 2019
Issue: 7861 / Categories: Legal News , Intellectual property , Health & safety
printer mail-detail

Inventor’s ‘outstanding benefit’ worth £2m

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

Sharpe Pritchard—Victoria Heald-Barraclough

Sharpe Pritchard—Victoria Heald-Barraclough

Magic Circle hire strengthens Sharpe Pritchard’s infrastructure finance capability

Lewis Silkin—Iskander Fernandez

Lewis Silkin—Iskander Fernandez

Lewis Silkin adds corporate crime specialist to growing dispute resolution team

Morr & Co—Michael Charalambous

Morr & Co—Michael Charalambous

Morr Co strengthens private client team with partner appointment

NEWS
Should every solicitor found to have acted dishonestly face automatic striking off? The answer, argues John Gould, chair of Russell-Cooke LLP in NLJ this week, is no 
Winning an arbitral award against a state is one thing; enforcing it is another
Can government success in court tell us whether the rule of law is healthy? 
Poorly drafted dispute resolution clauses can trigger litigation before the real dispute is even addressed
As cryptocurrency becomes mainstream, family lawyers are increasingly confronting the challenges it creates on divorce
back-to-top-scroll