Microsoft Corporation v TYN Electronics Pty Ltd (in liq)

Case [2004] FCA 1307


FEDERAL COURT OF AUSTRALIA

Microsoft Corporation v TYN Electronics Pty Limited (In Liquidation)
[2004] FCA 1307

CORRIGENDUM

MICROSOFT CORPORATION & ORS v TYN ELECTRONICS PTY LIMITED (IN LIQUIDATION) & ANOR
N 925 OF 2002

STONE J
8 OCTOBER 2004 (CORRIGENDUM 10 DECEMBER 2004)
SYDNEY


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

N 925 OF 2002

BETWEEN:

MICROSOFT CORPORATION
FIRST APPLICANT

MICROSOFT PTY LIMITED
SECOND APPLICANT

MICROSOFT LICENSING, INC
THIRD APPLICANT

MICROSOFT LICENSING, GP
FOURTH APPLICANT

AND:

TYN ELECTRONICS PTY LIMITED (IN LIQUIDATION)
FIRST RESPONDENT

NGAT DOAN
SECOND RESPONDENT

JUDGE:

STONE J

DATE OF ORDER:

8 OCTOBER 2004

WHERE MADE:

SYDNEY

CORRIGENDUM

1.At the end of page 4 of the Orders, under the heading ‘Annexure to the Orders of Stone J’ add the following:

‘Unaffixed Certificate of Authenticity label’ means an adhesive label bearing the words “Microsoft” and “Certificate of Authenticity” which is not, or was not at the time of acquisition by the Respondents, adhered to the shrink-wrap packaging of a genuine copy of Microsoft Windows or to a computer system supplied to the Respondents together with the original compact discs and manuals for any preinstalled operating system.

I certify that the preceding one (1) numbered paragraph is a true copy of the Corrigendum to the Reasons for Judgment of her Honour Justice Stone.

Associate:

Dated:            10 December 2004


FEDERAL COURT OF AUSTRALIA

Microsoft Corporation v TYN Electronics Pty Limited (In Liquidation)
[2004] FCA 1307

MICROSOFT CORPORATION & ORS v TYN ELECTRONICS PTY LIMITED (IN LIQUIDATION) & ANOR
N 925 OF 2002

STONE J
8 OCTOBER 2004
SYDNEY


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

N 925 OF 2002

BETWEEN:

MICROSOFT CORPORATION
FIRST APPLICANT

MICROSOFT PTY LIMITED
SECOND APPLICANT

MICROSOFT LICENSING, INC
THIRD APPLICANT

MICROSOFT LICENSING, GP
FOURTH APPLICANT

AND:

TYN ELECTRONICS PTY LIMITED (IN LIQUIDATION)
FIRST RESPONDENT

NGAT DOAN
SECOND RESPONDENT

JUDGE:

STONE J

DATE OF ORDER:

8 OCTOBER 2004

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.In these orders, capitalized terms have the meaning set out in the Annexure to these orders.

2.The respondents and each of them, whether by their servants, agents or otherwise, be permanently restrained from:

(a)reproducing or authorising the reproduction of the whole or a substantial part of any of the Microsoft Programs without the licence of the first applicant;

(b)importing, selling, offering for sale, supplying, offering to supply or distributing any Infringing Microsoft Program;

(c)importing, selling, offering for sale, supplying, offering to supply or distributing any Incomplete Microsoft Program;

(d)importing, selling, offering for sale, supplying, offering to supply or distributing any Unaffixed Certificate of Authenticity labels; and

(e)authorising, directing or procuring any other company or person to engage in any of the conduct sought to be restrained by the orders in subparagraphs (a), (b), (c) and (d) of this order.

3.The respondents and each of them deliver up to the solicitors for the applicants on oath within 7 days of the date of service of this order upon them:

(a)each Infringing Microsoft Program and…

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Details
AGLC
Microsoft Corporation v TYN Electronics Pty Ltd (in liq) [2004] FCA 1307
Case
[2004] FCA 1307
Decision Date

CaseChat Overview and Summary

The case of Microsoft Corporation v TYN Electronics Pty Ltd (in liq) involved Microsoft Corporation and three other companies bringing proceedings against TYN Electronics Pty Ltd, which was in liquidation, and its sole director, Mr Doan. The dispute centred around allegations of copyright and trademark infringement, as well as false representations, by TYN Electronics. The case was heard by the Federal Court of Australia.

The legal issues before the Court included determining whether TYN Electronics had infringed copyright in Microsoft Programs, violated trademark rights, and made false representations about the legality of their products. The applicants sought injunctive relief, delivery up of infringing goods, damages, and costs.

The Court found in favour of the applicants on all counts. It held that TYN Electronics had indeed infringed copyright and trademark rights and made false representations. The Court issued comprehensive orders, including permanent injunctions against various activities related to the manufacture, distribution, and sale of counterfeit software, as well as requiring the delivery up of infringing goods. The Court also awarded substantial damages to the applicants and ordered the respondents to pay the applicants' costs.

In summary, the Court's orders permanently restrained TYN Electronics and Mr Doan from engaging in the manufacture, distribution, and sale of counterfeit software, and required the delivery up of all infringing products and equipment. The Court awarded damages to the applicants and ordered the respondents to pay costs.

