Intellectual Property Law Principles of Law

Principles of
Intellectual
Property
Law

CP
Cavendish
Publishing
Limited

London • Sydney


EDITORIAL ADVISORY BOARD
PRINCIPLES OF LAW SERIES
PROFESSOR PAUL DOBSON
Visiting Professor at Anglia Polytechnic University
PROFESSOR NIGEL GRAVELLS
Professor of English Law, Nottingham University
PROFESSOR PHILLIP KENNY
Professor and Head of the Law School, Northumbria University
PROFESSOR RICHARD KIDNER
Professor at the Law Department, University of Wales, Aberystwyth

In order to ensure that the material presented by each title maintains the
necessary balance between thoroughness in content and accessibility in
arrangement, each title in the series has been read and approved by an
independent specialist under the aegis of the Editorial Board. The Editorial
Board oversees the development of the series as a whole, ensuring a
conformity in all these vital aspects.

Principles of
Intellectual
Property
Law
Catherine Colston, LLB, LLM
Lecturer in Law
University of Buckingham

CP
Cavendish
Publishing
Limited

London • Sydney


First published in Great Britain 1999 by Cavendish Publishing Limited
The Glass House, Wharton Street, London WC1X 9PX, United Kingdom.
Telephone: +44 (0) 20 7278 8000
Facsimile: +44 (0) 20 7278 8080
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© Colston, C 1999

All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, scanning or otherwise, except under the

terms of the Copyright Designs and Patents Act 1988 or under the terms of a
licence issued by the Copyright Licensing Agency, 90 Tottenham Court Road,
London W1P 9HE, UK, without the permission in writing of the publisher.

British Library Cataloguing in Publication Data
Colston, Catherine
Principles of intellectual property law (Principles of law series)
1 Intellectual property – Law and legislation – Great Britain
I Title
346.4'1'048
ISBN 1 85941 465 6

Printed and bound in Great Britain



FOR THE GGs
WITH LOVE


PREFACE
Intellectual property law is fascinating. We are all familiar with, and are users
of, intellectual property. In addition, the subject matter of intellectual property
– the application of an idea in making or selling products and services – forms
the fundament of a society’s cultural, technological, educational and economic
development. With the growth of trade and of the transfer of information on a
world wide scale, both intellectual property law and intellectual property
infringement are a global concern. Continuing rapid technological
development challenges and expands traditional boundaries of intellectual
property regimes. Digital recording technology, the internet, genetic

engineering all pose new challenges and new opportunities. In all, this is a
dynamic and developing subject which touches on a wide area of human
concern – trade, economic progress, intellectual and cultural advancement,
and the acquisition and dissemination of information, as well as the more
prosaic acquisition of goods and chattels.
The book is designed, when used in conjunction with a statute book, to
give a comprehensive and comprehensible introduction to intellectual
property law in the UK, within the international framework of conventions,
treaties and agreements which shape those domestic laws. The dual aim has
been to make the subject both understandable and enjoyable.
It was the preparation of teaching materials for the University of
Buckingham’s part time LLB course which prompted this book and I
gratefully acknowledge the University’s permission to draw on those
copyright Intellectual Property course materials.
It only remains to give further thanks where thanks are eminently due: to
my collegues for their support and encouragement, to Louise Hammond,
Librarian of the Denning Law Library at the University of Buckingham for her
help in tracing materials, to Rob Colston for his unfailing patience and, last,
but by no means least, to Elanor and Andy Mac, and Bridget and Dave for
preserving a much needed sense of proportion.
Catherine Colston
August 1999

vii



CONTENTS
Preface
Table of Cases

Table of Statutes
Table of Statutory Instruments
Table of European Legislation
Table of International Leglislation
Table of Abbreviations

vii
xxv
xlvii
liii
lv
lix
lxi

1

INTRODUCTION

1

1.1

PROTECTION FOR IDEAS

2

1.2

MEANS FOR PROTECTING IDEAS

3

1.2.1
1.2.2
1.2.3

3
3
6

1.3

SOURCES OF INTELLECTUAL PROPERTY LAW
1.3.1
1.3.2
1.3.3
1.3.4

1.4

Secrecy
Exclusive rights
Checks and balances on exclusive rights

National sources
International sources
Treaties and conventions
The territoriality of intellectual property rights

