BlueScope Steel Limited v Dongkuk Steel Mill Co., Ltd (No 3)

Case [2020] FCA 113


FEDERAL COURT OF AUSTRALIA

BlueScope Steel Limited v Dongkuk Steel Mill Co., Ltd (No 3) [2020] FCA 113

File number: VID 1429 of 2016
Judge: BEACH J
Date of judgment: 11 February 2020
Catchwords: PATENTS – costs – apportionment of costs as between issues – consequential orders
Cases cited:

BlueScope Steel Limited v Dongkuk Steel Mill Co., Ltd (No 2) [2019] FCA 2117

Les Laboratories Servier v Apotex Pty Ltd (2016) 247 FCR 61

Date of hearing: On the papers
Registry: Victoria
Division: General Division
National Practice Area: Intellectual Property
Sub-area: Patents and associated Statutes
Category: Catchwords
Number of paragraphs: 25
Counsel for the Applicant and Cross-Respondent: Mr BN Caine QC and Ms C Cunliffe
Solicitor for the Applicant and Cross-Respondent: King & Wood Mallesons
Counsel for the Respondent and Cross-Claimant: Mr A Ryan SC and Mr JS Cooke
Solicitor for the Respondent and Cross-Claimant: Bird & Bird

ORDERS

VID 1429 of 2016
BETWEEN:

BLUESCOPE STEEL LIMITED ACN 000 011 058

Applicant

AND:

DONGKUK STEEL MILL CO., LTD

Defendant

AND BETWEEN:

DONGKUK STEEL MILL CO., LTD

Cross-Claimant

AND:

BLUESCOPE STEEL LIMITED (ACN 000 011 058)

Cross-Respondent

JUDGE:

BEACH J

DATE OF ORDER:

11 FEBRUARY 2020

THE COURT ORDERS THAT:

1.Each of claims 1, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 14, and 15 of Australian Patent number 2009225257 titled “Metal-coated steel strip” (257 Patent) is and at all material times has been invalid.

2.Each of claims 12, 22, 23, 24 and 25 of Australian Patent number 2009225258 titled “Metal-coated steel strip” (258 Patent) is and at all material times has been invalid.

3.It be certified that the validity of each of claims 1, 2, 5, 6, 11, 17, 18, 19, 20 and 21 of the 258 Patent was questioned in this proceeding.

4.Each of claims 1, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 14 and 15 of the 257 Patent be revoked.

5.Each of claims 12, 22, 23, 24 and 25 of the 258 Patent be revoked.

6.The claim and the cross-claim otherwise be dismissed.

7.The interlocutory application filed on 13 April 2017 seeking leave to amend the 257 Patent (Amendment Application) be dismissed.

8.Any application by the Applicant/Cross-Respondent for leave to appeal against Order 7 be heard and determined by a Full Court concurrently with, or immediately before, the hearing of any appeal.

9.Orders 4 and 5 be stayed:

(a)initially for a period of 28 days from the date on which these orders are pronounced; and

(b)if any appeal is lodged within that period, until the determination of that appeal and any further appeal therefrom, or further order.

10.Subject to Order 11 below, the Applicant pay two-thirds of the Respondent’s costs of and incidental to the proceeding including the Amendment Application on a party-party basis.

11.Order 10 does not displace any costs order previously made in the proceeding.

THE COURT NOTES THAT:

12.The Applicant/ Cross-Respondent undertakes:

(a)to prosecute any appeal expeditiously;

(b)during the operation of the stay in Order 9, not to assert…

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AGLC
BlueScope Steel Limited v Dongkuk Steel Mill Co., Ltd (No 3) [2020] FCA 113
Case
[2020] FCA 113
Decision Date

CaseChat Overview and Summary

BlueScope Steel Limited and Dongkuk Steel Mill Co., Ltd were engaged in litigation over the validity and infringement of two Australian patents. The dispute was heard by the Federal Court of Australia. BlueScope Steel, the patent holder, filed a lawsuit against Dongkuk Steel, alleging infringement of several claims in two patents related to metal-coated steel strip. Dongkuk Steel responded by filing a cross-claim, challenging the validity of the patents.

The court was tasked with determining the validity of specific claims in the patents, the infringement of those claims by Dongkuk Steel, and whether BlueScope Steel was entitled to amend the patents during the proceedings. Additionally, the court had to consider the appropriate apportionment of costs between the parties.

The Federal Court ruled that several claims in both patents were invalid. It also found that Dongkuk Steel did not infringe the valid claims and dismissed BlueScope Steel's application to amend the patents. The court ordered that the invalid claims be revoked and that BlueScope Steel pay two-thirds of Dongkuk Steel's costs. The stay on the revocation orders was set for 28 days, extendable if an appeal was filed within that period. The court further ordered that BlueScope Steel must prosecute any appeal expeditiously and refrain from asserting the invalid claims against third parties during the appeal period.

The court's final orders included the invalidation and revocation of specific patent claims, dismissal of the cross-claim, and an apportionment of costs between the parties. BlueScope Steel was also required to provide a copy of the court's orders to the Commissioner of Patents and to undertake certain obligations if it chose to appeal the decision.

Orders

Orders of the court

1. Each of claims 1, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 14, and 15 of Australian Patent number 2009225257 titled “Metal-coated steel strip” (257 Patent) is and at all material times has been invalid.

2. Each of claims 12, 22, 23, 24 and 25 of Australian Patent number 2009225258 titled “Metal-coated steel strip” (258 Patent) is and at all material times has been invalid.

3. It be certified that the validity of each of claims 1, 2, 5, 6, 11, 17, 18, 19, 20 and 21 of the 258 Patent was questioned in this proceeding.

4. Each of claims 1, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 14 and 15 of the 257 Patent be revoked.

5. Each of claims 12, 22, 23, 24 and 25 of the 258 Patent be revoked.

6. The claim and the cross-claim otherwise be dismissed.

7. The interlocutory application filed on 13 April 2017 seeking leave to amend the 257 Patent (Amendment Application) be dismissed.

8. Any application by the Applicant/Cross-Respondent for leave to appeal against Order 7 be heard and determined by a Full Court concurrently with, or immediately before, the hearing of any appeal.

9. Orders 4 and 5 be stayed:

(a) initially for a period of 28 days from the date on which these orders are pronounced; and

(b) if any appeal is lodged within that period, until the determination of that appeal and any further appeal therefrom, or further order.

10. Subject to Order 11 below, the Applicant pay two-thirds of the Respondent’s costs of and incidental to the proceeding including the Amendment Application on a party-party basis.

11. Order 10 does not displace any costs order previously made in the proceeding.

THE COURT NOTES THAT:

12. The Applicant/ Cross-Respondent undertakes:

(a) to prosecute any appeal expeditiously;

(b) during the operation of the stay in Order 9, not to assert infringement of any of the claims referred to in Orders 4 and 5 against any third party; and

(c) forthwith to provide a copy of these Orders to the Commissioner of Patents.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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