Top Plus Pty Ltd and Ors v K Square Pty Ltd and Ors (No.2)

The case of Top Plus Pty Ltd and Others v K Square Pty Ltd and Others (No.2) involved a dispute over copyright infringement and unconscionable conduct under Australian law. The plaintiffs, who were the owners and exclusive licensees of cinematograph films of musical performances for use in karaoke outlets, sought relief against the defendants, who had allegedly infringed their copyright by continuing to use the karaoke videos after negotiations for a sub-licence agreement had failed. The defendants had declined to renew the agreement and had demanded a substantial increase in price, which the plaintiffs had challenged. The defendants later admitted the copyright but continued to use the videos during and after the negotiations. The plaintiffs also sought to establish the ownership of the copyright in the karaoke videos.

The court had to determine several legal issues, including whether the defendants had infringed the plaintiffs' copyright by using the karaoke videos without permission, and if so, whether additional damages should be awarded. The court also needed to decide if the plaintiffs had provided sufficient evidence to establish the ownership of the copyright in the videos. Furthermore, the court examined whether the plaintiffs had engaged in unconscionable conduct under the Trade Practices Act by misrepresenting the reasons for the price increase and failing to enter into genuine negotiations. The court had to consider if the plaintiffs' conduct was unconscionable and, if so, what the nature of any damages would be, given that the conduct did not result in a contractual relationship.

In its reasoning, the court found that the defendants had indeed infringed the plaintiffs' copyright by using the karaoke videos without a licence. It granted injunctive relief to prevent further infringement. The court also found that the plaintiffs had engaged in unconscionable conduct by misrepresenting the reasons for the price increase and demanding an immediate response to the offer without providing sufficient reason. The court ordered the plaintiffs to pay the defendants' costs for the cross-claim. The determination of damages for both the copyright infringement and the unconscionable conduct was reserved for a later hearing. The court further ordered an inquiry into the profits or damages relating to the copyright infringement and listed the case for further directions regarding the conduct of the proceeding with respect to damages.

The final orders included permanent restraints on the defendants from infringing the plaintiffs' copyright in the specified karaoke music videos. The plaintiffs were also ordered to pay the defendants' costs for the cross-claim, with the basis of those costs to be determined later. The case was listed for further directions on the conduct of the proceeding with respect to damages.