29th April 2010

High Court determines latest round in Health World v Shin-Sun row

The latest battle in the ongoing IP war between the owners of the INNER HEALTH PLUS and HEALTHPLUS trade marks has been decided in the High Court of Australia.

Health World Pty Ltd, owner of the INNER HEALTH PLUS trade mark, successfully appealed the Federal Court’s ruling that it had no standing to seek rectification of Shin-Sun’s HEALTHPLUS trade mark pursuant to s.88 of the Trade Marks Act 1995 (Cth) (“the Act”) as it was not a ‘person aggrieved’.  Health World had sought rectification of the HEALTHPLUS trade mark pursuant to s.88 on the basis Shin-Shun did not intend to use the mark in Australia and that it had allowed the trade mark to become deceptive or confusing.

In the same decision, the High Court overturned the Federal Court’s ruling that Health World was not a ‘person aggrieved’ pursuant to s.92(1) of the Act and did not have standing to take action against Shin-Shun to remove its HEALTHPLUS registration for non-use. 

The parties have a long, tortuous history with Health World unsuccessfully opposing Shin-Sun’s HEALTHPLUS trade mark (despite a Federal Court appeal) and Shin-Sun opposing but later withdrawing its opposition to the INNER HEALTH PLUS mark.    In addition to the rectification and removal proceedings brought by Health World, Shin-Sun had tried and failed to obtain partial removal of Health World’s INNER HEALTH PLUS trade mark.  In that removal proceeding, the Full Federal Court did not consider Shin-Sun to be a ‘person aggrieved’.  It did not appeal the decision.

In its judgement, the High Court considered the history between the parties to highlight “the curious character of the Full Court’s conclusion, where there are two rival traders who have lost no opportunity to attack each other’s attempts to register trade marks both before the Registrar and in four sets of court proceedings which have so far been heard by 10 judges, that neither of them is aggrieved, and each is to be regarded as falling within a class of inter-meddlers, lacking any interest to be protected”.
The High Court found the Full Federal Court erred in adopting the exhaustive test for standing from the case of Kraft v Gaines, which included the requirement that a rival have a desire, or intention to use the mark to qualify as a ‘person aggrieved’.   Instead, the Court found the test of whether a party was a ‘person aggrieved’ was whether the parties were trade rivals in relation to the goods to which the mark was applied, as stated by Lord Pierce in Powell v The Birmingham Vinegar Brewery Co Ltd.  The Court said it did not matter whether or not they intended to use the mark on those goods.   As Health World and Shin-Sun were rivals in selling the health products, Health World was held to be a ‘person aggrieved’ for the purposes of s.88 and s.92.
Crennan J whilst concurring with the majority of CJ French, Gummow, Heydon and Bell JJ that Health World was a ‘person aggrieved’, considered an important element of Lord Pearce’s test to be the potential for, or actuality of a business being “affected”.   She considered the fact that Health World was asserting its right to conduct business in goods of the same description as Shin-Sun’s goods, under its trade mark INNER HEALTH PLUS, without having that business affected by a concurrent registration of the trade mark HEALTHPLUS, which Health World contended was erroneously registered, satisfied Lord Pearce’s test of whether a party is a ‘person aggrieved’.  Accordingly, Crennan J did not consider it necessary to decide the issue of whether it is sufficient for a ‘person aggrieved’ to prove no more than trade rivalry with the registrant of the trade mark sought to be removed. 
These matters have been remitted back to the Full Federal Court which must now consider whether to uphold the primary judge’s findings that Shin-Sun’s mark should be removed from the Register pursuant to s.88 and s.92(4)(b).
Note:  The Act no longer requires a party to establish it is a ‘person aggrieved’ to lodge an application for removal pursuant to s.92(1). 

Click here to see the full post.

