Kockums AB v Commonwealth

Kockums AB, a Swedish company, sought relief against the Commonwealth of Australia and Australian Submarine Corporation (ASC) over disputes arising from contracts concerning the supply of six Collins Class submarines. Kockums had entered into a Design Sub-Contract with ASC, which was in turn party to a Head Contract with the Commonwealth. Kockums claimed ownership of intellectual property rights and copyright over the submarine propellers designed and manufactured for the Collins Class submarines. The company also sought declarations and injunctive relief preventing the Commonwealth and ASC from providing the propellers to third parties, including the United States Navy, and from disclosing confidential information contained in the design documents. The primary judge dismissed Kockums' application for interlocutory relief and made declarations regarding the interpretation of clauses 48.2 and 48.7 of the Design Sub-Contract. Kockums appealed the primary judge's decision.

The legal issues that the court needed to determine were the proper construction and effect of clauses 48.2 and 48.7 of the Design Sub-Contract. Clause 48.2 related to the assignment of intellectual property rights and copyright, while Clause 48.7 dealt with confidentiality and disclosure of information. The court had to decide whether Kockums owned the intellectual property rights and copyright in the submarine propellers and whether the Commonwealth and ASC were restrained from disclosing or providing the propellers and related design information to third parties, including the United States Navy. The court also needed to assess the validity of the declarations made by the primary judge.

The court found that the primary judge erred in making the declarations regarding clauses 48.2 and 48.7 of the Design Sub-Contract. The court held that Kockums did not own the intellectual property rights and copyright in the submarine propellers, and therefore, the declarations concerning ownership were inappropriate to answer. The court also set aside the declarations that restrained the Commonwealth and ASC from providing the propellers and related design information to third parties, including the United States Navy. The court discharged Kockums from the undertaking it gave in relation to the costs of the appeal.

The court allowed the appeal, set aside the declarations made by the primary judge, and discharged Kockums from the undertaking it gave in relation to the costs of the appeal. The court directed the parties to provide written submissions regarding the costs of the appeal by a specified date. The final orders of the court were to allow the appeal, set aside the declarations, and direct the parties to provide written submissions on the costs of the appeal.