Dunlop Aircraft Tyres Limited v The Goodyear Tire and Rubber Company (No 2)

Dunlop Aircraft Tyres Limited initiated proceedings against The Goodyear Tire and Rubber Company, alleging trade mark infringement and seeking an appeal against the refusal of applications for trade mark registration. The case was heard in the Federal Court of Australia, where both the initial trade mark infringement action and the appeal against the registration refusal were considered together. The legal issues before the court involved determining the appropriate costs orders in light of the dismissal of both the infringement proceedings and the appeal. Specifically, the court had to decide whether an indemnity costs order and a global costs order were appropriate given the outcome of the proceedings.

The court examined the conduct of both parties throughout the litigation process. It considered the relative success of the parties, the proportionality of the costs incurred, and the overall fairness of the costs orders. The court concluded that The Goodyear Tire and Rubber Company, as the respondent, should bear a significant portion of the costs, reflecting their unsuccessful position in both sets of proceedings. The court determined that an indemnity costs order was not warranted as it would not accurately reflect the circumstances of the case. Instead, a global costs order was deemed appropriate, as it considered the totality of the proceedings and the relative success of the parties. The court ordered The Goodyear Tire and Rubber Company to pay 40% of Dunlop Aircraft Tyres Limited's costs of the proceeding.