Orders

Orders of the court

1. In these orders, capitalized terms have the meaning set out in the Annexure to these orders.

2. The respondents and each of them, whether by their servants, agents or otherwise, be permanently restrained from:

(a) reproducing or authorising the reproduction of the whole or a substantial part of any of the Microsoft Programs without the licence of the first applicant;

(b) importing, selling, offering for sale, supplying, offering to supply or distributing any Infringing Microsoft Program;

(c) importing, selling, offering for sale, supplying, offering to supply or distributing any Incomplete Microsoft Program;

(d) importing, selling, offering for sale, supplying, offering to supply or distributing any Unaffixed Certificate of Authenticity labels; and

(e) authorising, directing or procuring any other company or person to engage in any of the conduct sought to be restrained by the orders in subparagraphs (a), (b), (c) and (d) of this order.

3. The respondents and each of them deliver up to the solicitors for the applicants on oath within 7 days of the date of service of this order upon them:

(a) each Infringing Microsoft Program and any equipment used to make any such infringing copy in the possession, power, custody or control of the respondents or either of them;

(b) all Unaffixed Certificate of Authenticity labels in the possession, power;, custody or control of the Respondents or either of them.

4. Judgment be entered for the fourth applicant against the first and second respondents jointly and severally in the sum of $386,000 being damages for infringement of copyright pursuant to s 115(2) of the Copyright Act 1968 (Cth).

5. Judgment be entered for the fourth applicant against the first respondent in the sum of $300,000 for additional damages for infringement of copyright pursuant to s 115(4) of the Copyright Act 1968 (Cth).

6. Judgment be entered for the fourth applicant against the second respondent in the sum of $400,000 for additional damages for infringement of copyright pursuant to s 115(4) of the Copyright Act 1968 (Cth).

7. The respondents and each of them, whether by their servants, agents or otherwise, be permanently restrained from infringing the Microsoft Trade Marks by:

(a) manufacturing, procuring the manufacture of, importing, purchasing, selling, offering to sell, supplying, offering to supply or distributing any Infringing Microsoft Product; and

(b) authorising, directing or procuring any other company or person to engage in any of the conduct sought to be restrained by sub-paragraph (a) above.

8. The respondents and each of them deliver up to the solicitors for the applicants on oath within 7 days of the date of service of this order upon them:

(a) All infringing Microsoft Products in the possession, custody or control of the respondents or either of them; and

(b) Any equipment used or intended to be used for making Infringing Microsoft Products in the possession, custody or control of the respondents or either of them.

9. The first respondent, whether by its servants, agents or otherwise, be permanently restrained from representing in trade or commerce to persons to whom the first respondent supplies or offers to supply any Infringing Microsoft Programs, Incomplete Microsoft Programs, or Infringing Microsoft Products:

(a) that the first respondent is lawfully entitled to supply any such product; or

(b) in the case of Infringing Microsoft Programs and Infringing Microsoft Products, that any such product has been made with the licence of the first applicant.

10. The second respondent be permanently restrained from aiding, abetting, counselling, procuring or being in any way directly or indirectly a party to or concerned in the conduct sought to be restrained by order 9.

11. The first and second respondents pay the applicants’ taxed costs of the proceedings incurred up to and including 7 September 2004 (including any reserved costs).

12. The second respondent pay the applicants’ taxed costs of the proceedings incurred on or after 8 September 2004 (including any reserved costs).

Background

Background to the litigation

In the absence of the respondents no evidence on their behalf was put before the Court. In their amended defence filed on 28 July 2004 and by virtue of their failure to object to three notices to admit facts served on them by the applicants, the respondents have made certain admissions that include all of the facts contained in the following paragraphs under the heading ‘Statement of admitted facts’. I should add that much, if not all, of the of the information concerning the applicants set out in [9] below, was independently supported by affidavit evidence submitted by the applicants. In particular I refer to two affidavits of Ms Sarah Kaisser, Intellectual Property Manager for the second applicant. Statement of admitted facts The first applicant (‘Microsoft’) manufactures, markets and distributes all versions of the computer programs identified in the schedule to the amended statement of claim (‘Microsoft Programs’) and is the owner of copyright in those programs. The second applicant (‘MPL’) is a subsidiary of Microsoft and provides marketing and technical support in Australia in relation to the Microsoft Programs. From 31 December 1997 to 1 September 2003 the third applicant (‘MLI’) had an exclusive licence in respect of the copyright and distribution of ‘OEM’ versions of Microsoft Programs (including Microsoft Windows Millennium Edition), being versions supplied to and by original equipment manufacturers and assemblers for distribution as part of a computer hardware package. From 1 September 2003 the licensing rights in respect of OEM versions were transferred to the fourth applicant (‘MLGP’). Those rights included the rights in respect of infringements of copyright in the OEM versions of Microsoft Programs. Microsoft is also is the registered owner of trade marks ‘MICROSOFT’ and ‘WINDOWS’ in classes 9 (computer programs) being trade marks 371528 and 576996, as well as 16 (printed material etc) being trade marks 377674 and 576997 (the ‘Microsoft Trade Marks’). MPL is an authorised user of those trade marks. TYN has carried on business as a wholesaler of computer hardware and software since at least 1999. At all material times Mr Doan has been the sole director of TYN and has controlled its day to day activities. In 1997 the applicants filed proceedings in this Court against Beam 2000 Systems Pty Ltd (‘Beam Proceedings’) of which Mr Doan was a director and against Mr Doan in relation to their supply of counterfeit Microsoft software. On 18 November 1997 a judge of this Court made orders restraining Mr Doan and Beam from infringing Microsoft’s copyright and trademarks. In March 2000 Mr Doan and TYN executed an undertaking not to infringe Microsoft’s copyright and trade mark rights. The respondents’ admissions also included facts about licence fees and prices payable in respect of certain Microsoft Programs and about the net revenue of Microsoft and MPI in respect of these Programs; see [40] below. COPYRIGHT CLAIMS

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

STONE J

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Established by: STONE J

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