assignment rights uk

Hall Ellis Solicitors

assignment of contract rights, novation and assignment clauses

Assignment of contract rights .

There is no such thing as an assignment of a contract.

It was held in Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd  1993 UKHL 4 (22 July 1993):

It is trite law that it is, in any event, impossible to assign "the contract" as a whole, i.e. including both burden and benefit. The burden of a contract can never be assigned without the consent of the other party to the contract in which event such consent will give rise to a novation. Although it is true that the phrase "assign this contract" is not strictly accurate, lawyers frequently use those words inaccurately to describe an assignment of the benefit of a contract since every lawyer knows that the burden of a contract cannot be assigned.

In short, contracts are not assigned:

• ownership of assets is assigned.
• Contractual rights are transferred. They're novated.

So when it comes to “assigning” (ie transferring or novating) contracts, there are 3 possibilities:

• Transfer all or part of the burden of the contract to another person. This is novation
• Assign all or part of the benefit of the contract to another person
• Transfer the whole of the benefit and the burden to another person. This is also novation.

The general law does not require any particular formality to novation.

Where a supplier notifies a contracting partner that they will be replaced by another supplier, and then starts to receive supply from the new supplier without objection or complaint, there's a good chance the contract has been novated.

That's acceptance of a new contract (and termination of the old contract) by conduct.

When businesses enter administration or liquidation, potential purchasers might express an interest in “acquiring the contracts” of the business. That requires novation of each contract, individually.

Novation is a fundamental principle of contract law, and is closely related to privity of contract . It's pretty difficult to understand one without the other.

What do "Assignment Clauses" in Contract do then?

Assignment clauses either:

• confirm the general operation of the law - ie no transfers of contractual rights. It expressly prohibits or enables transfers of the burden or the benefit of the contract.
• displace or override the general rule of law of novation, in favour of one party or both parties.

Do you need one or not?  That depends.

Context of Assignment Clauses

Contracts impose strict liability on the contracting parties to perform their legal obligations. 

It means this: if a seller does not perform what they are required to do under the contract to the standard fixed by the contract, they’re in breach of contract , and liable to make good on a legal remedy for breach.  Likewise, if a buyer does not do what they are legally required to do, they’re in breach of contract, and facing the same consequences .

For example, take a company supplying SaaS related services:

The SaaS supplier hosts its SaaS solution in the cloud for its customers.  The SaaS supplier doesn't own its own infrastructure for the hosting. It subcontracts the hosting to a dedicated hosting company, such as Rackspace. That subcontracting doesn't relieve the SaaS supplier from its obligations to perform the contract: in this example, host the SaaS solution in the cloud to its own customers. Using Rackspace to host the SaaS solution is just a delegation of the contractual duty of the SaaS supplier to provide services to the customer. If the hosting fails, the SaaS supplier is liable to its customers for the breach of contract. Not Rackspace.

Assignment clauses permit transfer of contractual obligations to perform the burden of the contract to third parties. So, where the obligation to perform is assigned to a third party and it's not performed, it will be the party that has taken over the burden of the contract (ie the assignee) that will be liable to the customer. Not the original contracting party (which would be the SaaS supplier in the example above).

The end result is that one of the original contracting parties is no longer a party to the contract: that’s novation. 

Example: Assignment Clause

A boilerplate provision to prevent assignment of the benefit and burden in a contract might be:

Neither party may without the prior written consent of the other party assign a benefit or obligation imposed in this Agreement.

The reference to “obligation” is usually redundant, because it can't be transferred without the consent of the other party in the first place.

Contract Assignments vs Subcontracting

Assignment clauses shouldn't be confused with subcontracting clauses .

The general law provides that a contracting party is entitled to subcontract works to a third person, unless there is a contractual restriction preventing it.

It would be quite a mistake to regard that as an "assignment" of the obligations under the contract.

It isn't a transfer of the contract, or any part of the burden of the contract.

It's a delegation .

Subcontracting performance of contractual obligations:

• is permitted where personal performance is not required to produce the result intended by the contract
• means performance by the subcontractor will discharge the principal contracting party's obligations.
• The principal contracting party remains liable if the subcontractor does not complete performance on behalf of the principal contracting party. 
• Boilerplate Clauses
• Who are you actually contracting with? Separate Legal Entities
• Increasing Liability for Breach of Contract: Indemnities 

Contract Law Solicitors

Contract law can be tricky. Sometimes it's matter of seeing what has happened before when parties have tried to transfer a contract to ascertain what is likely to happen in the case at hand.

Transferring contract rights and obligations can be a serious business. Getting it wrong can mean a party is in breach of contract,  leading to termination and damages claims. 

If you're in business and need legal advice on a contract, call +44 20 7036 9282 to speak for an initial chat with one of our contract law solicitors or email your enquiry to [email protected] .

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Assignment of Intellectual Property Rights

This article is intended to facilitate a basic understanding of intellectual property (which will be referred to as IP throughout this article) and some of the most pertinent aspects to look out for when drafting or reviewing an assignment agreement.

