Big Screen Video Pty Ltd v Pyramid Circle Holdings Pty Ltd T/a LED Sign Supply

Big Screen Video Pty Ltd (the appellant) appealed to the Full Federal Court against a decision of a single judge of that court. The dispute concerned the interpretation of a licence agreement for the use of certain intellectual property, specifically relating to LED display technology. The appellant, a company involved in the provision of large-scale LED screens, had entered into a licence agreement with Pyramid Circle Holdings Pty Ltd, trading as LED Sign Supply (the respondent), which held rights to that technology. The core of the dispute revolved around whether the appellant had breached the licence agreement by using the licensed technology in a manner that exceeded the scope of the licence granted.

The Full Federal Court was required to determine whether the appellant's use of the LED display technology constituted a breach of the licence agreement. Specifically, the court had to consider the proper construction of the licence agreement, particularly the definition of "Territory" and the scope of the licence granted in relation to the appellant's business operations. The court also had to assess whether the appellant's actions in supplying LED screens to certain entities fell within the permitted uses under the agreement, or if such actions constituted an unauthorised use of the respondent's intellectual property.

The Full Federal Court analysed the licence agreement, applying principles of contractual interpretation. The court found that the definition of "Territory" in the agreement was not limited to the geographical location of the appellant's physical premises but extended to the locations where the appellant's customers were situated and where the licensed technology was deployed. The court concluded that the appellant had indeed breached the licence agreement by supplying LED screens to entities outside the defined "Territory" as properly construed. This interpretation was based on the wording of the agreement and the commercial context in which it was made, aiming to give effect to the parties' intentions.

The appeal was dismissed, and the decision of the single judge was affirmed.