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England and Wales Court of Appeal (Civil Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Gray v Mulberry Company (Design) Ltd [2019] EWCA Civ 1720 (17 October 2019) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2019/1720.html Cite as: [2020] FSR 12, [2019] EWCA Civ 1720, [2020] IRLR 29, [2020] ICR 715, [2019] WLR(D) 569 |
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ON APPEAL FROM THE EMPLOYMENT APPEAL TRIBUNAL
THE HON MR JUSTICE CHOUDHURY
UKEAT/0040/17
Strand, London, WC2A 2LL |
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B e f o r e :
LADY JUSTICE SIMLER
and
LORD JUSTICE ARNOLD
____________________
ANNA GRAY |
Appellant |
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- and - |
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MULBERRY COMPANY (DESIGN) LTD |
Respondent |
____________________
Tariq Sadiq (instructed by Croner Group Limited) for the Respondent
Hearing dates : 8 & 9 October 2019
____________________
Crown Copyright ©
Lord Justice Bean :
This is the judgment of the court to which we have all contributed.
Factual background
"You shall disclose to the Company any discovery or invention or improvement to an existing invention, design or process. improvements, designs or inventions, whether capable of registration or not, made by you during the course of your employment with the Company, shall be the property of the Company and you will sign all documents and do all necessary acts required to transfer title in such improvements or inventions to the Company without any additional compensation or payment, save for any expenses or disbursements incurred for the purposes of transferring title to the Company. Nothing in this clause shall affect any rights conferred by the Patents Act 1977, the Copyright, Designs and Patents Act 1988 or any statutory modification or re-enactment thereof."
"2.1. You undertake that you shall promptly disclose to Mulberry Company all copyright works or designs originated, conceived, written or made by you alone or with others during the period of your service with Mulberry Company and shall hold them in trust for Mulberry Company until such rights shall be fully and absolutely vested in Mulberry Company.
2.2. You hereby assign to Mulberry Company by way of future assignment of copyright, the copyright and other proprietary rights, if any, for the full term thereof throughout the world in respect of all copyright works and designs originated, conceived, written or made by you during the period of your service with Mulberry Company.
2.3. You hereby unconditionally and irrevocably waive in favour of Mulberry Company and all moral rights conferred on you by Chapter IV of Part 1 of the Copyright Designs and Patent Act 1988 for any work in which copyright or designs is vested in Mulberry Company whether by operation of this clause or otherwise.
2.4. You agree and undertake that you will execute such deeds or documents and do all such things and acts as may be necessary or desirable to substantiate the rights of Mulberry Company in respect of the matters referred to in this clause. Each of the above terms is independent and separable from the remaining terms and enforceable accordingly. If any term shall be unenforceable for any reason but would be enforceable if part of the wording thereof were deleted, it shall apply with such deletions as may be necessary to make it enforceable.
"2.1. You undertake that you shall promptly disclose to Mulberry Company all copyright works or designs originated, conceived, written or made by you alone or with others during the period of your service with Mulberry Company which relate to any business of Mulberry Company or any matter arising from your employment with Mulberry and shall hold them in trust for Mulberry Company until such rights shall be fully and absolutely vested in Mulberry Company.
2.2. You hereby assign to Mulberry Company by way of future assignment of copyright, the copyright and other proprietary rights, if any, for the full term thereof throughout the world respect of all copyright works and designs originated, conceived, written or made by you during the period of your service with Mulberry Company which relate to any business of Mulberry Company or any matter arising from your employment with Mulberry."
"The Employee (Anna Gray) holds an administrative role and has no contact with or part in the creation of copyrighted works for Mulberry Company.
The Employee holds all copyright and other propriety rights, to her own existing and future works in any form, media or technology now known or hereafter developed for the full term thereof throughout the universe.
The Employee hereby assigns to Mulberry Company by way of future assignment of copyright, the copyright and other proprietary rights, if any, for the full term thereof throughout the world, in respect of any future copyright works and designs, originated, conceived, written or made by the Employee at the behest of Mulberry Company and during the Employee's contracted working hours at Mulberry Company and for the furtherance of the business of Mulberry Company."
"Following our discussions, I have decided to dismiss you with effect from 16th September 2015. The reason for your dismissal is refusing to comply with conditions of your employment with Mulberry through your refusal to sign the Copyright Agreement and that we believe that by refusing to sign it you intend to copy Mulberry products which puts the Company at risk."
The Equality Act 2010
"(2) Belief means any religious or philosophical belief and a reference to belief includes a reference to a lack of belief.
(3) In relation to the protected characteristic of religion or belief - (a) a reference to a person who has a particular protected characteristic is a reference to a person of a particular religion or belief; (b) a reference to persons who share a protected characteristic is a reference to persons who are of the same religion or belief."
"(1) A person (A) discriminates against another (B) if A applies to B a provision, criterion or practice which is discriminatory in relation to a relevant protected characteristic of B's."