Intellectual property is created all the time, whether in business or your personal life, and can stem from Copyright, for example, which is the most frequent, and typically exists in original artistic work, from drawings and songs, to articles, like this one. Copyright exists automatically upon creation, and lasts for the lifetime of the author, plus 70 years from the end of the year of their death.

Trademarks are another form of IP, and are typically used to distinguish the names and logos of one business from another, but can extend to associated sounds, like jingles and tunes, and even a smell. Trademarks exist automatically, but need to be registered in the UK, and then internationally to offer the monopolistic protection needed worldwide.

Patents are something that protect the functionality of an invention, like a mechanism in a machine, but has strict registration requirements. For example, it must be new, inventive, and capable of industrial application. It must also not be excluded from protection, like a scientific theory, artistic work, a process of doing something, or a presentation of information.

Design Rights

Design Rights are something similar to Patents, but their registration requirements are far less stringent. In fact, like a lot of IP, they can exist automatically, and are more applicable to shape and configuration. Essentially, Design Rights are used when a Patent cannot be. Interestingly, it’s important to note that domain name registrations are not normally classed as IP, but are typically dealt with under assignment agreements.

Most common types of assignment

Now that we’ve covered the absolute basics of the different types of IP, let’s look at one of the most common scenarios of a transfer of IP for small businesses. This can exist when the assignee (the body receiving the IP) has instructed the assignor (the body who creates the IP) to create something capable of attracting IP rights, such as a graphic designer working on a logo, for a fee. As this is an artistic design, it would be classed as Copyright. Most transfers of IP should be embodied in a carefully worded contract, or a deed (we’ll get on to this later) and should expressly refer to the type of IP to be assigned on the face of it. Moreover, it should also be used to assign any IP associated with any asset purchased from another business, like a unique machine, which may carry a Patent, or a Design Right. The agreement must then expressly refer to that asset purchase agreement. 

What exactly are you assigning?

Be clear about exactly what different types of IP are being assigned, and make reference to the schedules that will set them out in full. These schedules will feature at the end of the agreement, so we’ll go over these in more detail later on. 

Who are the parties?

Ensure the agreement also clearly identifies all parties to the agreement who currently hold rights, and all those to which the rights will be transferred, so consider joint ownership in both instances. Also, the section under the heading ‘background’, whilst important for clarity, is only a prelude and not legally binding, so any fundamental aspects must be clearly set out in relevant clauses and subsections. 

What about Brexit?

Also, in lieu of Brexit, although the outcomes are generally uncertain, when it comes to IP, it is likely that statutory instruments will ensure that protection and enforcement between registered right holders in the UK and EU, and vice versa, remains unchanged. However, to avoid uncertainty, anything relating to the interpretation of definitions, and particularly statute, should be ‘as at the date’, instead of ‘from time to time’, to avoid unanticipated rights and obligations in the future. 

And the rest of the world..?

Whilst on the topic of Brexit, although many assignment agreements should cover IP rights worldwide, it’s important to look into the requirements of the jurisdiction of a particular country, should you or the other party intend using the IP outside of the UK, and particularly outside of the EU. 

Know what you’re dealing with

Beware of any trusts or other covenants attached to the IP rights on assignments. ‘Full title guarantee’ will ensure the IP rights are free of adverse encumbrances (to the assignor’s reasonable knowledge). On the other hand, ‘limited title guarantee’ will mean that, although the assignee is free to sell, the assignor can only guarantee that no encumbrances have been made within their period of ownership, but not before, even if they are aware of prior encumbrances. 

You got a licence for that..?

Following on, although this article primarily concerns assignments of IP, it’s also important to acknowledge licences, and how they relate to assignments, as it may be the case that the assignee or assignor to be, actually holds the IP rights under a licence, which excludes assignments. It is therefore important that when granting assignments or licences, close consideration is given to the extended rights to third parties that the ability to licence IP can create. 

What about tech?

Coming back to an assignment of Copyright, which, if not the sole purpose of the agreement, will likely form a large part of it, it is important to note that in this growing age of technology, Copyright is the primary category of computer software and databases. Also, if databases include personal data, it is also important to include warranties that best practice for data protection is observed. 

All together now

Moving on to Design Rights, it’s important to note that these, whether registered, unregistered, or partial, if they relate to the same material, they cannot be assigned separately. 

Registered or unregistered?

When it comes to Trademarks, do not underestimate the distinction between registered and unregistered Trademarks, as one of the main purposes of registration is to deter passing-off (the act of a third party using the Trademark, typically to benefit from the associated goodwill without the authority of the rights holder) and to make the process of achieving a remedy against the third party simple and inexpensive, as the opposite can be said for remedies under unregistered Design Rights, as goodwill is more intangible and abstract. It is therefore important to note that all IP capable of subsisting unregistered, should ideally be registered prior to assignment, or that the assignment at least includes the goodwill, as this is the only value in an unregistered Trademark. Whilst this article does not cover registration processes, these can be found on the relevant government website pages – links to which can be found below:

Patenting Your Invention (UK Government Website)

Registering Design Rights (UK Government Website)

Apply to Register a Trademark (UK Government Website)

Automatic right to sue..?

