Veda Advantage Limited v Malouf Group Enterprises Pty Limited (No 2)

Veda Advantage Limited took proceedings against Malouf Group Enterprises Pty Limited in the Federal Court of Australia concerning alleged infringements of registered trade marks and contraventions of the Australian Consumer Law. Veda claimed that Malouf had used the phrases "The Veda Report Centre" and "The Veda-Report Centre" in its sponsored link advertising, thereby infringing its registered trade marks and engaging in misleading and deceptive conduct. Malouf disputed the claims but agreed to undertake not to use the contested phrases in its sponsored link advertising. The court had to determine whether a permanent injunction should be granted against Malouf for the use of these phrases, despite the undertaking given to the court.

The court considered the arguments presented by both parties regarding the appropriateness of granting a permanent injunction. Veda argued that such an injunction was necessary to prevent Malouf from continuing to use the contested phrases, which could cause confusion among consumers. Malouf opposed the injunction, stating that it had already undertaken not to use the phrases in question. The court had to weigh the need for injunctive relief against the undertaking given by Malouf and determine whether such relief was still necessary to protect Veda's interests. The court also had to decide on the costs to be awarded, considering that Veda was only partially successful in its claims.

The court found that despite Malouf's undertaking not to use the contested phrases, a permanent injunction was still necessary to protect Veda's trade marks and to prevent any future misleading or deceptive conduct. The court noted that the use of the phrases had already caused some confusion and that the injunction was a proportionate measure to prevent further harm. The court also decided that Malouf should pay 20% of Veda's costs, reflecting that Veda was only partially successful in its claims. The court dismissed the remainder of Veda's claims.

In conclusion, the court granted a permanent injunction against Malouf, restraining it from using the phrases "The Veda Report Centre" and "The Veda-Report Centre" in its sponsored link advertising. Malouf was also restrained from advertising, promoting, or offering financial services under or by reference to these phrases. Malouf was ordered to pay 20% of Veda's costs, and the remaining claims were dismissed. The court's decision emphasised the importance of protecting registered trade marks and preventing misleading or deceptive conduct, even when an undertaking has been given to cease such conduct.