Clauses restricting future challenge to IP rights not unenforceable as penalties
Following a dispute over certain matters including the ownership of IP rights, C and D entered into a settlement agreement (SA) under which D agreed not to claim any entitlement in, or challenge, certain assigned intellectual property (IP) rights. The SA provided that, in the event of breach, D would repay sums paid to him by C, and future payments due to him would be forfeit. D subsequently breached the SA by seeking to register an interest in patents and patent applications