{"id":9620,"date":"2022-06-29T17:14:30","date_gmt":"2022-06-29T17:14:30","guid":{"rendered":"https:\/\/cpatacabamcdev.wpengine.com\/?page_id=9620"},"modified":"2022-06-29T17:50:54","modified_gmt":"2022-06-29T17:50:54","slug":"rule-7-duties-to-college-members-and-other-persons-rule-7-5-mandatory-reporting-duty-to-report","status":"publish","type":"page","link":"https:\/\/cpata-cabamc.ca\/en\/your-practice\/professional-conduct\/ethical-analyses-and-guidance-old\/rule-7-duties-to-college-members-and-other-persons-rule-7-5-mandatory-reporting-duty-to-report\/","title":{"rendered":"Rule 7 \u2013 Duties to College, Members and Other Persons; Rule 7-5 Mandatory reporting\/duty to report"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"9620\" class=\"elementor elementor-9620\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-99c444e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"99c444e\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2ee9f55\" data-id=\"2ee9f55\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0887e9a elementor-widget elementor-widget-text-editor\" data-id=\"0887e9a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The following analysis applies when a licensee becomes aware of another agent\u2019s conduct, which, in the licensee\u2019s reasonable opinion, raises a serious question of whether the agent is in breach of the Code of Professional Conduct. The analysis focuses on the question of when a licensee may have a duty to report another agent\u2019s conduct to CPATA.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-25da7ba elementor-widget elementor-widget-heading\" data-id=\"25da7ba\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The Scenario<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ba074d4 elementor-widget elementor-widget-text-editor\" data-id=\"ba074d4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>A licensee overhears another patent agent boasting at an industry event about their involvement with a client and their innovative new start-up. When others at the event ask questions about the start-up, the agent goes into some detail about the new technology, sharing details about why it is so ground-breaking. The client&#8217;s application is only in the draft stage, and nothing has yet been filed with CIPO. The agent then shares that it as part of his business plan to attract first-time inventors who have no experience with how the patent application process works, he tells them he will reduce his fees in exchange for a 50% share in the patented invention, as long as they &#8216;keep it confidential&#8217;.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-53b0bfc elementor-widget elementor-widget-heading\" data-id=\"53b0bfc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The Rule <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-95a7a36 elementor-widget elementor-widget-text-editor\" data-id=\"95a7a36\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">The Code provides that<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p style=\"padding-left: 40px;\"><span data-contrast=\"auto\">An agent must report to the College any conduct of which the agent has personal knowledge and which in the agent\u2019s reasonable opinion, arrived at in good faith, raises a serious question of whether another agent is in breach of this Code (Rule 7-5).\u00a0<\/span><span data-ccp-props=\"{&quot;335559685&quot;:720}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Part 2 of the Code states that agents have \u201ca duty to preserve the confidences and secrets of their clients\u201d and the Commentary to Rule 2 of the Code states:\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p style=\"padding-left: 40px;\"><span data-ccp-props=\"{}\">\u00a0<\/span><span data-contrast=\"auto\">[g]enerally, unless the nature of the matter requires such disclosure, an agent must not disclose that they have been retained by a person about a particular matter or consulted by a person about a particular matter, whether or not an agent-client relationship has been established between them.<\/span><span data-ccp-props=\"{&quot;335559685&quot;:720}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Part 3 of the Code deals with conflicts of interest, and provides in the Principle:\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p style=\"padding-left: 40px;\"><span data-ccp-props=\"{&quot;335559685&quot;:720}\">\u00a0<\/span><span data-contrast=\"auto\">In each matter, an agent&#8217;s judgement and loyalty to the client&#8217;s interest must be free from compromising Influences.<\/span><span data-ccp-props=\"{&quot;335559685&quot;:720}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">The Commentary to Rule 3 provides that an example of a conflict of interest is\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p style=\"padding-left: 40px;\"><span data-ccp-props=\"{}\">\u00a0<\/span><span data-contrast=\"auto\">an agent, an associate, a firm partner or a family member having a personal financial interest in a client\u2019s affairs or in a matter in which the agent is requested to act for a client such as a partnership interest in a joint business venture with a client.<\/span><span data-ccp-props=\"{&quot;335559685&quot;:720}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-20a7567 elementor-widget elementor-widget-heading\" data-id=\"20a7567\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Our Advice <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-891e537 elementor-widget elementor-widget-text-editor\" data-id=\"891e537\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">There are two components to a licensee\u2019s duty to report under Rule 7-5:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><ol><li><span data-ccp-props=\"{}\">\u00a0<\/span><span style=\"font-size: 16px;\" data-contrast=\"auto\">The licensee has <\/span><span style=\"font-size: 16px;\" data-contrast=\"auto\">personal knowledge<\/span><span style=\"font-size: 16px;\" data-contrast=\"auto\"> of the conduct; and\u00a0<\/span><span style=\"font-size: 16px;\" data-ccp-props=\"{}\">\u00a0<\/span><\/li><li data-leveltext=\"%1.\" data-font=\"Avenir Light\" data-listid=\"49\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">In the licensee\u2019s <\/span><span data-contrast=\"auto\">reasonable opinion<\/span><span data-contrast=\"auto\">, arrived at in <\/span><span data-contrast=\"auto\">good faith<\/span><span data-contrast=\"auto\">, the conduct raises a <\/span><span data-contrast=\"auto\">serious<\/span><span data-contrast=\"auto\"> question of whether the agent is in breach of the Code [emphasis added].