Showing posts with label Ownership. Show all posts
Showing posts with label Ownership. Show all posts

Friday, 28 November 2014

A Critical Understanding of the Concept of Priority Date in Accordance to Application of a Patent


By Joseph Lubega, LLB Candidate (UCU)

 
Intellectual property in a broader sense refers to creations of the mind, which among others include inventions, literary and artistic works, designs, and symbols, names and images used in commerce. However, in my own understanding. 
Intellectual Property (IP) is well thought-out a concept that describes the application of the mind to develop something new or original. This thus means that Intellectual property law is interested in protecting the product of human mind or product of creation.
Just as the law protects ownership of personal property and real estate, so too does it protect the exclusive control of intangible assets. The rationale of I.P laws is to give an incentive for people to develop creative works that benefit society, by ensuring they can profit from their works without fear of misappropriation by others. 
Hence Intellectual property rights are important since they protect the right of the owners of intellectual property to earn money from the created property, thus stimulating others to come up with intellectual property of their own.
Therefore, Intellecual property law is classified into different types of I.P rights which among others include Copyrights, Patent law, Trade Secrets and Trademarks with a copyright law as a law intended to protect and to reward original expressions embodied in tangible material or fixed form.
This leads us to another important IP right that is to say, patent law where a patent is defined as an exclusive right granted for an invention1, which is a product or a process that provides, in general, a new way of doing something, or as per Section 8(1) of the Industrial Properties Act offers a new technical solution to a problem. This means that the state grants an exclusive right to the inventor to make, use, manufacture and market the invention provided the invention satisfies certain conditions stipulated in the law (Found in part III of the Industrial Properties Act).
Therefore, the exclusivity of the right implies that no else can make, use, manufacture or market the invention without the consent of the patent holder.
As a result, to get a patent, particular technical information about the invention must be disclosed to the public in a patent application, meaning patent protection is in exchange of public disclosure of the various specializations of the invention as was pointed out in PLG Research ltd v Ardon international ltd [1993] FSR 197, where court held that by publication the law means putting out in the public full description of the product in that any skilled person in that art can work or utilise the description.
Therefore in principle, the patent owner has the exclusive right to prevent or stop others from commercially exploiting the patented invention, which in other words, means that upon patent protection the invention cannot be commercially made, used, distributed, imported or sold by others without the patent owner's consent, this can be related to derivative rights which arise where the owner or original owner gives another person permission to any other person as was expressed in Angella Katatumba v Anti-Corruption Coalition of Uganda (( Civil Suit No.307 0f 2011).
Patents are territorial rights that is to say that the exclusive rights are only applicable in the country or region in which a patent has been filed and granted, in accordance with the law of that country or region. This protection is granted for a limited period, usually 20 years from the filing date of the application as it is referenced in Section 24(3) of The Industrial Properties Act.
This brings me to the question in issue, the concept of priority date which by virtue of Section 2 of the Industrial Property Act, 2014 to mean the date of the first application that serves as the basis for claiming the right of priority provided for in the Paris Convention

In simple terms, the inventor’s idea is protected within the first 12 months from the date of filing from any subsequent patent application for the same invention, in that, in case of such a dilemma he or she can claim this "priority right” as provided for under Section 24 of the Industrial Property Act, 2014. Therefore according to Bainbridge in Intellectual Property, priority date is the earliest date to which a patent application can claim priority.

For that reason, the significance of the priority date is the fact that it defines what materials or provisional specializations fall within the prior art to the patent application, thus, obtaining the earliest possible priority date can be important to the patentability of some inventions.
By provisional specialization the applicant is entitled to disclosing the essence of the nature of the invention.

What often happens is that many people always work at the same time to find solution(s) to a particular technical problem, which in most situations makes the patent application process a difficult course. However, the law seeks to protect only one of them through the grant of a patent and this explains the reason as to why most jurisdictions follow the so-called first-to-file-system in granting that patent to the one who filed the application first.

