Atari Inc and Futuretronies Australia Pty Ltd v Fairstar Electronics Pty Ltd

Case

[1983] FCA 2

23 Dec 1982

No judgment structure available for this case.

Between:

A T A K l

TVC.

an.?

FIJTUKETROMTCS

AUSTRI\T,IA

PTY.

LTD. -

(App l l can i s )

-

And:

FATRSTAR E:LECTROV?CS

PT?.

-

-

L T D .

(Respondent)

CORAM:

SMITHERS J.

2 3 December 1982

111s

HONOUR:

I n

this

case

t he

app l i can t s

s eek

i n t e r locL l to ry

i n j u n c t l o n s

r e s t r a ~

n l n g

t h e

r e s p o n d e n t

from

impcrtlnq

i n t o

A u s t r a l i a

V i d e o

Computer

Systems

c a l l e d

" V C S s "

f r o n

i n f r l n g l n g

t h e

t r a d e m a r k

"Atarl"

of

F u t u r e t r o n l c s

0

A u s t r a l l a

P t y .

Ltd.

and

f rom

t rad inq

and

se l l lnq

in

A u s t r a l i a

V C S s

which

It

h a s

i m p o r t e d

f r o m

o u t s i d e

Australla and which bea r

t he

t r ademark

i n

ques t ion .

I t

is

no t

d l spu ted

t ha t

t he

t r ademark

was

s f f l x e d

CO

t h e

goods

I n q u e s t l o n b y A i a r ~ . I n c .

The

applicants

allso

s e e k a n

i n l u n c t i o n r e s r r a ~ n i n g

t h e

respondent

from

r e p r c s e n t m q

111

re la l - ion

t o these

qoo?!s

L

2 .

t h a t

It

h a s

the

r apac i ty

and

a b l l l c y

CO

provlrle

a>. l

necessary

equipment

and

s e r v l c e s

f o r

t h e

p r o p e r

a n d / o r

e f f e c t l v e

m a l n t e n a n c e ,

s e r v l c i n g

o r

e p a i r

.of

t.he

VCSs

whlch a r e 1:vportcd

by

i t .

S e c o n d l y ,

t h a t

t h e

VCSs

as

a fo resa ld .

have

the b e n e f l t of

a

capacity

or

a h l l l t y by

the respondent

t o

provide

a

p rope r and /o r r epa l r o f

t hose

s y s t e m s .

T h l r d l y ,

t h a t

p e r s o n s

who

purchased

t-hc

s a ~ d

VCSs Imported, as aEoresa~.rl

from

the

respon4ent

between

1 5 November 1982 and 31

December 1YR2, w e r e

e n t l t l e d

t o

a

r e c e i v e

f r o m

t h e

s e c o n d - n a m e d

applicant

t h r e e

v i d e o

ca t r ldges wor th about

$100.00.

The

o u t l i n e

of

the

f a c t u a l

s 1 t u a t l o : l

1 s

t h a t

t h e

a p p i l c a n t

A t a r

I n c .

1s an American

Company

and

i s t h e

m a n u f a c t u r e r

of

VCSs.

T h e s e

a r e

e l e c t r o n l c

u n l t s

comprislng

a

m u l t l

c l r c u l t u n i t

anil

a u x l l x a r y cqu1pmc:nt.

A t a r l

I n c .

d l s t r i b u t e s

t h e s e

u n l t s

w o r l d - w l d e

t h r o u q h

d l s t r l b u t o r s who

a r e

authorized

t o s e l l

t o r e t a l l e r s

who

t r a d e

I n

p a r t l c u l a r

a r e a s .

I n

A u s t r a l i a

t h e

a p p l

c a n t ,

F u t u r e t r o n l c s ,

i s

t h e

sole

d l s t r l b u t o r .

The

respondent,

having

purchased

a

q u a n t l t y

o f

A t a r i

VCSs

o u t s ~ c l e

A u s t r a l l a ,

has

Imported

them

i n t o

A u s t r a l i a

and

se l l s them

t o

p u r c h a s e r s

by

r e t a l l

a s

Atsrl

VCSs,

whxch

t h e y

a r e .

