IP Archives - Legal Cheek https://www.legalcheek.com/tag/ip/ Legal news, insider insight and careers advice Thu, 04 Apr 2024 09:27:15 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.2 https://www.legalcheek.com/wp-content/uploads/2023/07/cropped-legal-cheek-logo-up-and-down-32x32.jpeg IP Archives - Legal Cheek https://www.legalcheek.com/tag/ip/ 32 32 From chemistry graduate to IP lawyer https://www.legalcheek.com/lc-careers-posts/from-chemistry-graduate-to-ip-lawyer/ Wed, 11 Oct 2023 08:56:31 +0000 https://www.legalcheek.com/?post_type=lc-careers-posts&p=195078 Bristows’ Ellen Lambrix talks life sciences, STEM skills and secondments

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Bristows’ Ellen Lambrix talks life sciences, STEM skills and secondments


Having made partner at Bristows in May 2023, Lambrix says she opted for science A-Levels and chemistry at university as that’s what she was most interested in.  “I was really fascinated by the science, but I couldn’t see a career for myself as a researcher. I thought about alternative career paths, such as teaching and being a patent attorney, but law emerged as an attractive option after some research”, she explains.

Moving from STEM to law felt like a natural progression for Lambrix. “I realised that with my chemistry degree, I could work with innovative companies and institutions that were working at the cutting edge of science, staying close to my interests, without needing to become a researcher”, she says. But beyond that, Lambrix finds that law is generally complementary to people with a science background. “The thought processes that you have to go through as a lawyer to advise clients and negotiate contracts requires you to be analytical, and that’s one of the core skillsets that you develop in STEM disciplines”, she notes.

Lambrix went on to complete her training contract at a Magic Circle law firm, and tells me that while many people assumed she was “probably going to be an intellectual property (IP) lawyer”, given her chemistry background, this was by no means inevitable. “Obviously, I am an IP lawyer now, but I really took my time to explore the areas of law I could work in. Ultimately, it came down to my interests in science and innovation, so IP law felt like a good home for me”, she explains.

A client secondment at a large pharmaceutical company got Lambrix interested in how being a lawyer, she could get involved in the life sciences industry, and work with companies at the forefront of developing new life-saving drugs. “Bristows really leads the field in both IP and the life sciences, so I decided to move over once I was around 3 years qualified”, explains Lambrix.

The application deadline for Bristows’ IP Workshop (STEM) is 13 November 2023

Speaking about transferrable skills she was able to tap into from her science background, Lambrix flags communication as a key one. “As a scientist, you often need to be able to take complex concepts and break them down into terms that others without your expertise can easily understand. Similarly, as a lawyer, our clients may not have in-depth legal knowledge, and it is our job to explain fairly complex areas of law in an accessible way. The skill is working out how best to strike that balance when communicating”, explains Lambrix.

Lambrix goes on to tell me about her day-to-day as a transactional IP lawyer. “Most of the work I do currently is in the life sciences sector and I have  a whole range of clients — Big Pharma companies, small biotechs and research institutions, for instance”. Her work primarily consists of working on transactions (such as IP licensing, or M&A), with contract negotiations being a prominent aspect of this. “Listening and understanding what it is your client wants to achieve and drafting and negotiating contracts which underpin the deal to ensure they  reflect those aims is a large part of the work of a transactional IP lawyer”, she summarises.

In terms of the deals that come her way in the life sciences sector, Lambrix details that there is a lot of IP licensing work. “Our clients have a lot of valuable intellectual property (including patents and know-how) which protect the new drugs or platforms they are developing. They might be licensing that IP to someone else or taking a license to someone else’s IP”. Other transactions she works on include contracts for research funding or for  clients who want to collaborate with another company or organisation to develop a new product or platform.

Lambrix also explains how her client secondment experience helped her in practice. “A secondment gives you the opportunity to see the other side of the work we do and how the advice we give translate into decisions taken by clients. It gives you a better perspective to understand what clients want from their lawyers, and what they care about, so I definitely recommend it if you get the opportunity”, she advises. Lambrix points out that most Bristows trainees get to complete a client secondment during their training contract, and points out that secondments are also a great way of building important client relationships.

I was keen to ask Lambrix how she has found the transition from associate to partner over the past few months. “It’s been a fairly gradual change, and that’s because as you get more senior as a lawyer, you naturally take on more responsibility”, she says. “You start to supervise junior lawyers in your time and become the primary point of contact for clients, for instance.”

