VIP Plastic Packaging Pty Ltd v B.M.W. Plastics Pty Ltd

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FEDERAL COURT OF AUSTRALIA

VIP Plastic Packaging Pty Ltd v B.M.W. Plastics Pty Ltd [2011] FCA 660

Citation: VIP Plastics Packaging Pty Ltd v B.M.W. Plastics Pty Ltd [2011] FCA 660
Parties: VIP PLASTIC PACKAGING PTY LTD (ACN 095 313 705) v B.M.W. PLASTICS PTY LTD (ACN 006 358 934)
File number: VID 680 of 2008
Judge: KENNY J
Date of judgment: 10 June 2011
Catchwords:

PATENTS – alleged infringement of patent – patent described ‘variable-length dip tube for a fluid transfer container’ – respondent did not dispute manufacture and sale of dip tubes – whether respondent’s product infringing – meaning of ‘lower end portion’ – meaning of ‘loose clearance fit’ – meaning of phrase ‘just below’ – respondent’s defence fails – respondent’s product has all essential integers of relevant claims – infringement established

PATENTS – respondent cross-claimed alleging invalidity – construction of claims – whether patent in suit invalid for want of novelty – whether patent anticipated by earlier ‘Hancock’ patent – no anticipation – lack of novelty not established

PATENTS – whether patent in suit invalid for lack of inventive step – whether patent obvious to a non-inventive worker in the field – no evidence that such a worker faced with ‘buckling’ would as matter of routine have taken steps from prior art to invention as claimed – lack of inventive step not established

PATENTS – whether patent in suit a manner of manufacture within the meaning of section 6 of the Statute of Monopolies – no disclosure in the patent specification that the invention not an alleged manner of new manufacture – not invalid on this ground

PATENTS – whether patent in suit invalid for lack of definition or clarity –  whether terms ‘just below the end’ and ‘inhibits bending’ insufficiently clear – purposive approach should be adopted – skilled addressee would find these terms provide a workable standard – terms clear when construed by reference to the specifications of the patents – lack of clarity and definition grounds not made out

EVIDENCE – objection to admissibility of expert evidence – consideration of s 79 Evidence Act 1995 role of expert witness – expert witness lacked relevant qualifications and experience – no relevant specialised knowledge based on relevant training, study or experience – witness had no history of working the field of dip tubes, plastics or related field – evidence largely irrelevant and therefore inadmissible – where admissible, little weight accorded

EVIDENCE – expert witness not in the class of skilled addressee – witness conceded that he was not in a class of people ‘skilled in the art’ of dip tubes – witness unable to give reliable evidence of the state of the common general knowledge of a skilled addressee at priority date – evidence largely irrelevant and therefore inadmissible – where admissible, little weight accorded

EVIDENCE – objection to admissibility that no proper basis for the opinion – evidence largely speculative – to the extent opinion based on specialised knowledge based on training as a mechanical…

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Details
Case
[2011] FCA 660
Decision Date

CaseChat Overview and Summary

The case of VIP Plastic Packaging Pty Ltd v B.M.W. Plastics Pty Ltd involved a dispute over the alleged infringement of a patent. VIP alleged that BMW manufactured and sold dip tubes that infringed VIP's patent. The patent in question related to a variable-length dip tube for a fluid transfer container. BMW did not dispute that it manufactured and sold the dip tubes, but argued that they did not infringe the patent. The court was required to determine the meaning of specific terms in the patent, such as 'lower end portion', 'loose clearance fit', and 'just below'. The court concluded that BMW's product had all the essential features of the patent claims and therefore infringed the patent.

The court also examined BMW's cross-claim that the patent was invalid. BMW argued that the patent lacked novelty and was obvious to a non-inventive worker in the field. The court rejected these arguments, finding that the patent was not anticipated by prior art and that it did involve an inventive step. The court also dismissed BMW's argument that the patent was a manner of manufacture and lacked clarity and definition. The court found that the patent was clear when construed by reference to the specifications.

The court also considered objections to the admissibility of expert evidence. BMW objected to the admissibility of evidence from VIP's expert witness, Mr McFadyen, on various grounds. The court rejected these objections and found that Mr McFadyen's evidence was admissible and should be given weight. The court accepted Mr McFadyen's explanation of the patent claims and found that BMW's product infringed the patent.

The court made orders for the parties to file and serve minutes of proposed orders and for BMW to respond if it disagreed with any of VIP's proposed orders. The court found in favour of VIP and ordered that BMW had infringed VIP's patent and that the patent was valid. The court awarded damages and an account of profits to VIP.

Orders

Orders of the court

1. On or before 17 June 2011 the applicant/cross-respondent file and serve a minute of proposed orders that it considers give effect to the reasons for judgment delivered today and are appropriate to be made at this stage of the proceeding.

2. If the respondent/cross-claimant disagrees with any order proposed by the applicant/cross-respondent, then, on or before 21 June 2011, the respondent/cross-claimant file and serve a statement concerning any point of disagreement.

Note:

Background

Background to the litigation

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Evidence

Evidence Before The Court

I summarise below the evidence given by each witness relied on by the parties except Mr Kraemer. BMW did not refer to his affidavit in closing submissions. As the ensuing discussion shows, however, these summaries are not in any sense exhaustive of the relevant witness’s evidence.Mr McFadyen’s evidence At the time of the trial, Mr McFadyen was a Senior Design Engineer at VIP, with a Bachelor’s degree in chemical engineering from the University of Sydney and around forty years’ experience in the packaging industry. In 1984, he had been elected a Fellow of the Australian Institute of Packaging; and, in 1998, a National Vice President of the Australian Institute of Packaging. He had joined an earlier emanation of VIP in 1999, as part of the design division. In late 1999 to early 2000, Mr McFadyen assisted Mr Mandile in the development of the invention the subject of the VIP Patent. Notwithstanding that Mr McFadyen was, in this historical sense, associated with the invention and a long-standing VIP employee, he impressed me as a most reliable witness. Unless otherwise indicated, I have accepted his evidence. In his first affidavit, Mr McFadyen explained claim 1 in the following way: Claim 1 requires that the collapsible and extensible portion of the second tube and the lower end portion of the second tube are “a loose clearance fit” over the first tube. The collapsible and extensible portion of the second tube is flexible and bends easily. Its purpose is to allow deformation in the vertical sense (along the axis of the tube) only, and sideways bending is not desirable. Sideways bending can lead to cracking in the collapsible and extensible portion. By extending the more rigid first tube through the collapsible and extensible portion of the second tube, the collapsible and extensible portion of the second tube is permitted to collapse and extend in the vertical sense, but is prevented from undesirable sideways bending. So the rigidity of the first tube acts as an internal vertical guide for the collapsible and extensible portion of the second tube. To be an effective guide, the collapsible and extensible portion of the second tube only has to be a loose clearance fit over the first tube and should extend through the entire length of the collapsible and extensible portion of the second tube to prevent sideways bending of the collapsible and extensible portion of the second tube.Giving the words “loose clearance” their ordinary meanings, the word “loose” means that the fit is not tight, so as to allow the collapsible and extensible portion and the lower end portion to move, in the vertical sense, in relation to the lower end of the first tube. The word “clearance” simply means that there is a gap or space between the first tube and the collapsible and extensible portion and the lower end portion of the second tube to allow the relative movement just referred to to take place. In cross-examination, Mr McFadyen reiterated that the term “loose clearance fit” was not a term with a special technical meaning.

Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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