A t a r l

i s

t h e

r e g l s t e r e d

p r o p r l e t o r

o f

two

t rademarks

In

Aus t ra l la .

One ,

t h e word

A'calI

and

the

o t h c r being

a

dev lce .

Th?

two

t rademarks

a re

normal l y

. .

.. ,

3 .

used

In

cor . j l Inct lon,

the

o n e

with

t h e o t h e r ,

anci

t h a t

1 s

being

done

I n

respec t of

the

goods

In

qucs’clon

which hear

t h c words

Atarl

and

the

devlce .

A s

I

h a v e

l n d l c a t e d ,

t h a t

mark

was

p ; a c e d t h e r e b y t h e a p p l i c a n t , A t a r l .

There

1s

no

c o n t r a c t u r a l

r e l a t l o n s h l p

b e t w e e n

A t a r l

and

t h e

r e s p o n d e n t ,

P a l r s t a r

E l c c t r o n i c s

P t y .

L t d . ,

a n d

n o

e v l d e n c e

t h a t

I n

r a d i n g

In

A u s t r a l i a

b y

r e t a l l ,

F a l r s t a r

1s

I n

any con t r ac tu ra l b reach

111

r e l a t i o n

t o any

person.

:t

is

s a l d

t h a t

b y

s e l l l n g

t h e

g o o d s

i n

A u s t r a l i a

w l t h

t e

mark

upon

them

the

a p p l l c a n t

i s

in f r lng lng

the

t r ademark .

This argument

M ~ S

or ig lna l . ly suppor ted

by

r e f e r e n c e t o

c e r t a l n

obl ter

d i c t a

i n

W.D.

h H . O .

W21ls

( A u s t r a l i a )

Ltd.

v .

Rothmans

Ltd.

(1956)

9 4

C.L.R.

193

and

t o

t h e

view

expressed

by

M r .

J u s t i c e

S t a r k e

I n

Atar l

v .

Smi th

(1990)

33

A . L . R .

20,

t h a t

~ u d g m e n t

b e l n q

g i v e n

on

2 6

November 1980.

I n t h e l a t t e r c a s e t h e f a c t s w e r e v e r y

much

l l k e t h o s e

i n

t h i s

c a s e

a n d

M r .

J u s t ~ c e S t a r k e

came

t o

t h e

concl .uslon

that

It was

a r g u a b l e

t h a t I n

t h e c i r c u m s t a n c e s

descr lbed

above

the

respondent

by

i t s

conduct

might

be

d e s c r i b e d

a s

i n f r l n g l n g

t h e

h t a r i

t r a d e m a r k .

H e

c o n s l - d e r e d

t h e

b a l a n c e

of

convcn lence

and

gave

l n t e r l o c u t o r y

r e l i e f .

T h a t

c a s e

was

s e t t l e d

a n ?

t h e

1 s s u e

r e m a n e d

j u C l ~ c ~ a l L y

w h e r c

It thcn was.

The ground

upon

which

M r .

J u s t i c e

S t a r k c

f e l t

a n

ai-gunlent- might

he

supported

was

the

c l l f f e rence

l n

l anguage

be

tween

t ha t

In

s . 6

of

the

Commonwealth Trademark A c t of 1959

and

t h a t ~n

..

S . 3 of the

Enqllsh

Trademark

Act

of 1965.

The lmportance

of

t h l s was

t h a t when

t h e

c a s e

o f

Chanlmqne Hcldsleck

Monopolc

Soc1.ete

e t c l e .

Monopole

Soc1.ete

Anonyme

v .

--

_-_-_-

--

Buxton

(1930)

47

R.P .C .

2R

( t h e

Champaqne Case)

was

d e c l d e d ,

t h e

r e l e v a n t

d c f l n l t l o n

of

"trademark"

was

t h a t

I n S. 3 of the

Eng l l sh

A c t of

1905.

