Patent Problem Questions

Vinous Ltd is a winemaker. Mick, an employee of Vinous, has recently invented a new system of filtration. The system uses previously known chemical substances which have never before been used in combination as a filtering agent. The new system will be a significant cost saver for Vinous. The system has just been put into operation. So far Vinous has managed to keep the system secret by restricting access to all but its senior technical and operating managers. However, Mick has just been hired by Grapevine Ltd, another winemaker, to head up its technical department. Vinous wishes to know if it can take out a patent to protect the new system. Advise Vinous R is an agricultural scientist. She has been employed by an agricultural products manufacturer, NewFarm Ltd (‘NewFarm'), for the last 20 years. Until recently she was the marketing director of NewFarm. Before that she had been the senior research scientist. While employed as marketing director at NewFarm, R created a method for mixing natural products which, when applied in a particular way to grapevines, significantly improves the grape yield and simultaneously repels birds. R calls the new idea the ‘X factor'. In developing the X factor R used the computer facilities owned by NewFarm (including expensive specialty software) as well as NewFarm's extensive scientific library. However, all actual mixing and testing was done at R's own vineyard. So far, no one but R and some executives at NewFarm are aware of the X factor. Until now NewFarm has concentrated on more traditional agricultural pursuits, but with the X factor NewFarm sees an opportunity to broaden its base into the wine industry. R, on the other hand, claims the rights to the X factor and wishes to go into business for herself marketing the X factor. Who has the best right to exploit the X factor? Explain fully in the context of the Patents Act.

Trade Secret

M invented a new type of foldaway ironing board. He approached H Ltd, a German company, with a view to commercialising the invention. The parties entered into a confidentiality agreement which, among other things, provided that any information supplied by M to H Ltd was to remain confidential ‘forever'. M displayed the invention at trade fairs and applied for a patent. Negotiations eventually fell through. Subsequently, H Ltd, without M's consent, commenced to market its own ironing board based on M's invention.

Does M have any remedies against H Ltd?

2) Wombat Ltd operates a direct mail clothing business. Some of the clothes are imported and some are made locally. The manager of Wombat's direct mail operation has just left suddenly to take up a position with Wombat's main rival. The manager was instrumental in building up Wombat's client list over the years. The manager was also aware of the names of all of Wombat's outside designers and overseas manufacturers. Wombat is concerned that the manager has taken these details with him.

Can Wombat enforce the following clauses that appear in the manager's contract?

‘Upon leaving Wombat the manager agrees not to make use of any information or contact gained during employment at Wombat for a period of two years.'

‘Upon leaving Wombat the manager agrees not to work for a rival of Wombat for a period of one year.'

‘Upon leaving Wombat the manager agrees not solicit business from or render services to any Customer of Wombat for a period of 18 months.'

If the clauses are invalid, would Wombat have any other actions against the manager?