TS & B Retail Systems Pty Ltd v 3Fold Resources Pty Ltd (No 3)

• Jurisdiction: Australia Federal only
• Judgment Date: 20 February 2007
• Neutral Citation: [2007] FCA 151
• Court: Federal Court

FEDERAL COURT OF AUSTRALIA

TS & B Retail Systems Pty Ltd v 3Fold Resources Pty Ltd (No 3) [2007] FCA 151

CONFIDENTIAL INFORMATION – whether property – whether assignable – protection of confidentiality in hands of transferee

CONTRACT – whether contract rescinded or varied by subsequent contract – intention of parties

COPYRIGHT – ownership – whether works authored by employee or contractor – amendments by copyright owner – whether amendments create new copyright – reproduction – whether implied license to reproduce – compilations of data – whether sufficient skill, judgment and labour – whether reproduced – assignment of copyright – whether to be inferred – secondary infringement – authorization – significance of control

DAMAGES – copyright infringement – method of calculation - loss of business – secondary loss – additional damages – when awarded

EVIDENCE – license – whether implied from custom and usage – whether inferred from conduct – onus of proof

PRACTICE AND PROCEDURE – chose in action – assignment – where cause of action ancillary to right or interest in property – whether void for maintenance or champerty

TORT – accessorial liability of directors – joint tortfeasors – concerted action – procuring or inducing infringement – whether separate tort – unlawful interference with trade or business – conspiracy – unlawful purpose – unlawful means

Copyright Act 1968 (Cth), ss 35(6), 101(1A), 115, 196

Copyright Act 1911 (UK), s 2(3)

Federal Court of Australia Act 1976 (Cth), ss 5(2), 23

Trade Practices Act 1974 (Cth), ss 52, 53, 51AA

Acohs Pty Ltd v RA Bashford Consulting Pty Ltd [1997] FCA 352

Allen Manufacturing Co Pty Ltd v McCallum & Co Pty Ltd (2001) 53 IPR 400

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TS & B RETAIL SYSTEMS PTY LTD v 3FOLD RESOURCES PTY LTD, PETER VANDERZAAG, FRANCIS D'MELLO and GARY WILLIAM SMITH

VID 147 of 2003

FINKELSTEIN J

20 FEBRUARY 2007

MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY	VID 147 of 2003

BETWEEN:	TS & B RETAIL SYSTEMS PTY LTD Applicant
AND:	3FOLD RESOURCES PTY LTD, PETER VANDERZAAG, FRANCIS D'MELLO and GARY WILLIAM SMITH Respondents

JUDGE:	FINKELSTEIN J
DATE:	20 FEBRUARY 2007
PLACE:	MELBOURNE

REASONS FOR JUDGMENT

Introduction

1This case is principally a copyright infringement action. The applicant, TS & B Retail Systems Pty Ltd (TS&B Retail), alleges that the corporate respondent, 3Fold Resources Pty Ltd (3Fold), copied 234 manufacturing drawings and 5 tables of data in which TS&B Retail holds copyright. TS&B Retail says 3Fold used the drawings and data to manufacture, supply and install shop fittings (including interior fittings, displays, stock presentations and shelves) for retailers who would otherwise have purchased those products and services from TS&B Retail. The main case, however, is against the individual respondents. They are the directors of 3Fold and the only ones likely to have assets to satisfy any award of damages TS&B Retail is able to recover. The case against them is that they procured 3Fold to breach the copyright.

2In addition to the copyright infringement claim, there are claims for breach of confidence and subsidiary claims in misleading or deceptive conduct, misleading or false representations and unconscionable conduct in contravention respectively of ss 52, 53 and 51AA of the Trade Practices Act 1974 (Cth). The Trade Practices Act claims were not seriously pressed at trial. TS&B Retail accepts in the event it succeeds in its copyright action, the other claims will become redundant.

3It became common ground during the course of the proceeding that the 234 drawings and the 5 tables were copied. The action is...