Coward v Phaestos Ltd & Ors

Coward v Phaestos Ltd & Ors

The software written by Dr Coward for the IKOS business from September 1992 to 2006 was partnership property, not his personal property. All rights in the software passed to IKOS UK on dissolution of the partnership. Dr Coward did not retain copyright, and even if he had, he would be estopped from asserting it against IKOS due to his conduct, acquiescence, and the intermingling of code. Any implied licence would have been exclusive and terminable only on reasonable notice. Dr Coward infringed copyright and breached confidence by covertly copying IKOS software and confidential materials after his resignation.

Parties
Claimant: Martin John Coward; Defendant: Phaestos Limited; Defendant: Mindimaxnox LLP; Defendant: IKOS CIF Limited; Defendant: IKOS Asset Management Limited
Jurisdiction
England and Wales
Judgment Date
17 May 2013
Procedural Posture
Intellectual Property/chancery / Judgment After Trial
Outcome
Claim dismissed; counterclaim for copyright infringement and breach of confidence succeeds in part; remedies to be determined after further submissions.
Legal Topics
Copyright Ownership, Partnership Assets, Implied Licence, Estoppel, Breach of Confidence, Database Rights
Intellectual Property Partnership Law Equity and Trusts Copyright Ownership Partnership Assets Implied Licence Estoppel Breach of Confidence +1 more

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Parties

Martin John Coward

Claimant

Phaestos Limited

Defendant

Mindimaxnox LLP

Defendant

IKOS CIF Limited

Defendant

IKOS Asset Management Limited

Defendant

Procedural Posture

Intellectual Property/chancery / Judgment After Trial

Legal Issues

  1. 1 Whether Dr Coward owns copyright in software written for IKOS business
  2. 2 Whether the software is partnership property
  3. 3 Whether Dr Coward granted an implied licence to IKOS

Ratio Decidendi

The software written by Dr Coward for the IKOS business from September 1992 to 2006 was partnership property, not his personal property. All rights in the software passed to IKOS UK on dissolution of the partnership. Dr Coward did not retain copyright, and even if he had, he would be estopped from asserting it against IKOS due to his conduct, acquiescence, and the intermingling of code. Any implied licence would have been exclusive and terminable only on reasonable notice. Dr Coward infringed copyright and breached confidence by covertly copying IKOS software and confidential materials after his resignation.

Court Disposition

Claim dismissed; counterclaim for copyright infringement and breach of confidence succeeds in part; remedies to be determined after further submissions.

Orders

  • Declaration that copyright in the software is owned by IKOS UK/Defendants
  • Dr Coward to deliver up and/or destroy all copies of IKOS confidential materials, subject to agreed forensic imaging