London IP firm Marks & Clerk has agreed a settlement over claims it received secret commissions from CPA Global in return for client referrals. 

The action, launched by Commission Recovery (CRL) as a class representative, sought redress over the alleged secret commissions, which were paid over nine years to 2018. Marks & Clerk denied wrongdoing, with no admissions regarding liability on settlement. 

CPA Global (now Clarivate), an IP management organisation, allegedly paid these commissions to Long Acre Renewals, a partnership set up by current and former partners of Marks & Clerk.

The claim, financed by Therium Litigation Funding, was approved as a representative action by the Court of Appeal last year, which was hailed as “a significant step in the development of the collective redress regime in England and Wales”, by the Collective Redress Lawyers Association, CORLA. Leave to appeal the case to the Supreme Court was denied.

It was expected to go to trial in January 2025 and was seen as the first significant test of the representative action regime since Lloyd v Google. In a briefing published by Herbert Smith Freehills, the firm noted that the trial was expected to determine critical issues affecting the viability of such actions.

These ranged from whether class members would have to commence individual claims to pursue their claims for relief or whether they could be resolved as part of the representative action, as well as whether the court could award damages or other compensation on a collective basis, for the benefit of all class members.

It was also expected to rule on the rights and entitlements of CRL, Therium and lawyers (if any) over any sums recovered by class members. The settlement provides an agreed sum to be paid to CRL regarding its costs and expenses and the service provided by CRL or related entities.

In a statement, CRL, Marks & Clerk and Long Acre Renewals said they had “reached a settlement of litigation concerning payments made by IP renewals service provider CPA Global, now known as Clarivate, between 14 March 2009 and 1 February 2018”.

While not admitting liability, the defendants “agreed to pay certain clients a percentage of the CPA payments received” with agreed sums “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”.

Well-known IP lawyer Peter Rouse, director of CRL, called the settlement “the best achievable outcome for class members”, adding that further litigation would only reduce the potential returns for those affected.

A Marks & Clerk spokesperson said: “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 ended on agreed terms.”

Signature Litigation represented CRL, instructing Fountain Court barristers Ben Valentin KC, Nico Leslie and Christopher Monaghan.

Cooke Young & Keidan represented the defendants, with John Machell KC of Serle Court and Russell Hopkins of 2 Temple Gardens. Clifford Chance was involved at an earlier stage of the proceedings.