(2) For the purposes of subsection (1), a provision, criterion or practice is discriminatory in relation to a relevant protected characteristic of B's if—
(a) A applies, or would apply, it to persons with whom B does not share the characteristic,
(b) it puts, or would put, persons with whom B shares the characteristic at a particular disadvantage when compared with persons with whom B does not share it,
(c) it puts, or would put, B at that disadvantage, and
(d) A cannot show it to be a proportionate means of achieving a legitimate aim."
"2.52. The meaning of religion and belief in the Act is broad and is consistent with Article 9 of the European Convention on Human Rights (which guarantees freedom of thought, conscience and religion). ... Meaning of belief ...
2.57. A belief which is not a religious belief may be a philosophical belief. Examples of philosophical beliefs include Humanism and Atheism.
2.58. A belief need not include faith or worship of a God or Gods, but must affect how a person lives their life or perceives the world.
2.59. For a philosophical belief to be protected under the Act:
- it must be genuinely held;
- it must be belief not an opinion or viewpoint based on the present state of information available;
- it must be a belief as to a weighty and substantial aspect of human life and behaviour;
- it must attain a certain level of cogency, seriousness, cohesion and importance;
- it must be worthy of respect in a democratic society, not incompatible with human dignity and not conflict with the fundamental rights of others."
The Claimant's belief
"The first thing to say about the Claimant's belief, as defined and recorded at the start of the hearing, was that the evidence demonstrated that it ought to have been read with an exception…
… 'except when that creative work or output is produced on behalf of an employer'.
That was what the Claimant had accepted as the correct position within paragraph 10 of her [witness] statement."
"(1) The author of a work is the first owner of any copyright in it, subject to the following provisions.
(2) Where a literary, dramatic, musical or artistic work or a film, is made by an employee in the course of his employment, is employer is the first owner of any copyright in the work subject to any agreement to the contrary."
Section 215 of the 1988 Act makes very similar provision relating to design rights.
"Claimant's stated philosophical beliefs
4.8. The Claimant had undertaken a Masters degree at UCLA in America which had included some teaching on certain aspects of the legal [principles] associated with film making and intellectual property law. Paragraph 22 of her statement said this:-
"I became passionate about my belief in the right of an individual, not only to own, but to profit from and receive credit for their own work if they wished. In order to explore these ideas further, I wrote a feature film screen play in 2010 which explored issues of ownership of intellectual property."
4.9. In a document that she produced to the Tribunal within her supplementary bundle ..., she further provided the following information in relation to her beliefs ...:-
"I hope that the court will see that there is in this case an issue of deeply held belief, of spiritual practice, of identity, of human rights, and of the attempted colonisation of those private areas of person's life and mind by a commercial enterprise with no actual interest in that individual's work, or devotions, or poems or hymns or life."
4.10 . Whilst the Claimant may have held those views privately, there was nothing in what she did or said to the Respondent which made them aware that she held them. The Claimant asserted that her actions, by not signing the Copyright Agreement, would have given that indication. We did not accept that that was necessarily so and the Respondent's witnesses had certainly not gleaned that she had possessed such beliefs as a result of her refusal to sign the Agreement.
4.11. The Claimant failed to mention, discuss or elucidate her beliefs to the Respondent, either generally during her time working for Mulberry or, for example, during the private and candid conversations that she had with Ms Pitcher [the Claimant's line manager] whilst commuting. Further, she did not refer to them specifically during her discussions and negotiations over signing of the Copyright Agreement."
The decision of the ET
"5.7.1. Was the belief genuinely held? We accepted that the belief was genuinely held in the sense that the Claimant honestly believed it. The Respondent had attempted to challenge her veracity in that respect, but we broadly accepted her evidence on that issue;
5.7.2. Was it a belief, as discussed in the case of McClintock v Department of Constitutional Affairs [2008] IRLR 29, or an opinion or viewpoint based on the present state of information available? As in Grainger, particularly paragraph 16 of the judgment, the Claimant's opinion was a viewpoint held by her as a belief. It was not just an opinion based upon logic which, if the foundations changed, was capable of causing her to have altered her view;
5.7.3. Did the belief concern a weighty and substantial aspect of human life and behaviour? That issue was not disputed by the Respondent. The fact that copyright law existed to reflect the Claimant's belief perhaps indicated that it was sufficiently weighty and serious to warrant protection at law;
5.7.4. Had the belief attained a certain level of cogency, seriousness, cohesion and importance? There was, in our view, a considerable range of levels of cogency and seriousness in which these beliefs might have been held. At one end, they might been [sic] an individual who gave up her time and resources to lobby and campaign for a heightened awareness of copyright theft and an increase to the legal protection against it.
At the other, there might have been somebody who was simply asked if they agreed with the notion that copyright theft was a bad thing. It was our view that, whilst the first type of person could well have been said to have held a belief which had a sufficient level of cogency and seriousness to qualify under the Act, we did not consider that the second type of person necessarily qualified.