Once the assignee is the rights holder, they of course have the right to sue for infringement. However, the right to sue for infringements prior to their assignment must be expressly provided for in the agreement. 

Contract or deed?

In establishing whether the assignment document should be a contract or a deed, whilst a simple contract will suffice in any instance where the assignment is for consideration (i.e. a fee is paid), if no consideration is given, or there is a power of attorney granted by the assignor for the assignee to deal with an element of the IP rights on the assignor’s behalf (such as executing registration documents to give full effect to the agreement), then the agreement must be a deed, meaning that it must clearly be stated as such, and be signed in the presence of witnesses, who attest the signatures. 

Consideration

If the agreement is to be a contract, and the assignment attracts a fee, then firstly, any VAT must be clearly set out as being separate from the amount payable for the IP rights. Secondly, even if there is an element of consideration, to avoid any future disputes over proportionality, a deed would be highly advisable – not least for this purpose, but also because adding a power of attorney would prevent the need for enforcement action against the assignor for any further assistance required from them. If, however, further assistance is nevertheless needed, or document execution is anticipated to be an expense the assignee cannot justify, then a clause must be added to bind the assignor to provide future assistance at their expense.

Unlike many contractual arrangements, the furthest extent liability can be excluded for the assignor includes death and personal injury, which can be applied generally to IP, but is especially applicable for patents for machinery, for example. 

The importance of schedules

Returning to the need for schedules at the end of the agreement, Patents, Trademarks, and Design Rights, would each be listed in separate schedules. Assignment of particular materials, like specific documents and physical items, would be classed as Copyright and unregistered Design Rights, and require their own schedule. There may also be other unregistered rights, like domain names, which, as touched on earlier, are not classed as IP, but can be just as important to expressly assign, and can include confidential information, like trade secrets and financials, or rights in get-up (the whole appearance), goodwill (reputation), and know-how (which is especially important to be transferred under a written document, as both equitable and statutory requirements necessitate this) and should be listed in a separate schedule. 

You’re almost there…

Once the agreement has been executed, it is imperative that the assignee registers as the new rights holder. 

If you’re in need of some additional guidance with drafting or reviewing an assignment agreement, or you need some IP advice generally, then we’d be happy to help, so feel free to contact us for a free 30 minute consultation . Alternatively, you can submit your queries to us by commenting on our Topic of the Week post on LinkedIn.

If you found this article useful, you’ll be pleased to know that we’ll be posting loads more like this. Be one of the first to find out about new additions by signing up to our monthly newsletter (on the right hand side of this page) which has some great offers in as well!

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UK: The Basics Of Patent Law - Assignment And Licensing

Gowling WLG's intellectual property experts explain assignment and licensing in a series of articles titled 'The basics of patent law'.

The articles cover, respectively: Types of intellectual property protection for inventions and granting procedure ; Initiating proceedings ; Infringement and related actions ; Revocation, non-infringement and clearing the way ; Trial, appeal and settlement ; Remedies and costs ; Assignment and Licensing and the Unified Patent Court and Unitary Patent system.

The articles underpin Gowling WLG's contribution to Chambers' Global Practice Guide on Patent Litigation 2017 , for which Gordon Harris and Ailsa Carter wrote the UK chapter .

Introduction

Any patent, patent application or any right in a patent or patent application may be assigned (Patents Act 1977 (also referred to as "PA") s.30(2)) and licences and sub-licences may be granted under any patent or any patent application (PA s.30(4)).

The key difference between an assignment and a licence is that an assignment is a transfer of ownership and title, whereas a licence is a contractual right to do something that would otherwise be an infringement of the relevant patent rights. Following an assignment, the assignor generally has no further rights in relation to the relevant patent rights. On the granting of a licence, the licensor retains ownership of the licensed rights and generally has some continuing obligations and rights in relation to them (as set out in the relevant licence).

Formalities

Any assignment of a UK patent or application, or a UK designation of a European patent, must be in writing and signed by, or on behalf of, the assignor. For an assignment by a body corporate governed by the law of England and Wales, the signature or seal of the body corporate is required (PA s.30-31). With regards the assignment of a European patent application however, such assignment must be in writing and signed not just by the assignor but by both parties to the contract (Article 72 EPC).

There is no particular statutory provision regarding the form of a licence or sub-licence (exclusive or otherwise). However, in view of the advisability of registration (discussed below) and legal certainty, it is sensible that any licence be in writing. In addition, normal contractual formalities apply, such as intention to create legal relations, consideration and certainty of terms, etc.

Registration

Registration (with the UKIPO) of an assignment or licence is not mandatory. However, if the registered proprietor or licensor enters into a later, inconsistent transaction, the person claiming under the later transaction shall be entitled to the property if the earlier transaction was not registered (PA s.33). Registration is therefore advisable. Failure to register an assignment or an exclusive licence within six months will also impact the ability of a party to litigation to claim costs and expenses (PA s.68) and might, potentially, enable an infringer to defend a claim for monetary relief on the basis of innocent infringement (PA s.62).

