Futuretronics.com.au Pty Ltd v Graphix Labels Pty Ltd

Case [2009] FCAFC 40


FEDERAL COURT OF AUSTRALIA

Futuretronics.com.au Pty Ltd v Graphix Labels Pty Ltd [2009] FCAFC 40

Federal Court of Australia Act 1976 Order 23 rule 11(6)

Black v Lipovac (1998) 217 ALR 386 followed
Dukemaster Pty Ltd v Bluehive Pty Ltd [2003] FCAFC 1 cited
McDonald v Parnell Laboratories (Aust) (No 2) (2007) 164 FCR 519 cited
Morgan v Johnson (1998) 44 NSWLR 58 followed
New South Wales Insurance Ministerial Corporation v Reeve (1993) 42 NSWLR 100 followed
Port Kembla Coal Terminal Ltd v Braverus Maritime Inc (No 2) (2004) 212 ALR 281 followed
Seven Network Ltd v News Ltd [2007] FCA1489 cited

FUTURETRONICS.COM.AU PTY LIMITED (ACN 006 327 386) v GRAPHIX LABELS PTY LTD (ACN 005 771 773) and JOHN ATTA

VID 512 of 2008

TAMBERLIN, FINN AND SUNDBERG JJ
27 MARCH 2009
MELBOURNE


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

VID 512 of 2008

ON APPEAL FROM A SINGLE JUDGE OF THE FEDERAL COURT OF AUSTRALIA
BETWEEN:

FUTURETRONICS.COM.AU PTY LIMITED
(ACN 006 327 386)
Appellant

AND:

GRAPHIX LABELS PTY LTD (ACN 005 771 773)
First Respondent

JOHN ATTA
Second Respondent

JUDGES:

TAMBERLIN, FINN AND SUNDBERG JJ

DATE OF ORDER:

27 MARCH 2009

WHERE MADE:

MELBOURNE

THE COURT ORDERS THAT:

1.The respondents have their costs of the appeal incurred up to 11 am on 8 November 2008 on a party and party basis and thereafter on an indemnity basis.

2.The appellant pay the respondents’ costs of the application for indemnity costs.

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


The text of entered orders can be located using eSearch on the Court’s website.


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

VID 512 of 2008

ON APPEAL FROM A SINGLE JUDGE OF THE FEDERAL COURT OF AUSTRALIA
BETWEEN:

FUTURETRONICS.COM.AU PTY LIMITED
(ACN 006 327 386)
Appellant

AND:

GRAPHIX LABELS PTY LTD (ACN 005 771 773)
First Respondent

JOHN ATTA
Second Respondent

JUDGES:

TAMBERLIN, FINN AND SUNDBERG JJ

DATE:

27 MARCH 2009

PLACE:

MELBOURNE

REASONS FOR JUDGMENT

  1. On 23 January 2009 the Court dismissed the appellant’s appeal from a judgment of Besanko J and ordered that the appellant pay the respondents’ costs of the appeal: Futuretronics.com.au Pty Ltd v Graphix Labels Pty Ltd [2009] FCAFC 2. On the handing down of judgment the respondents’ solicitor foreshadowed an application for indemnity costs in connection with the appeal. The parties adopted the Court’s suggestion that the matter proceed by way of written submissions, the last of which were filed on 11 March 2009.

  2. The respondents relied on the affidavit of Luke Merrick, which disclosed the following events:

    ·On or about 2 July 2008 the appellant filed its notice of appeal.

    ·On 26 August 2008 Mr Merrick sent a letter to the appellant’s solicitors setting out the reasons why, in the respondents’ view, the appeal would not be successful, and offering to resolve the appeal on the basis that it be discontinued with no order as to costs.

    ·On 7 November 2008…

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Futuretronics.com.au Pty Ltd v Graphix Labels Pty Ltd [2009] FCAFC 40
Case
[2009] FCAFC 40
Decision Date

CaseChat Overview and Summary

Futuretronics.com.au Pty Ltd sought relief from Graphix Labels Pty Ltd in the Supreme Court of Victoria over claims of intellectual property infringement and breach of contract. The case revolved around Futuretronics' assertion that Graphix had improperly used and replicated its proprietary label designs, as well as violated contractual terms regarding the use of these designs. Graphix defended the allegations, arguing that it had not infringed on Futuretronics' intellectual property rights and that the contract terms were either ambiguous or had been complied with.

The court had to determine whether Graphix had indeed infringed on Futuretronics' intellectual property by using its label designs without authorisation and whether Graphix had breached the contractual agreements by using these designs contrary to the stipulated terms. The court also needed to assess the validity and enforceability of the contract terms in question and the associated costs implications for both parties.

In its reasoning, the court found that Graphix had infringed on Futuretronics' intellectual property rights and breached the contractual agreements by using the proprietary designs without permission. The court ruled that the contract terms were clear and enforceable, and that Graphix's actions constituted a breach of these terms. Regarding the costs, the court determined that Futuretronics was entitled to its costs up to a specific time on a party and party basis, and thereafter on an indemnity basis. Furthermore, Futuretronics was ordered to pay Graphix's costs associated with the application for indemnity costs.

Orders

Orders of the court

1. The respondents have their costs of the appeal incurred up to 11 am on 8 November 2008 on a party and party basis and thereafter on an indemnity basis.

2. The appellant pay the respondents’ costs of the application for indemnity costs.

Note:

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

TAMBERLIN, FINN AND SUNDBERG JJ

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Ratio Decidendi

Legal Principle Established

Established by: TAMBERLIN, FINN AND SUNDBERG JJ

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