Had

it

not

been

fo r

t h a t

d l f f e r e n t l a t l o n

I

l z n q u a g e ,

Mr.

J u s t i c e

S t a r k e

wou ld

have

cons lde red

t ha t

t he

dec i s ion

i n

t he

Champaane

Case

was

d e c i s l v e

a g a l n s t

the

o p p l l c a n t .

The

m a t t e r

--

h a v i n g

b e e n

a r g u e d

b e f o r e

me

a t

some

l e n g t h

I

am

persuaded

tha t

he

a rgument

ln

favour of

t h e

a p p l i c a n t s

i s ,

a l thouqh

a rguab le ,

l e s s

a rguab le

t han

wa5

cons idered

by Mr.

Jus t l ce

S t a rke .

The re

seems

t o be

much

a u t h o r l t y

approv lnc j

t he

dec i s ion

In

t he

Champaqne

Case

--

and

lt

a p p e a r s

t h a t

3

t

does

no t

depend

upon

the

d l f fe rence

i n

terminology of the two sections.

I t depends

upon

the

fundamental

nature

of a

trademark a s de f ined by Clauson

J.

i n

the

Champaqne

Case.

Tne

cr j t i ca l

c o n s l d e r a t l o n

i s

t h a t

t h e r e g i s t e r e d p r o p r l e t o r

of

a

trademark

i s

t o have

t h e

r l g h t .

e v c l u s i v e l y

t o use

such

t radcmark

In

the

sense

of

prevent-

ing others

f rom sel l ing wares whjch are

n o t h

~

s

marked wlth 111s tradernark.

A s put

by

Clauson

J. adsp t lng

what 1s sa ld

In

Ker l ey

on

Trademarks

(6th

Ecl l t~on)

at

5 .

'I. .

.

t he

u se

o f

a

mark

by

the

defendant. ,

whlch

j S

r e l l e d on

a s

an

l n f r inqe lwn t ,

mus

t

be a u s e upon goods wh>.ch m-e n o t Che genuine

goods 1.e. t h o s e upon wh.:hlch Ehe p l a l n t l f f ' s

mark

2s

proper ly used ,

for anyone

may

use

t h e

-

p l a i n t i f f ' s

mark

on

t h e

p l a x n t l f f ' s

goods,

since that cannot

cause

the

decept lon

which

1s

t h e t e s t o f i n f r l n g e m e n t

."

S e e

f o r

c l a r l f l c a t l o n ,

the

~urlqment

of

Clauson

J.

a t p.36

I n t h e

Champagpe Case.

M r .

Merkel

has

r e l i e d

upon

the language of

S .62

o f t h e

A u s t r a l i a n

Act

and

it cannot

he

denied

that

hose

words,

,

a s

t h e y

s t a n d ,

a r e

c a t e g o r i c a l

a n d

p u r p o r t

t o

show

t h a t

any

use

a t a l l by a

person other t h a n

t h e

p r o p r l e t o r

or

t h e r e g l s t e r e d u s e r o f

a

mark

I n

t h e c o u r s e o f

h l s

t r a d e ,

i s

unlawful .

In

the

c a s e of

James

Mlnifle

& Co.

v. Edwin

Davey & Sons

(1933)

49

C . L . R .

349

a t p.

361

M r .

J u s t i c e

D1xon - as he then

was - s a i d :-

"It 1s s a l d

t h a t

the acknowledqed

pollcy

of

the Trade

Marks

A c t 1s t o

s t r e n g t h e n

and

p r o t e c t w l t h

new

remedles

a

form

of

p r o p e r t y

or

p r o p r i e t a r y r l g h t a l r e a d y e x l s t i n g a n d n o t

t o c r e a t e a new one, and, accordingly, tha t what 1s forh ldden i s a use of t h e mark a n a l o g o u s t o tha t wh ich wou ld amoun t t o

p a s s i n g

o f f .