17th April 2010

Standardised Format for Trade Mark Specifications of Goods and Services

Standardised Format for Trade Mark Specifications of Goods and Services

To help applicants comply with the standardised format, the IPONZ website incorporates an automatic reformatting function in the online trade mark application form. The specification of goods or services will be reformatted so that:

  • Specifications should take the form of a single sentence commencing with a capital letter and ending in a full stop;
  • The body of the specification should be in lower case, except for acronyms and proper nouns;
  • Goods and services in the specification should be separated by semicolons or commas instead of listed on separate lines;
  • Double spaces are removed:
  • The word “and” should be used in place of ampersands “&”;
  • The phrase “and/or” should be used in place of forward slash “/” and backslash “\” characters to denote optional items.
  •  

Applicants will retain the ability to file specifications in the format they choose, however, the examination team may reformat specifications so that they comply with the formatting standards of IPONZ. The reformatting of specifications will not change the scope or nature of the specification.

From 12 April 2010 IPONZ will apply standardised formatting to trade mark specifications of goods and services in line with current international best practice.

Click here to see the full post.

30th March 2010

Supercharged ownership dispute reversed

In Richwood Creek Pty Ltd v Williams [2010] FCA 196 the Federal Court has reversed a decision of the Patent Office to uphold a patent opposition. The opposition was decided on the ground that the patent applicant alone was not entitled to the grant of a patent. Our commentary on the Patent Office decision is here.

Spender J disagreed that one of the inventors’ rights in the invention vested in his employer. In reaching the decision that the inventor’s (Mr Williams’) invention was not the property of his employer, Spender J was influenced by the inconsistent and insufficient evidence before the Office, for example, there was no written employment contract between Mr Williams and the (alleged) employer. Further, it was significant that the employer did not assert its rights to the invention during the opposition, and Mr Williams did not contest the appeal of the Office’s decision.

Spender J stated that
“Employers’ rights in the inventions of employees are not governed by statute but by common law and equitable principles which clearly show that in the absence of any express contractual obligation there is no rule that an invention made by an employee is inevitably the property of the employer. It is instead necessary to determine whether the employment relationship suggests that the invention concerned was made in the course of employment or, in other words, whether it is something it was the employee’s job to invent.”

In this case, there was not enough information for the Court to find that the employment relationship suggested the invention was made in the course of Mr Williams’ employment.

The decision re-iterates the importance of ensuring employment contracts specify who is to own an employee’s inventions. This issue has of course also been highlighted recently by the well publicised Federal Court decisions in University of Western Australia v Gray (see our posts here and here).

Click here to see the full post.

29th March 2010

And then we were one…NZ & Australian courts move closer

In November 2009 the Australia Government introduced legislation implementing the Agreement between Australia and New Zealand on Trans-Tasman Court Proceedings and Regulatory Enforcement. The Trans-Tasman Proceedings Bill 2010 was passed by both Houses of the Australian Parliament and is now awaiting Royal Assent.

The New Zealand Government introduced parallel legislation on 24 November 2009. The Bill received its first reading on 23 March 2010 and has been referred to a Parliamentary Select Committee. Submissions in the Bill are due by 7 May 2010 and the Select Committee’s Report is due on 29 July 2010.

While the two countries treat each other in the same way when it comes to cross-border court proceedings, this legislation will enable closer integration of the two civil justice systems.
Some important measures in the Bill include:

  1. Simplifying the service requirement for civil court proceedings.  For instance the new legislation will enable a statement of claim filed in a court to be served on someone in New Zealand as of right and visa versa. A plaintiff will no longer be required to prove a connection between the proceedings and New Zealand, or to seek leave of the court.
  2. The New Zealand Bill and its Australian equivalent will adopt a common give-way rule for deciding which country’s court should hear a dispute. The current problem of courts in New Zealand and Australian applying different tests to decide this issue leading to unnecessary expense and uncertainty will hopefully be ameliorated.
  3. The Bill will expand the range of Australian court judgments that can be enforced in New Zealand, and simplify the process for enforcing them. Currently, only final money judgments from one country may be enforced in the other. This Bill extends this to include final non-money judgments, such as an injunction. The only ground for not enforcing an Australian judgment will be public policy.  However, it will continue the case that any challenge to the merits of a judgment will meed to be raised with the original court.
  4. The Bill also introduces new measures to improve regulatory enforcement. New Zealand and Australia both have a strong mutual interest in the integrity of trans-Tasman markets and the effective enforcement of each other’s regulatory regimes. The bill will allow all Australian civil pecuniary penalties to be enforced in New Zealand, unless they are specifically excluded from the regime. The parallel legislation in Australia contains mirror provisions.
  5. The Bill will also allow criminal fines to be enforced in the same way as a civil judgment debt is but only in respect of those regulatory regimes that affect the integrity, effectiveness, and efficiency of trans-Tasman markets.
  6. Finally the Bill will simplify the conduct of court proceedings in various ways including through the use of technology.