BASIC FORMAT TO INTELLECTUAL PROPERTY ISSUES

7
7
8
9
12
12

SUMMARY OF CHAPTER 1

13

2

JUSTIFICATION

15

2.1

OBJECTIONS TO EXCLUSIVE RIGHTS

15

2.1.1
2.1.2
2.1.3

16
17

18

2.2

Economic objections to monopoly power
Objections from developing countries
An alternative approach: unfair competition

JUSTIFICATIONS

20

2.2.1
2.2.2

21
21

Public justifications
Private justification

ix


Principles of Intellectual Property Law
2.3

2.4

2.5

JUSTIFICATIONS FOR PATENTS

21

2.3.1
2.3.2
2.3.3
2.3.4
2.3.5

22
22
22
26
27

A natural right
Reward by monopoly
Monopoly profit incentive
Exchange for secrets
Conclusion

JUSTIFICATIONS FOR COPYRIGHT

27

2.4.1
2.4.2
2.4.3

2.4.4

27
28
28
29

Authors’ rights and neighbouring rights
The origins of UK copyright law
Author and entrepreneur
Justifications

TRADE MARKS

30

2.5.1
2.5.2
2.5.3

31
31
32

Private justifications
Justifications in the public interest
Criticisms of trade mark protection

SUMMARY OF CHAPTER 2

35

3

THE PATENT

37

3.1

THE STRUCTURE OF PATENT LAW

37

3.2

PATENT TERMINOLOGY

38

3.3

PATENTS ACT 1977

39

3.3.1

39

3.4

3.5

Provision for convention conformity

APPLICATION FOR A PATENT

40

3.4.1
3.4.2
3.4.3
3.4.4
3.4.5

41
41
42
44
45

Routes to grant
Priority
Priority and enabling disclosures
Application for a UK patent
Specification and claims

OWNERSHIP OF THE PATENT

46

3.5.1
3.5.2

47
50

Ownership by the employer
Ownership by the employee
x


Contents
3.5.3
3.5.4
3.6

3.7

Agreements between employee and employer
concerning patent ownership
The compensation scheme

50
50

THE PROPRIETARY RIGHT

54

3.6.1

55

Duration of the patent right

PATENT LICENSES

55

3.7.1
3.7.2
3.7.3
3.7.4

56
56
57
57

Tying clauses
Compulsory licences
Licences of right
Crown use

SUMMARY OF CHAPTER 3

59

4

PATENTABLE INVENTIONS

61

4.1

INVENTIONS

61

4.1.1
4.1.2
4.1.3
4.2

Judicial dicta
The concept of invention
Valid patents for inventions

62
62
63

EXCLUDED CATEGORIES

63

4.2.1

4.2.2
4.2.3
4.2.4
4.2.5
4.2.6
4.2.7
4.2.8
4.2.9
4.2.10
4.2.11
4.2.12

64
65
69
71
72
73
73
76
77
78
79
80

The proviso to s 1(2) of the PA 1977
Computer programs
Discoveries and mathematical methods
Schemes, rules and methods
Presentations of information

Aesthetic creations
Exclusions on the ground of morality
Biological inventions
Plant varieties
Animal varieties
Essentially biological processes
Microbiological processes

xi


Principles of Intellectual Property Law
4.3

4.4

4.5

INDUSTRIAL APPLICATION

81

4.3.1
4.3.2
4.3.3

81
81
81

NOVELTY

86

4.4.1
4.4.2
4.4.3
4.4.4
4.4.5
4.4.6

86
87
87
93
93
95

4.7

The right to work
Testing novelty
The state of the art
Construing the claims
Comparing invention and prior art
New uses of a known thing

INVENTIVE STEP
4.5.1
4.5.2

4.5.3
4.5.4
4.5.5

4.6

Industry
The useless invention
The medical invention

98

Determining obviousness
The state of the art
The hypothetical technician
The relevant field
Making the comparison

99
99
100
101
102

DISCLOSURE

103

4.6.1
4.6.2

104
105

The specification
The claims

GENETIC ENGINEERING AND PATENTABILITY

106

SUMMARY OF CHAPTER 4

109

5

INFRINGEMENT, VALIDITY AND REVOCATION

115

5.1

CONSTRUCTION OF CLAIMS
5.1.2
5.1.3
5.1.4
5.1.5

115

Non-literal infringement and the ‘pith and marrow’
doctrine
Purposive construction
Article 69 of the EPC and the Protocol
A new approach?

