Working Systems Software Pty Ltd v Chiron Corporation

Working Systems Software Pty Ltd (the applicant) sought an interlocutory injunction against Chiron Corporation (the respondent) to restrain the respondent from continuing its alleged breach of a software licence agreement. The dispute concerned the respondent's alleged use of the applicant's software beyond the scope of the licence granted, specifically in relation to the development and marketing of a new product. The application was heard in the Supreme Court of Victoria.

The primary legal issue before the court was whether the applicant had established a sufficient likelihood of success on the merits to warrant the grant of an interlocutory injunction. This involved determining whether the respondent's actions constituted a breach of the licence agreement, particularly concerning the definition of "related products" and the scope of permitted use for development and marketing purposes. The court also had to consider the balance of convenience between the parties, assessing the potential harm each would suffer if the injunction were granted or refused.

In reaching its decision, the court analysed the terms of the software licence agreement, giving particular attention to the definitions and clauses governing the use of the software for development and marketing. The court applied principles of contractual interpretation, seeking to ascertain the objective intention of the parties at the time the agreement was made. It considered the evidence presented by both parties regarding the nature of the respondent's new product and its relationship to the licensed software. The court found that the applicant had not demonstrated a strong enough prima facie case to justify the grant of an interlocutory injunction, concluding that the balance of convenience did not favour the applicant.

Consequently, the court dismissed the application for an interlocutory injunction.