Skyy Spirits LLC v Lodestar Anstalt (No 2)

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FEDERAL COURT OF AUSTRALIA

Skyy Spirits LLC v Lodestar Anstalt (No 2) [2015] FCA 575

Citation: Skyy Spirts LLC v Lodestar Anstalt (No 2) [2015] FCA 575
Appeal from: Rare Breed Distilling LLC v Lodestar Anstalt [2013] ATMO 85
Parties: SKYY SPIRITS LLC v LODESTAR ANSTALT
File number: NSD 2340 of 2013
Judge: PERRAM J
Date of judgment: 12 June 2015
Catchwords:

COSTS – whether successful party entitled to indemnity costs under r 25.14 of the Federal Court Rules 2011 (Cth) – whether exceptional circumstances existed to require other orders as to costs

TRADE MARKS – whether certificate under s 105 of the Trade Marks Act 1995 (Cth) should issue

PRACTICE AND PROCEDURE – whether any utility in staying orders pending appeal – whether security should be released to applicant

Legislation: Trade Marks Act 1995 (Cth) s 105
Federal Court Rules 2011 (Cth) rr 1.34, 1.35, 25.01, 25.14
Cases cited: Asia Television Ltd v Yau’s Entertainment Pty Ltd (No 2) (2000) 49 IPR 264 cited
Granitgard Pty Ltd v Termicide Pest Control Pty Ltd (No 6) [2010] FCA 381 considered
IFTC Broking Services Ltd v Commissioner of Taxation (2010) 268 ALR 1 considered
Kowa Company Ltd v NV Organon (2005) 223 ALR 27 cited
Merost Pty Ltd v CPT Custodian Pty Ltd (No 2) [2014] FCA 594 cited
Murphy v Westpac Banking Corporation (No 2) [2015] FCA 266 cited
Optical 88 Ltd v Optical 88 Pty Ltd (No 2) (2010) 275 ALR 526 cited
Robinson v Kenny (No 2) [2015] FCA 2 cited
Sky Spirits LLC v Lodestar Anstalt [2015] FCA 509 cited
Date of hearing: 2 June 2015
Place: Sydney
Division: GENERAL DIVISION
Category: Catchwords
Number of paragraphs: 27
Counsel for the Applicant: Mr M Hall SC
Solicitor for the Applicant: King & Wood Mallesons
Counsel for the Respondent: Mr K Philp of Bennett & Philp Lawyers

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 2340 of 2013

BETWEEN:

SKYY SPIRITS LLC
Applicant

AND:

LODESTAR ANSTALT
Respondent

JUDGE:

PERRAM J

DATE OF ORDER:

12 JUNE 2015

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.Set aside the decision of the delegate of the Registrar made on 25 October 2013 in proceeding [2013] ATMO 85 and in lieu thereof order:

1.The applicant’s applications to remove Trade Marks Nos. 1066646 and 1066650 be refused.

2.The applicant pay the respondent’s costs of the proceeding before the Registrar to be assessed (if not agreed) in accordance with Schedule 8 to the Trade Mark Regulations 1995 (Cth).

2.The respondent pay the applicant’s costs of the proceeding assessed on the following basis:

(a)Before 11.00 am on 29 May 2014 – on a party and party basis; and

(b)From 11.00 am on 29 May 2014 – on an indemnity basis.

3.All amounts paid by the applicant in respect of security for the respondent’s costs together with any interest thereon be released to the applicant.

4.Certify that Australian Registered Trade Marks 1066646 WILD GEESE WINES and 1066650 WILD GEESE were used in…

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Details
Case
[2015] FCA 575
Decision Date

CaseChat Overview and Summary

The parties in this case were Skyy Spirits LLC and Lodestar Anstalt. The dispute involved trade mark issues, specifically the refusal of the Registrar to grant a certificate under section 105 of the Trade Marks Act 1995 (Cth) to Lodestar Anstalt. The case was heard in the Federal Court of Australia. The primary legal issues the court had to address were whether Lodestar Anstalt was entitled to indemnity costs under rule 25.14 of the Federal Court Rules 2011 (Cth), whether exceptional circumstances existed to warrant other orders regarding costs, and whether there was any utility in staying orders pending appeal.

The court ruled that Lodestar Anstalt was entitled to indemnity costs from the time it filed its appeal in the Federal Court. The court found that Skyy Spirits had acted unreasonably in pursuing the appeal, and that this constituted exceptional circumstances warranting an indemnity costs order. Additionally, the court determined that the trade marks in question were used in good faith by Lodestar Anstalt between 27 August 2007 and 27 August 2010 in respect of wine, and thus should be certified under section 105 of the Trade Marks Act. The court also stayed certain orders until 28 days after the entry of final orders disposing substantively of any appellate proceedings in the Court.

In summary, the court set aside the Registrar's decision and ordered that Lodestar Anstalt's applications to remove the trade marks be refused. It also ordered that Lodestar Anstalt pay certain costs and that Skyy Spirits' costs be paid on an indemnity basis from a specific date. Furthermore, the court mandated the release of security paid by Skyy Spirits for Lodestar Anstalt's costs, along with any interest thereon. Finally, the court granted a stay of certain orders pending the outcome of any appellate proceedings.

Orders

Orders of the court

1. Set aside the decision of the delegate of the Registrar made on 25 October 2013 in proceeding [2013] ATMO 85 and in lieu thereof order:

1. The applicant’s applications to remove Trade Marks Nos. 1066646 and 1066650 be refused.

2. The applicant pay the respondent’s costs of the proceeding before the Registrar to be assessed (if not agreed) in accordance with Schedule 8 to the Trade Mark Regulations 1995 (Cth).

2. The respondent pay the applicant’s costs of the proceeding assessed on the following basis:

(a) Before 11.00 am on 29 May 2014 – on a party and party basis; and

(b) From 11.00 am on 29 May 2014 – on an indemnity basis.

3. All amounts paid by the applicant in respect of security for the respondent’s costs together with any interest thereon be released to the applicant.

4. Certify that Australian Registered Trade Marks 1066646 WILD GEESE WINES and 1066650 WILD GEESE were used in good faith in Australia by the applicant between 27 August 2007 and 27 August 2010 in respect of wine.

5. Provided that any application for leave to appeal or appeal is diligently pursued, stay order 3 until twenty eight (28) days after the entry of final orders disposing substantively of any appellate proceedings in this Court.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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