Rouse: Best achievable outcome
The claim that IP law firm Marks & Clerk overcharged thousands of small businesses by operating a ‘secret commissions’ scheme has been settled with payments but no admission of liability.
The representative claimant, Peter Rouse of Commission Recovery Limited (CRL), described it as “the best achievable outcome for class members”, as further litigation “would serve only to reduce the potential returns”.
CRL alleged that over many years Marks & Clerk referred its clients’ patent, design and trade mark renewals work to IP management business CPA Global (now Clarivate), which in turn paid secret commissions to Long Acre Renewals, a partnership set up by current and former partners of M&C.
CRL claimed that the secret commissions were likely to be more than 20% of the total amount paid by clients to CPA Global for renewal services in some cases, earning M&C between £2m and £3m every year in the UK from the commissions, with the total figure likely to exceed £50m.
After the Court of Appeal in January upheld a High Court decision that CRL was entitled to act as the representative – Mr Rouse is an IP enforcement specialist and former solicitor – a trial of certain issues had been listed for hearing in January 2025.
The settlement concerns payments made by CPA Global between 14 March 2009 and 1 February 2018.
An agreed statement issued yesterday said: “The defendants deny any wrongdoing. However, without any admission of liability, they have agreed to pay to certain clients a percentage of the CPA payments received.
“The settlement provides for an agreed sum to be paid to CRL in respect of its costs and expenses and the service provided by CRL or a related entity. The proceedings have been stayed.”
A spokesman for Marks & Clerk, which is regulated by the Intellectual Property Regulation Board, added: “We are glad that these proceedings have been settled so that we can concentrate on our core business and services to clients.
“We do not accept that the claims were well founded but are pleased that the litigation has been brought to an end on agreed terms.”