Click here to see the full post.

23rd March 2010

Counterfeit Oakley® sunglasses seized at the Australian border

The Australian Customs Service has seized 60 pairs of counterfeit Oakley® sunglasses and accessories.

Seizures of the sunnies were made on 30 December 2009 and 6 January 2010, pursuant to the Trade Marks Act 1995 which makes provision for the seizure of goods which bear registered trade marks applied without the trade mark owner’s authorisation.

A trade mark owner must lodge a Notice of Objection with Customs, identifying its registered trade marks to trigger the seizure of allegedly counterfeit goods at the border. The owner must then institute court proceedings within a set period, or the goods will be returned to their owner.

Oakley sought interlocutory relief against the owner of the goods in Oakley, Inc v Elkofairi [2010] FCA 188. However, the parties reached an agreement on the first day of the proceedings in the Federal Court resulting in a consent order permanently restraining Elkofairi from importing and selling goods bearing Oakley’s trade marks or any marks substantially identical with or deceptively to, and from assisting any other person to do so.

Elkofairi was also required to forfeit the goods to the Commonwealth for disposal. It was ordered to deliver up to Oakley’s lawyers any goods or documents in his possession, custody or control which bore Oakley’s trade marks or any name, word, mark, sign or device substantially identical or deceptive similar thereto, applied without Oakley’s authority.

This case demonstrates the value of registered trade mark owners having an effective strategy to combat counterfeiters. Such a strategy should include the lodgement of a Notice of Objection with Customs, identifying a company’s registered trade marks and copyright material. By way of example, Oakley also relies on consumers to report the present of counterfeit goods in the marketplace and on the Internet.  Consumers can dob in a counterfeiter by reporting sightings of allegedly fake products through the company’s website.

Click here to see the full post.

23rd March 2010

Aldi gives Kit Kat shape mark a break

Kit Kat’s chocolate wafer biscuit is set to become a registered trade mark, after Nestle and Aldi agreed to resolve an appeal from a decision of the Trade Marks Office not register the confectionery’s finger shape as a trade mark. See our report on that here.

Aldi had initially given Nestle ‘the big finger’, successfully opposing registration of the shape mark on the basis it was not capable of distinguishing the food giant’s chocolate-coated wafer biscuits.  Nestle appealed the decision but the parties asked the Federal Court of Australia to allow Nestle’s appeal so the trade mark could be registered (Societe Des Produits Nestle S.A. v Aldi Stores (A Limited Partnership) [2010] FCA 218).

It will be interesting to see if Nestle enforces its shape trade mark registration, which has a priority date of 9 Febuary 2000, against others using a similar shape trade mark and if so, the outcome of any infringement action.

Click here to see the full post.

22nd March 2010

Huge increase of Counterfeit goods seized by Australian Customs

Australian Customs and Border Protection seized 1.1 million counterfeit items in 2009, more than double the 547,000 items seized in 2008.

The Minister for Home Affairs, Brendan O’Connor, released these figures on Friday 19 March and expressed concerns about the serious risks to the health and safety that counterfeit items can pose.

Mr O’Connor recommended consumers be wary of any deals that seem too good to be true and admitted that many fakes are very close copies of the genuine goods, and detecting them can be difficult.

He reaffirmed the commitment of Customs and Border Protection in fighting against counterfeiting and acknowledged the close cooperation with industry through the notice of objection scheme.