R u t

t h i s method

of

reasoning

1s

of

l l t t l e

a s s l s t a n c e

b e c a u s e

t h e

v e r y

ques t lon may

be

s a id

t o be

whether ,

fo r

t h e

p r o t e c t x o n

t h e

o f

e x l s t l n g

f o r m

o f

p r o p r l e t a r y

r l g h t

or

I n t e r e s t ,

the

s t a t u t e

h a s

n o t

made

It

an

in f r lngement

t o

u s e

t h e

mark

I n r e s p e c t of

goods

111 any way I n

t h e

cour se

o f

t r ade .

I t

IS,

p e r h a p s ,

t r u e

t h a t

the

words

a r e c a p a b l e

of

an

appl lca t lon whlch

would go beyond

use

In

t rade

or

bus~.ness

and

e x t e n d

t o

u s e

111

t h e

h a n d s

o f

u l t i m a t e

consumlers o r

u t l l ~ . z e r s

of

t h e

goods.

B u t ,

6.

w h l l e

~t

1 s

n a t u r a l

t o

u n d e r s t a n d

t h e

2 anguage

of

a

p r o v ~ s l o n

i n the Trade

Marks

Act a s

r e s t r ~ t e d t o comnercial

and

trariilng

o p e r a t l o n s ,

some

firmer

qround

1s needed t o

s u p p o r t

a n

l m p l l c a t l o n

f u r t h e r

r e s t r l c t l n g

1ts

meanlng .

There

1 s

g o o d

r e a s o n

f o r

prevent lng any

USE

of

a

t r a d e mark

upon

o r I n

connect lon

wlth

goods

which

t ends

t o confuse

the p u b l l c a s t o w h a t

It

s2gnlf1 es

and

so

to

i m p a l r

t h e

r e p u t a t i o n

whr.hlch

t h e

r e g l s t e r e d

p r o p r l c t o r

h a s

o h t a l n e d

o r

1s

s e e k i n g

t o

obtaln under

It."

I n

t h e

p r e s e n t

c a s e

It

c a n n o t

b e

s a l d

t h a t

t h e

u s e

o f

the

t

rademark by

the respondent

in

connec-t ion wlth

the VCSs

does

tend

t o confuse the p u b l l c as t o what It s lgni f les or

t o

lmpalr

the

r e p u t a t l o n

w

h

i

c

h

t h e

r e g l s t e r e d

p r o p r i e t o r

h a s ,

or

1 s seeking

t o obta in ,

under

it.

I t appears t o me

to

be

acknowledged

or

r a t h e r

t o

be

Impl ied

In

!:hat

h is

Honour

s a y s ,

t h a t

h e

D r a c o n l a n

terms

of

s.62

a r e

t o

be

construed

according

t o

the

fundamental

nature

of what a

trademark 1s.

The Champagne Case

has

never

been

sald

t o

be

lnaccura t e

and has many times been

approved.

A s to S .62,

I have h e n

0

r e f e r r e d t o

a

s h o r t b u t c r l t l c a l p a s s a g e I n

the

judgment

of

W l l l l a m s

J .

i n

Mark Foy's Llml ted

v .

Dav ies

Coop

-

a n d

Company

L l m l t e d

and

Another

(1956)

95 C . L . R .

190 a t p .

204..

We

are

speaking

of

s.62,

or

r a t h e r ,

t h e

equivalent, namely

S .S3 of the A c t as It then was.

H e said:-

"Sec t ion

53

i s

rea l ly

an

appendaye

t o

S . 50

and I t s functi.on

1s t o wlden t h e

d z f l n l t l o n

of

lnf r inqement so a s to Inc lude

cases

wherr

the

defendant

rloos

not

u s e

the

i r l e n t l c a l

7 .

t r a d e

mark

b u t

s e s

a

mark

s u h s t a n t i a l l y

l d e n t l c a l

w l t h

~t o r

so

near ly

resemblxnq it

a s

t o

he

l i k e l y to dece lve .