The procedure for registration is governed by the Patents Rules 2007. The application should be made on the appropriate form, should include evidence establishing the transaction, instrument or event, and should be signed by or on behalf of the assignor or licensor. Documents containing an agreement should be complete and of such a nature that they could be enforced. A translation must be supplied for any documentary evidence not in English.

In practice (particularly in the context of a larger corporate transaction in which many different asset classes are being transferred, not just intellectual property), parties sometimes agree short form documents evidencing the transfer of the relevant patent rights and will submit these for registration. This can enable parties to save submitting full documents for the whole transaction, which may include sensitive commercial information that is not relevant to the transfer of the patent rights themselves.

Types of licence

A licensee may take a non-exclusive or exclusive licence from the licensor. The distinction between such licences is both legally and commercially significant.

On a basic level an exclusive licence means that no other person or company can exploit the rights under the patent and this means the licensor is also excluded from exploiting such rights. Exclusivity may be total or divided up by reference to, for example, territory, field of technology, channel, or product type. The extent of exclusivity generally goes to the value of the rights being licensed and will feed into the agreed financials. It is worth noting that the term "exclusive licence" does not have a statutory definition under English law, so it is very important to define the contractual scope of exclusivity in the relevant licence agreement.

In the event a licensor wants to retain the ability to exploit the rights in some way (for example an academic licensor may want the ability to continue research activities) then appropriate carve outs from the exclusivity should be expressly stated in the licence agreement.

A non-exclusive licensee has the right to exploit rights within the patent as determined by the licence agreement. However, the licensor may also exploit such rights as well as granting multiple other licences to third parties (which may include competitors of the original licensee).

Much less common is a sole licence, by which the patent proprietor agrees not to grant any other licences but gives the licensee the right to use the technology and may also still operate the licenced technology itself.

Compulsory licences

A compulsory licence provides for an individual or company to seek a licence to use another's patent rights without seeking the proprietor's consent. Compulsory licences under patents may be granted in circumstances where there has been an abuse of monopoly rights, but are very rarely granted in the UK.

An application for a compulsory licence can be made by any person (even a current licensee of the patent) to the Comptroller of Patents at any time after three years from the date of grant of the patent. In respect of a patent whose proprietor is a national of, or is domiciled in, or which has a real and effective industrial or commercial establishment in, a country which is a member of the World Trade Organisation, the applicant must establish one of the three specified grounds for relief. If satisfied, the Comptroller has discretion as to whether a licence is granted and if so upon what terms. The grounds are:

• demand for a patented product in the UK is not being met on reasonable terms;
• the exploitation in the UK of another patented invention that represents an important technical advance of considerable economic significance in relation to the invention claimed in the patentee's patent is prevented or hindered provided that the Comptroller is satisfied that the patent proprietor for the other invention is able and willing to grant the patent proprietor and his licensees a licence under the patent for the other invention on reasonable terms;
• the establishment or development of commercial or industrial activities in the UK is unfairly prejudiced;
• by conditions imposed by the patentee, unpatented activities are unfairly prejudiced.

The terms of the licence shall be decided by the Comptroller but are subject to certain restrictions on what type of licence can be granted, namely the licence: cannot be exclusive; can only be assigned to someone who has been assigned the part of the applicant's business that enjoys use of the patented invention; will be for supply to the UK market; will include conditions allowing the patentee to adequate remuneration; and must be limited in scope and duration to the purpose for which the licence is granted.

Infringement

The type of licence is also significant when it comes to tackling infringement. Under statute, an exclusive licensee has the same right as the proprietor of a patent to bring proceedings with respect infringement committed after the date of the licence and such proceedings may be brought in the licensee's name (PA 67(1)). An exclusive licensee of a patent application may also bring proceedings in its own name (PA ss. 67(1) & 69). In practice, however, these statutory provisions are often excluded or varied by parties negotiating complex licensing transactions. A licensee may also have a right under a licence to bring proceedings for an infringement occurring before the licence came into effect.

A non-exclusive licensee does not have any right under statute to bring proceedings in its own name. However, this could be negotiated into a licence agreement, though it may be difficult for a licensor to agree this point if it has multiple non-exclusive licensees.

Effect of non-registration on infringement proceedings

There is no requirement that a licence must be registered before proceedings can be commenced by an exclusive licensee. However, non-registration can affect a licensee's ability to recover its costs in relation to such proceedings.

Implied terms

Established rules of construction apply to assignment and licence agreements. Parties should ensure that important terms are included as express terms. There is no implied warranty that any assigned or licensed patent will be valid, or that an assignee or licensee will work the invention (for example, that they will exploit the rights and manufacture products). In certain very limited circumstances a court will order 'rectification' of an assignment or licence agreement, namely a court will order a change in the assignment or licence agreement to reflect what the agreement ought to have said in the first place. Regardless of this, all key terms should be included expressly in all assignment and licence agreements.

Termination of licences

Except where there is express contractual provision or where a licence has been wrongly terminated and damages sought, under English law there is no compensation payable to licensees on termination of a licencing agreement. The licence agreement should be clear as to what circumstances may give rise to termination, for example the non-payment of royalties, material breach or insolvency. The agreement should also make clear what happens in the event of termination in relation to, for example, existing stock of licensed products or work in progress.

