Microsoft Corporation v Auschina Polaris Pty Ltd

Microsoft Corporation and Microsoft Pty Limited sought relief in respect of infringement of copyright and infringement of trade mark. The first applicant, Microsoft, is the owner of the copyright in certain original literary works, namely, 112 computer programs identified in Schedule A to its further amended application, including Microsoft MS-DOS and Microsoft Windows for Workgroups. The claim against Auschina Polaris Pty Limited was settled on 29 February 1996, and the case proceeded only as against Palm Beach Drive Pty Limited and Steven Lagos. The second respondent was a director of Palm Beach. Microsoft claimed that Palm Beach infringed its copyright by importing unlicensed reproductions of the Microsoft Programs into Australia and by selling the reproductions. Microsoft sought damages and permanent injunctive relief. The court found that Palm Beach and Lagos admitted that they knew that if Palm Beach had made copies of the Microsoft Programs in Australia, the making of those copies would have constituted an infringement of Microsoft's copyright. The court held that Lagos was liable for Palm Beach's infringement of Microsoft's copyright, as he was the sole person responsible for all the elements of the infringements. The court also held that the measure of damages in conversion is generally, "the value of the thing converted at the date of conversion." The court found that the amounts of the two Fritz-Fliway invoices were not deductible in the assessment of the amount of "conversion damages" to which Microsoft was entitled under sub-s 116 (1). The proceeding was listed for the purpose of the making of orders and, if necessary, the hearing of submissions as to the orders which should be made.