Prosyscor Ltd v Netsweeper Inc & Ors

Decision date: 22 May 2019

Neutral citation: [2019] EWHC 1302 (IPEC)

Overall AI summary confidence: high

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Short overview

This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.

AI confidence in this short overview: high

This was a dispute over ownership and breach of confidence relating to PCT Application WO 2013/177687 A1 (a method/system for discriminating website access requests). The court found Mr Erb devised key inventive concepts (including the authentication token/URL-mangling idea) and that creating the software of the type claimed fell within Mr Kite's normal duties so that Netsweeper was entitled to the PCT Application. The court rejected Prosyscor's breach of confidence claim arising from a contested 7 June 2011 disclosure. Netsweeper therefore owns the PCT Application and did not breach the Confidentiality Agreement.

Ratio decidendi

This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.

AI confidence in this ratio decidendi summary: high

An employee’s posting of ideas to a company's confidential intranet together with contractual duties to bring such ideas to product management are strong indicia that inventions of that kind fall within the employee’s normal duties and thus belong to the employer; factors such as time and place of actual implementation are secondary and do not preclude employer ownership if the inventive task is the sort the employee was employed to perform.

Obiter dicta

This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.

AI confidence in this obiter dicta summary: medium

The judge observed that evidence a process "works" can in theory be confidential, but proving that such a bare fact was both confidential and the means by which a recipient independently made progress presents a high evidential hurdle. The judgment also noted that concurrent independent devising of an idea by parties does not prevent inclusion of that concept in an application filed by one party.