Clarins v Megan Hess Pty Ltd

Clarins Australia Pty Ltd (Clarins) brought proceedings against Megan Hess Pty Ltd (Megan Hess) and Ms Megan Hess personally, alleging breach of contract and copyright infringement. The dispute concerned the use of certain artistic works created by Ms Hess for Clarins under a contract, and the subsequent use of similar artistic works by Megan Hess for other clients, which Clarins contended infringed its copyright and breached the contract. The proceedings were heard in the Federal Court of Australia before Tracey J.

The primary legal issues before the Court were whether Megan Hess had infringed Clarins' copyright in the artistic works by reproducing them for other clients, and whether the contract between Clarins and Ms Hess contained terms that restricted her ability to create and use similar artistic works for third parties. The Court was required to interpret the terms of the contract and apply the principles of copyright law to determine if the alleged infringements had occurred.

Tracey J found that the artistic works created by Ms Hess for Clarins were original works protected by copyright. The Court determined that the works created by Megan Hess for other clients were substantially similar to the works created for Clarins, constituting an infringement of Clarins' copyright. Furthermore, the Court held that the contract between the parties contained express and implied terms that restricted Ms Hess from using her artistic style and specific elements of the works created for Clarins in a manner that would compete with or undermine Clarins' rights. The Court applied the principles of copyright infringement, focusing on the test of substantial similarity, and interpreted the contractual provisions in light of the parties' intentions and the surrounding circumstances.

The Court ordered that Megan Hess Pty Ltd and Ms Megan Hess were jointly and severally liable for the copyright infringement and breach of contract. Orders were made for an account of profits and an inquiry as to damages, with liberty to apply for further directions.