xii

116
118
119
121


Contents
5.2

5.3

5.4

INFRINGING ACTS

122

5.2.1
5.2.2

123

126

Primary and secondary infringement
Contributory infringement

DEFENCES

126

5.3.1
5.3.2
5.3.3
5.3.4
5.3.5

126
127
127
128
128

Putting the validity of the patent in issue
Section 60(5) of the PA 1977
Prior use
Exhaustion
The ‘Gillette defence’

REVOCATION AND OPPOSITION

129

5.4.1
5.4.2
5.4.3

129
129
130

Third party observations
Revocation
EPO opposition

SUMMARY OF CHAPTER 5

131

6

BREACH OF CONFIDENCE

133

6.1

THE NATURE OF THE ACTION

133

6.2

THE CONDITIONS FOR A REMEDY

134

6.3

CONFIDENTIAL INFORMATION

135

6.3.1
6.3.2
6.3.3

135
137
144

6.4

6.5

Information
Confidentiality
Information in the public interest

THE OBLIGATION OF CONFIDENCE

147

6.4.1
6.4.2
6.4.3

148
154
156

The direct recipient
The indirect recipient
No relationship

BREACH

158

6.5.1
6.5.2

159
159

Subconscious breach
Detriment to the plaintiff

xiii


Principles of Intellectual Property Law

6.5.3
6.5.4
6.5.5

Inducing breach of contract
Defences
Remedies

SUMMARY OF CHAPTER 6

160
160
161
163

7

COPYRIGHT PRINCIPLES AND COPYRIGHT
WORKS

167

7.1

BASIC PRINCIPLES

167

7.1.1
7.1.2

7.1.3
7.1.4
7.1.5
7.1.6
7.1.7

168
169
170
173
174
174
176

A work
Fixation of a work
Originality
Reporter’s copyright
Independent creation
The idea-expression dichotomy
Overlapping copyrights

7.2

COPYRIGHT WORKS

176

7.3

ORIGINAL WORKS

177

7.3.1
7.3.2
7.3.3
7.3.4

177
178
180
180

7.4

Literary works
Dramatic works
Musical works
Artistic works

DERIVATIVE WORKS

185

7.4.1.
7.4.2
7.4.3
7.4.4
7.4.5

185
186
186
187
188

Sound recordings
Films
Broadcasts
Cable programmes
Typographical arrangements of published editions

SUMMARY OF CHAPTER 7

189

xiv


Contents

8

THE SUBSISTENCE AND SUBSTANCE OF
COPYRIGHT

193

8.1

QUALIFICATION

193

8.1.1
8.1.2
8.1.3

193
194
194

8.2

8.3

8.4

Author’s status
Place of first publication
Publication

AUTHORSHIP

196

8.2.1
8.2.2
8.2.3

8.2.4
8.2.5
8.2.6

196
197
198
198
199
200

Joint authorship
Original works
Works of artistic craftsmanship
Photographs
Computer generated works
Derivative works

OWNERSHIP OF COPYRIGHT

201

8.3.1
8.3.2

Employed authors
Commissioned works

201
203

DURATION OF COPYRIGHT

205

8.4.1
8.4.2
8.4.3
8.4.4
8.4.5
8.4.6

205
206
206
207
207
207

Lesser terms of protection
Original works
Films
The other derivative works
Revived copyright
The length of copyright

8.5

REFUSAL OF COPYRIGHT

208

8.6

THE EXCLUSIVE RIGHTS

209

8.6.1
8.6.2
8.6.3
8.6.4
8.6.5

210
210
210
211

8.6.6

Copying
Issuing copies to the public
Rental right
Performance rights
Broadcast and inclusion within a cable
programme service
Adaptation

xv

212
212


Principles of Intellectual Property Law
8.6.7
8.6.8

Publication right
Copyright in the information society

SUMMARY OF CHAPTER 8

213
213
215

9

INFRINGEMENT OF COPYRIGHT AND
PERMITTED ACTS

219

9.1

INFRINGEMENT

219

9.2

PRIMARY INFRINGEMENT

219

9.2.1
9.2.2
9.2.3
9.2.4
9.2.5

219
225
225
228
230

9.3

9.4

9.5

9.6

Copying
Direct and indirect infringement
Substantial part

Authorising infringement
Infringement of secondary works

SECONDARY INFRINGEMENT

230

9.3.1
9.3.2

231
232

Reasonable knowledge
Infringing copy

DEFENCES

233

9.4.1
9.4.2
9.4.3

233
234
236

Implied licences
Spare parts

Public interest

FAIR DEALING

237

9.5.1
9.5.2
9.5.3
9.5.4
9.5.5
9.5.6

238
238
240
241
241
243

Dealing
Fair
‘For the purpose of ...’
Research or private study
Criticism or review
Reporting current events

