Innovation Pharmaceuticals Inc (IPIX)

[BonelessCat]

It’s both. Those weren’t free shares because he legally claimed co-invention based on the use of CRO work in the patent application. As a CRO he wasn’t entitled to more than a small ownership share, but in the absence of that boilerplate clause outlining that the work, should it be included in the patent application, did not entitle him to more than the contracted payment. Under patent law, all inventors, no matter how small their contribution, must be listed. In the application, there are separate lines for inventors and assigned owners. Not including Aruda as a co-inventor gave him rights to co-invention and ownership in the absence of stipulation otherwise. Aruda and his attorney knew this and threatened to put the patent in jeapardy and tie it up for years.