Autodesk Australia Pty Ltd v Cheung

The case of Autodesk Australia Pty Ltd v Cheung involved a dispute over the distribution of unlicensed copies of computer programs. The applicants, Autodesk Australia and another company, alleged that the respondent, Cheung, had imported and distributed pirated copies of their software. Cheung conceded the infringement of copyright but disputed the amount of damages owed. The matter was heard in the Federal Court of Australia.

The primary legal issues before the court were the assessment of damages for the copyright infringement and the appropriate amount of both compensatory and additional damages. The applicants sought compensation based on the net return they would have received if the programs had been legitimately purchased. They also sought additional exemplary damages, arguing that Cheung's actions were egregious. The court had to determine whether the compensatory damages should be based on the lost profits theory and how to properly calculate and apportion the additional damages.

The court found that assessing damages on a lost profits basis was complicated, as it required determining what sales would have occurred if the software had not been pirated. However, the court was satisfied that the evidence provided a reasonable basis for calculating the compensatory damages. Regarding additional damages, the court considered factors such as the deliberate nature of Cheung's actions and the substantial loss caused to the applicants. The court ultimately decided to award damages that covered both compensatory and additional elements, apportioning the total between the two applicants.

The court entered judgment in favor of the first applicant for $30,000 and in favor of the second applicant for $20,000. The respondent was also ordered to pay the applicants' costs of the proceeding. The specific breakdown of damages and the reasoning behind the apportionment were detailed in the court's judgment.