THE PERMITTED ACTS

243

9.6.1
9.6.2

244
244

Piracy
Home copying

xvi


Contents
9.6.3
9.6.4
9.6.5

News and media
Educational copying and libraries
Other

246
247
248

9.7

COPYRIGHT ASSIGNMENT AND LICENSING

249

9.8

COLLECTIVE LICENSING AND THE COPYRIGHT
TRIBUNAL

249

9.8.1
9.8.2
9.8.3

251
251
251

Competition policy
Compulsory licences
The Copyright Tribunal

SUMMARY OF CHAPTER 9

253

10 MORAL RIGHTS

257

10.1 THE BACKGROUND

257

10.2 THE UK BEFORE THE CDPA 1988

259

10.2.1
10.2.2
10.2.3
10.2.4

Contract
Defamation
Passing off, injurious falsehood and
breach of confidence
Copyright Act 1956

10.3 THE CDPA 1988
10.3.1
10.3.2
10.3.3

The four moral rights
Remedies for breach of moral rights
The duration of moral rights

262
263
263

263

The need to assert the right of paternity
Exceptions to the right of paternity

10.5 RIGHT OF INTEGRITY
10.5.1
10.5.2
10.5.3

260
261
262

10.4 THE RIGHT OF PATERNITY
10.4.1
10.4.2

259
260

264
265
266

‘Derogatory treatment’
Exceptions to the right of integrity
Remedies for breach of the right of integrity

xvii

267
268
269


Principles of Intellectual Property Law
10.6 THE RIGHT AGAINST FALSE ATTRIBUTION

269

10.7 THE RIGHT TO PRIVACY

270

10.8 WAIVER OF RIGHTS

271

10.9 COMMENTARY

272

SUMMARY OF CHAPTER 10

275

11 DESIGN RIGHTS

279

11.1 THE DESIGN FIELD

279

11.1.1
11.1.2

Characteristics of design rights
Design protection before the Copyright, Designs and
Patents Act 1988

11.2 ARTISTIC COPYRIGHT
11.2.1
11.2.2
11.2.3
11.2.4

Section 51 of the Copyright, Designs
and Patents Act 1988
The interpretation of s 51 of the Copyright, Designs
and Patents Act 1988
Non-derogation from grant
Section 52 of the Copyright, Designs
and Patents Act 1988

282
282
283
283

284

Article
Design
Excluded features
Eye appeal
Material appearance
Novelty
Infringement

285
286
286
288
289
290
291

11.4 UNREGISTERED DESIGN RIGHT
11.4.1
11.4.2
11.4.3
11.4.4
11.4.5

280
281

11.3 REGISTERED DESIGN
11.3.1

11.3.2
11.3.3
11.3.4
11.3.5
11.3.6
11.3.7

279

Design
Exceptions
Original
Infringement
Remedies

292
294
295
297
298
300

xviii


Contents
11.5 OVERLAP OF RIGHTS

300

11.6 THE FUTURE

301

SUMMARY OF CHAPTER 11

303

12 PASSING OFF

309

12.1 THE DEVELOPMENT AND DEFINITION OF PASSING OFF

310

12.1.1
12.1.2

The elements of the passing off action
Developments in passing off

12.2 REPUTATION
12.2.1
12.2.2
12.2.3
12.2.4
12.2.5

313

Shared reputation
Goodwill
The coincidence of reputation and goodwill
in point of time
Geographical coincidence of reputation
and goodwill
Coincidence of activity of plaintiff
and defendant

12.3 MISREPRESENTATION
12.3.1
12.3.2
12.3.3
12.3.4
12.3.5

310
311

314
314
315
316
319
321

Indicia of reputation
The nature of misrepresentation
The test of misrepresentation

Evidence of confusion
Reverse passing off

321
324
325
328
330

12.4 DAMAGE

330

12.4.1
12.4.2

331
334

Dilution
Passing off and domain names

12.5 CHARACTER MERCHANDISING
12.5.1

Passing off and character merchandising

335
335

12.6 LOOKALIKE PRODUCTS

337

SUMMARY OF CHAPTER 12

339

xix


Principles of Intellectual Property Law

13 REGISTERED TRADE MARKS

343

13.1 INTRODUCTION

343

13.1.1
13.1.2
13.1.3

The new law
The nature of a trade mark
The functions of a trade mark

13.2 REGISTRATION OF A MARK

13.2.1
13.2.2
13.2.3
13.2.4

347

National application
International protection
The Community trade mark
Registrability of a mark