We did not seek to deny or decry the philosophical theories that underpinned such a belief, as perhaps reflected in the quotations listed within the legal text books as part of the Claimant's submissions to the Tribunal, but we did not accept that a person who simply agreed with the notion that copyright theft was a bad thing, would necessarily hold a belief which carried a sufficient level of cogency and cohesion to qualify under the Act. It could have been said that Ms Wilkinson [the Respondent's Head of Group Legal Services] herself held such a view, but we considered it unlikely that she would have professed to having held a philosophical belief which qualified for protection under the Act. Such a person would not hold the type of cohesive belief pattern discussed in paragraph 26 of the judgment in Grainger.
Accordingly, whilst we accepted that the Claimant strongly believed in the right of ownership to her own creative output, we did not accept that she held that belief as any sort of philosophical touchstone to her life. This was, as Mr Chaudhuri [for the Respondent] put it in closing submissions, a belief or theory that the Agreement would have threatened the Claimant's ownership to her novel and/or her screenplay. That belief, even when set against the background belief that copyright law properly protected the fruits of an individual's artistic endeavours, was not sufficiently cohesive to form any cogent philosophical belief system. The Claimant's own expression of her belief, as set out in pages 14 and 15 of C1, concentrated upon an individual's right to create, produce and write and the benefit that she had from those activities which was something entirely different;
5.7.5. Whether the belief was worthy of respect in a democratic society? The Respondent accepted that that element of the test was met."
a) Ground 1: The ET erred in concluding that the Claimant's belief was not a philosophical belief within the meaning of section 10 of the 2010 Act;
b) Ground 2: The ET erred in its assessment of the particular disadvantage aspect of the test for indirect discrimination;
c) Ground 3: Having failed to accept the importance of the Claimant's belief to her life and to identify correctly the disadvantage to which she was subject, the ET's conclusions on justification could not stand.
"(1) that to qualify as a philosophical belief under section 10(2) of the Equality Act 2010 a belief had to attain the same threshold level of cogency, seriousness, cohesion and importance as a religious belief; that the proper approach to whether the required threshold level had been attained was to ensure that the bar was not set too high, since it was not for the court to judge the validity of such beliefs; that, similarly, in focusing on the manifestation of a philosophical belief, the same threshold requirements applied and whether or not doing, or not doing, a particular act, amounted to a direct expression of the belief concerned, and was intimately linked to it, was a question to be determined on the facts of each case; and that, although the claimant's refusal to sign the agreement might have been dictated by her stated belief, she had not made that known to the company and, accordingly, the tribunal was right to conclude that that belief was not sufficiently cohesive to form any cogent philosophical belief so as to achieve protection under the Act.
(2) that since, on a claim of indirect discrimination under section 19 of the Equality Act 2010, a claimant had to prove evidence of group disadvantage, the sole adherent of a philosophical belief could not rely on that belief in a claim of indirect discrimination; that, therefore, having regard to the employment tribunal's finding that the provision, criterion or practice applied by the company in requiring employees to sign the agreement had not been shown to have caused any group disadvantage, the claim of indirect discrimination failed; and
(3) that, in any event, requiring the claimant to sign the agreement or be dismissed was a proportionate means of achieving the legitimate aim of protecting the company's intellectual property and, accordingly, its defence of justification under section 19(2)(d) would have succeeded"
Ground 1: the Claimant's belief
(i) The ET accepted that the Claimant strongly believed in the right of ownership to her own creative output, but did not accept that she held that belief as "any sort of philosophical touchstone to her life";
(ii) The tribunal found that the Claimant also had "a belief or theory that the Copyright Agreement would have threatened her ownership to her novel and/or screenplay"; but held that such a belief, "even when set against the background belief that copyright law properly protected the fruits of an individual's artistic endeavours, was not sufficiently cohesive to form any cogent philosophical belief system".
Ground 2: the group disadvantage issue
"5.14. The next question was whether the PCP put those with whom the Claimant shared her protected characteristic at a particular disadvantage. That issue required us to consider whether other holders of the claimed philosophical belief would also have suffered the same disadvantage; would they have refused to sign the Agreement and been dismissed? That question could not safely have been answered in the Claimant's favour since there was no evidence that the clause would have been reprehensible to all of those who shared the Claimant's belief. Other people may not have viewed the restrictions imposed by the Agreement in the same way that she had. The clause was not obviously unreasonable nor did it obviously go beyond what was reasonably necessary to protect the Respondent's legitimate interests." [emphasis added]
"A belief may well be held by only one person in which case it would not be possible to adduce evidence of others sharing that belief; but to hold that that person did not for that reason satisfy the requirements of section 19(2)(b) of the 2010 Act would be contrary to Article 9 which does not require there to be any group disadvantage."
"… in order for indirect discrimination to be established, it must be possible to make some general statements which would be true about a religious group such that an employer ought reasonably to be able to appreciate that any particular provision may have a disparate adverse impact on the group."
Ground 3: justification
Conclusion