Kaeser Kompressoren SE v Atlas Copco Drills AB

In the Federal Court of Australia, M. Cooper J considered the dispute between Kaeser Kompressoren SE (the applicant) and Atlas Copco Drills AB (the respondent). The applicant sought to strike out the respondent's defence and counterclaim in proceedings concerning alleged infringement of Australian Patent No 2010202277, which relates to a method for operating a compressor. The respondent alleged that the applicant's compressor infringed its patent.

The primary legal issue before the Court was whether the respondent's defence and counterclaim were so manifestly untenable or without foundation that they should be struck out. This involved an assessment of whether the respondent had raised a real question to be tried regarding the validity and infringement of its patent. The Court also considered the principles governing the exercise of the power to strike out pleadings, particularly in the context of patent litigation where complex technical and legal arguments are often involved.

M. Cooper J reasoned that the respondent's defence and counterclaim, while potentially complex, raised arguable points concerning the construction of the patent claims and the alleged infringement. The Court found that the respondent had provided sufficient particulars to support its allegations and that the issues raised were not so devoid of merit as to warrant striking out the pleadings at this stage. The Court emphasised that the threshold for striking out a defence and counterclaim is high, and that it is generally preferable for such matters to be determined at a full trial where all evidence can be considered.

Consequently, the Court dismissed the applicant's application to strike out the respondent's defence and counterclaim.