Legal News

What are the legal implications of audiovisual manipulation and deepfakes and what challenges do they pose to intellectual property rights, rights in personal information and image rights? ‘ Deepfake’ describes a face-swapping method in which AI-driven tools process images of a person to create a digital double, then overlay that likeness onto other bodies in video or stills. Creations built from a lone source image are usually easy to dismiss, but those trained on thousands of photos or clips can appear highly convincing. In contrast, audiovisual edits that do not employ AI are often labelled ‘shallow fakes’ or ‘cheap fakes’. Deepfakes present broad socio-political threats: they can skew public debate, disrupt elections and national security, and undermine confidence in journalism and public institutions. The risks to individuals and organisations are just as significant, ranging from fake endorsements and forged documentary evidence to loss of creative control over...

Reid v Price [2020] EWHC 594 ( QB) What are the practical implications of this case? This decision is a helpful authority on quantifying damages for claims involving disclosure of private information, breach of undertakings, breach of confidence, and the misuse of private information. It addresses how compensation should be assessed across overlapping privacy-related wrongs. The principles articulated in the judgment merit close attention by practitioners advising on likely awards in comparable situations, particularly since, in Warby J’s own phrase, ‘the authorities are not very numerous’. Warby J held that Mr Reid succeeded on four distinct causes of action: breach of contract, namely breach of express undertakings provided by Ms Price in 2011 that the relevant material would not be revealed unjustified breach of Mr Reid’s confidence misuse of private information concerning Mr Reid breach of statutory duty under section 4(4) of the Data...

Man Ching Yuen v Landy Chet Kin Wong , First-tier Tribunal ( Property Chamber), 2020 (ref 2016/1089) What are the practical implications of this case? Every day, innumerable deeds are completed across the country. By virtue of section 1(3) of the Law of Property ( Miscellaneous Provisions) Act 1989 ( LP( MP) A 1989), a deed must be signed in the presence of a witness who attests the signing. Yet what amounts to presence? Could witnessing occur via Skype, Facetime, Whats App or similar platforms? In addressing that issue, the FTT indicated, without a definitive ruling, that, under present law, whether the phrase in LP( MP) A 1989, s 1(3) ‘in the presence of a witness’ can be met via video link admits more than one arguable view. The tribunal’s indication fell short of a determination, acknowledging that the statutory wording, as it stands, could...

Bioconstruct Gmb H v Winspear and another [2020] EWHC 7 ( QB) What are the practical implications of this case? The ruling rekindles discussion about optimal methods for completing a closing with pre-executed pages, particularly where multiple parties and signatories are involved and where amendments or corrections are made to previously circulated written contracts. The court’s analysis, relating to a deed that was both signed and acted upon by the party seeking to rely on it, yet held invalid and unenforceable, underscores the need for caution when attaching pre-signed signature pages to deeds. In this respect, the judgment draws attention to a circumstance not expressly covered by the Law Society of England & Wales’ Practice Note, ‘ Execution of documents by virtual means’ (16 February 2010). That guidance identifies Koenigsblatt v Sweet as the leading authority on ratification for written...

Brake v Guy [2019] EWHC 3332 ( Ch) What was the background? This judgment addresses two applications. The first sought an injunction preventing three respondents (the Guy Parties) from using material obtained from an email account said to have been wrongly accessed by them (the documents application). The second asked for a declaration that the opposing parties (the Brakes) could not rely on legal professional privilege over various documents within that account where they were in furtherance of an unlawful scheme (the LPP application). Both applications formed part of broader proceedings between the Guy Parties— Dr Geoffrey Guy, the Chedington Court Estate Ltd and Axnoller Events Ltd—and the Brakes, Mrs Nihal Brake and Mr Andrew Brake. The dispute concerned two properties, a farm and a cottage; the Brakes had occupied the cottage, and its title had become the subject of serious issues within...

Quinn Infrastructure Services Ltd v Sullivan and others [2019] EWHC 2863 ( Comm) What are the practical implications of this case? The decision turned predominantly on the particular facts and depended heavily on specialist opinion, yet it clearly flags points practitioners must watch carefully when counselling clients on arrangements. Loose, undocumented understandings can create difficulties if not properly recorded and memorialised. It further underlines the core rule that a party cannot recover for a loss it has not actually sustained. Lastly, it exemplifies the difficulties posed by so-called ‘blind alley’ efforts on prototypes that were never deployed or delivered, and, in practice, the task of assessing what amounts to a fair fee for work performed. What was the background? The claimant provided engineers to BT. The first defendant acted as a de facto director and was subsequently thereafter made managing director of the claimant’s telecoms arm. The second...

