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

Clyde & Co—Suriya Ashok

Clyde & Co—Suriya Ashok

Clyde Co strengthens energy transition and construction offering with hire of Suriya Ashok

Jurit—Nicole Gallop Mildon

Jurit—Nicole Gallop Mildon

Jurit appoints rare dual-qualified lawyer to expand Anglo-French private wealth expertise

NEWS
The Supreme Court has settled a long-running dispute over part-time workers: unfavourable treatment need be a significant or effective cause, not the sole cause
Arbitration may be private, but its confidentiality is no impenetrable shield. Writing in NLJ this week, James Glaysher of Kingsley Napley examines when courts will permit arbitral material to surface in open litigation
The Financial Reporting Council’s revised Audit Enforcement Procedure will alter the balance of power in corporate investigations
A telecoms operator may be able to hold over under the Landlord and Tenant Act 1954, yet still be unable to secure a renewal: an outcome described as a legal ‘paradox’

Safety fears do not automatically justify shutting an interested person out of a statutory will application

back-to-top-scroll