The application deadline for Bristows’ Training Contract 2026 is 2 January 2024

With that, she notes that as Bristows is a very partner-led firm, there has been an added layer of responsibility since she was elevated to partner four months ago. “The final decision-making in terms of what advice goes out to clients now falls to me, but because it’s a long process to get to this stage, it doesn’t feel drastic. You’re also very well-supported at Bristows, so that helps massively”, reassures Lambrix.

So, what are the key IP developments in the life sciences sector that aspiring STEM lawyers should be tracking?

“One of the trends that keeps coming up is artificial intelligence (AI), which has a lot of specific applications in life sciences”, she says. “A lot of our clients are looking at how AI can speed up the hugely time-consuming and risky drug development process. There are also very interesting IP issues that come out of this: for instance, who can own the IP if an invention has been developed by AI.”

On the law side of things, Lambrix suggests that students keep on top of changes on the regulatory front — she points out that while she has colleagues who specialise specifically in regulatory law, it is nonetheless important for a life science-focused IP lawyer to keep abreast of developments in the laws regulating medicines and medical devices. She also flags the new Unified Patent Court in Europe as a key development that aspiring IP lawyers should have on their radar, as clients have questions about this recently-established institution and its role going forward.

Approaching the end of our conversation, I asked Lambrix about the advice she has for STEM students who are keen to establish a legal career. “There are so many options for people with STEM backgrounds, and these degrees seem to be very much in demand at the moment, so you need to really do your research to narrow down law as a potential path. When I was starting out, I didn’t appreciate just how many different types of law firms there are — the range of different practice areas, sector focus, clients, degree of global reach, are all important considerations.” Her top tip is to be proactive in signing up to law fairs, webinars, open days and other such opportunities to meet people in the field and develop a feel for where you might fit in. “Be curious, and try not to get overwhelmed”, advises Lambrix.

Ellen Lambrix will be speaking at ‘STEM focus: Life as an intellectual property lawyer — with Bristows’, a virtual student event taking place on 19 October. Apply to attend.

The application deadline for Bristows’ Training Contract 2026 is 2 January 2024

Follow @BristowsLawFirm

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Who owns indigenous knowledge: local communities or corporations? https://www.legalcheek.com/lc-journal-posts/who-owns-indigenous-knowledge-local-communities-or-corporations/ https://www.legalcheek.com/lc-journal-posts/who-owns-indigenous-knowledge-local-communities-or-corporations/#comments Mon, 09 Oct 2023 07:16:17 +0000 https://www.legalcheek.com/?post_type=lc-journal-posts&p=193342 Lawyers Ria Das and Sia Das explore the pressing problem of biopiracy of indigenous knowledge

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Lawyers Ria Das and Sia Das explore the pressing problem of biopiracy of indigenous knowledge

Indigenous people are seeking to protect their indigenous knowledge and practices from commercial exploitation. With rapid advancements in science and technology, there is increased interest in appropriating indigenous knowledge for scientific and commercial purposes. There are instances where big pharmaceutical companies have patented traditional medicinal plants even though indigenous peoples have used such plants for generations. In many cases, these large companies do not recognise the right of indigenous peoples’ traditional ownership of such knowledge and deprive them of their fair share in the economic, medical or social benefits that accrue from the use of their indigenous knowledge or practices.

Biopiracy: The corporate hijacking of indigenous knowledge

Traditional knowledge includes indigenous and local community knowledge, innovations, and practices. It refers to skills and practices that have developed through a trial-and-error method, and passed on from generation to generation within a community.

Biopiracy occurs when genetic resources and indigenous knowledge is taken from biodiverse developing countries without permission. This knowledge is then used to patent related inventions without sharing the resulting commercial profits. The original knowledge holder receives no gains from the use and is likely barred from obtaining a patent.

Commercialisation of resources used by indigenous people is a booming business. Many of the products incorporating indigenous know-how are protected by patents that profess the products’ “novelty” and “innovativeness.” Giant commercial enterprises are using intellectual property rights to patent indigenous medicinal plants, seeds and genetic resources.

Without any legal protection for indigenous knowledge, biopiracy is often a shortcut to gain massive profits without having to provide a fair share of compensation to the local and indigenous communities.

The value of the market for medicinal plants found by indigenous and local communities has been estimated to be around $50 million – and this figure is just for the USA. Obtaining indigenous knowledge increases the efficiency of the screening process for plants with medicinal properties by more than 400%, which is why indigenous peoples’ knowledge is so valuable.