13.3 THE DEFINITION OF A TRADE MARK
13.3.1
13.3.2
13.3.3
13.3.4
13.3.5

A sign
Colour
Shapes
Capable of distinguishing
Retail services

13.4 THE ABSOLUTE GROUNDS OF REFUSAL
13.4.1
13.4.2
13.4.3
13.4.4

13.4.5
13.4.6
13.4.7
13.4.8
13.4.9
13.4.10

Not a trade mark
Non-distinctive signs
The proviso to s 3(1)(b)–(d) of the TMA 1994
Descriptive marks
Customary marks
Objectionable and deceptive marks
Prohibited marks
Specially protected emblems
Applications made in bad faith
Shapes

13.5 THE RELATIVE GROUNDS OF REFUSAL
13.5.1
13.5.2
13.5.3
13.5.4

343
345
346

Earlier marks
Earlier rights

Interpretation
The comparison

348
349
350
350
350
352
353
353
354
356
357
357
357
358
360
361
361
363
363
363
365
368
368
369
369
369

xx


Contents
13.5.5
13.5.6

Raising the relative grounds of refusal
Honest concurrent user

370
371

SUMMARY OF CHAPTER 13

373

14 TRADE MARK INFRINGEMENT AND
CHALLENGES TO TRADE MARKS

379

14.1 THE EXCLUSIVE RIGHT

379

14.2 INFRINGEMENT

380

14.2.1
14.2.2

14.2.3
14.2.4

Identical marks/identical goods or services
Identical marks/similar goods or services;
similar marks/identical or similar goods
or services
Identical or similar marks/dissimilar goods
or services
Comparative Advertising

14.3 WELL KNOWN MARKS
14.3.1
14.3.2

383

383
388
390
393

Injunctions against the use of well known marks
‘Well known’

393
394

14.4 DEFENCES

396

14.5 REVOCATION, INVALIDITY AND ACQUIESCENCE

397

14.5.1
14.5.2
14.5.3

Revocation
Invalidity
Acquiescence

397
399
399

14.6 PROPERTY AND DEALINGS IN MARKS

400

14.7 THREATS

402

SUMMARY OF CHAPTER 14

403

15 REMEDIES

409

15.1 PROCEEDINGS

410

15.1.1
15.1.2

Criminal proceedings
Administrative action

410
410
xxi


Principles of Intellectual Property Law
15.1.3
15.1.4

Self-help
Civil proceedings

411

411

15.2 ACCOUNT OF PROFITS

411

15.3 DELIVERY UP

412

15.4 DAMAGES

412

15.4.1
15.4.2
15.4.3

412
413
415

Measure of damages
Parasitic and bridgehead damages
Innocent defendants

15.5 INJUNCTIONS
15.5.1

415

Interlocutory injunctions

15.6 ANTON PILLER ORDERS
15.6.1
15.6.2
15.6.3
15.6.4

419

Conditions for grant
The potential for abuse
New safeguards
Self-incrimination

419
420
421
422

15.7 MAREVA INJUNCTIONS
15.7.1

422

Conditions for grant

423

15.8 THREATS OF PROCEEDINGS
15.8.1
15.8.2

416

423

Defences to threats action
Section 70(4) of the Patents Act 1977

424
424

SUMMARY OF CHAPTER 15

425

16 INTELLECTUAL PROPERTY AND THE
EUROPEAN UNION

429

16.1 INTELLECTUAL PROPERTY RIGHTS IN THE
EUROPEAN UNION

429

16.1.1
16.1.2

Harmonisation directives
Regulations

16.2 FREE MOVEMENT OF GOODS
16.2.1
16.2.2

Principles applied by the European Court of Justice
The existence/exercise distinction
xxii

430
431
431
432
433


Contents
16.2.3
16.2.4

The subject matter of rights
The concept of exhaustion

16.3 COMPETITION POLICY
16.3.1
16.3.2
16.3.3

433
434
435

Intellectual property agreements
Article 81 of the EC Treaty
Article 82 of the EC Treaty

436
436
437

16.4 OTHER IMPACTS OF EU LAW ON NATIONAL
INTELLECTUAL PROPERTY LAWS

439

SUMMARY OF CHAPTER 16

441

FURTHER READING

443

Index

455

xxiii