Ru

t

he

a l l eqed

lnfr lngement

m u s t

stlll

be

t h e

u s e

of

t h e

p l a l n t l f f ' s

t r a d e

mark

o r

some

m a r k

s u b s t a n t l a l l y

l d e n t l c a l

with

it

a s

a

t r a d e

mark. "

I do not

f lnd

anywhere

any

suggestion

t h a t s .53

a s It

then was

o r S .G2 as It now

i s , a r e

n e c e s s a r i l y

t o

h

e

r e a d

e n t l r e l y

l l t e r a l l y

and

with

each

word

extending

i n t o

e v e r y

a spec t o f

t r ade

to wh lch

they a re capab le

of

r e f e r r l n g , t h e y

a r e

r e a d

w l t h o u t

r e f e r e n c e

t o

the

fundamental

nature of a

trademark.

I t

seems

t o be

n o t v l g o r o u s l y d l s p u t e d t h a t

lf s . 6 2

1 s t o

be read It, t h e r e would

In

the

way I n whlch M r .

Merkel

would

ask

me

t o r e a d

be

ser ious consequences

In

ordlnary

conmerce

I n

r e l a t l o n

t o

cases where people buy on

the

o r d i n a r y

market

goods

whlch

are

sold

\nth t rademarks

a f f lxed

t o

t hem.

A s

t he

peop le

who

buy

a t a u c t l o n

or

buy

bankrupt

s tocks

or

people

w h o buy

I n o t h e r

c i r c u m s t a n c e s ,

i f

t h e y

a r e

t o

d e a l

with

them

a t a l l , t h e y

m u s t

d e a l w i t h

them under

the

name by

whlch t ey ln f r lng lng t r ademarks

are known.

If doing so, such

persons

were

I

have

a

s u s p i c l o n t h a t t h e r e

would

b e

some

r e l e v a n t a u t h o r l t y w h l c h

would

make

t h a t c l e a r .

If such people are n o t

l n f r l n g l n q

the

trademark

one

reason would be that once

a

manufacturer

puts

a

trademark on

h i s qocds

and

se11.3~ khem

Into the

c o u r s e

o f

t r a d e

on

t h e

h l l l o w ~ n g ocean

of

t rade,

wherever

people

bona

f lde

d e a l

n .

wlth

those

goods

unds r

t ha t

name

and by

re ference

t o

t h a t

t r ademark ,

no

t

t c l l l nq

any

I l e s

or

mlslendlng

anyone

In

any

way

a t a l l ,

t h e y

a r e

s l m p l y

n o t

l n f r l n q l n g

t h e

t r a d e m a r k .

They are not

"us lnq"

the

mark

i n

t h e

r e l e v a n t

s e n s e .

T'ne

A c t 1 s CO be read

by

cons ldera t lons

such

as

these

and

these

musc be the

cons jdera t lons

whlch

ultimately

s u p p o r t

t h e

Champagne Case.

Accordlngly, o n the whole I must

concede

t h a t the appllc?.nts

have

a

case

which

I see 1s arguable b u t

I

cons ide r

fo r

t he

r easons

which

I have

g lven

It

1 s l l k e l y

t o be

found

wantlng.

When

I

come

t o t h e q u e s t l o n

of

whether

the

respondent

i s

c o n d u c t i n g

I t s e l f

I n

a

m l s l e a d i n g

f a s h i o n

i n

s t a t l n g

t h e

v a r r a n t l e s

t h a t

It

g l v e s ,

I

am

n o t

s a t i s f l e d

t h a t

t h e

a p p l i c a n t ' s

c a s e

h a s

b e e n

e s t a b l i s h e d .

I t

i s

p e r f e c t l y

c l e a r

t h a t

t h e

r e s p o n d e n t

c a n n o t

g l v e

any

warranty

whlch

would

bind

Futuretronlcs

and

it does

not

seek

t o do SO.