Amending a claim to allege breach of confidence ( Slater & Gordon v Watchstone) Slater & Gordon ( UK) 1 Ltd v Watchstone [2019] EWHC 2371 ( Comm) What are the practical implications of this case? Two principal practical consequences follow from this decision: It serves as a caution for those involved in M& A deals or litigating about them. Although exploiting every route to gather intelligence on the other side may appear commercially astute, inviting the opponent’s corporate adviser to tacitly share confidential material is arguably unlawful and may leave participants exposed to a significant claim It also exemplifies the court’s pragmatic and constructive approach when major disclosure issues arise that warrant an amendment—if persuasive arguments emerge, the court will seek to accommodate them. The familiar disapproval of late amendments did not feature in the judgment, perhaps suggesting that......

Awbury Technical Solutions LLC v Karson Management ( Bermuda) Ltd [2019] EWHC 233 ( Comm) What are the practical implications of this case? This decision explores the interaction between section 12(3) of the Human Rights Act 1998 ( HRA 1998) and applications for interim injunctions to restrain the use of confidential information in a commercial setting. Although Butcher J did not foreclose the possibility that, in a business context, such relief might amount to an interference with freedom of expression, his judgment indicates that will seldom be so. In particular, where the communication serves only to advance the communicator’s financial interests, is directed to a very small group of recipients, and there is no suggestion that the material is journalistic, literary or artistic, the right to freedom of expression will generally not be engaged. The decision also appears to be the first in England and Wales to...

What impact do the Business Contract Terms ( Assignment of Receivables) Regulations 2018 have on rights of set-off (contractual and other)? The explanatory memorandum to the Business Contract Terms ( Assignment of Receivables) Regulations 2018, SI 2018/1254 (the Regulations), states plainly that these provisions are introduced to render ineffective terms in specified contracts that restrict the assignment of receivables, with effect from 31 December 2018. As a result, many businesses that were previously prevented by contractual limitations will now be able to assign receivables and utilise products such as invoice financing in relation to sums owed to them. This may influence the right of set-off, as some businesses could opt for rapid liquidity by assigning receivables to a third party through arrangements like invoice finance, rather than exercising any right of set-off against invoices presented to them. The principle of set-off is firmly...

How has the exemption available for controllers under the GDPR in relation to liability to compensate data subjects changed? Under the earlier Data Protection Directive 95/46/ EC ( Article 23(2)), where a person was entitled to damages from a controller due to unlawful processing, the controller could rely on a potential exemption if it was not responsible for the event that caused the loss. Recital 55 offered two illustrations of situations for which the controller would not bear responsibility: a mistake by the data subject, and a case of force majeure The language of these provisions lacked clarity, and the concept of ‘force majeure’ has no consistent definition across EU legal systems (it does not even carry a settled meaning in English law, depending heavily on contractual wording). Unsurprisingly, this carve-out, and the reference to force majeure, was therefore loosely carried across into...

Original news Trade Secrets ( Enforcement etc) Regulations 2018, LNB News 18/05/2018 76 SI 2018/597 Measures are introduced to give effect to EU Trade Secrets Directive 2016/943/ EU, which protects undisclosed know‑how and business information (trade secrets) against their unlawful acquisition, use and disclosure. While several provisions of Directive 2016/943/ EU are already reflected in UK law, these Regulations address the areas where gaps remain and where implementing the Directive will secure legal certainty, making the law more transparent and coherent across all UK jurisdictions in relation to proceedings about the unlawful obtaining, use or disclosure of a trade secret. The Regulations take effect on 9 June 2018. What is the background to the Regulations and Trade Secrets Directive? Historically, protection for trade secrets has been inconsistent across EU Member States. Around a third of Member States have no specific legislation addressing the...

Hotlinking does not constitute copyright infringement ( Wheat v Alphabet Inc/ Google LLC & Anor) Wheat v Alphabet Inc/ Google LLC & Anor [2018] EWHC 550 ( Ch) (26 March 2018) What are the practical implications of this case? The decision addresses the thorny issue of whether hotlinking can give rise to claims for breach of contract or copyright infringement. Its technical effect may divert searches away from the originator’s site to an aggregator, with a corresponding loss of advertising revenue. The case shows how evolving technology disrupts existing business models, and the difficulties of pursuing remedies for perceived wrongs within legal frameworks that can lag behind innovation. It further highlights the perils for litigants in person stepping into areas that test even experienced litigators. What was the background? The claimant, acting in person, runs the website...

What are the practical implications of this case? Zurich Insurance Plc v Nightscene Ltd [2017] Lexis Citation 445. This ruling is significant, first and foremost, for its analysis of the application of the rule in Shah [2001] EWCA Civ 527 to Deeds executed by companies. Those acquainted with Shah will remember that it addressed the effectiveness of a Deed executed by private individuals. They contended the Deed was ineffective because their signatures had not been attested at the time of signing, so the requirements of s1 of the Law of Property ( Miscellaneous Provisions) Act 1989 ( LP( MP) A 1989) were not fulfilled. The court rejected that case, holding the individuals were estopped from denying the Deed’s validity, essentially because it appeared, on its face, to have been duly executed when it reached the receiving party. This decision logically confirms that the Shah...

