Avel Pty Ltd v Multicoin Amusements Pty Ltd

The High Court of Australia heard an appeal from Multicoin Amusements Pty Ltd (the respondents) against Avel Pty Ltd (the appellant). The dispute concerned the importation and distribution of amusement games, specifically pinball and video parlour games, manufactured by a US company referred to as "Williams". Avel held exclusive distribution rights for Australia under a contract with Williams, which included copyright in the artwork and computer programs of the games.

The central legal issue before the High Court was whether the respondents' importation of amusement machines, which were models covered by Avel's exclusive distribution agreement with Williams, constituted copyright infringement. This involved determining the scope of Avel's exclusive rights and whether the respondents' actions fell within the ambit of those rights, thereby infringing the copyright subsisting in the machines.

The Court's reasoning focused on the nature of the exclusive distribution agreement and its implications for copyright. Avel argued that its exclusive rights extended to preventing the importation of machines by third parties, even if those machines were legitimately manufactured by Williams. The Court considered the terms of the contract between Avel and Williams, and the extent to which it conferred rights that could be enforced against third parties in Australia. The legal principle applied was that an exclusive licensee of copyright can, in certain circumstances, restrain third parties from infringing that copyright.

The appeal concerned the interpretation of the exclusive distribution agreement and its effect on the respondents' importation activities. The Court ultimately determined the outcome of the appeal based on its findings regarding the infringement of Avel's exclusive rights.