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Hurdles to patent protection of indigenous knowledge

A patent is an exclusive right that is granted for an invention. This can either be a product or a process that generally provides a new way of doing something, or offers a new technical solution to a problem.

Patent law requires that the invention should meet three criteria before a patent protection is granted: (1) new or novel, (2) non-obvious, and (3) useful. All inventions which meet these criteria are legal but the problem arises when patenting of (often spurious) inventions based on biological resources and/ or indigenous knowledge are extracted without adequate authorization and benefit sharing from other countries.  These resources are the result of years of hard work and investment of indigenous and local communities which goes unacknowledged and unrewarded.

Under the existing regime, indigenous knowledge and invention is not fit to get patent protection as a result of two factors.

The first element assessed under an application for a patent requires that an invention must be new and innovative. These indigenously developed products are arguably neither new nor innovative, as use of these resources has been developed based on existing indigenous knowledge of the natural world, often held among indigenous communities and local farmers.

The newness criterion is difficult to prove for indigenous peoples because indigenous knowledge is passed down from generation to generation and it is difficult to determine who is first to discover the knowledge. This indigenous knowledge is neither written nor documented anywhere. As long as there is no public written record, a foreign company can go into another foreign country and use this knowledge handed down by indigenous peoples to obtain a patent.

The second element assessed under an application for a patent requires that an invention be non-obvious. The indigenous peoples have already discovered the plants, assessed their healing and medicinal properties and cultivated them for their use. This knowledge, however, is not considered on par with western standards because the indigenous peoples are not looking to profit from the knowledge.

The elements of newness and non-obviousness under patent law operate under the premise that a particular invention should provide certain incentives to the inventor and without it, inventions will not be made. This way of thinking is generally derived from business economy, establishing that without personal monetary benefits no one will create or invent. Alternatively, inventions from indigenous knowledge allow for mutual benefits for the sake of the community without the need for any personal monetary rewards or profits. Unlike in indigenous communities, the western view doesn’t see community rewards as an end result. Rather the prevailing belief is that if a person is given an incentive to invent, the community will be ultimately benefitted from it.

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Existing international legal mechanisms to combat biopiracy

At the international level, the most important multilateral agreement on intellectual property is the TRIPS (Agreement on Trade-Related Aspects Intellectual Property Rights) and includes protection for different varieties of plants. However, there is no recognition in the TRIPS agreement for prior informed consent from the indigenous communities for use of their knowledge and genetic resources.

The Convention on Biological Diversity (CBD) was the first move towards international dialogue on the protection of biodiversity and indigenous knowledge protection (Ministry of Environment, Forest and Climate Change 2019). However, it is confined only to genetic resources. Subsequently, the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) 2007 provides indigenous peoples “the right to maintain, control, protect and develop their intellectual property over their cultural heritage, traditional knowledge, and traditional cultural expressions”.

Additionally, the International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA) was adopted by the FAO in 2004 and allows citizens of signatory countries to use the resources, provided they use them for non-commercial purposes and do not acquire IP rights over the same.

Another highly significant international agreement is the Nagoya Protocol on Access and Benefit Sharing to the Convention on Biological Diversity (CBD) — this may help resolve some of these ambiguities, but it too has fallen short on protection of rights of indigenous people. These agreements deal with very limited subjects of indigenous knowledge i.e., genetic resources and biodiversity to the exclusion of others and therefore, do not cover all the intellectual property issues.   The current international patent regime is incapable of recognizing or rewarding the indigenous knowledge of local communities as many countries are not signatories to these treaties and therefore, these international bodies offer little protection.

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Instances where indigenous knowledge has been patented for profits

Big corporations like Bayer-Monsanto, Syngenta, Dow/Corteva and others have been generating profits by patenting indigenous seeds and control more than half of the global seed market. Unfortunately, this is without the knowledge and consent of Indigenous communities. Other well-known instances are:

The Ayahuasca case

Lorren Miller was granted an US patent over B Caapi Mort. He named it as ‘Da Vine’ and stated that it had certain medicinal properties.

In 1999, the CIEL (Center for International Environmental Law) on behalf of the Coordinating Body of Indigenous Organizations of the Amazon Basin (COICA) and the Coalition for Amazonian Peoples and Their Environment (Amazon Alliance), filed a legal opposition against the US patent on “Ayahuasca” vine on the ground that it is sacred to indigenous Amazon groups and has been used for medicinal and ceremonial purposes for generations.