Next in our 'The basics of patent law' series, we will be discussing the Unified Patent Court and Unitary Patent system.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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Conventus Law

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UK – Legal Terms Explained: Assignment.

April 18, 2023 by Rohin Pujari

What is assignment?

An assignment is the transfer of an interest from one party (“ assignor ”) to another (“ assignee ”). Assignment allows the assignor to transfer the benefit of a contract to the assignee. For example, the tenant of recently built office premises may transfer the benefit of a collateral warranty originally granted in its favour to a subsequent tenant.

Without express words, assignment usually involves an assignment of accrued and future rights. Clear words are required to assign only future rights under a contract ( Energy Works (Hull) Ltd v MW High Tech Projects UK and others  [2020] EWHC 2537 (TCC)).

Assignment in a construction context typically refers to a legal or equitable assignment (although assignment can also occur by other means, e.g. operation of law). A key difference between legal and equitable assignments is that, in the case of a legal assignment, the assignee may enforce any assigned rights in its own name. In contrast, following an equitable assignment, the assignee would need to join the assignor in any action brought to enforce its rights.

To take effect as a legal assignment under English law, an assignment must comply with section 136(1) of the Law of Property Act 1925 (“ LPA 1925 “). This requires the assignment to be: (i) in writing; (ii) absolute; and (iii) expressly notified in writing to the other party to the contract (“ debtor “). In practice, parties tend to effect a legal assignment by way of an assignment agreement or deed of assignment to ensure that these requirements are satisfied.

However, if the parties fail to meet any of the requirements set out in LPA 1925 the assignment will usually have equitable effect. Equitable assignments may arise orally or in writing, and whilst recommended, there is no need to notify the debtor, provided a clear intention to assign can be established. Neither legal nor equitable assignments generally require the debtor’s consent.

  Assignment v novation

Although both terms are sometimes used interchangeably, assignment should be distinguished from novation. The most notable difference is that assignment only transfers the benefit of a contract (e.g. a warranty that works have been carried out to the required standard), whereas a novation transfers both the benefit and the burden (e.g. an obligation to pay for a service). As novation also requires the consent of all parties, it will typically be effected by a tripartite agreement between the novating party, the party to whom the contract is to be novated, and the counterparty to the relevant contract.

  Some issues concerning assignment

• Restrictions on assignment  – Unless there is an express prohibition in the contract, the parties will usually be free to assign the benefit of a contract. However, many standard form building contracts, including the JCT Design and Build Contract, prohibit assignment, or allow it only subject to certain conditions. In this regard, a developer may seek to amend the contract to reduce any restrictions on their ability to assign. In contrast, a contractor may seek to limit any rights to assign, for example by specifying the number of permitted assignments. This is often linked to the contractor’s professional indemnity insurance terms which may provide for restricted cover in respect of successive assignments.
• Ineffective assignment where prohibited  – If a party purports to assign a right in contravention of an assignment clause, the assignment will only be effective as between the assignee and the assignor, and will not be enforceable against the debtor.
• Means of assignment  – A clause in a contract permitting assignment is not sufficient to effect an assignment. There must be a separate document or oral agreement to show the assignor’s intention to assign ( Allied Carpets Group Plc v Macfarlane (t/a Whicheloe Macfarlane Partnership)  [2002] EWHC 1155 (TCC)).

* This is an updated version of an article originally published as part of the ‘Legal Terms Explained’ series of  Construction Law .

For further information, please contact:

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[email protected]

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What is the significance of an equitable assignment in the context of the assignment of future rights under a contract (or a chose in action)?

An assignment is the transfer of a right or an interest vested in one party (assignor) to another party (assignee). The effect of a valid assignment is to entitle the assignee to demand performance of a contractual obligation.

Assignments may be legal or equitable.

A legal assignment is one which meets the requirements set out in section 136(1) of the Law of Property Act 1925 (LPA 1925). It must be:

absolute and unconditional and not purport to be by way of charge only

made in writing and signed by the assignor

expressly notified in writing to the obligor

Equitable assignments may arise in the following circumstances:

where there is an intention to assign, but not all of the formalities of a legal assignment are met under LPA 1925, s 136(1), the assignment may still be valid as an equitable assignment . The formalities for an equitable assignment to be effective are far less stringent

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Related legal acts:

• Law of Property Act 1925 (1925 c 20)

Key definition:

Equitable assignment definition, what does equitable assignment mean.

Assignments can occur in equity when any of the requirements of legal assignment are not satisfied.

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English law assignments of part of a debt: Practical considerations

United Kingdom |  Publication |  December 2019

Enforcing partially assigned debts against the debtor

The increase of supply chain finance has driven an increased interest in parties considering the sale and purchase of parts of debts (as opposed to purchasing debts in their entirety).

While under English law part of a debt can be assigned, there is a general requirement that the relevant assignee joins the assignor to any proceedings against the debtor, which potentially impedes the assignee’s ability to enforce against the debtor efficiently.

This note considers whether this requirement may be dispensed with in certain circumstances.

Can you assign part of a debt?

