10 Common Contract & Intellectual Property Myths: Debunked

scottappletonCommercial, Company, Consumer Protection, Contract, Copyright, Employment, Intellectual Property, IP, Media, Technology, Trademarks

Can you use your trade marks in your future business ventures? Can you still be liable for copyright infringement if you add a disclaimer to your online content? We’re separating legal fact from fiction.

1. “I’ve registered my trade mark so it’s protected, however I use it.”

It’s a common misconception that registering a trade mark protects it in every context. In reality, trade marks only cover the specific classes of goods/services in which you register it. Use of your trade mark outside those classes may not be protected.

Failure to take action against infringements, particularly of trade marks, can weaken your ability to enforce your rights in the future. Ignoring infringements might suggest abandonment of the mark or tolerance of the unauthorised use.

2. “I own my logo, because I paid someone to design it.”

Unless your designer explicitly transfers (‘assigns’) the relevant rights to you, or your designer works in-house, the person who creates the logo retains copyright ownership under UK law.

3. “I can always just take my work portfolio with me to my new job.”

In the UK, an employer usually owns the copyright to works (such as writing, music and art) created by an employee in the course of their employment, unless the parties agree otherwise. This means that using the same content under a future employer might constitute infringement.

4. “Adding a disclaimer to my content, such as ‘no copyright infringement intended’ protects me from infringement claims.”

These disclaimers have no legal effect. You will still need the copyright owner’s permission unless an exception, like fair dealing, applies.

5. “A verbal business agreement isn’t a valid contract and can’t be enforced.”

A contract doesn’t need to be written down or signed to be valid – a verbal agreement can absolutely form a contract. However, in the event of a dispute, it is much more difficult to prove and enforce the terms of a verbal contract without written evidence.

6. “That clause wasn’t in our contract, so it’s irrelevant.”

It’s a widespread myth that only the terms which make it into a contract govern contracts. In truth, UK law can imply terms into contracts, such as those under the Sale of Goods Act 1979 or Consumer Rights Act 2015. For example, that goods must be of satisfactory quality.

7. “The other party breached our contract, so I don’t have to fulfil my obligations either.”

Only breaches of fundamental terms of the contract (known as ‘conditions’) typically allow for immediate termination. Breaches of less vital terms (‘warranties’) may entitle the non-breaching party to damages, but not termination.

8. “They signed the contract, so they can’t now say that the terms are unfair.”

There’s plenty of legislation allowing the courts to strike out unreasonable or illegal clauses, especially in consumer contracts – such as the Unfair Contract Terms Act 1997, and the Consumer Rights Act 2015.

For example, the courts are unlikely to uphold a clause which imposes excessive cancellation charges on a consumer, even if it’s specified in the seller’s terms and conditions.

9. “I can’t be sued for breach of confidentiality, because I didn’t sign an NDA.”

Courts can enforce NDAs which were never signed, as long as there’s evidence that the parties had agreed to confidentiality terms. Evidence of agreement can include the person’s conduct or email exchanges.

10. “Once an author’s died and their copyright’s expired, I can use their work however I want.”

For written, dramatic or musical works, copyright expires 70 years after its author’s death, at which point the work enters the public domain. Last year, artworks by the French painter Raoul Dufy, as well as the poems of Dylan Thomas, entered the public domain. However, a work entering the public domain doesn’t mean it’s a free-for-all! For example, if you wanted to use a newer translation or annotated copy of a Dylan Thomas poem, you still need to consider whether you’re infringing the copyright of the translator or annotator.

Are you struggling to enforce your rights under a contract? Has the other side breached an unsigned agreement? We have plenty of experience dealing with these issues and advising our clients how best to move forward. If you’re feeling stuck, we’re always happy to have a confidential chat to answer your questions.

This article was first published in the February 2025 edition of our newsletter, Moore Law Monthly. Join our mailing list by signing up on our Linktree here: https://linktr.ee/moorelaw.