This dramatic increase in counterfeit items highlights the work of Australian Customs service and its effective role in stopping the importation of counterfeit items. It also emphasizes that all kinds of products are now copied including electric appliances, batteries, drugs, without the consumer sometimes realising that the items purchased could be fake.

Click here to see the full post.

19th March 2010

Beware the idiosyncratic expert

The decision of Bennett J in Inverness Medical Switzerland GmbH v MDS Diagnostics Pty Limited [2010] FCA 108 highlights the importance of expert witnesses being truly representative of the hypothetical person skilled in the art.

Inverness relied on the evidence of Boscato, “a person who works at a bench in a laboratory rather than being a theoretical researcher. She has designed and made immunoassays, uses them routinely and has a “practical interest” in the subject matter of the invention.” By comparison, MDS relied on the evidence of Sinosich, a person who “has worked in the field of immunoassay development, including immunoassays for a range of fertility, pregnancy and non-pregnancy associated analytes. He has generated both polyclonal and monoclonal antibodies; all of his research activity has been antibody-based.”

A significant issue in the case was the construction to be given to the expression “specific binding reagent” as used in the claims of the patent. Sinosich considered that the adjective “specific” used in relation to a reagent was a term of art meaning that the reagent would preferentially bind to an analyte in the immunoassay with no binding to any other molecule in the sample. Boscato agreed that, in the context of immunoassays, “specificity” meant the ability to measure the analyte without interference from other substances which would cause a false positive response, or interference from other substances causing an inaccurate result but that there was a distinction between the use of “specificity” and “specific”. Boscato considered that the use of “specific” in the phrase “a specific binding reagent for an analyte” meant that the reagent has to be able to bind the analyte of interest in a specific binding reaction, but not necessarily exclusively.

In relation to the difference in interpretation between the two expert witnesses, Bennet J commented that:

I formed the clear impression that, while Dr Sinosich gave his opinion honestly and impartially, his approach was, as he conceded in evidence, influenced by his own specific area of expertise and his own rigorous approach to the relevant terminology. It was apparent during cross-examination when Dr Sinosich was taken to different parts of the specification that the patentee did not adopt the same limited use of terminology.

Another important consideration in determining the correct construction, as noted by her Honour, was that Sinosich’s construction did not accord with much of the literature as at the priority date, or with the specification, which has broader application. By comparison, Boscato pointed to literature which formed part of the prior art, including papers considered to be very important in the field at the priority date, which showed use of the expression “specific binding reagent” consistent with her construction. Bennet J concluded that:

Dr Sinosich’s use of the terminology may well reflect his own experience and practice but the evidence suggests that it is not and was not the common use of others in the art to which the specification relates.

This decision highlights the importance of carefully selecting expert witnesses but also the importance of contemporaneous documentary evidence in supporting the views expressed by those witnesses

Click here to see the full post.

18th March 2010

Win for the little guy in Apple “i” wars

An Aussie company has triumphed in a legal wrangle with computer giant Apple Inc over registration of its trade mark DOPI. Despite Wholesale Central Pty Ltd’s trade mark, being the reverse of the famous Apple iPod® trade mark and placing emphasis on the letter “i”, the DOPI trade mark was not found to be deceptively similar to the iPod® mark.

In a hearing before the Registrar’s Delegate, Apple objected to registration of the DOPI trade mark for use on various carry bags and accessories for digital devices including its own iPhone® products, MacBook® computers and iPod® devices.

Citing its various other trade marks registrations combining the prefix “i” with another word such as, iTunes®, iMac®, iLife®, iWork® and iPhone®, Apple argued it had a family of “i” marks and that use of the DOPI trade mark with this emphasis on the letter “i” was likely to deceive or cause confusion. Apple also alleged Wholesale Central had piggy backed on the fame of its iPod® mark and the association implicit in the use of “i” in the industry, and that this should lead to a finding that the trade marks were deceptively similar.

In a hearing before the Registrar’s Delegate, Apple objected to registration of the DOPI trade mark for use on various carry bags and accessories for digital devices including its own iPhone® products, MacBook® computers and iPod® devices.