Under English law, the beneficial ownership of part of a debt can be assigned, although the legal ownership cannot. 1  This means that an assignment of part of a debt will take effect as an equitable assignment instead of a legal assignment.

Joining the assignor to proceedings against the debtor

While both equitable and legal assignments are capable of removing the assigned asset from the insolvency estate of the assignor, failure to obtain a legal assignment and relying solely on an equitable assignment may require the assignee to join the relevant assignor as a party to any enforcement action against the debtor.

An assignee of part of a debt will want to be able to sue a debtor in its own name and, if it is required to join the assignor to proceedings against the debtor, this could add additional costs and delays if the assignor was unwilling to cooperate. 2

Kapoor v National Westminster Bank plc

English courts have, in recent years, been pragmatic in allowing an assignee of part of a debt to sue the debtor in its own name without the cooperation of the assignor.

In Charnesh Kapoor v National Westminster Bank plc, Kian Seng Tan 3 the court held that an equitable assignee of part of a debt is entitled in its own right and name to bring proceedings for the assigned debt. The equitable assignee will usually be required to join the assignor to the proceedings in order to ensure that the debtor is not exposed to double recovery, but the requirement is a procedural one that can be dispensed with by the court.

The reason for the requirement that an equitable assignee joins the assignor to proceedings against the debtor is not that the assignee has no right which it can assert independently, but that the debtor ought to be protected from the possibility of any further claim by the assignor who should therefore be bound by the judgment.

Application of Kapoor

It is a common feature of supply chain finance transactions that the assigned debt (or part of the debt) is supported by an independent payment undertaking. Such independent payment undertaking makes it clear that the debtor cannot raise defences and that it is required to pay the relevant debt (or part of a debt) without set-off or counterclaim. In respect of an assignee of part of an independent payment undertaking which is not disputed and has itself been equitably assigned to the assignee, we believe that there are good grounds that an English court would accept that the assignee is allowed to pursue an action directly against the debtor without needing the assignor to be joined, as this is likely to be a matter of procedure only, not substance.

This analysis is limited to English law and does not consider the laws of any other jurisdiction.

Notwithstanding the helpful clarifications summarised in Kapoor, as many receivables financing transactions involve a number of cross-border elements, assignees should continue to consider the effect of the laws (and, potentially court procedures) of any other relevant jurisdictions on the assignment of part of a debt even where the sale of such partial debt is completed under English law.

Legal title cannot be assigned in respect of part of a debt. A partial assignment would not satisfy the requirements for a legal assignment of section 136 of the Law of Property Act 1925.

If an assignor does not consent to being joined as a plaintiff in proceedings against the debtor it would be necessary to join the assignor as a co-defendant. However, where an assignor has gone into administration or liquidation, there may be a statutory prohibition on joining such assignor as a co-defendant (without the leave of the court or in certain circumstances the consent of the administrator).

[2011] EWCA Civ 1083

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Assignment Of Rights Agreement

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What is an assignment of rights agreement.

​​An assignment of rights agreement is a written document in which one party, the assignor, assigns to another party all or part of their rights under an existing contract. The most common example of this would be when someone wants to sell their shares of stock in a company.

When you buy shares from someone else (the seller), they agree to transfer them over and give up any control they had on that share. This way, another party can take ownership without going through the trouble of trying to buy the whole company themselves.

Common Sections in Assignment Of Rights Agreements

Below is a list of common sections included in Assignment Of Rights Agreements. These sections are linked to the below sample agreement for you to explore.

Assignment Of Rights Agreement Sample

Reference : Security Exchange Commission - Edgar Database, EX-99.(H)(7) 5 dex99h7.htm FORM OF ASSIGNMENT AGREEMENT , Viewed December 20, 2021, View Source on SEC .

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Plant breeders: assignment of rights

Form to assign plant breeders' rights to another party.

Assignment of rights

Ref: PVS 10

PDF , 1.48 MB , 1 page

This file may not be suitable for users of assistive technology.

The form should be completed by the person who bred, discovered and developed the variety (or their successor in title) who wishes to assign their rights to another party.

Once the assignment has been completed, the assigner will forfeit any future claim on the variety.

For further information, see the guidance on plant breeders’ rights .

Updated plant breeders assignment of rights form.

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UK accused by Amnesty of ‘deliberately destabilising’ human rights globally

Rights chief also warns Britain will be ‘judged harshly by history for its failure to help prevent civilian slaughter in Gaza’

The UK has been accused by Amnesty International of “deliberately destabilising” human rights on the global stage for its own political ends.

In its annual global report, released today, the organisation said Britain was weakening human rights protections nationally and globally, amid a near-breakdown of international law.

“The UK is deliberately destabilising the entire concept of universal human rights through its appalling domestic policies and politicking,” said Sacha Deshmukh, Amnesty International UK’s chief executive.

The damning Amnesty report said that with UK government policies targeting asylum seekers and other migrants, along with protesters, Britain had breached its international human rights commitments and curtailed protections at a particularly “perilous” time in global history. It said new legislation further eroded the freedom of assembly and expression.

