Achievement Concepts v Redken Laboratories & Anor

Achievement Concepts Pty Ltd (the applicant) sought to restrain Redken Laboratories (Australia) Pty Ltd and its director, Mr. John Michael Smith (the respondents), from using the trademark "Redken" in relation to hair care products. The applicant claimed it held exclusive rights to use the "Redken" trademark in Australia, having acquired these rights from the United States parent company, Redken Laboratories Inc. The dispute concerned the validity and scope of the applicant's alleged exclusive licence and the respondents' right to use the trademark. The matter came before the High Court of Australia.

The High Court was required to determine whether the applicant had established a valid and subsisting exclusive licence to use the "Redken" trademark in Australia. Central to this was the interpretation of an agreement between Redken Laboratories Inc. and the applicant, and whether this agreement conferred exclusive rights. The court also had to consider whether the respondents' use of the trademark infringed any rights held by the applicant.

Gleeson CJ and Gaudron J found that the agreement between Redken Laboratories Inc. and the applicant did not grant exclusive rights to the applicant. Their Honours interpreted the terms of the agreement as conferring a non-exclusive licence, meaning Redken Laboratories Inc. retained the right to grant licences to others and to use the trademark itself. Consequently, the applicant had not established the exclusive rights necessary to succeed in its claim for an injunction. The court applied principles of contract interpretation to determine the nature of the licence granted.

The High Court dismissed the applicant's appeal and upheld the decision of the Full Federal Court.