Citing its various other trade marks registrations combining the prefix “i” with another word such as, iTunes®, iMac®, iLife®, iWork® and iPhone®, Apple argued it had a family of “i” marks and that use of the DOPI trade mark with this emphasis on the letter “i” was likely to deceive or cause confusion. Apple also alleged Wholesale Central had piggy backed on the fame of its iPod® mark and the association implicit in the use of “i” in the industry, and that this should lead to a finding that the trade marks were deceptively similar.

However, the Hearing Officer disagreed, drawing on the numerous trade marks on the Australian Register and his own knowledge of the technology industry to support his view that Apple did not have a monopoly in trade marks comprising the prefix “i” and another word. He did not consider the fact Wholesale Central’s trade mark ended in the letter “i”, or use of a trade mark which was the iPod® trade mark in reverse order to give rise to deception or confusion. The absence of any evidence of actual confusion despite Wholesale Central’s sale of items including covers for Apple’s iPod® players under the DOPI trade mark since January 2007 also suggested no deception or confusion was likely to arise.

Apple, citing the case of Registrar of Trade Marks v Woolworths Ltd (1999) 45 IPR 411 (“the Woolworths’ case”), also tried to argue that the assessment of deceptive similarity should take into account its reputation in the iPod® mark as it had “a degree of notoriety or familiarity of which judicial notice can be taken”.

By analogy with the Woolworths’ case, where WOOLWORTHS METRO and METRO were not found deceptively similar because of the “notorious familiarity” of WOOLWORTHS, the Hearing Officer considered the “ubiquitous nature” of the iPod® mark tended to lessen the likelihood of deception or confusion arising with the DOPI trade mark.

Dismissing the opposition, the Hearing Officer found the “coincidental similarity” between the trade marks was not sufficient for them to be deceptively similar. Consequently, the DOPI trade mark is now registered. This decision could be said to create an “i-opening” for other traders who may seek to register trade marks beginning or ending with the prefix “i” for digital devices and accessories.

Apple’s POD protection

In another recent development, Apple Inc has settled a potential Federal Court stoush over registration of the Australian trade mark POD.

Apple had appealed the Trade Mark Registrar’s earlier decision to refuse registration of the POD trade mark after Line 6, Inc argued it had superior rights to the trade mark by virtue of its use of the mark in Australia since 1999 and its prior trade mark registration.

Line 6, Inc had used the POD trade mark for electronic devices which take signals from electrical guitars and digitally process the signal to modify the sound. Bands such as Silverchair had used Line 6’s POD product and Line 6 was found to have a significant reputation in the trade mark in Australia. The Hearing Officer found Line 6’s opposition successful on a number of grounds including s.44 and s.60. The Hearing Officer also found Apple had established the s.59 ground of opposition, and that it did not have an intention to use the trade mark, but had filed the application for strategic purposes.

The appeal has been settled and Apple’s trade mark is now registered albeit for goods which now exclude those which could be said to conflict with Line 6 Inc’s goods of interest.

Click here to see the full post.

15th March 2010

Water, water everywhere - Nutrientwater Pty Ltd v Baco Pty Ltd

This case involves parties selling similar “enhanced drinking water” products in Australia. Images are available in the judgement (link below).

NutrientWater had not registered its Trade Dress as a trade mark. Thus, it was not able to take action under the Trade Marks Act.

In Nutrientwater Pty Ltd v Baco Pty Ltd [2010] FCA 2, NutrientWater alleged that (a) Baco was infringing its common law rights by “passing off” its range of enhanced water as NutrientWater beverages and (b) the actions of Baco were misleading and deceptive and thus infringed the provisions of the Trade Practices Act.

As part of its defense Baco alleged that NutrientWater could not claim any rights to its Trade Dress as it had deliberately changed its own Trade Dress to be similar to the VitaminWater Trade Dress. Baco also referred the Court to a range of other products that had similar Trade Dress.

NutrientWater ultimately lost the case because it was not able to establish that it had accrued a relevant reputation in the Trade Dress features allegedly appropriated by Baco.

This case illustrates how difficult it can be to stop others from copying elements of Trade Dress when only relying on common law trade mark rights.

Click here to see the full post.