(Being the text of a Paper Presented by Ekemini Udim to Members of the Nigerian Society of Engineers, Akwa Ibom State Chapter)
Preamble
I am pleased to be in this event to share thoughts with you on the ever – emerging area of engineering contract law and intellectual property protection. I had my first degree seventeen years ago and I had many engineering students as my close friends. We studied together and also played students politics together. At that time, you needed the engineering boys to give you muscular support in campus politics and the intellectual support on how best to navigate rough terrains and surmount challenging situations on campus. When I returned from law school, I went straight into practice and I found myself in the midst of engineering professionals, most of whom I have offered professional legal services and still offer till date. Engineering is life and life without engineering is void and almost without direction. Engineering provides precision and provides the world with direction. I am therefore pleased to be here in the midst of engineering professionals to discuss a few issues of law with you.
Engineering Contract Law
Engineering contract law pertains to the legal agreements formed between parties engaged in engineering projects. These contracts outline the terms and conditions of the work to be done, specifying obligations, rights and responsibilities on both sides, timelines for commencement through to completion, fees and payment modalities, compensation and many more. Key components often include the scope of work, payment terms, deadlines, liability clauses, and dispute resolution mechanisms. A well-drafted contract serves to minimize disputes and provides a framework for resolution should conflicts arise in the course of the relationship. As professionals in the continoulsy expanding field of engineering, you must insist on discussions or engagements being formalised into contracts. You must go through the terms and conditions to understand what you are venturing into. No engineer should embark on a serious project without signing a contract. This is very important and must serve as an article of faith in your professional engagements.
One vital aspect of contract law in engineering is its ability to protect the interests of all parties involved. By clearly delineating roles and responsibilities, contracts help to avoid misunderstandings that could lead to costly litigation. As a practicing lawyer, I can tell you that litigation in Nigeria can be take so mcuh of your engineering time and can also take a good chunk of your resources. Please avoid it if you can, except it becomes the only option left for you.
Most contracts often include clauses specifically designed to address ownership of any Intellectual Property generated during the course of the project or invented by the engineering expert in the course of his work generally. This then takes us to the importance of Intelletual Property protection in engineering.
Intellectual Property Protection
Intellectual property protection encompasses a variety of laws that safeguard creations of the mind, such as inventions, designs, and artistic works. For engineers, this can involve patents for novel inventions, copyrights for design works, and trademarks for branding. In the oil and gas inductry for instance, most of the inventions have been patented and exclusively owned by their inventors. The ingenuity in deep water driling of oil could not just be allowed without a patents being ascribed to it. Many other engineering masterpieces have also been patented and ascribed to their inventors around the world. You too can also invent and sell to the world.
Protecting your intellectual property is essential for several reasons: it incentivizes innovation, provides competitive advantages, and generates revenue through licensing opportunities. Intellectual property can be any useful invention by an individual or by a group of people working together to attain a set goal. One intellectual property invention can take care of a family for generations.
I tell you a story; the story of John Rockefeller. He is recorded in history as America’s first billionaire. He was into petroleum refining and owned the biggest refineries in America. He was a ground-breaker. He brought revolution to the petroleum industry in America and by extension, the whole world. He operated under the name of Standard Oil. Standard Oil was later broken into what we have today as ExxonMobil, Chevron, Esso, British Petroleum, Conoco and others. He lived a fulfiled life and at a ripe age of 97, when he passed on to the great beyond. That was in 1937. Here is the catche: 88 years after his demise, his family still benefits from his intelectual property in the pretroleum industry till today. This is how the Rockefeller Foundation is funded and till date, the foundation still awards scholarships to students from around the world and still carries on with a host of humanitarian endeavours. But for intellectual property protection, Rockefeller’s invovative ideas and inventions in the petroleum industry would have long been forgotten.
Obtaining a patent for intellectual property, grants inventors exclusive rights to their inventions, thereby preventing others from using, selling, or manufacturing the invention without permission. This exclusivity can be a significant asset for engineering firms, enhancing their market position and profitability. One patented invention by an engineer can settle him for life moreso in a world that is dominated by the internet which allows for multiple downloads upon payment of prescribed fees.
It is important to note that, the interplay between contract law and IP protection is critical during negotiations and collaborations. Engineering firms often collaborate with third parties, and it is essential to delineate ownership of IP created through joint efforts. Contracts should explicitly state who retains ownership of existing IP and what happens to any new IP developed during the collaboration or in the course of the execution of the contract. By ensuring clarity in these agreements, engineering firms can safeguard their rights and avoid potential future disputes.
Safeguarding Rights and Interests
The second leg of today’s discussion is how to safeguard your rights and interests. This is very important. To effectively safeguard your rights and interests, engineers and firms must adopt a proactive approach to both contract drafting and IP management. This involves several key strategies:
Thorough Contract Review –
Engaging legal counsel to review contracts can help identify potential pitfalls and ensure that the terms align with business interests. This is particularly important in relation to IP clauses. If you are not comfortable with some clauses please ask for adjustment. You should not enter blindly into contracts whose terms will make nonsense of your engineering credentials. Do not be rigid. Be flexible so as not to lose good buinsess opportunities but avoid being a slave. Remain the professional that you are. Do not lower the engineering benchmark and standard just to win a contract. Maintain a balance but be firm about what you want.
Registration of Patent –
An unregistered intellectual property is property that belongs to no one. Endeavour to register your engineering inventions with the appropriate agencies of government so as to ascribe your name to the invention. This can be done at the Trademarks, Patents and Designs Registry under the Commercial Law Department of the Federal Ministry of Trade and Investment. You can do it yourself but can also engage professional hands.
Education and Training –
Providing training for engineers and staff of engineering firms on IP rights and contract law can empower them to recognize potential issues early and navigate the complexities of both domains effectively.
IP Audits and Management –
Regular audits of IP can help firms understand their assets better and develop strategies for maximizing their values. This includes identifying potentially patentable inventions and ensuring that trademarks are duly registered.
Clear Communication –
Maintaining open lines of communication with collaborators can prevent misunderstandings and foster a cooperative environment that encourages innovation while protecting interests.
Enforcement –
If IP is infringed upon, firms must be prepared to enforce their rights through legal avenues. This could include sending cease-and-desist letters or pursuing litigation if necessary.
Conclusion
In conclusion, engineering contract law and intellectual property protection are integral in safeguarding the rights and interests of engineers and firms. By understanding the importance of contracts and the value of IP, stakeholders can create an environment that fosters innovation while ensuring that their contributions are recognized and protected. Proactive strategies, such as thorough reviews, effective communication, and ongoing education, play a vital role in navigating the complex legal landscape of engineering, ultimately contributing to the success and sustainability of engineering enterprises.
I thank you all for your time and kind attention.
Ekemini Udim is a Barrister and Solicitor of the Supreme Court of Nigeria. He holds a Bachelor of Laws degree (LL.B) from the University of Uyo and a Master of Laws degree (LL.M) from Liverpool John Moores University, United Kingdom. He is a Ntoary Public. He is the Senior Partner of Justice Chamebrs, Uyo. He is a regular commentator on national issues.