Ambiguities in Oxonica Licence result in additional royalty payments

The Court of Appeal was recently called on to interpret the meaning of a patent and know-how licence between Oxonica Energy Ltd and Neuftec Ltd relating to fuel additive technology.

Giving the lead judgment, Lord Justice Jacob criticised the drafting of the agreement, describing the document as ‘appallingly drafted’ and the drafter as ‘inept or lacking in understanding of the legal background’. The consequence for Oxonica was expensive litigation and an adverse ruling.

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