Vehicle Monitoring Systems Pty Limited v SARB Management Group Pty Ltd trading as Database Consultants Australia

Vehicle Monitoring Systems Pty Limited (VMS) brought proceedings against SARB Management Group Pty Ltd (SARB), trading as Database Consultants Australia, for infringement of patents. SARB filed an interlocutory application seeking a permanent stay of the proceedings, a permanent stay of part of the proceedings, and an order to strike out certain paragraphs of VMS’s statement of claim. The interlocutory application was dismissed by the court. The first legal issue was whether VMS was estopped from bringing its claims of infringement of the 110 patent or the 924 patent due to the Anshun estoppel or abuse of process. The court found that there could be no conflicting judgments between the earlier proceeding and the current proceeding, as the rights asserted in each proceeding derive from different patents. Additionally, the subject matter of the current proceeding differs in some respects from the earlier proceeding, and there are reasonable explanations for VMS's failure to raise the current allegations of infringement in the earlier proceeding. The court further found that the settlement agreement between the parties preserved VMS's right to bring a claim on matters related to those litigated in the earlier proceeding. Therefore, the application for a permanent stay was dismissed. The second legal issue was whether claims of infringement were statute-barred. The court held that the most appropriate course was for SARB to plead a limitation defence at trial. The application for a permanent stay of part of the proceedings was dismissed. The third legal issue was whether certain paragraphs of VMS’s statement of claim should be struck out. The application to strike out was dismissed. The court ordered that the first respondent's amended interlocutory application dated 6 May 2019 be dismissed, and that the first respondent pay the costs of the applicant of and incidental to the amended interlocutory application.