CPA Global hit with new class action claim

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

CPA Global hit with new class action claim

class-action-600-comp.jpg

The IP services provider overcharged clients for renewals in a “deliberate and systematic” scheme, the lawsuit claims

Intellectual property services company CPA Global has been accused of substantial overcharging in a class action complaint brought by a medical device company on behalf of itself and around 100 other CPA clients.

In the complaint, filed at the US District Court for the Eastern District of Virginia, New York-based Brainchild Surgical Devices claimed CPA overcharged for renewals and issued “opaque invoices” to conceal this.  

The complaint further alleges that CPA uses similar contracts and pricing structures for all, or nearly all, of its clients in a “deliberate and systematic scheme”.

A spokesperson for Clarivate, which acquired CPA Global in 2020, said it “categorically and emphatically denies any wrongdoing”.

“The fees for our services are defined in our agreements with our customers, and we adhere to those agreements fully,” the spokesperson added.

According to the complaint, filed on May 2, Brainchild entered into an agreement with CPA for managing maintenance payments for its registered, and in some cases pending, patent and design rights around the world.

CPA, Brainchild alleges, agreed to charge a fixed fee of $200 per payment plus CPA’s costs on top.

However, according to the complaint, CPA’s invoices “made it difficult for Brainchild to determine the actual costs incurred in making payments, and thus difficult to tell if Brainchild was being overcharged”.

The complaint includes several examples of renewals work undertaken by CPA at various IP offices, including at the EPO and CIPO, Canada’s IP office. In each case, there were “undisclosed overcharges” of between $214 and $610, the complaint alleges.

It is not the first time CPA has been accused of overcharging – in 2016, the company was sued in a separate class action lawsuit in the US.

According to the latest complaint, in October 2017 the Eastern District of Virginia approved a $5.6 million settlement that went to then-class members.

Brainchild is seeking an order requiring CPA to reimburse any wrongfully obtained funds, damages and attorneys’ fees, as well as an order preventing it from continuing “unfair and deceptive” business practices.

In its complaint Brainchild states that if CPA were to change its billing practices, it might retain the company in the future to manage international patent registration payments.

The Clarivate spokesperson added: “We consider the allegations of overcharging in the new class action to be a deliberate attempt to tarnish our good business reputation and we vigorously defend ourselves against any such vexatious speculation.”

 

more from across site and SHARED ros bottom lb

More from across our site

A settlement between Philips and Transsion and a loss for AstraZeneca in the UK were also among the top talking points
Working with Harvey and Microsoft, the firm has been at the forefront of developing AI tools for its lawyers, and is now exploring new projects and business models
The Emotional Perception AI case, which centres on the patentability of an artificial neural network, will be heard next week
Developments included a court order related to InterDigital’s anti-anti-suit injunction against Disney, and clarification on recoverable costs
Partners at Foley Hoag examine how recent CJEU jurisprudence may serve as a catalyst for recalibrating US judicial reluctance to entertain foreign patent claims
International law firms have high hopes for their IP practices in Saudi Arabia, with many opening offices, but recruiting and retaining talent in the Kingdom presents unique challenges
Patrick Ogola joins us for our ‘Five minutes with’ series to discuss helping African entrepreneurs on the global stage, and explains why young lawyers should speak up
Heli Pihlajamaa, the EPO’s principal director for patent law and procedures, joins us to take stock of the unitary patent following its second anniversary
Kelly Thompson, chair of South African firm Adams & Adams, discusses self-belief, self-doubt, and the importance of saying yes
The renowned food brands were represented by a host of lawyers, including members of the firms’ IP teams
Gift this article