Sato Computers Pty Ltd v Shuttle Inc

Sato Computers Pty Ltd (Sato) brought proceedings against Shuttle Inc (Shuttle) in the Federal Court of Australia, alleging that Shuttle had infringed Sato's registered trade mark, "SATO", used in relation to computer hardware and accessories. Sato sought an injunction to restrain Shuttle from using the mark "SHUTTLE" in relation to similar goods, and damages for the alleged infringement.

The primary legal issue before the court was whether Shuttle's use of the mark "SHUTTLE" in relation to computer hardware and accessories constituted a trade mark infringement of Sato's registered trade mark "SATO" under the *Trade Marks Act 1995* (Cth). This involved determining whether the marks were substantially identical or deceptively similar, and whether the goods in respect of which the marks were used were closely related.

Justice McDonagh considered the principles of deceptive similarity, noting that the court must consider the overall impression of the marks, the visual, aural, and conceptual similarities, and the nature of the goods. He found that while the marks shared some phonetic similarities, the visual and conceptual differences were significant. Furthermore, the court found that the goods, while related, were not so closely related as to create a likelihood of confusion in the minds of the relevant consumers. The court also considered the evidence of actual confusion, which was found to be minimal.

Ultimately, Justice McDonagh dismissed Sato's claim for trade mark infringement, finding that Shuttle's use of the mark "SHUTTLE" did not infringe Sato's registered trade mark "SATO". Sato was ordered to pay Shuttle's costs of the proceeding.