Northern Territory v Collins

The High Court of Australia heard an appeal concerning allegations of patent infringement by the Northern Territory against Mr and Mrs Collins. The Collinses, registered proprietors of a patent for methods of producing essential oils from certain tree species, alleged that the Northern Territory infringed their patent by supplying timber from Callitris trees to Australian Cypress Oil Company Pty Ltd ("ACOC"). ACOC, licensed by the Northern Territory to take timber from Crown land, allegedly used this timber to produce an oil using the patented methods, which was then sold by ACOC.

The central legal issues before the High Court were whether the Northern Territory's grant of licences to ACOC to sever and take timber constituted "supply" of a "product" for the purposes of s 117(1) of the Patents Act 1990 (Cth), and whether the timber taken by ACOC qualified as a "staple commercial product" under s 117(2)(b) of the Act. The court was required to interpret the meaning of "product" in the context of a patent for a method or process, and the scope of "supply" in relation to the licences granted.

The High Court allowed the appeal, setting aside the decision of the Full Court of the Federal Court. The Court reasoned that the grant of licences permitting ACOC to sever and take timber constituted a "supply" of timber by the Northern Territory. However, the Court found that the Northern Territory was protected by s 117(2)(b) of the Patents Act, as the timber taken by ACOC was not a "staple commercial product" in the circumstances. This conclusion was sufficient to allow the appeal, and the Court did not need to consider other arguments raised by the Northern Territory.