In November 1999, the US Patent and Trademark Office (PTO) withdrew the patent granted upon reexamination. The PTO accepted the petitioners’ contentions to the extent that the plant variety was not distinct or novel as it was used for generations. However, the PTO did not take into account the arguments that plants’ religious value can prevent a patent grant.

However, in 2001, the inventor was successful in convincing the PTO. So, the original claims were reconfirmed, without giving any opportunity to CIEL, COICA and Amazon Alliance to present their opposing views. The patent rights were restored to the owner, Lorren Miller for the remaining two years of its patent period.

The Hoodia Case

The indigenous San people, who are one of the oldest and most marginalised communities on the African continent, have long been using the succulent plant “Hoodia” to stave off their hunger and thirst. In 1995, the CSIR (Council for Scientific and Industrial Research) patented the active ingredient of the plant and stated it was a remedy for anti-obesity. Later in 1997, it was patented to Phytopharm, a British biotech firm, which then sold the license to produce and sell it as an obesity treatment to Pfizer.

The San people came to know about the exploitation of their traditional knowledge and in 2001, they initiated legal proceedings on the ground of biopiracy against CSIR and pharmaceutical industries.  It was contented that CSIR had stolen their traditional knowledge and failed to comply with the CBD (Convention on Biodiversity) provisions which required them to take prior informed consent from all stakeholders, including discoverers and users.

In March 2022, an agreement for benefit sharing was reached between the parties and it was decided that the San community would receive a share of future royalties.

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The way forward: Protecting indigenous communities’ traditional knowledge

At the national level

  • A database for indigenous people’s traditional knowledge can be created. An authenticated database including the list of traditional formulas, herbal preparations, seed variety etc., would be available to all the patent authorities and systems. This will ensure that there are no false claims of novelty and distinctiveness. India provides an example of where traditional knowledge of local communities is compiled and registered in such a database and this is updated in accordance with local needs, knowledge and laws.
  • Local units can be set up at each district/region to support communities to develop protocols that will guide local communities and outsiders (corporations, researchers) in discussions about informed consent, benefits sharing, conservation benefits and access to indigenous knowledge and biological resources.
  • In addition to international recognition of the right of indigenous peoples, a framework needs to be developed by states that recognises the relationship between indigenous knowledge and customary law and provides a safe space for the operation of indigenous legal systems. This will protect the traditional knowledge from misappropriation and misuse and will further provide additional benefits to indigenous communities that flow from the recognition of ownership.

At the international level

  • Patent applications can be made more conditional by adding requirements as to origin disclosure of traditional knowledge/resources and evidence of informed consent and fair benefit sharing. A proper identification system should be developed for each case before the patent office.
  • Regulatory gaps need to be closed in the international laws and conventions. The Nagoya protocol has several lacunae. For instance, it does not have a forum for adjudicating indigenous peoples’ biopiracy claims and also has a weak penalty regime. As a result, the disincentive against biopiracy is not sufficiently potent.

Concluding thoughts

Development of national level mechanisms and legal provisions is the need of the hour to prevent the corporate hijacking of indigenous knowledge. At the core of this concern is the need to share biodiversity benefits equitably and fairly, and to safeguard rights to food and biodiversity, promote environmental justice and health equity for all. Through our suggestions, we aim to address biopiracy and provide economic aid to indigenous communities, allow companies to responsibly develop and use traditional knowledge and resources from these communities, and promote local and global well-being. Unfortunately, till now, no inclusive and coherent efforts have been made internationally to address this concern.

Ria Das and Sia Das are lawyers in the Delhi High Court in India. They act in a variety of matters including socioeconomic issues, environmental law and criminal law, and also carry out international law and policy research.

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My journey from medicine and neuroscience to City law – via the BBC https://www.legalcheek.com/lc-careers-posts/my-journey-from-medicine-and-neuroscience-to-city-law-via-the-bbc/ Tue, 12 Sep 2023 09:37:34 +0000 https://www.legalcheek.com/?post_type=lc-careers-posts&p=193399 Ashurst partner Sunny Kumar discusses his varied career

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Ahead of this week’s virtual event, Ashurst’s UK Head of IP and Digital Economy partner, Sunny Kumar, discusses his varied career and how his passion now lies with IP law

Sunny Kumar

Ashurst’s Sunny Kumar joined the firm as a consultant in January of this year, with plans to leave after six months. But his plans quickly changed. “I instantly felt drawn to the Digital Economy team and what they offered me as an intellectual property lawyer”, says Kumar who now heads up the office’s busy IP team.

