Beecham Group Plc v Colgate-Palmolive Pty Ltd

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FEDERAL COURT OF AUSTRALIA

Beecham Group PLC v Colgate-Palmolive Pty Ltd [2004] FCA 1482

INTELLECTUAL PROPERTY – trade marks – infringement – leave to appeal from interlocutory decision to grant an injunction – sufficient doubt – factual errors did not affect the conclusions of the trial judge

Trade Marks Act1995 (Cth)

Décor Corp Pty Ltd v Dart Industries (1991) 33 FCR 397
Wellness Pty Ltd v Pro-Bio Living Waters Pty Ltd (2004) 61 IPR 242

BEECHAM GROUP PLC AND GLAXOSMITHKLINE AUSTRALIA PTY LTD (ABN 47 100 162 481) v COLGATE-PALMOLIVE PTY LIMITED (ABN 79 002 792 163)

NSD 1425 OF 2004

BENNETT J
29 OCTOBER 2004
SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD1425 OF 2004

BETWEEN:

BEECHAM GROUP PLC
FIRST APPLICANT

GLAXOSMITHKLINE AUSTRALIA PTY LTD
(ABN 47 100 162 481)
SECOND APPLICANT

AND:

COLGATE-PALMOLIVE PTY LIMITED
(ABN 79 002 792 163)
RESPONDENT

JUDGE:

BENNETT J

DATE OF ORDER:

29 OCTOBER 2004

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

The application for leave to appeal be refused.

Note:    Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD1425 OF 2004

BETWEEN:

BEECHAM GROUP PLC
FIRST APPLICANT

GLAXOSMITHKLINE AUSTRALIA PTY LTD
(ABN 47 100 162 481)
SECOND APPLICANT

AND:

COLGATE-PALMOLIVE PTY LIMITED
(ABN 79 002 792 163)
RESPONDENT

JUDGE:

BENNETT J

DATE:

29 OCTOBER 2004

PLACE:

SYDNEY

REASONS FOR JUDGMENT

  1. This is an application for leave to appeal against a decision of Tamberlin J whereby his Honour made interlocutory orders on the application of the applicants in respect of the alleged infringement by the respondent (‘Colgate’) of the trade mark MACLEANS.  I heard this matter as duty judge.  I gave my decision, that the application for leave to appeal be dismissed, with reasons to be given later.  These are the reasons.

  2. The subject matter of the dispute is Colgate’s use of the word MAXCLEAN on the packaging of toothbrushes.  The word appears next to the Colgate trade mark. 

  3. There is no dispute as to the principles which guide the Court in determining when to grant or refuse leave to appeal from an interlocutory order as enunciated in Décor Corp Pty Ltd v Dart Industries (1991) 33 FCR 397 at 398 and 400:

    ·     Whether in all the circumstances the decision is attended with sufficient doubt to warrant it being reconsidered by the appellate court; and

    ·     Whether substantial injustice would result if leave were refused, supposing the decision to be wrong.

    The parties agreed that there was no disentitling delay on the part of the applicants.

  4. As to whether there was a serious question to be tried, his Honour considered two issues: 

    ·     Whether MAXCLEAN is used as a trade mark

    ·     Whether MAXCLEAN is deceptively similar to MACLEANS

    Whether MAXCLEAN is used as a trade mark

  5. Tamberlin J referred to s 120 of the Trade Marks Act1995 (Cth) and noted at [8] that the first…

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Details
Case
[2004] FCA 1482
Decision Date

CaseChat Overview and Summary

Beecham Group Plc, the owner of the MACLEANS trade mark, filed an action against Colgate-Palmolive Pty Ltd for trade mark infringement in the Federal Court of Australia. Beecham alleged that Colgate's launch of their MAXCLEAN product infringed on their registered trade mark rights, asserting that the MAXCLEAN brand was too similar to MACLEANS and could cause confusion among consumers. Beecham sought an interlocutory injunction to prevent Colgate from continuing to market the MAXCLEAN product. The Court was required to determine whether there was a serious question to be tried concerning the infringement of the trade marks and whether the balance of convenience favoured granting the injunction.

In examining the legal issues, the Court assessed whether Beecham had demonstrated a strong likelihood of success on the merits of their claim, as well as whether the balance of convenience favoured granting the injunction. The Court found that Beecham had established a serious question to be tried regarding the infringement of their trade marks and that the balance of convenience strongly favoured Beecham, considering factors such as the undertaking as to damages, the circumstances of Colgate's product launch, and the inadequacy of damages to counter the harm caused by the possible infringement.

Justice Tamberlin concluded that the balance of convenience strongly favoured Beecham and that the decision to grant the interlocutory injunction was not attended by sufficient doubt. The Court found that Colgate had not established that substantial injustice would result if leave to appeal was not granted, despite the potential errors in the factual findings. Consequently, the Court refused Colgate's application for leave to appeal from the interlocutory decision to grant the injunction.

ORDERS:
The application for leave to appeal be refused.

Orders

Orders of the court

The application for leave to appeal be refused.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

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Decision

Reasons for decision

BENNETT J
Justice Tamberlin’s conclusion at [38] was that the balance of convenience ‘comes down strongly’ in favour of Colgate:‘My conclusions in the present case are that there is a serious question to be tried. The case cannot be described as so weak or fanciful or lacking in substance such as to weigh against the grant of injunctive relief. As to the balance of convenience, I consider that this comes down strongly in favour of MACLEANS, particularly having regard to the undertaking as to damages, the circumstances in which the Colgate product came to be marketed, the inadequacy of damages to counter the harm complained of by MACLEANS as a result of the possible infringement, and the evidence that any damage to Colgate will be reduced, especially in view of the fact that the word “MAXCLEAN” is no longer intended to be used in relation to the battery operated toothbrush.’This conclusion has not been shown to be attended by doubt.Conclusion It cannot be said that the conclusion that there is a serious question to be tried on the use of MAXCLEAN as a trade mark and as a trade mark deceptively similar to MACLEANS is attended with sufficient doubt to warrant it being reconsidered by a Full Court. There is in my view a serious question to be tried that use of MAXCLEAN infringes the applicants’ trade marks. The balance of convenience favours the applicants. That conclusion on the part of Tamberlin J is also not attended by sufficient doubt. Colgate proceeded to launch the MAXCLEAN product in Australia after it was aware, or the persons who made the decision to launch the product were aware, of the likelihood of infringement. Colgate has not established that substantial injustice will be caused if leave to appeal is not granted, supposing the decision to be wrong. The application for leave to appeal should be refused. The applicants have foreshadowed an application with respect to costs after reasons are given. Accordingly, I will not make an order for costs at this time.

Ratio Decidendi

Legal Principle Established

Established by: BENNETT J

Full text does not contain this section.