University of Western Australia v Gray [2009] FCAFC 116

FEDERAL COURT OF AUSTRALIA

University of Western Australia v Gray [2009] FCAFC 116

CONTRACT – implication of terms in law – person employed by university as professor of surgery – express contractual obligations, inter alia, to undertake research, to organise research and generally to stimulate research among the university's staff and students – employee part of a team carrying out research directed to treatment of tumours in the liver – funding of the research came from numerous bodies – the employee had been engaged on research of that kind before joining the staff of the university as well as during his tenure there – inventions and applications for and the grant of patents resulted from the research – whether implied term that the university had proprietary rights in the inventions, patent applications and patents – whether term implied in law that employee held them upon trust for the university – special features of universities and academic pursuits – freedom to publish results of research. Held: there was no "duty to invent" and the conditions required for the implication of a term at law were not satisfied.

FIDUCIARY DUTIES – person employed by university as professor of surgery – express contractual obligations, inter alia, to undertake research, to organise research and generally to stimulate research among the university's staff and students – employee part of a team carrying out research directed to treatment of tumours in the liver – funding of the research came from numerous bodies – the employee had been engaged on research of that kind before joining the staff of the university as well as during his tenure there – inventions and applications for and the grant of patents resulted from the research – whether implied term that the university had proprietary rights in the inventions, patent applications and patents – whether term implied in law that employee held them upon trust for the university – special features of universities and academic pursuits – freedom to publish results of research. Held: in absence of implication of terms in law, there was no independent fiduciary obligation of a kind and scope that made employee accountable to university for the inventions, applications for patents, or patents.