De Silva Farmer v. Moseley (Holdings) Ltd, RTK Marine Ltd, Composite Industries Ltd, Christopher Brewer [2000] EWHC Patents 128 (7th March, 2000)

De Silva Farmer v. Moseley (Holdings) Ltd, RTK Marine Ltd, Composite Industries Ltd, Christopher Brewer [2000] EWHC Patents 128 (7th March, 2000)

CIL was the original beneficial owner of the chattels and IP rights. The arrangement between CIL and EMI/Dr Farmer in January 1991 constituted a mortgage, not a sale. The loan was repaid or forgiven, or any claim for further repayment is statute-barred, so Dr Farmer holds the registered designs as bare trustee for CIL. The 1992 transfer did not vest beneficial ownership in Dr Farmer due to Section 127 of the Insolvency Act 1986. Mr Brewer did not acquire the IP rights from CIL. CIL remains the beneficial owner, and Dr Farmer is the legal proprietor holding on trust for CIL.

Citation
[2000] EWHC Patents 128
Parties
Claimant: Dr Farmer; Defendant: Mr Brewer; Defendant: RTK; Interested Party: CIL (Europower Marine Ltd)
Jurisdiction
England and Wales
Procedural Posture
Civil / Final Judgment
Outcome
CIL is the beneficial owner of the chattels and IP rights; Dr Farmer holds the registered designs as bare trustee for CIL; Mr Brewer's claim to ownership is rejected; RTK's primary case is accepted.
Legal Topics
Ownership of Design Rights, Mortgage of IP Rights, Statutory Disclaimer, Assignment of Rights, Limitation Period, Trusts
Intellectual Property Company Law Insolvency Ownership of Design Rights Mortgage of IP Rights Statutory Disclaimer Assignment of Rights Limitation Period +1 more

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Parties

Dr Farmer

Claimant

Mr Brewer

Defendant

RTK

Defendant

CIL (Europower Marine Ltd)

Interested Party

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Who is the beneficial owner of the chattels and IP rights (registered and unregistered design rights, copyright) in the RDV, Seaskate, and Bambino?
  2. 2 Did Dr Farmer acquire the IP rights as mortgagee or outright owner?
  3. 3 Did Mr Brewer acquire the IP rights from CIL?

Ratio Decidendi

CIL was the original beneficial owner of the chattels and IP rights. The arrangement between CIL and EMI/Dr Farmer in January 1991 constituted a mortgage, not a sale. The loan was repaid or forgiven, or any claim for further repayment is statute-barred, so Dr Farmer holds the registered designs as bare trustee for CIL. The 1992 transfer did not vest beneficial ownership in Dr Farmer due to Section 127 of the Insolvency Act 1986. Mr Brewer did not acquire the IP rights from CIL. CIL remains the beneficial owner, and Dr Farmer is the legal proprietor holding on trust for CIL.

Court Disposition

CIL is the beneficial owner of the chattels and IP rights; Dr Farmer holds the registered designs as bare trustee for CIL; Mr Brewer's claim to ownership is rejected; RTK's primary case is accepted.

Orders

  • CIL joined as party to proceedings.
  • Dr Farmer holds registered designs on trust for CIL.