Discussing what the Digital Economy team’s work entails, Kumar tells me that it “focuses on businesses which have tech at their core”. The team itself is composed of five divisions — digital infrastructure, commercial contracts, IP, data protection and fintech, with each of these headed up by a partner. He reveals that one of the team’s biggest clients is Meta, and that he’s recently been appointed as IP counsel on the Meta panel.

One of the things Kumar enjoys about the Digital Economy team is the opportunity for crossover with IP — “a tech-driven client might want our expertise on their complex IP licensing matters but simultaneously have questions concerning service contracts and laying undersea cables for wireless connections”, he details. While a lot of other firms would approach this by putting members from individual IP, corporate and TMT teams together, Kumar points out that having a Digital Economy team allows for a more integrated approach. “We can service all of these needs as one team comprised of like-minded peers who understand both the tech, legal and regulatory elements”, he details.

Applications for Ashurst’s Winter Vacation Scheme 2023 are now open and close on 29 September 2023

It’s not just the Digital Economy team that prompted Kumar’s decision to stay on, but the culture at Ashurst as well. “As a firm we are very entrepreneurial. We have the opportunity to go and make something of ourselves with the support of the firm,” he notes. Kumar came to Ashurst because the firm wanted to expand its IP offering in London and globally, which presented an exciting opportunity for him. “The partnership is exceptionally collaborative with a great mix of younger energy coupled with deep sector expertise, meaning great ideas and solutions come out of it”, he explains.

As the firm’s UK Head of IP, Kumar doesn’t just work with clients just in the Digital Economy team, but has a broader involvement, also covering work with clients in the life sciences sector, something of special interest to him given his background as a scientist. He often advises clients on their complex copyright and brand-related matters too, something he really enjoys, having first experienced such work during his time as an in-house lawyer at the BBC. IP disputes in this area are at the cutting edge given the use of generative AI tools and the metaverse, which throw up all sorts of copyright and brands-related issues. Disputes in this area is something he is advising more regularly on, Kumar tells me.

Seeking a new challenge and feeling it was time to move on, Kumar shifted from the world of science to law. Confessing this wasn’t entirely out of the blue, Kumar says, “I come from a family of lawyers, my grandfather was a lawyer and my brother is too”. Given his strong science background, the attraction to IP law was only natural. However, for those seeking to establish themselves in an IP practice, “science degrees aren’t necessarily important — there’s more to IP than just life sciences”, Kumar clarifies. His main draw to IP right from his training contract, through to his time at the BBC and then in City law came from the practice area’s broad scope. “I felt straightaway that working as an IP lawyer meant working in a practice area which contributed to the future, and this excited me”, he recalls.

Applications for Ashurst’s Summer Vacation Scheme 2024 open on 2 October 2023 and close on 5 January 2024

I also asked Kumar on the differences between an in-house and a City law practice, given his experience in both. “I think a lot of people see in-house as an easier option. I completely disagree with that”, he says candidly. “When you’re working in-house, you only have one client to service, the business, rather than having several external clients, as you would in a law firm. But you have to keep in mind that people in the business will go home around 6pm. So every instruction, document and input required or needing to be actioned needs to be done between 9am and 5:30pm, and so it can get incredibly pressurised during that time frame. This is something private practice lawyers are often (but not always) immune from”.

Kumar contrasts this with life at a law firm, where you have the ability to spread the pressure over longer hours. There’s also a distinction in the type of work on offer, with Kumar noting that working in-house entails a “stronger connect to the heart of the business, having inputs on commercial decisions and strategy”.

Hence, while working in-house often requires providing quick advice to the business, Kumar says he prefers the belt and braces approach followed in a City law firm. “I enjoy having the time to explore a matter in-depth and provide clients with more considered advice on often complex matters which inhouse teams may not always have the bandwidth for”, he notes. “I also missed the variety of work, being able to apply my knowledge across different sectors”.

Applications for Ashurst’s London Training Contract September 2026 and March 2027 open on 8 January 2024 and close on 29 March 2024

Drawing on the theme of Legal Cheek’s virtual event in partnership with Ashurst this week, I asked Kumar about the opportunities and challenges for businesses, given the increasing confluence between the physical and the digital economy.

“The main opportunity is that businesses are able to reach a larger number of consumers and customers, and do so in a quicker way. But alongside that, come the challenges of keeping up with and foreseeing the regulations governing business operations. Additionally, from an IP perspective, there’s also the question of how businesses can protect their copyright protected works and brands in an era of Web 3.0 (and probably 4.0!)”, details Kumar “While these are exciting times, the key aspect is to keep up with all the technological and regulatory (sometimes lack of) changes occurring.”

