Licence To Litigate

The recent case of Oxonica Energy v. Neuftec¹ is a telling example of how expensive litigation can ensue from drafting an intellectual property licence that is not fit for purpose.

Neuftec, who had a background in the motor industry, wanted to develop a fuel additive that would reduce fuel consumption and engine emissions. Neuftec wanted to use lanthanide oxides as active ingredients but these were known to clog filters and damage engines. They saw that the solution would be to make use of extremely small particles of cerium oxide coated with a lipophilic (oil-loving) substance to aid disbursement of the particles in the fuel. Neuftec approached Oxonica to manufacture the particles, who were a young nanotechnology company spun out from Oxford University.