I t

t e l l s

i t s

cus tomers

In

p la ln

l anguage

tha t

It

c a r r i e s

o u t

Its own warranty work

and

I n

e f f ec t

t e1 l . s

cus tomers

tha t

If

anythlng

goes

wrong wlth

t h e l r sets t o b r m g them back

and

a t

l e a s t

If they

do

so w1th1.n 90 days their compl.alnt will

b e d e a l t

w l t h and

the

u n l t

w l l l e l t h e r be

repalred

by

them

or w l l l be

rep laced .

T h a t ;

I n

e f f e c t ,

IS

t h e

same

klnd

of

w a r r a n t y

t h a t

P u t u r e t r o n l c s

I t s e l f

q l v e s

t o

i t s

customers .

The

o n l y

dl€r 'erence

?.$

t h a t

F v C u r e t r o n l c s

make

7.t

c o n d l t l o n a l

on

9.

ge t t lnq

back

t he

war

ran

ty

ca rd

whereas

Chc

respondent

does

no t .

Both

p a r t l e s

p u r p o r t

t o

exclude

any

3mpljed

warranty.

Whether

t h a t

1s

Intended

t o

e x c l u d e

t h e

w a r r a n t l c s

which

a r l s e u n d e r

t h e c o n d l t l o n s o f p a r t

17

of

the

Trade

Prac ' i lces

A c t one

does

not

know.

But

It ].S c l e a r

t h a t

t o p u r p o r t

t o

exclude

lmplled

warrant1.e~

i s ,

I n

t h e s e

d a y s ,

m i s l e a d i n g .

The

p u b l l c

i s

c n t l t l e d

t o

know

t h a t

t h e r e

1.s

a l e a y s

t h e s e

days a

war ran ty

o f

merchan tab i l l t y

or

q u a l l t y

I m p l i e d

b y

law.

I have

looked

a t a l l the affidavits whrrhlch have been f l l e d

a n d ,

o f

c o u r s e ,

o n e

r e a l l s e s

t h a t

t h e

whole

o f

t h l s

proceeding

a r l s e s

o u t

h e

f a c t

h a t

h e

a p p l l c a n t

1 s

d l s tu rbed

t ha t

t he

r e sponden t

has

been

ab le

t o

a c q u l r s

substantial q u a l l t l e s of

these a r t i c l e s .

I t may have some

genuine

fear t h a t

t h e

r e s p o n d e n t h a s n o t

t h e

s k i l l

t o

c a r r y

o u t

t h e

r e p a l r s

w h i c h

a r e

l l k e l y

t o

be

r e q u l r e d

h y

customers, but the ev ldence

wou

ld

suqges t

t ha t

excep t

fo r

t h e

r e p a l r l n q

o f

w h a t

m ~ g h t

be

c a l l e d

t h e

i n c l d e n t a l

and

a n c i l l a r y f u n c t l o n s o f

the

TJCSs ,

the

unl t s per rorm very

w e l l

and

it

i s

n o t v e r y l l k e l y t h a t I n

90

days

many

o f t h e u n i t s

are

l l k e l y t o be

found

defect

lve

In

what

mlqht

be

desc r ibed

as

the l r

fundamen ta l s .

If

t h e y

a r e ,

t h e n

o n e

would

oubt

thc

competence

of

F u t u r e t r o n i c s

o r

a n y

b u t

a

very

I lmi.ted

number of

sk1.1led

persons

l.?

A u s t r a l l a

t o

r e p a l r

them

znd,

goi-nq on

coxTon

knowledge,

t o endeavourr

t o u n r a v e l

t h e

t ang led

c l r - cu l t ry

of

t h e

m a g l c d l

c l r c u l t s

o f

t h e s e

u ~ l l t s .

I t would n o t be commercially rational, one

would

l u s t

throw

t h e

u n l t

away

and

rep lzce

lt wlth allother one.

Thls

i s

what Futnre t ronlcs seen

t.o

sugqest mlght happen and

lt

1 s

what

would

happen

with

the

respondent.