In accordance with the Ugandan industrial property Act, only the “first inventor” of the claimed invention is entitled to a patent for that invention. The “first inventor” is the person who either (1) reduced the invention to practice first or (2) reduced the invention to practice second but conceived of the invention first and exercised reasonable diligence in reducing the invention to practice from a time just prior to when the first person reduced the invention to practice.

This is in regards to an application filed with the Uganda Registration Services Bureau (URSB), operating under the supervision of the Ministry of Justice and Constitutional Affairs.

Therefore, when an inventor is seeking patent protection for the same invention in several countries, the principle of priority is very useful since you do not have to file your application in several countries at the same time. 

The Paris Convention for the Protection of Industrial Property provides that once you file an application in one country party to the Convention, you (under section 24(3) of the Industrial Properties Act, 2014) are entitled to claim priority for a period of twelve months and the filing date of that first application is considered the “priority date."
Therefore, when you apply for protection in other member countries (of the Paris Convention) during those twelve months, the filing date of your first application is considered to have “priority” over other applications filed after that date.

In such a case, you still succeed in being the first-to-file in other member countries, even if there are other applications filed before the filing date of your application in those countries.

The above rationale was the impetus of the Paris Convention which intended to avoid the unwanted loss of eligibility for patent protection through publication of patent applications and participation in international exhibitions in advance of filing national patent applications.

The above issue simply means the inventor will get the benefit of a filing date in a foreign jurisdiction or patent office for purposes of determining what is prior art, that is to say, it is the actual filing date of the first application (This was a decision of the Board of Appeal of the European Patent Office).

This explains the situation prior to the Convention, as those wanting protection for inventions in numerous countries needed to file patent applications in all such countries at once, and needed to do so prior to any publication or exhibition of the invention at a trade fair, in order to avoid the accidental loss of eligibility of patent protection in one or more of the countries.

Therefore, the law is seeking to safeguard the interest of a patent applicant in his endeavour to obtain international protection for his invention by easing the negative consequences of the principle of territoriality in patent law, though for a limited time.
Hence the fact that the law of patent is jurisdictional, was solved by the development of the concept of priority date where an inventor applying in Uganda will still have a benefit of 12 months period to apply for patent protection in other African countries through ARIPO office and the world at large through application to the WIPO office by claiming the priority of the earliest Ugandan patent application filed one year before.
This thus enables the inventor to be able to benefit from the date of filing of the Ugandan patent application in these other countries.
Hence any disclosure to the public as regards to the applicant’s invention on or after the filing date will not prejudice the inventor’s patent application in other countries outside Uganda’s territorial jurisdiction.(Afro-ip.blogspot.com) As a result, any publication concerning or explaining the inventor’s concept will not affect the novelty of the Applicant’s patent application in other countries by virtue of the claim of priority date.
This as a result, indicates the relationship between novelty and the right of priority, as the priority date is a significant concept that preserves the novelty of the invention within other countries notwithstanding any publication, exhibition or other act capable of destroying novelty of the invention during the priority period. This was further enshrined in Windsurfing International Inc v Tabur Marine (1985) RPC 59 where court noted that the importance of priority date is to protect the novelty of the invention from any other common general knowledge in the art in question.

Therefore, the priority date is important because it is the state of the art at that date that is considered when judging the invention for novelty. It is also relevant in terms of infringement in that persons who in good faith, before the priority date, either have done an act that would constitute infringement or have made effective and serious preparations (according to Bainbridge in Intellectual Property pg. 389).


The current law is a modification as before the signing of the 1883 Paris convention the practice was that when someone wanted to obtain patents in multiple countries he or she had to file separate applications in each of these countries. 

If the invention was going to be put on the market, it would no longer be patentable in most countries, and so translations and other administrative affairs would have to be done very quickly, however, this was quite a difficult situation as inventors ended up losing out on most of benefits from their inventions, hence the Paris convention was a forum to ease matters through the claim of right of priority, as the Paris Convention granted an inventor a priority right based on a patent application filed in one member country. 
 
