Patent Royalties – What Does The Inventor Get?

If you are employed to invent (and then patent) things should you get a bonus if it turns out that your invention is a stunning financial success? That was the question that was before the Supreme Court in Shanks v Unilever. In that case, Professor Shanks claimed compensation for a limited re-use or disposable sensor for monitoring glucose, insulin or immunoglobulin levels in diabetics. He was employed by a Unilever group company and initially received an annual salary of £18,000 and a Volvo car. He built the first prototype of his invention at home using Mylar film and slides from his daughter's toy microscope kit, and bulldog clips to hold the assembly together.

Unilever did not develop the invention, but went on to licence it in exchange for many millions of pounds of licence fees. Professor Shanks sought a fair share of those licence fees. That claim was made under section 40 of the Patents Act 1977.

Section 40 of the Patents Act 1977

In the Supreme Court decision, Lord Kitchin...