The UK’s Illegal Migration Act, and government rhetoric around it, were in conflict with the UN refugee convention and the European convention on human rights , Amnesty said. The government had in effect ended the universal application of human rights by “switching off” protections for refugees. Both of these “carve outs” from protections ran contrary to the universal principles of human rights, it said.

The report also specifically condemns the UK for failing to use its leadership role within the UN to prevent human rights violations in Gaza and its weak support for the international criminal court (ICC) investigation into human rights violations in Israel and Palestine. It also highlights Britain’s involvement in arming Israel.

Deshmukh said of Israel: “We’ve got a very deep concern about the UK’s practice of supplying arms and significant components for arms.” About 15% of finished F-35 warplanes, used by Israel , are likely to contain UK parts or components, he said.

“There’s no doubt in my mind that the UK will be judged harshly by history for its failure to help prevent civilian slaughter in Gaza,” Deshmukh said.

The report also more widely criticises Israel’s allies for the failure to stop the “indescribable civilian bloodshed” in Gaza . In a stark warning to world leaders, the organisation said the world was reaping a harvest of “terrifying consequences” from escalating conflict and the near-breakdown of international law.

Referencing the development of international law and civilian protections after the second world war, Agnès Callamard, Amnesty International’s general secretary, said: “In 2023, we were plunged back into a future we don’t want, back to a future we were promised ‘never again’.”

The 418-page report points to the US’s use of its veto to paralyse the UN security council for months by blocking the passing of a much-needed resolution for a ceasefire in Gaza, while it continues to arm Israel with weapons used to commit what may constitute war crimes.

Amnesty highlights the “grotesque double standards” of powerful western countries, including the UK and Germany, continuing to shield and thus bolster the actions of Israel, given those states’ well-founded protests over war crimes by Russia and Hamas.

The report paints a bleak picture of the state of human rights across the world, warning that the breakdown of the rule of law is likely to accelerate with the rapid advancement in artificial intelligence, which coupled with the dominance of big technology companies, risked “supercharging” human rights violations if regulation continues to lag behind technological advancement.

Alongside flagrant rule-breaking by Russian forces during their invasion of Ukraine, the growing number of conflicts and human rights violations witnessed in Sudan, where nearly 15,000 people have died in the civil war, as well as in Ethiopia and Myanmar, where more than 1,000 civilians died in conflict in 2023, are cited as major factors in the intensifying deterioration of global protection for civilians.

Neither Myanmar’s military nor the Russian authorities, both of which have received help from China, have agreed to investigate reports of violations.

Speaking at a press conference to launch the report, Callamard said: “When the powerful flout the rule of law, the shield of the law weakens. When the powerful state themselves [to be] above the law, betrayal of the law becomes a response by many more.”

Amnesty’s report found an increasing number of attacks on women, LGBTQ+ people and marginalised communities for political or electoral gain.

It predicted that, during a landmark year of elections around the world and amid increasingly stiff opposition to regulation by big tech companies, technological advances – such as spyware and facial recognition – could be weaponised to discriminate and disinform. For example, Amnesty exposed how Facebook’s algorithms had contributed to ethnically based violence in Ethiopia during the conflict in the country’s Tigray region.

He said that he was also “deeply worried” by the Rwanda scheme to send asylum seekers to the African country, after the bill, which excludes the ability of courts to scrutinise issues brought before them, passed its parliamentary stages earlier this week .

“History will look back and say that we gave succour to those governments with authoritarian regimes and others who want to avoid the rule of law” said Deshmukh. “It is deeply worrying and its repercussions could be felt for years to come.”

Callamard said: “Amnesty International’s report paints a dismal picture of alarming human rights repression and prolific rule-breaking, all in the midst of deepening global inequality, superpowers vying for supremacy and an escalating climate crisis.”

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UK's Sunak says nothing will stop Rwanda policy; migrants die in channel

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More deaths in the English Channel underscore risks for migrants despite UK efforts to stem the tide

A group of people thought to be migrants are brought in to Dover, Kent, by the Border Force following a small boat incident in the Channel, on Tuesday April 23, 2024. Prime Minister Rishi Sunak said “nothing will stand in our way” of getting flights to Rwanda off the ground, as the Government braced itself for legal challenges to the scheme to send asylum seekers to the east African country. (Gareth Fuller/PA via AP)

FILE - British Prime Minister Rishi Sunak speaks during a press conference at Downing Street in London, Monday, April 22, 2024. Sunak pledged Monday that the country’s first deportation flights to Rwanda could leave in 10-12 weeks as he promised to end the Parliamentary deadlock over a key policy promise before an election expected later this year. Both the U.N. refugee agency and the Council of Europe on Tuesday called for the U.K. to rethink its plans because of concerns that the legislation undermines human rights protections and fears that it will damage international cooperation on tackling the global migrant crisis. (Toby Melville/Pool Photo via AP)

FILE - British Home Secretary James Cleverly, left, and Defence Secretary Grant Shapps attend a press conference by British Prime Minister Rishi Sunak at Downing Street, in London, Monday, April 22, 2024. Sunak pledged Monday that the country’s first deportation flights to Rwanda could leave in 10-12 weeks as he promised to end the Parliamentary deadlock over a key policy promise before an election expected later this year. Both the U.N. refugee agency and the Council of Europe on Tuesday called for the U.K. to rethink its plans because of concerns that the legislation undermines human rights protections and fears that it will damage international cooperation on tackling the global migrant crisis. (Toby Melville/Pool Photo via AP)

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LONDON (AP) — Five more people died in the English Channel on Tuesday, underscoring the risks of crossing one of the world’s busiest sea lanes in overloaded inflatable boats just hours after British lawmakers approved a controversial migrant bill to stop the traffic.