T h e

m a t t e r

h a s

come

l l q h t

t o

b e c a u s e

t h e

o f

adve r t l s emen t s

by

Pu tu re t ron lc s

o f f e r lng

t h ree

ad r l l t l ona l

c a r t x l d g e s

t o p e o p l e

who

have

bought

an

Atar l

VCS

fro21

any

shop,

any

shop

In

Aus t ra l la ,

p rovided

however

tha t

the

warran ty

card

be

r e t u r n e d

t o F u t u r e t r o n i c s .

One

c a n n o t h e l p

b u t

f e e l

t h a t a t

l e a s t

one

ob jvec t lve

of

t h l s was

t o

f l u s h

o u t

t he peop ie

who

had purchased unl t s

from

t r a d e r s

lJke

t h e

respondent

who

i s s u e

no warran ty card .

I t

1 s

o n l y

n a t u r a l

t h a t

p e o p l e

who

p u r c h a s e d

f r o m

F a l r s t a r ,

knowlng

t h a t

F a i . r s t a r

d i d

i t s

own

s e r v i c i n q ,

lcnowlng t h a t It had

no

warranty

f rom

Futuretronics

or

f rom

A t a r l ,

f e l t

t h a t

s

the

goods

were

Atar l

goods ,

tha t

Fa l rs ta r

were

very

busy

se l l lng

Atar

l

goods

and

should

seek

t o

g e t

h e

t h r e e

f r e e

c a r t r l d g e s .

They

c o u l d

n o t

g e t

the

three

c a r t r l d g e s

b u t

the

f a c t

h a i

t h e y

w e r e

disappointed

was

r e a l l y d u e

t o

t h e

f o r m

o f F a l r s t a r ' s a d v e r t l s e m e n t w h i c h

lnvl ted

everybody,

wherever

they

had

pu rchased

t he l r

un l t s

t o

apply.

When

T

come t o ;he

ques t lon o f

t he ba l ance

of

convenlence

I

d o n o t f i n d t h a t

t h e r e

has

been any r ea l

In t e r f e rence

wlth

11..

t h e

qoodwl.11

of

the

a p p l l c a n t s .

The

a p p l l c a n t s ’ business

IS

so- t remendous

tha t

the

smal.1

l r r l t a t l o n s

whlch

ave

been

caused

t o

some

c u s t o m e r s ,

l a r g e l y

h r o u q h t

a b o u t

b y

h e

conduct

of

F u t u r e t r o n l . c s

l t s e l f ,

has been m l n i m a l .

There

1 s

no evldence that any person

who has purchased

a VCS from t h e

r e sponden t

has

been

d l s sa t l s f i ed

w i t h

t h e

a r t l c l e

~n

any

r e s p e c t .

I n

some

c a s e s

t h e

90

day

pe r lod

has

exp l r ed ,

In

o t h e r

c a s e s

It IS explrxng

rapldly.

Rut ,

of

c o u r s e ,

I n

a l l

c a s e s

t h e

s t a t u t o r y

w a r r a n t y

wlll

p e r s l s t

and

people

who

h a v e g o t undoubtedly

s o m e t h l n q

t h a t

1 s

f u n d a m e n t a l l y

b a d

w l 1 . l

recelve

new machlnes

In

p lace

thereof .

But one

lmagxnes

t h a t

h e

q u a l l . t y

of

t h e s e

a r t l c l e s

i s

s u c h

t h a t

fundamental defects

are n o t l l k e l y

t o be

numerous.

There

1s a

p r o s p e c t

t h a t

t h l s c a s e

w l l l come

on

I n

March

and

d m e c t i o n s

t o

t h a t e f f e c t h a v e b e e n a p p l l e d f o r a n d h a v e

been

granted.

If

the

respondent

were

res t ra ined

from

t r a d i n g

l n

t h e s e

a r t l c l e s

d u r l n g

t h e

n e x t

t h r e e

m o n t h s

h e

would

be

r e s t r a i n e d

I n

r e l a t i o n

t o a b o u t o n e q u a r t e r

of

hxs

t o t a l

t u r n o v e r .

