Archive for February, 2010

Friday, February 26th, 2010

Studios lodge appeal in ISP copyright case

34 film companies have filed an appeal against the judgment of the Federal Court in the case against the Australian internet service provider, iiNet. Our comments on that case are here.

The Australian Federation Against Copyright Theft (AFACT), on behalf of the film companies, said there were good grounds of appeal from a judgment that has left an unworkable online environment for content creators and content providers and represents a serious threat to Australia’s digital economy. Their release is here.

iiNet responded with its own media release, claiming litigation was not the solution to illegal downloading.

Tuesday, February 23rd, 2010

Hard lesson to be learned

“On a practical level the lesson of this case may be there is a need for express arrangements” – Gummow J special leave hearing

The impact of the recent decision of the High Court of Australia to refuse the University of Western Australia’s application for special leave to appeal from the Full Federal Court’s decision (reported here) cannot be underestimated.  While it represented the end of a very lengthy battle that commenced in December 2004, this decision will have huge impact on universities and their commercial dealings with private sector groups.

Universities will now need to have in place effective procedures and clear contractual terms dealing with the ownership of inventions created by academic staff.  It is clear that the rule in Sterling v Patchett [1955] AC 534 that an employer is entitled to any product of the work which the employee is paid to do unless it is excluded by express agreement and whether that product is patentable or not, does not extend to academic staff employed by universities.

There is an immediate need for universities to review all existing projects to address the question of the ownership of IP and to resolve ownership, before entering into any commercial arrangement.  Likewise companies that rely on research conducted by universities will need to ensure the ownership of any IP generated in these projects has been adequately addressed.

Friday, February 12th, 2010

End of the road for UWA

The High Court today refused the application by the University of Western Australia for special leave to appeal the decision of the Full Federal Court in University of Western Australia v Gray [2009] FCAFC 116. Our analysis of that case is here.

There is no further avenue of appeal. We expect to issue a further update when we have examined the transcript, which is not yet available.

The University issued this statement today.

Thursday, February 11th, 2010

Online auction giant baying for blood

eBay has lodged a Federal Court appeal against a decision to allow registration of the trade mark UBAY in Australia.

UBAY Pty Ltd applied for registration of the trade mark UBAY and two UBAY logo trade marks in 2007. The company sought a monopoly in the trade marks in connection with a range of services including operating online marketplaces in respect of goods and services and electronic retailing and online shopping services.

eBay Inc subsequently opposed the registration of the three trade marks however, in a decision by a Delegate of the Registrar of Trade Marks, the UBAY marks were found not to be substantially identical with, or deceptively similar to any trade marks within eBay’s family of 12 Australian trade marks. The Delegate said that whilst there were similarities between the marks, he “could not be satisfied that there would be a real tangible danger or likelihood of confusion amongst a substantial number of consumers”.

Attempts by eBay to argue against registration of the UBAY marks on the basis the online auction giant had acquired a reputation in Australia, and that because of that reputation use of the UBAY marks would be likely to deceive or cause confusion also failed. It relied in part on evidence of a 2004 US survey showing 58 per cent of respondents would associate a website using the word “bay” within its name or on its website with eBay, to argue deception or confusion between the UBAY and eBay marks was likely to arise.

However, the Delegate agreed with UBAY’s argument that the ‘brand recognition’ of eBay reduced the likelihood of confusion between the marks with consumers unlikely to believe eBay would vary its well-known trade mark. The Delegate found use of the UBAY trade marks was not likely to deceive or cause confusion and eBay’s opposition failed, which absent the Federal Court appeal, would have resulted in the UBAY trade marks being registered.

A directions hearing is set down for the appeal later this month.

Tuesday, February 9th, 2010

NZ trade mark clarifications

The Intellectual Property Office of New Zealand  (IPONZ)  has recently issued three new Practice guidelines relating to:

Correct classification of “leasing access time to computer databases”

In line with best international practice, IPONZ had advised that they consider the service description “leasing access time to computer databases” most appropriately classified in class 38.

Major Events Management (World Rowing Championships 2010 ) Order 2009

The Major Events Management (World Rowing Championships 2010) Order 2009 came into force on 18 January 2010. This order provides protection from 18 January 2010 to 30 November 2010 for the emblem and words associated with the World Rowing Championships 2010. This protects major events from ambush marketing.

Series Trade Marks

IPONZ has issued a revised Practice Guideline in relation to Series Trade Marks. It has been stressed by IPONZ that the revised guideline does not reflect any changes in practice, but fleshes out the prior guidelines to provide greater certainty and assistance for applicants and agents.

Tuesday, February 9th, 2010

The kookaburra gets the last laugh

Larrikin Music’s claim of copyright infringement against EMI Songs, EMI Music and two former members of the band Men at Work has been successful in Larrikin Music Publishing Pty Ltd v EMI Songs Australia Pty Limited [2010] FCA 29.

On 4 February 2010 the Federal Court ruled that copyright in the 1934 round “Kookaburra sits in the old gumtree” was infringed by the well-known Men at Work song “Downunder”.