If the inventor subsequently files/filed patent applications for the same invention in other member countries within one year after filing the first one, the later applications receive a fictional filing date (the "priority date") that is equal to the filing date of the first patent application. This gave the inventor a period of one year to prepare translations and to brush up specification and figures, and to decide in which countries he wants to file a patent application, this rationale was illustrated in the
However, it is important to note that for an applicant to claim the right of priority the applicant ought to make sure that the specifications illustrated in the original application ought to be similar with the specifications in all the other later applications as the consequence for failure to have the same descriptions would be severe, as was noted in the case of Biogen inc v Medava Plc (1997) RPC 1, where the house of lords upheld the decision of court of Appeal in declining the claim to the right of priority as the subsequent applications had different specializations from the original application.
Furthermore, the applicant is expected to claim his right to priority within the stipulated 12 months to avoid the consequences of striking out the applicant’s right. This was clearly elucidated in the case of Re Abaco Machines (Australasia) Pty Ltd (2007) EWHC 347 where an Australian company filed an application for a Vietnamese patent intending to file an application under the Patent Cooperation Treaty and following this in relation to the U.K, filed an application to the European Patent Convention. However due to an error, the required duration of 12 months was missed to file the PCT application, court noted the fact that the claim for right to priority was missed and thus was proper for the patent office to refuse the grant for a late declaration.
Therefore, in my humble opinion l believe the concept of right to priority was a significant creation of the Paris convention that was developed to protect majority of the inventors during patent application process which was quite a different situation prior to the development of the right of priority as was seen in the case of Microbeads AG v Vinhurst Road Markings [1975] 1 WLR 218 where a patent holder sued the defendant for patent infringement .However the defendant argued that by the time of the purchase of the goods, the applicant had not been granted the patent for the product hence was in breach of his quiet possession of ownership.
The above case indicates the risks inventors faced in regards to lose of their invention rights as the inventor would only benefit from any I.P right such as suing for patent infringement from the date of grant of the patent.
However, with the current development in the law, the inventor is now protected from such risks as the inventor can now claim patent infringement from the date of filing by virtue of his right of priority.

USEFUL REFERENCES

STATUTES:
  1. Industrial Property Act,2014
  2. The Paris Convention for the protection of industrial property, of 20th March, 1883
TEXT BOOKS:
  1. D. Bainbridge (2010), Intellectual Property, 8th Edition.
  2. Colston, Principles on Intellectual Property
  3. Jon Holyoak, Intellectual Property Law
  4. W.R. Cornish, Cases & Materials on Intellectual Property, 5th Edition
CASES:
  1. Angella Katatumba v Anti-Corruption Coalition of Uganda Civil suit No.307 of 2011.
  2. Biogen inc v Medava Plc [1997] RPC 1
  3. PLG Research ltd v Ardon international ltd [1993] FSR 197,
  4. Re Abaco Machines (Australasia) Pty Ltd [2007] EWHC 347
  5. Windsurfing International Inc v Tabur Marine [1985] RPC 59
WEBSITE LINKS/SITES:


Wednesday, 26 November 2014

The Dilemma Of the Employer-Employee ownership of a patent

By Ronald Tukachungurwa


Introduction
Intellectual property law refers to the area of law associated with creative effort or commercial reputation and goodwill. It covers aspects such as literature, artistic works, films, computer programs, inventions, designs and trademarks which have various rights such as copyright, rights in performances, patents, registered designs, trademarks and others.1 The rationale of intellectual property is to deter others from copying or taking unfair advantage of the work or reputation of another. A patent is an exclusive right for a limited time period, usually 20 years which enables its owner to exclude others from making or using an invention as expressed in the patent specification, and defined in ‘the claims’ of the patent application.2 It is a form of personal property capable of being assigned, licensed or charged by way of mortgage3 just like other intellectual property rights and operates in respect of new, industrially applicable inventions and therefore accords a mode of protection to these inventions, though subject to certain standards. The grant of a patent effectively gives an inventor a monopoly to work the invention to the exclusion of others for a period of time, not exceeding 20 years. It is therefore important that the owner of the patent be ascertained.

While it is presumed that the owner of the patent is the inventor or co-inventor, the position is different where a patent is made by an employee and in such instances, it is duely important to ascertain the rightful owner of such a patent; which in this study, I seek to analyse as I unearth the ‘dilemma’ regarding the ownership of a patent for employee inventions.