So, what advice does Kumar have for those seeking training contracts? His top tips are selectivity and proactivity. “Be considered in your search and apply to the right firms for the practice area that you are interested in,” he suggests. “Engage with those firms, attend insight days and speak to trainees and associates. Never feel like you can’t email HR and request to speak to a trainee or an Associate to help answer your questions so as to inform your decision making. Lawyers may be busy and take time to respond, but most of the time, we will get back to you”, he assures.

Sunny Kumar will be speaking at ‘Digital Economy – with Ashurst’ a virtual student event taking place this Thursday (14 September). Apply now.

Applications for Ashurst’s Winter Vacation Scheme 2023 are now open and close on 29 September 2023

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How Bored Apes are changing the law https://www.legalcheek.com/2022/07/how-bored-apes-are-changing-the-law/ Thu, 07 Jul 2022 08:24:03 +0000 https://www.legalcheek.com/?p=177327 Legal Cheek's Will Holmes takes a deep dive into the latest legal developments surrounding NFTs

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Legal Cheek’s Will Holmes takes a deep dive into the latest legal developments surrounding NFTs

“This is no mere monkey business” explains Yuga Labs in their complaint filed against Ryder Ripps on 24 June.

The company and its world famous non-fungible token (NFT) collection the Bored Ape Yacht Club (BAYC) are breaking new legal ground with a variety of different challenges stemming from the 10,000 unique Bored Ape NFTs. At its most basic level, an NFT is just metadata (a string of numbers and letters) that links to particular file (normally an image or a song). So, how are Bored Apes and other NFTs changing the law?

Bored Ape No. 2162 has played an important role in ensuring that NFTs are steadily being recognised as property in certain jurisdictions. In that case, the Singapore High Court granted a proprietary injunction over Bored Ape No. 2162, following the defendant’s decision to take possession over an NFT which had been used as collateral in a refinancing agreement prematurely. In doing so, the court had to recognise that NFTs are able of constituting property.

Similarly, the English case of Osbourne v (1) Persons Unknown and (2) Ozone Networks Inc saw Lavinia Osborne, co-CEO of Boss Beauties, successfully obtain an interim injunction to compel the NFT trading platform OpenSea to freeze two of her Boss Beauty NFTs that had been taken from her digital wallet. Again, in order to obtain an injunction, it had to be proved that the assets were property. Using Lord Wilberforce’s definition of property in National Provincial Bank v Ainsworth — that something is definable, identifiable, capable of assumption by a third party and has some degree of permanence — it was proved that these sentimental NFTs (worth only a couple of thousand pounds each) were property and therefore could be subject to an interim injunction. Osbourne has also made clear that NFTs are taxable in England and Wales.

These cases, however, also raise yet more questions. The claimant in the Singapore case is now said to be seeking to regain his BAYC NFT by requesting that the defendant, who is a lender on NFTfi, accept his repayment. This is an example of how NFTs could have the potential to encourage money laundering in the art market with new NFT lending platforms emerging in this area, although there is no suggestion this is what is happening in this case. In 2021, new AML (anti-money laundering) laws expanded the definition of “financial institution” in the Bank Secrecy Act 1970 to include antiquities dealers, whilst the EU’s AML Directive (EU) 2018/843 (known as the Fifth AML Directive) now covers “works of art”. The question in these cases comes down to definitions. What is an antiquity? What is art? As I have suggested before, unless clearly included within the definitions provided by legislative schemes, NFTs are likely to challenge our understanding of art and it will be a point that is fiercely mooted in coming disputes.

Indeed, regulators are looking closely at NFTs to try and distinguish art from securities. This issue is apparent in Jeeun Friel v. Dapper Labs, et al, where Friel is claiming that a NFT collection of NBA Top Shot Moments are in fact unregistered securities, whilst Dapper Labs’ remain steadfast that the NFTs are just “objects of play” that are “not for investment or speculative purposes”. Fractionalised NFTs (where purchasers buy only a part of an NFT), NFTs that offer a right to a revenue stream and NFT presales where the NFT has no current use are all examples, flagged recently by the SEC, of when NFT products are likely to be closer to share certificates than pieces of authentic art. This may affect how these products are regulated and see damages, rather than an injunction, being awarded where appropriate.