The migrants, including a 7-year-old girl, died when their boat got stuck on a sandbank off the coast of Pas-de-Calais in northern France. The French navy rescued 49 people, but 58 others refused to disembark and continued on toward Britain, local authorities said in a statement.

The vessel was just one of several small boats packed with people that took off from the French coast early Tuesday, as calm weather enticed them to attempt the crossing. The overcrowded boats are being monitored by drones, French maritime authorities said.

Just a few hours earlier, the U.K. Parliament approved legislation allowing the government to deport to Rwanda those who enter the country illegally. While Prime Minister Rishi Sunak says the plan will deter people from risking their lives on the channel, human rights groups have criticized it as illegal and inhumane.

“If you look at what’s happening, criminal gangs are exploiting vulnerable people; they are packing more and more people into these unseaworthy dinghies,” Sunak told reporters on a trip to Poland. “That’s why, for matters of compassion more than anything else, we must actually break this business model and end the unfairness of people coming to our country illegally.”

The number of migrants crossing the channel in small boats has soared in recent years as people fleeing war, the effects of climate change and economic uncertainty seek a better life in Britain. They pay smugglers thousands of dollars for the crossing, hoping to reunite with family members or find work in a country where immigration enforcement is seen as weak and where migrant groups from all over the world can easily melt into society.

Human rights organizations say the way to stop the trafficking is for countries to work together to provide safe and legal routes for migrants, not for countries like Britain to put up barriers and outsource their problem to others.

But even allies Britain and France have struggled to sufficiently coordinate efforts to reduce the number of those crossing the English Channel in small boats. The U.K. has struck a series of deals with France to increase patrols of beaches and share intelligence to disrupt smugglers — all of which have had only a limited impact.

Britain’s effort to send some asylum-seekers to Rwanda was swiftly condemned by both the United Nations’ refugee agency and the Council of Europe, which called on the U.K. to rethink its plans.

“The new legislation marks a further step away from the U.K.’s long tradition of providing refuge to those in need, in breach of the Refugee Convention,” U.N. High Commissioner for Refugees Filippo Grandi said in a statement. “Protecting refugees requires all countries – not just those neighboring crisis zones – to uphold their obligations.”

Small boat crossings are a potent political issue in Britain, where they are seen as evidence of the government’s failure to control immigration.

Sunak has made his plan to “stop the boats” a key campaign promise with his Conservative Party trailing badly in opinion polls ahead of a general election later this year.

The number of migrants arriving in Britain on small boats soared to 45,774 in 2022 from just 299 four years. The figure dropped to 29,437 last year as the government cracked down on people smugglers and reached an agreement to return Albanians to their home country.

Former Prime Minister Boris Johnson first proposed the Rwanda plan more than two years ago, when he reached an agreement with the East African nation to accept some asylum-seekers in return for millions of pounds (dollars) in aid. Implementation has been held up by a series of court challenges and opposition from migrant advocates who say it violates international law.

The deportees will be eligible to apply for asylum in Rwanda but they won’t be allowed to return to Britain.

The legislation approved early Tuesday, known as the Safety of Rwanda Bill, is a response to a U.K. Supreme Court decision that blocked deportation flights because the government couldn’t guarantee the safety of migrants sent to Rwanda. After signing a new treaty with Rwanda to beef up protections for migrants, the government proposed the new legislation declaring Rwanda to be a safe country.

The Rwandan government welcomed approval of the bill, saying it underscores the work it has done to make Rwanda “safe and secure” since the genocide that ravaged the country 30 years ago.

“We are committed to the migration and economic development partnership with the U.K. and look forward to welcoming those relocated to Rwanda,” government spokesperson Yolande Makolo said.

Surk reported from Nice, France. Associated Press writer Ignatius Ssuuna in Kigali, Rwanda contributed to this report.

Follow AP’s global migration coverage at: https://apnews.com/hub/migration

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Wheelhouse and uk theme park firm merlin entertainments building unscripted slate around london eye and other iconic attractions, breaking news.

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Baby Reindeer has burnished its status as a surprise Netflix hit by piling on viewers in its second week on the streaming service.

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The success has not come without unwanted consequences, however. Both Gadd and co-star Jessica Gunning have pleaded with fans to stop trying to identify characters in the true story after social media has been flooded with false allegations.

Gunning said the online  Baby Reindeer  speculation is “quite sad” and “not the point of the show at all.” She told BBC Scotland’s  The Edit : “If you like the show and you are a fan of it, you should stick with the story of Martha and Donny being what connects you, not trying to do any detective work and find out any real identities.”

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