Two bars of the four bar round “Kookaburra” were reproduced in “Downunder” albeit they were in a different key and were separated by the basic “hook” of “Downunder” (or attractive part of the song).

These elements of “Kookaburra” were found in the flute riff of “Downunder” and were found three times in various forms in “Downunder”. It was conceded that there was a causal connection between the two works. The main issues were whether there was an objective similarity between the two works and whether what had been taken from “Kookaburra” was a substantial part of that work.

Jacobson J held that there was sufficient objective similarity between the bars of “Kookaburra” and the part where they are heard in “Downunder”. The melodies were the same. This was reinforced by the fact that Colin Hay, a former Men at Work member, admitted that the relevant portion of “Downunder” was “unmistakably” the melody of “Kookaburra”. Jacobson J considered that nothing turned on the change of key or the difference in rhythm between the two songs. Nor did the difference in harmony make the phrases from “Kookaburra” unrecognisable. Furthermore, Jacobson J did not consider that the separation of the two phrases from “Kookaburra” by the basic hook of “Downunder” prevented a finding of reproduction.

The respondents argued that, if “Kookaburra” and “Downunder” are such icons, and the similarities are so strong, why did it take so long for anyone to recognise the connection. The connection was exposed on the television music quiz program “Spicks and Specks”. The judge concluded that whilst “Spicks and Specks” showed that there are difficulties in the recognition of the “Kookaburra” in “Downunder”, a sensitised listener can detect the aural resemblance between the two works. One wonders whether the sensitised listener is the true audience when determining an infringement of musical copyright.

Nonetheless, supporting this finding was the fact that it was open to infer that the composer of “Downunder”’s flute riff, who was not called as a witness, deliberately reproduced a part of “Kookaburra” for the purpose of evoking an Australian flavour in the flute riff.

In relation to the question of whether a substantial part of “Kookaburra” was taken, Jacobson J considered that “Kookaburra” was not so simple or lacking in substantial originality that a note for note reproduction of the entire work was required to meet the “substantial part” test. He did, however, place great weight on the fact that one of the respondents, Colin Hay, performed the words of “Kookaburra” when performing “Downunder” from 2002 onwards, to show that a substantial part was taken. This seems strange when Jacobson J accepted Mr Hay’s evidence that he was not aware of the appropriation of the bars of “Kookaburra” until the mid 1990s. His Honour did, however, note that 50% of “Kookaburra” had been taken.

This litigation is not yet concluded. The monetary compensation to which Larrikin Music is entitled is still to be determined. Larrikin Music has claimed 40-60% of the income received, which the respondents claim grossly over-reaches its entitlement. That would be an enormous sum for two bars of music.

Monday, February 8th, 2010

Commercialisation Australia grants cover IP costs

The Australian Government’s Commercialisation Australia initiative provides grants of up to $50,000 to access specialist business advice and services including intellectual property management.

IP Australia reported today that eligible expenditure include fees for the cost of filing a patent application, patent search and examination fees, and annual patent maintenance fees.

An overview of the scheme is here.

Thursday, February 4th, 2010

Studios flop in ISP copyright case

Major film and television studios represented by the Australian Federation Against Copyright Theft (AFACT) have today lost their battle against the third largest internet service provider (ISP) in Australia, iiNet Limited.

This case (Roadshow Films Pty Ltd v iiNet Limited (No. 3) [2010] FCA 24) considered whether the ISP authorised the infringement of copyright of its users or subscribers when they downloaded films and television programs in a manner which infringed copyright.  Under Australian copyright law, a person who authorises the infringement of copyright is treated as if they themselves infringed copyright directly.

AFACT conducted investigations into copyright infringement occurring by means of a peer to peer system known as the BitTorrent protocol by subscribers and users of iiNet’s services. The information generated from these investigations was then sent to iiNet by AFACT, with a demand that iiNet take action to stop the infringements occurring.

The evidence on infringement in this case showed that the BitTorrent protocol was being used by those accessing the internet through iiNet’s facilities to download the applicants’ films and television shows. The critical issue in this proceeding was whether iiNet, by failing to take any steps to stop the infringing conduct, authorised the copyright infringement of the iiNet users.

Justice Cowdroy found that iiNet had knowledge of infringements occurring, and did not act to stop them.  However, he decided that iiNet did not authorise the copyright infringement, and commented that the copyright infringements occurred directly as a result of the use of the BitTorrent system, not the use of the internet, and iiNet did not create and did not control the BitTorrent system.  Further, he found that iiNet did not have relevant power to prevent those infringements occurring and did not sanction, approve or countenance the copyright infringement.

His Honour also commented that the result of the proceeding would disappoint the members of the AFACT as the evidence established that copyright infringement was occurring on a large scale. However, he went further to state that this does not necessitate or compel a finding of authorisation, merely because it is felt that ‘something must be done’ to stop the infringements.

His Honour also commented that the proceeding attracted widespread interest both in Australia and abroad and that as far as he was aware, this trial, involving suit against an ISP claiming copyright infringement on its part due to alleged authorisation of the copyright infringement of its users, is the first trial of its kind in the world to proceed to hearing and judgment.