A common source of lawsuits, given the fact that NFT collections essentially aim to build the most influential brand names, is trademark infringement and counterfeiting. This has seen the likes of Nike, Hermès and indeed Bored Ape creators Yuga Labs file proceedings to defend their brands from creators of NFT collections that are related to their products. The first of these cases was Hermès International v. Mason Rothschild, where the court found that Rothschild’s MetaBirkins (fluffy renditions of Hermès’s famous Birkin Bags) did not satisfy the Rogers test, which weighs the artistic relevance of a title against the likelihood that the title is explicitly misleading. Then, Nike, Inc. v. Stockx LLC has added a new angle that the courts are yet to decide on.

Rather than purely digital products, StockX, which provides a secondary market for people to buy and sell trainers, launched NFTs which are linked to physical trainers aiming to enable buyers to track the ownership and authenticity of resold physical products. StockX are claiming that Nike suffersfrom “a fundamental misunderstanding of the various functions NFTs can serve”. In this case, StockX argues, the NFTs are not a branded collection of digital sneakers but merely “claim tickets” to access physical shoes placing the products under the first-sale doctrine that limits the rights of IP holders in secondary resale markets.

However, there seems to be less certainty around copyright lawsuits. Yuga Labs’s dispute with Ryder Ripps exemplifies this. Ripps created an NFT collection called RR BAYC with all the same Bored Apes attached in digital files. Interestingly, however, Yuga Labs have focused on trademark infringement rather than copyright, which according to their website they appear to have retained (the company only grant a licence). Why?

Well, Ripps has been clear that in his opinion “you can’t copy an NFT”. But is he right? An interesting dispute on this issue that could go test Ripps’s claims in court in Germany, excellently examined by Professor Andres Guadamuz here, is the August Sander NFT collection created by the German photographer’s grandson Julian in February 2022. An art foundation in Cologne, SK Stiftung Kultur, bought the copyright to August’s existing negatives and originals from August’s son Gerd in 1992. Unsurprisingly, the foundation do not seem best pleased about Julian’s NFT collection which aims to “function as a living and active archive preserved for continued scholarship, appreciation, and windows into the eyes of a man who sought to preserve the truth about the world he knew”.

The question in this dispute will come down to whether this NFT (remember that an NFT is just a link to an image) gives those who click on it access to an unauthorised copy of the work. Guadamuz suggests that the relevant legal arguments in this German case are likely to come down to European case law about when a link can infringe copyright, rather than notions that the NFT itself, construed as a ‘digital canvas’, is a novel form of infringing copyright.

So, in one sense Ripps is correct — you can’t copy an NFT. But what matters in relation to copyright is US copyright law on links. In the US, unlike in Germany, the availability of a fair use defence, something that Ryder is clearly pointing to when he claims RR BAYC is “appropriation art” which “uses satire and appropriation to protest and educate people regarding The Bored Ape Yacht Club”, is also something to which Yuga Labs will likely have to respond.

The Bored Ape creators have already put out a rebuttal for that argument in their lawsuit, pointing out that RR BAYC “claims that minting exact replicas of Yuga Labs’ Bored Ape NFTs and reselling them at a profit is ‘satire’”. Trademark infringement, amongst other claims, are also valid concerns for Yuga Labs – Ripps has been keen to highlight “extensive connections between BAYC and subversive internet nazi troll culture” – in what has become a case centred more around BAYC’s reputation and the rarity of its Apes than the intricacies of NFTs and copyright law. In light of all this, creating, owning and deploying NFTs are certainly no mere monkey business, but a rather brusque welcome to the legal jungle.

Will Holmes is reporter at Legal Cheek and a future trainee solicitor at a magic circle law firm.

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My journey from STEM grad to lawyer https://www.legalcheek.com/lc-careers-posts/my-journey-from-stem-grad-to-lawyer/ Mon, 29 Nov 2021 16:22:12 +0000 https://www.legalcheek.com/?post_type=lc-careers-posts&p=170113 Bristows associate Erik Müürsepp shares his career journey and advice to students, ahead of his appearance at tomorrow's virtual careers event

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Bristows associate Erik Müürsepp shares his career journey and advice to students, ahead of his appearance at tomorrow’s virtual careers event

Bristows associate Erik Müürsepp

In 2013, Erik Müürsepp, then a masters student studying molecular biophysics at King’s College London, had a discussion with a university careers advisor that put him on the road to where he is today. The careers advisor suggested that entry to the world of patents and intellectual property (IP) via a legal career could help combine Müürsepp’s life sciences expertise and enthusiasm with playing a part in the development of treatments for disease.

