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Apples and Oranges – Shanks v Unilever

fruits-1716853_1920Introduction

For many years there has been little or no guidance as to what might constitute “outstanding benefit” for the purposes of section 40(1) Patents Act 1977 (“PA 1977”), since no claim made under this section had ever been successful. All that changed in the late 2000s when the High Court awarded Kelly and Chui £1.5 million for their patented invention “Myoview”: Kelly and Chiu v GE Healthcare Ltd. [2009] EWHC 181 (Pat) (“Kelly”). In the Kelly case, the patent was found to be of “outstanding benefit” for a number of reasons, not least because, without it, the company Amersham International plc. – for whom Kelly and Chui worked when the invention was made – would have been in significant financial difficulty but for the patent. Evidence was presented that the total sales of “Myoview” over a five year period had been in the region of £1 billion, and Floyd J assessed that the benefit to the employer from these sales was no less than £50 million. It was perhaps not difficult to reach a conclusion of “outstanding benefit” in the Kelly case given these facts. However, a seemingly very high bar had been set for any future claimants. (more…)