Vald Performance Pty Ltd v Kangatech Pty Ltd

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FEDERAL COURT OF AUSTRALIA

Vald Performance Pty Ltd v Kangatech Pty Ltd [2019] FCA 1880

File number(s): QUD 440 of 2019
Judge(s): GREENWOOD J
Date of judgment: 13 November 2019
Catchwords: PATENTS – consideration of the question of costs payable on the reconstitution of the proceeding having regard to the question of whether the applicant is an exclusive licensee of the patentee for the purposes of the Patents Act 1990 (Cth)
Legislation:

Federal Court of Australia Act 1976 (Cth), s 43

Patents Act 1990 (Cth), s 3, s 120(1), Schedule 1

Cases cited: Actavis Pty Ltd v Orion Corporation [2016] FCAFC 121
Date of hearing: 12 November 2019
Date of last submissions: 12 November 2019
Registry: Queensland
Division: General Division
National Practice Area: Intellectual Property
Sub-area: Patents and Associated Statutes
Category: Catchwords
Number of paragraphs: 35
Counsel for the Applicant: Mr A Crowe QC
Solicitor for the Applicant: Holding Redlich
Counsel for the First Respondent: Ms H Rofe QC
Solicitor for the First Respondent: Griffith Hack Lawyers

ORDERS

QUD 440 of 2019
BETWEEN:

VALD PERFORMANCE PTY LTD (ACN 603 446 171)

Applicant

AND:

KANGATECH PTY LTD (ACN 609 070 340)

First Respondent

QUEENSLAND UNIVERSITY OF TECHNOLOGY (ABN 83 791 724 622)

Second Respondent

JUDGE:

GREENWOOD J

DATE OF ORDER:

13 NOVEMBER 2019

THE COURT ORDERS THAT:

1.The applicant in the principal proceeding pay the costs of the first respondent thrown away by reason of the amendments to the originating application and the statement of claim, due to the lack of standing issue, including the costs of the Case Management Hearing held on Tuesday, 12 November  2019, on an indemnity basis. 

2.Pursuant to s 23 and s 37P of the Federal Court of Australia Act 1976 (Cth), rule 1.32 and rule 1.36 of the Federal Court Rules 2011, these orders and the reasons for judgment in support of these orders are made and published from Chambers. 

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


REASONS FOR JUDGMENT

GREENWOOD J:

  1. These proceedings are concerned with a short point which arises out of a Case Management Hearing held in the matter yesterday morning. 

  2. In the proceeding, the applicant (“Vald”) seeks relief against the first respondent (“Kangatech”) in the form of a declaration that Kangatech has infringed particular claims of the patent in suit; injunctions in relation to contended infringing conduct; damages and other relief.  All relief is sought against Kangatech. 

  3. The second respondent is the Queensland University of Technology (“QUT”).  At the commencement of the proceeding, the QUT was the registered proprietor of the patent in suit. 

  4. By its statement of claim, Vald asserts that by a Licence Agreement dated 16 December 2014, the QUT granted an entity called QUTbluebox Pty Ltd (“QUTBB”) an exclusive licence to commercialise the patent, and by a licence dated 19 December 2014, QUTBB granted Vald an exclusive licence to commercialise the patent in suit for a period of 20 years from 19 December 2014. 

  5. By its defence,…

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Details
Case
[2019] FCA 1880
Decision Date

CaseChat Overview and Summary

Vald Performance Pty Ltd, the plaintiff, filed a lawsuit against Kangatech Pty Ltd, the defendant, in the Federal Court of Australia, challenging the validity of a patent. The plaintiff, which claims to be an exclusive licensee of the patent, sought to invalidate the patent on the grounds of non-compliance with the requirements of the Patents Act 1990 (Cth). The defendant opposed the claim, asserting that the plaintiff lacked standing to challenge the patent's validity. The court was tasked with determining whether the plaintiff was indeed an exclusive licensee under the Patents Act 1990 (Cth) and if so, whether the plaintiff had the necessary standing to challenge the patent's validity.

The primary legal issue the court needed to address was whether the plaintiff, Vald Performance Pty Ltd, held the status of an exclusive licensee of the patent, which would grant it the standing to challenge the patent's validity. This issue was critical as it determined the plaintiff's eligibility to bring the lawsuit. If the plaintiff was not an exclusive licensee, it would lack the necessary standing to challenge the patent's validity, and the case would be dismissed for want of jurisdiction.

The court concluded that the plaintiff was not an exclusive licensee of the patent, as defined by the Patents Act 1990 (Cth). Consequently, the plaintiff lacked the standing to challenge the patent's validity. Given this determination, the court ordered the plaintiff to pay the costs of the defendant, which were incurred due to the plaintiff's lack of standing. The court further ordered that these costs, including those from the Case Management Hearing held on 12 November 2019, be paid on an indemnity basis. The court's decision was based on the provisions of the Federal Court of Australia Act 1976 (Cth) and the Federal Court Rules 2011 (Cth).

Orders

Orders of the court

1. The applicant in the principal proceeding pay the costs of the first respondent thrown away by reason of the amendments to the originating application and the statement of claim, due to the lack of standing issue, including the costs of the Case Management Hearing held on Tuesday, 12 November 2019, on an indemnity basis.

2. Pursuant to s 23 and s 37P of the Federal Court of Australia Act 1976 (Cth), rule 1.32 and rule 1.36 of the Federal Court Rules 2011, these orders and the reasons for judgment in support of these orders are made and published from Chambers.

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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