Archive for June, 2008

Thursday, June 19th, 2008

Post Trial Prior Art

In Delnorth Pty Ltd v Dura-Post (Aust) Pty Ltd [2008] FCA 875, handed down on 5 June 2008, Gyles J granted leave to Dura-Post to re-open its case seeking to revoke various innovations patents in the name Delnorth.

Following the close of the hearing of the matter, a prior published US patent came to the attention of Dura-Post, who brought an application to be allowed to amend the particulars of invalidity to rely upon the prior publication under the grounds of novelty and lack of innovative step, and tender the patent in evidence.

Gyles J, being satisfied that there was sufficient explanation as to the delay in raising the point, that the prior publication was of apparent relevance to the issues in the case and that any prejudice to Delnorth could be cured by appropriate orders as to costs, granted leave as sought. The court also noted that: “it is relevant to take into account that a patent revocation suit has some of the characteristics of an action in rem. It does affect the public and I must bear in mind that anybody else could come along and seek to revoke using this very piece of art.”

The decision is here.

Wednesday, June 18th, 2008

Purpose v Purposive

The decision of the Full Court in Term-Seal (Aust) Pty Limited v Termite Tite (NZ) No 2 Limited [2008] FCAFC 95, provides a reminder that when taking a purposive approach to claim construction, it is the purpose for which the patentee has used a particular form of language to define an integer of the invention which is relevant, not the purpose of that integer in the patentee’s invention.

The first instance decision of Besanko J, previously discussed here, was appealed on the issues of infrigenment and validity.
On the question of infringement, the appellant sought to overturn the trial judge’s finding that their product included, as required by claims 1 and 2 of the patent in suit, a “membranous termite barrier comprising a matting impregnated with a termite resisting product”.

The appellant argued that while their barrier included matting which was impregnated with disodium octaborate (accepted to be a termiticide), the purpose of that chemical within the matting was to act as a preservative or fungicide and not to resist termite attack. The Full Court considered the relevance of that argument to be “elusive” stating that “Purpose can hardly affect construction of the claims or infringement of them where purpose is not part of any claim”.

Secondly, the appellants argued that their barrier did not include this integer of the claims because its termite resistant properties were entirely mechanical, such that the disodium octaborate was not an “effective” termite resisting product. This contention was also rejected, the Full Court stating that it:

“involves an unexpressed limitation of the integer said to be akin to a limitation based upon result. In other words, there is no infringement unless the appellants’ product is effective. The appellants argued a variation on that theme in that the relevant claims should be construed as requiring an effective chemical barrier, whereas their product utilised a physical barrier. We can see no warrant for reading such limitations into any of the relevant claims.”

The appellant’s arguments seeking to overturn the trial judge’s finding that the patent was valid in light of certain alleged anticipations were also rejected.

The case can be found here.

Wednesday, June 18th, 2008

ACIP to conduct review of patentable subject matter

On 2 June 2008, the Advisory Council on Intellectual Property (ACIP) announced that it will be conducting a review of patentable subject matter. The review will investigate the ‘appropriateness and adequacy’ of the manner of manufacture test, and the historical requirement that an invention must not be ‘generally inconvenient’. An Issues Paper is expected to be circulated in July, with consultations in late 2008 and a request for written submissions by September. Members of the PO&F Group will be taking part in the review. For more information about the review, click here

Tuesday, June 17th, 2008

Costly Consequences

Three decisions handed down on 12 June 2008 illustrate how various tactical decisions can have implications on the costs awards made in intellectual property litigation.

In ITW AFC Pty Ltd v Loi and Tran Pty Ltd (No 2) [2008] FCA 895, Finkelstein J held that costs should lie were they fell in a patent dispute where both the claim for infringement and the cross-claim for revocation were unsuccessful. In rejecting the respondents argument that the proceeding should be treated as a single case in which the patentee failed, his Honour made several comments on the undesirability of parties bringing revocation actions without merit for purely tactical reasons concluding that:

“The usual order for bringing a hopeless case is to require the losing party to pay indemnity costs. Sometimes even that might not be enough. In patent litigation the parties are often large organisations that will not sufficiently feel the pain of an indemnity costs order. In those cases (I do not suggest this one) the proper order might be to require the legal practitioner to himself bear the costs, coupled with an order that the practitioner shall not be entitled to recover those costs from his client, notwithstanding any agreement to the contrary.”

In Nutrasweet Australia Pty Ltd v Ajinomoto Co Inc (No 4) [2008] FCA 876, also decided by Finkelstein J, his Honour was not prepared to award the successful party their costs on an indemnity basis because the ground upon which they had succeeded was raised only six days before the trial.

Finally, in Futuretronics.com.au Pty Limited v Graphix Labels Pty Ltd (No 3) [2008] FCA 896, Besanko J ordered that the applicant should have its costs of the infringement of copyright and breach of implied contractual term claims on which it succeeded, but that the respondents should otherwise have their costs of the proceeding. Despite the applicant being awarded only $10 nominal damages for the infringement of copyright, his Honour also made an order that the costs payable to the applicant not be reduced pursuant to O 62 r 36A(1) on the basis that copyright litigation is appropriately commenced in the Federal Court even where the monetary claim is small.

Tuesday, June 3rd, 2008

Copyright and confidentiality

In Krueger Transport Equipment Pty Ltd v Glen Cameron Storage & Distribution Pty Ltd [2008] FCA 803, the applicant was successful in its claims for infringement of copyright and breach of confidence. The applicant had disclosed to the respondents as part of a quote to build trucking trailers, information regarding a load restraint system. The respondents argued that the information could not be confidential because it was not sufficiently original or novel having regard to information already in the public domain. Gordon J held that the information did have the necessary quality of confidence and in doing so noted that: “To put it more plainly, information need not be patentable, copyrightable, or otherwise protected by the intellectual property laws in order to be confidential.” The decision is here.

Tuesday, June 3rd, 2008

Dismissal of opposition

The case of Memcor Australia Pty Ltd v Zenon Environmental Inc. [2008] APO 14 follows on from decision of Delegate McCaffery in Les Laboratoires Servier v Apotex Pty Ltd [2008] APO 11 (11 April 2008).

This case relates to an application by Zenon Environmental Inc. for dismissal of an opposition under section 104 by Memcor Australia Pty Ltd. In this decision Delegate Barker confirms that the new practice of the Australian Patent Office in considering such applications will be that as reflected in section 31A of the Federal Court of Australia Act ie namely whether an opposition has any no reasonable prospect of success as opposed to the previous test which was whether an opposition is obviously or manifestly groundless or untenable.

In addition Delegate Barker reaffirms the longstanding view that decisions of the Commissioner do not give rise to an issue estoppel.

The decision is here.