In as much as Section 2 of the Industrial Properties Act defines an inventor as the person who devises the invention,4 the general rule is that a patent can only be granted to the inventor or co-inventor.5 It is also a general rule as embodied in Section 19 (1) Industrial property Act that the right to a patent for an invention made during the contract of employment belongs to the employer. This as Bainbridge notes in his book Intellectual Property that, “a large number of inventions are made by employees and usually, in such cases, the employer will be the proprietor although the inventor will be named as such in the patent as published.”6 The rationale is that new products of labour belong to the owner7 as affirmed in Patchett v Sterling8 that, it is an implied term in a contract of service that what a workman produces by his strength or skill of his hand or the exercise of his inventive faculty becomes the property of his employer.

However, there is an exception to this position, that is, for inventions made by employees in the course of their employment. An employee refers to a person who works or worked under a contract of employment under or for the purposes of a government department or a person who serves or has served in the naval, military or air forces of the crown.9

However, it is necessary to put into consideration the terms of the employee’s contract of employment so as to resolve this position.

An invention made by the employee is deemed to belong to the employer only in the following circumstances.

(i) When the invention is made in the course of the employee’s duties such that at that time, the employee has a special obligation to further the interests of his/her employer’s undertaking. High level employees by the nature of their jobs are mandated to further the company’s interests hence they don’t own the patent to such an invention. In Staeng Ltd’s Patents [1996] 183 although the employee’s primary role was marketing, he had to devise new ideas for new products. Him being a senior executive officer of the company, he ought to know that his ideas would help his employer and therefore he was furthering the employer’s interests. The employer was entailed to the patent since the employee made the invention in the course of his normal duties and under circumstances where an invention could reasonably be expected. It was however observed by Pumfre J in Christopher S French v Paul J Mason10 that such an employee can still succeed.

(ii) when the employee carries out such invention in the course of his/her normal duties as an employee or in the course of duties specifically assigned to him/her and the circumstances must be such that, the invention might have reasonably been expected to result from the carrying out of the duties. For instance, if the employee’s duties include making inventions in the normal course of his duties such as employees engaged in research and developmental capacity. An example of a special assignment is where the employee is tasked to solve a particular problem with the employer’s equipment or working practices and he makes an invention in the course of doing such a task. This issue arose in Harris’ Patent11 where the company did not undertake any creative design or have research facilities and the employee’s normal/primary duty was to sell way valves, and court held that, “the invention was not made in circumstances that it might have reasonably been expected from the carrying out of the employee’s normal duties hence the employer could claim”.

In LIFFE Administration and Management v Pavel Pinkara12 held that the invention should be made in the course of the employee’s normal duties. The guiding factor in determining what amounts to normal or specific duties as per Jacob JJ is, “whether the employee is in a situation where one could objectively expect him to make the invention.” Therefore, even where some terms were implied by law and they evolve overtime leading to duties, they become part of the employee’s normal duties.

However, what remains of essence remains as to whether the invention in question could be envisaged from the employee’s duties or if it provided a solution to a problem or contributed to the achievement of the aim or object of the employee’s duties.13

Besides the above, the employee has ownership of the patent for the invention where even though the invention is done during the employee’s course of duties, it is not connected with the duties i.e. the invention is outside the job description of such employee. This is similarly stated in Section 19 (6) of the Industrial Property Act which adds on that, the employee should have made the invention without use of the employer’s materials, data, means, installations, equipments or resources.

In order to ascertain the employee’s job description, court employs the terms of the contract of employment (express or implied) so as to ascertain the true owner of the invention. For instance, in Electrolux Ltd v Hudson [1977] FSR 312, court held that since the employee was a storekeeper and his contract had wide terms, he was not employed to invent hence the employer could not claim the patent. Similarly, in Greater Glasgow Health Board’s Application [1996] RPC 207 court in granting application of the patent to the employee, affirmed the same principle that since the doctor ‘s duty of treating patients did not extend to devising new ways of diagnosing patients and he had made the invention in his own time outside working hours, he owned the patent. That, since he was not contracted to research, it was a fallacy to assume that his duty to treat patients extended to devising new ways of doing so and the circumstances of making the invention had nothing to do with carrying out duties. It concluded that whilst the invention might be a useful accessory to his contractual duties, it was not really part of it.

