TS & B Retail Systems Pty Ltd v 3Fold Resources Pty Ltd (No 3)

The case involved a dispute between TS&B Retail Systems Pty Ltd and 3Fold Resources Pty Ltd, heard in the Federal Court of Australia. TS&B Retail Systems initiated legal action against 3Fold Resources, asserting copyright infringement and breach of confidence regarding 234 drawings and five tables that were allegedly copied by 3Fold. The defence put forward by 3Fold included the claim that TS&B Retail Systems does not own the copyright to the drawings, that the tables are not protected by copyright, and that any infringement of copyright in the drawings was justified because 3Fold had sold products to Kmart, which was licensed by the copyright owner to reproduce the drawings. Additionally, 3Fold denied that the drawings and tables were confidential and argued that even if they were, TS&B Retail Systems had no right to sue for breach of confidence.

The central legal issues before the court were whether TS&B Retail Systems held copyright over the drawings and whether the tables were protected by copyright. If the court found that copyright existed, it needed to determine whether 3Fold's actions constituted infringement. Furthermore, the court had to consider whether the information contained in the drawings and tables was confidential and whether TS&B Retail Systems had a proprietary interest in that information. A critical point of contention was the extent of the confidentiality obligations owed by the former employees of TS&B Retail Systems who were now employed by 3Fold.

The Federal Court found that TS&B Retail Systems did indeed hold copyright in the drawings, which were original artistic works. The court rejected 3Fold's argument that the sale of products to Kmart constituted a fair dealing under the Copyright Act. The court held that the tables were not protected by copyright as they did not meet the originality threshold. Regarding the breach of confidence claim, the court determined that the information in the drawings and tables was confidential and that the former employees of TS&B Retail Systems, who were now with 3Fold, were bound by confidentiality obligations. Therefore, the court ruled in favour of TS&B Retail Systems on both counts, awarding damages for copyright infringement and breach of confidence.

The final orders of the court included a declaration that TS&B Retail Systems held copyright in the drawings, that 3Fold was liable for copyright infringement, and that the information in the drawings and tables was confidential. TS&B Retail Systems was awarded damages for the infringement of copyright and breach of confidence, and 3Fold was ordered to pay costs.