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NO "DUTY TO INVENT": Decision upheld in UWA v Gray

POSTED BY: Shona Foster     ON: 04 September 2009

The long awaited decision of the Full Federal Court in the University of Western Australia v Gray* was released in Sydney yesterday, with the Full Federal Court upholding the controversial decision of the Federal Court.

The decision sends a clear signal that employers need to pay particular attention to employment contracts and staff policies if they want to be sure they will own the intellectual property rights in inventions created by their employees.  

If you are not familiar with the earlier decision, you can read our article here: http://www.jaws.co.nz/media/who-owns-an-invention-developed-by-an-employee.

The lesson is that the Courts are reluctant to take intellectual property rights from an individual (i.e. the employee) unless there is evidence of an agreement to that effect.  That agreement may be implied if the intellectual property is created in the course of the employee’s duty, or it may be specifically addressed as part of the employment contract. As a result, employers need to look at their employment contracts and policies carefully and apply due process when instigating policies.

But the really interesting issue is whether, in today’s research environment, a university researcher who is employed to do research may have a “duty to invent”.  Dr Gray’s research was conducted some years ago, and the court found that he had considerable freedom as to where he directed his research effort and had no duty to direct his mind to invention. Could the same be said of all university researchers today, particularly those employed to do applied research?  There is an argument that because applied research is directed at that which is not only novel and non-obvious but also useful, then that research is, by definition, directed at invention.   Where should the line be drawn?

*[2009] FCAFC 116 (3 September 2009)

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1 responses to 'NO "DUTY TO INVENT": Decision upheld in UWA v Gray'

BY: Ian Finch     ON: 02 October 2009

It would be interesting to get some comment from the Universities on this. While the decision can be justified on a purely contractual basis, if the law is to observed and workable, shouldn't it make sense as well? The distinction between a duty to research and a duty to invent is largely one of semantics given that, absent serendipitous discovery, all inventions are the product of research. On first principles, most of us would probably agree that an employer's ownership of research should also ential ownership of the right to file a patent application which might be prepared from that research. The court's severability of those two, largely intertwined, rights doesn't sit well with that.