In Harris’ Patent, it was also held that since the employee hadn’t been employed to invent and even still, the invention was made outside working hours without the employer’s materials14 hence he owned the patent. This is because the invention could not reasonably be expected from such work.

In British Syphon v Homewood [1956] RPC 225 the defendant chief technician in the claimant company was deemed an employee and could thus not own the patent since he had made the invention before the date on which his terms of employment were changed. It was held that the patent could be assigned to the employer since at the time of making the invention, he was still an employee of the company as per the contract of employment.

Perhaps in relation to the above discussion, it is also important to note that the law does recognise the contribution of employees to their employers in respect of inventions and under Section 19 (2)15 to note that where the employer is granted a patent for an invention made by the employee and such invention becomes of exceptional importance to the employer, then the employee is entitled to an equitable remuneration taking into consideration his salary. This was affirmed in Memco-med Ltd’s Patent [1992] RPC 402 that where the patent is of outstanding benefit to the employer then the employee should be compensated for his effort in the invention. This however, as was stated in British Steel’s Patent [1992] RPC 117 is only awarded in exceptional cases.

Worthington v Moore (1903) 20 RPC 41 held that The invention might be the employee’s even though made in the employer’s time and with his materials i.e. the mere fact that the invention was made in the employer’s time, and with the employer’s materials is not necessarily determinative. This was affirmed in Mellor v Beardmore (1927) 44 RPC 175 at 191I where court held that, ‘the mere existence of a contract of service in no way disqualifies a servant from taking out a patent in his own name and entirely for his own benefit – and that notwithstanding the fact that he has used his employer’s time and materials to aid him in completing his invention, either express or implied, to communicate the benefits of his invention to those who employ him.’

Conclusion
The position of the law in regards to the inventions made by employees is a fair position since it incorporates all the factors embodied during the employee’s making of the invention such as to grant him the patent. It thereby grants the patent to the employee who while operating outside course of his employment such that the invention is not expected hence grants what rightly belongs to the employee. It even recognizes their inventive effort where the patent is granted to the employer through a mode of compensation.


BIBLIOGRAPHY
STATUTES
Industrial Property Act 2014


TEXTBOOKS
Catherine Calston, Principles of Intellectual Property Law (1999) Cavendish Publishing

Cornish William, Cases and Materials on Intellectual Property 5th Edition, (2006) Sweet & Maxwell London

Cornish William, David Llewellyn; Intellectual Property; Patents, Copyrights, Trademarks & Allied Rights 5th Edition, Sweet & Maxwell (2003) London

David Bainbridge, Intellectual Property 8th Edition, Pearson Education Ltd (2010) London


CASES

British Steel’s Patent [1992] RPC 117
British Syphon v Homewood [1956] RPC 225
Christopher S French v Paul J Mason
Electrolux Ltd v Hudson [1977] FSR 312
Greater Glasgow Health Board’s Application [1996] RPC 207
Harris’ Patent
LIFFE Administration and Management v Pavel Pinkara
Mellor v Beardmore (1927) 44 RPC 175 at 191
Memco-med Ltd’s Patent [1992] RPC 402
Patchett v Sterling
Staeng Ltd’s Patents [1996] 183
Worthington v Moore (1903) 20 RPC 41

1 Bainbridge at pg.309

2 Claims state out the exclusive right conferred by the patent.

3 Supra note 1 at pg.440

4 Industrial Property Act 2014

5 Supra note 3 at pg.447

6 Ibid pg.70

7 Cornish & Llewellyn pg. 264

8 (1995) 72 RPC 50

9 Supra note 6 pg. 378

10 [1999] FSR 597

11 [1985] RPC 19

12 [2007] RPC 667

13 Supra note 9 pg. 480

14 Cornish pg. 145

15 Supra note 4