Up until that point, Müürsepp, who’d previously graduated with a first from the University of Bristol in biochemistry, had thought that a career as a lab-based researcher was his only feasible option. But during his masters he’d begun to wonder if lab-based research was really for him.

Part of any scientific endeavour, Müürsepp tells me, is uncertainty. There are “no guarantees of successful results, and success is not dependent on how much work you put it in”. Although negative results are useful for the scientific community, Müürsepp found it “a bit too discouraging”. However, he still wanted to be in the fast-moving life sciences field, even if he wasn’t doing the lab-based research himself.

But in the law surrounding patents and IP more generally Müürsepp could see an area where an understanding of the exciting inventions that people were seeking to protect would be of great benefit and one could act as a trusted commercial advisor to the innovators who weren’t disheartened by the uncertain nature of scientific research. With some understanding of the huge expenditure that research and later development entails, he was interested in how IP protection could incentivise innovation and make it sustainable.

From there, Müürsepp decided to look for the firms that not just excelled in IP law, but also had a strong focus on the life sciences sector and had good connections within that industry. In all of this research, and the conversations he’d had, Bristows came out on top. The Bristows’ Winter Workshop that he attended further cemented that decision as half, if not more, of the Bristows lawyers that he spoke with had STEM backgrounds. His interest in science was “entirely normal” as they too had studied this at degree-level, or even PhD level, before pursuing a legal career and they all seemed “very happy with the choices they had made”.

The application deadline for Bristows' Training Contract 2024 is 2 January 2022

Starting Bristows as a trainee two years later, in 2016, Müürsepp could see in practice how a technical background would be of benefit to a lawyer. During his two-year training contract at the full-service firm, he was able to spend time in practice areas that allowed him to experience the impact of various areas of the law on any single innovation. From commercial IP/IT working on the agreements that enable the research and collaboration that gives rise to the ideas in the first place, to the investments negotiated by the corporate team that help the idea be taken through to a real-world product.

Working in the patent litigation team he saw how disputes could arise over such products once they have proven commercial value in the market and his time with the brands team demonstrated how valuable recognisable and protected branding could be to extend the lifespan of a product even once the underlying patents had expired. During his training contract, Müürsepp also received the opportunity to undertake a client secondment at the technology transfer office of a leading London university, which gave him valuable insight into the impact of his work on the scientific research of Bristows’ clients.

Ultimately, for Müürsepp, it was the nature of the work in his commercial IP/IT training seat that determined his decision to qualify into this team. Whilst the matters he comes across on a day-to-day basis can vary considerably, he gives one example of his work in facilitating the collaboration of universities, or other non-university research institutes, with commercial entities in the healthcare sector. These two parties share a common goal, which is to find the “best and most efficient route to get potential treatments to patients”. The research institutes receive funding for their lengthy and expensive research process, along with the assurance of another entity taking on the risks associated with the subsequent clinical trials that are conducted when this research results in a candidate drug. This relationship, which lawyers continually help to facilitate and build, also benefits commercial entities as they are able to have a stake in this development and eventually reap the rewards from the commercially valuable product.

On a day-to-day basis, Müürsepp, amongst other things, negotiates and drafts the contractual frameworks that govern the relationships between these parties and advises on the IP aspects of corporate transactions. But it is not just these two types of clients that Müürsepp works with. From smaller biotech companies and big pharma to contract manufacturing organisations, charities, public sector entities and investors, “it’s hard to think of a category of player within the life sciences ecosystem that we have not worked with in one way or another,” he tells me.

Looking back over this journey and the experiences he has had so far, Müürsepp’s advice for STEM students wanting to follow his path into law is “do your research”. He advises that they look into law firms, and how they operate, and to attend events and opportunities like open days to find out more. He also adds:

“Think about how you can present to firms that your STEM background is an asset to them. If the firms you’re interested in act for a number of clients that focus on science and technology, then try to keep up to date with the developments in those industries. Do some reading and have a think about the legal developments that are influencing these clients. Firms really appreciate when a STEM student’s enthusiasm for their subject translates into an interest about the commercial world. Being able to mention specifics about where a sector appears to be heading and the role that lawyers have to play in that can be really impressive both in application forms and in holding an engaging conversation at an open day or at the interview stage.”

Erik Müürsepp will be speaking at ‘STEM focus: How to make it as a lawyer — with Bristow’ a virtual student event taking place tomorrow (Tuesday 30 November). You can apply to attend the event, which is free, now.

The application deadline for Bristows' Training Contract 2024 is 2 January 2022

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