Pictured above: Mike Wakeling
People looking to rip off others' ideas are in danger of getting
egg on their face, a Midland lawyer has warned.
Mike Wakeling, a partner with Lodders Solicitors in Stratford
upon Avon, spoke out following a row between two companies - one an
established educational programme provider, the other a newly
hatched business
The feathers started flying when a former franchisee of
established business Living Eggs, set up a rival operation, the
Happy Chick Company.
It all ended up in Birmingham County Court with Madeline McRanor
of HCC shelling out over disputed bookings and agreeing to reveal
customer lists.
Mr Wakeling, who represented Living Eggs, said it showed how
important it was to defend vigorously any attacks on intellectual
property rights.
"We did that in this case and Living Eggs' stance has been fully
vindicated and acknowledged," he stated.
"It is a lesson to other firms to safeguard their position and
not be afraid to take vigorous action should the necessity
arise."
The Living Eggs concept was developed in Australia by sole
director Mark Hunt - now based near Henley in Arden - and launched
in the UK in 2005.
Incubators are taken into schools and other establishments for
some 12 days and the children observe the eggs hatching, often as
part of a class project.
Tied in with a structured educational programme, a fee is
charged for the work involved and the chicks are eventually either
kept by the schools or given to local farms.
In Australia the Living Eggs business, operating via a franchise
system, services around 2,000 schools a year. And in the UK the
same level has been reached with more than a dozen franchisees
turning over in the region of £450,000 a year in total.
Mr Hunt maintains Living Eggs was the first properly established
business of its kind in the UK.
He said: "Prior to our commencement there was no established
provider and very little use of live embryo hatching type
programmes in schools.
"There are some city farms which provide embryo eggs on a very
small scale but do not offer a structured programme and do not
supply detailed educational resources."
So Mr Hunt was "shocked" when last year Peterborough-based Ms
McRanor terminated her franchise and established HCC.
He claimed she was in breach of undertakings and obligations and
sought recourse to the law.
He said: "My company does not seek and cannot prevent any third
party from competing with Living Eggs.
"However it is only fair and reasonable that people should not
be able to terminate their franchise and immediately use everything
they have been given by Living Eggs to compete against the
company."
Living Eggs maintains former franchisees should not be able to
operate without restriction for a year from termination. "And this
means establishing a fresh customer base and not trading on the
back of the Living Eggs name and contacts."
In court an agreement, which has now expired, was eventually
struck.
HCC agreed for a period of several months not to operate
identical operations to Living Eggs, not to take bookings, pay 25
per cent of the gross fees on those bookings it had taken in the
interim, and hand over its customer list.
Mr Hunt said: "It was a very satisfactory outcome - asking
Lodders to take this matter up was the right call."
Mr Wakeling added: "Intellectual property is the life blood of
many businesses and if others seek to take advantage of that it can
be very damaging.
"Companies need to have watertight franchise agreements and be
constantly on their guard."
For more information about Lodders Solicitors LLP, please visit
their website here: www.lodders.co.uk