<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ol><p><span data-contrast=\"auto\">If a licensee has:\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p style=\"padding-left: 40px;\"><span data-contrast=\"auto\">&#8211;<\/span> <span data-contrast=\"auto\">personal knowledge (i.e. didn&#8217;t overhear it from someone else),\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p style=\"padding-left: 40px;\"><span data-contrast=\"auto\">&#8211;<\/span> <span data-contrast=\"auto\">that another agent\u2019s conduct raises a serious question (i.e. what is the potential extent of harm? Has the breach been cured to the client&#8217;s satisfaction? Is it a one-time occurrence or part of a pattern of problematic conduct?, etc.),<\/span><span data-ccp-props=\"{&quot;335559685&quot;:720,&quot;335559991&quot;:720}\">\u00a0<\/span><\/p><p style=\"padding-left: 40px;\"><span data-contrast=\"auto\">&#8211;<\/span> <span data-contrast=\"auto\">a good faith belief (e.g. not clouded by personal animosity),<\/span><span data-ccp-props=\"{&quot;335559685&quot;:720,&quot;335559991&quot;:720}\">\u00a0<\/span><\/p><p style=\"padding-left: 40px;\"><span data-contrast=\"auto\">&#8211;<\/span> <span data-contrast=\"auto\">that the conduct may have resulted in a breach of the agent\u2019s ethical duties to their client (see the Rules referenced above in this case, for example),\u00a0<\/span><span data-ccp-props=\"{&quot;335559685&quot;:720,&quot;335559991&quot;:720}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">then the licensee has an obligation to report that conduct to CPATA under Rule 7-5 of the Code.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-ccp-props=\"{}\">\u00a0<\/span><span data-contrast=\"auto\">Licensees must keep the confidence of their clients, even at an industry event or in their conversations with colleagues. The expectation of confidentiality in the Code is broad and extends even to knowledge an agent acquires through a more informal consultation, where an agent-client relationship has not necessarily been established. Breaching confidentiality can cause irreparable harm to a client&#8217;s IP interests and rights.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-ccp-props=\"{}\">\u00a0<\/span><span data-contrast=\"auto\">If the Licensee personally hearing of this likely breach of confidentiality was in doubt about whether to report the agent to CPATA, when then learning of the highly questionable and likely harmful and unethical business plan of the agent, the Licensee should feel confident that this situation should be reported, to protect the public interest and the reputation of the IP profession as competent and ethical professionals.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">This duty to report the conduct of a colleague extends to all of the ethical obligations found in the Code. For example, a licensee may find themselves in a situation where they have personal knowledge of a conflict of interest or an inappropriate withdrawal of services by another agent. Another example could be where a licensee had personal knowledge that an agent had sexually harassed a colleague or a client in the course of their practice and\/or that an agent regularly makes disparaging comments about women and transgender people. These examples could trigger the duty to report if the above two conditions are met: that the licensee has personal knowledge of the conduct, and that it is the opinion of the licensee, arrived at in good faith, that the conduct raises a serious question that there may have been a breach of the Code.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-ccp-props=\"{}\">\u00a0<\/span><span data-contrast=\"auto\">It is important to keep in mind that reporting a colleague will not amount to an automatic suspension or revocation of their license. Most licensees have a difficult time both evaluating whether a matter should be reported and worrying about the possible consequences for themselves and\/or the agent being reported. CPATA takes a principled and proportional approach to conduct concerns, which starts with understanding all relevant facts and considering educational or informal ways to avoid future breaches, rather than punishment. Licensees can use CPATA&#8217;s Agent Conduct Inquiry process, or the Ethics Inquiry process to discuss their concerns and get help assessing whether a matter needs to be reported in the public interest.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-ccp-props=\"{}\">\u00a0<\/span><span data-contrast=\"auto\">Ultimately each Licensee has to decide what the correct course of action is in order to adhere to their professional obligations. Every circumstance is unique and it is up to the licensee to exercise their own professional judgement. Through the Ethics Inquiry process, we are happy to help interpret the Code as part of the process of risk-assessment and ethical analysis.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-ccp-props=\"{}\">\u00a0<\/span><span data-contrast=\"auto\">We look forward to receiving more inquiries and providing more guidance to licensees. It helps us identify areas where further information or analysis might be instructive and it will help to inform our consultation on the Code, which will be rolling out in early 2023.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2a7ff79 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2a7ff79\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1835c87\" data-id=\"1835c87\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b1879b0 elementor-widget elementor-widget-text-editor\" data-id=\"b1879b0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><em>If you are a licensee with a question regarding professional conduct and your responsibilities under the Code, fill in our Ethics Inquiry Form.<\/em><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c94cb2c elementor-widget elementor-widget-button\" data-id=\"c94cb2c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/cpata-cabamc.ca\/your-practice\/professional-conduct\/ethics-inquiries\/\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Ethics Inquiry Form<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The following analysis applies when a licensee becomes aware of another agent\u2019s conduct, which, in<\/p>\n","protected":false},"author":6,"featured_media":0,"parent":6974,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"no-sidebar","site-content-layout":"page-builder","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Rule 7 \u2013 Duties to College, Members and Other Persons; Rule 7-5 Mandatory reporting\/duty to report - CPATA<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cpata-cabamc.ca\/en\/your-practice\/professional-conduct\/ethical-analyses-and-guidance-old\/rule-7-duties-to-college-members-and-other-persons-rule-7-5-mandatory-reporting-duty-to-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rule 7 \u2013 Duties to College, Members and Other Persons; Rule 7-5 Mandatory reporting\/duty to report - CPATA\" \/>\n<meta property=\"og:description\" content=\"The following analysis applies when a licensee becomes aware of another agent\u2019s conduct, which, in\" \/>\n<meta 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