Original news Vanden Recycling Ltd v Kras Recycling BV [2017] EWCA Civ 354 What are the practical implications of this case? This ruling, in brief: affirms that once a judgment has been satisfied, further claims against other tortfeasors responsible for the same harm are generally precluded as a matter of course however, satisfying a settlement—rather than a judgment—will only preclude claims against other tortfeasors for the same harm if the amount agreed and paid was intended to determine and fix the claimant’s loss in full acknowledges (and succinctly sets out) the differences and practical distinctions between consent orders and Tomlin orders indicates that the court will look at the 'substance and effect' of a consent order’s terms and, if these are 'the same as would be made following a judgment', it is proper to treat the consent order as a...

What is Australia’s approach towards international free trade agreements? Australia is a proactive participant in global trade. In recent years, its commercial ties have centred on Asia, having lately finalised free trade agreements ( FTAs) with China, Japan and South Korea. Shortly after the 2016 EU referendum, the Australian Government signalled its readiness to negotiate an FTA with the UK. To advance this, a trade working group was established with a remit to ‘scop[e] out the parameters of a future ambitious and comprehensive’ FTA. The group first met in late November 2016. However, talks may not start until the UK has left the EU. How does Australia’s market compare to the UK? UK– Australia trade has taken place within the EU framework. The EU is Australia’s third-largest trading partner. Australia’s sales to the EU are dominated by mineral commodities (fuels and mining products) and...

Original news Signature Realty Ltd v Fortis Developments Ltd and another [2016] EWHC 3583 ( Ch) What should IP & IT lawyers take note of? Any party may seek planning consent to develop land. Such consent attaches to the land itself and is not personal to the applicant. Plans are made publicly available, though any copyright licence is narrowly limited. Where an existing building is being redeveloped, originality can be contentious, but the threshold is not demanding. The key issue is the level of intellectual skill deployed in creating the drawings. In assessing infringement, the court examined similarities by reference to the artistic effort and labour embodied in the claimant’s drawings, disregarding features lacking originality. The question is whether what in the defendant’s work, taken from the claimant’s, amounts to a substantial part of the claimant’s work. The court held that several drawings were infringed and ordered an...

In brief: NVidia’s groundless threats claim struck out and stay refused ( NVidia Corporation & Ors v Hardware Labs Performance Systems Inc) Original news NVidia Corporation & Ors v Hardware Labs Performance Systems Inc [2016] EWHC 3135 ( Ch) What should IP & IT lawyers take note of? This ruling offers two cautions for practitioners. First, think twice before issuing domestic proceedings—perhaps within a broader European litigation plan—unless your clients are genuinely prepared to see the dispute through to trial. Mann J’s decision makes it plain that the UK courts will not invariably grant a stay at a claimant’s request, even where doing so could plausibly conserve costs and judicial time. Discontinuance remains a route open to such a claimant, as Mann J observes in his judgment. Yet that course carries costs repercussions because, naturally, a claimant who discontinues in the UK must meet the...

Original news R (on application of Ingenious Media Holdings plc and another) v Revenue and Customs Commissioners [2016] UKSC 54, [2016] All ER ( D) 118 ( Oct) The Supreme Court ruled that statements made about the appellants by HMRC’s then Permanent Secretary for Tax to journalists at an off-the-record briefing were not justified under section 18(2)(a)(i) of the Commissioners for Revenue and Customs Act 2005 ( CRCA 2005). The court concluded that CRCA 2005, s 18(1) was designed to mirror the general principle of taxpayer confidentiality and that, properly construed, CRCA 2005, s 18(2)(a)(i) — read strictly — operates only as a limited carve-out, allowing disclosure solely where it is reasonably required for HMRC to carry out its core function. What was the background to the case? The Permanent Secretary for Tax had provided an off-the-record interview to two reporters from The Times about the...

Original news Middleton and another v Person Unknown or Persons Unknown [2016] EWHC 2354 ( QB) What should IP & IT lawyers take note of? This decision exemplifies a section 12 matter, which generally provokes little dispute. Section 12 was first examined in Cream Holdings Ltd and others v Banerjee and another [2003] EWCA Civ 103, [2003] 2 All ER 318. In Cream, the court affirmed the ‘more likely than not’ test, while preserving a discretion to grant an injunction where declining an interim order pending a full hearing would inflict substantial injustice on a claimant. Practitioners should ensure compliance with HRA 1998, s 12(4). HRA 1998, s 12(4) states: ‘ The court must have particular regard to the importance of the…right to freedom of expression and, where the proceedings relate to material which the respondent [to an application for an...

Background e IDAS Regulation: Regulation ( EU) No 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/ EC What are the principal changes ushered in by the e IDAS Regulation? In what respects will the current regime be altered? Although signatures are commonly used on commercial paperwork, under English law a document generally need not be signed to have legal force, save for particular classes including: guarantees consumer credit agreements sales of real property, or wills When electronic formats such as fax and email emerged in the 1980s and 1990s, the courts in England adopted a notably liberal stance, treating even a telex answerback, generated without human action, as a valid signature. As a result, Directive 1999/93/ EC (the 1999 e Signature Directive), which came before the e IDAS...