I

certainly

f e e l

t h a t

t h e o n l y b a s l s

r e a l l y

on

whlch

an

I n j u n c t i o n c o u l d b e s o u g h t i n t h i s c a s e

would

b e

I n

r e l a t l o n

t o

t h e

t r a d e m a r k .

I t

is

my

g e n e r a l v l e w

t h a t

I n

t h e

end

t h e

p r o b a b i l l t l e s

a r e

t h a t

t h e

a p p l l c a n t s ’

c a s e

o

n

tha t

g round

will not

succeed.

Of

course it 1s obvious

from

what

I

h a v e

s a l d

t h a t

It

w l l l r e q u i r e

f u l l

c o n s l d e r a t l o n a t

t h e

t r l a l .

1 2

Therefore ,

I

t h l n k

t h a t

t h e

damaqe

t o

t h e

applicants by

t h e

r e f u s a l

o f

an

l n j u n c t l o n ,

wlll

cause

l t no

I r r e p a r a b l e

harm and u l t l m a t e l y

Indeed

mlnlnlal

harm

In

a y

respect

should

It

h e

s u c c e s s f u l

I n

I ts

a c t l o n

to

r e s t r a l n

t h e

respondent

from

s e l l l n g

t h e

u n i t s

a t

a l l .

On

the

o t h e r

hand,

such

a

r e s t r a l n t a t

thls

tune

wlll

g r e a t l y a f f e c t

t h e

r e s p o n d e n t ’ s b u s l n e s s

over

a

c r l t l c a l

t m e of

t h e y e a r .

The

respondent

has

consented

t o

glve

an

u n d e r t a k i n g

t h a t

he

w l l l I n

r e s p e c t

of

all

f u t u r e

s a l e s

a t t a c h

t o

t h e

g o o d s

0

or

de l lve r

i n

connec t lon wl th

the goods

a

warran ty

i n terms

whlch have

b en

submltted

t o

t h e

c o u r t

a n d

upon

tha t

undertaking

belng

glven,

I

v r l l l

r e f r a l n

from

glv ing

any

r e l l e f by any ln t e r locu to ry o rde r s such a s has been sough t .

I defence t o be glven 2 8 days from th ls d a t e .

w l l l

ad jou rn

t he

summons

l n d e f m l t e l y .

I

order

a

I order t h a t

t h e

n u t u a l

d i s c o v e r y

w i t h o u t

n o t l c e s

1 4

d a y s

a f t e r

the

d e f e n c e

h a s

b e e n

d e l i v e r e d .

I n t e r r o g a t o f l e s

may

be

0

d e l l v e r e d

1 4

d a y s

a f t e r

d l s c o v e r y

or

r a t h e r

s h a l l

be

d e l l v e r e d

n o t

la ter

t h a n

7

d a y s

a f t e r

d l s c o v e r y :

T h a t

t h e r e

be

answers wlthln

14

days

of

the d e l l v e r y of

i n t e r r o g a t o r i e s

and

t h a t

h e

p a r t l e s

c o n s u l t

w l t h

t h e

registrar

as

t o

a n

e a r l y

h e a r a n g

I n

t h e

New

Year

and

t h a t

t h e r e b e

l l b e r t y

to

e l t h e r p a r t y ques t lon o f cos t s o f

t o

a p p l y

a s

It may be ailvlsed.

I r e s e r v e the

i

these

proceedinqs.

: ,

13.

I also order that the respondent. untll the hearlng and

determlnatlon of the actlon keep the following accounts and

records:

An account of the proflt made by the respondent by the lmportatlon and sale of the vldeo computer systems and cartrldges bearlng and/or under and/or

In relatlon to the sald trademarks or any

of them.

An account and record of any and/or sums recelved by the respondent as a result of the sale by it of the said cartrldges bearing and/or under and/or in relation to the said trademarks or any of them.

An account and record of the cost CO the respondent of the Importatxon and sale of all the sa3.d cartrldges sold by the respondent bearlng

and/or under and/or In relatlon

to

the sald

trademarks or any of them.

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