E

IP Notes

1. Introduction to intellectual property

 

What is intellectual property?

 

Legal definition: Intellectual property

Exclusive rights to the results of creative and intellectual efforts protected under common law or statutes.

 

This topic introduces the student to an overview of what intellectual property is, its nature, development and the framework within which it operates. It will therefore first provide a broad definition of intellectual property (IP) by reference to accepted categories of IP. IP is a legal term that refers to unique creations of the mind, such as inventions, designs and brands.

 

IP can be categorized into four main types: patents, trademarks, copyrights and trade secrets,

  • Patents: protect inventions, new processes, substances, methods or devices

  • Trademarks: protects logos, words, and other branding

  • Copyrights: Protects Art, writing, music, film and computer programs

  • Registered designs: Protect layout designs or plans of integrated circuits

 

Subject matter covered by IP

  • Copyrights: Literary, artistic and scientific works; performances of performing artists, phonograms and broadsheets

  • Patents: Inventions; scientific discoveries

  • Passing off: Unfair competition; confidential information

  • Confidential information

Topics

  • 1. Passing off (exclusive rights to one’s commercial image and goodwill)

    • A tort

    • E.g., if tradesman A represents to their customers that their goods and those of tradesman B but they are in fact not.

    • ACL

     

    2. Trademark (Exclusive rights to use a trademark to benefit from its use in terms of trade

    • A sign used/indented to be used to distinguish goods or services dealt with or provided in the course of trade by a person from goods or services provided by another person

     

    3. Copyright (Exclusive rights to benefit from creative work)

    • Works, creative works, movies. music, books, computer programs

    • Reproduction, publish, perform, communicate

     

    4. Confidential information (common law and equitable principles)

    • Contract

    • Fiduciary relationships

     

    5. Design (Exclusive rights to benefit from the design

    • Function and appearance

    • The overall appearance of the product resulting from one or more visual feature of the product

    • A chairs that goes beyond the function of just being a chair, its appearance.

     

    6. Patents (Exclusive but temporary rights to benefit from an industrial invention (product or process)

    • Solves an industrial problem where society may benefit

    • Granted by the State to a patentee in return for disclosure of the patentee’s invention to the public

    • E.g. Pharmaceutical products, electronic devices, apps, computer technology etc.

     

     

     

     

 

 

1.6 Why have IP rights

 

Rationales

  • Protect an individual’s right to obtain value

  • Value of physical labour whether that be mental labour embodied in object: emphasis on the value of the object to society

  • Classic jurisprudence – Utilitarianism/political economics

  • IP as a way to reward creators/ incentives

IP as property rights

  • Rights to land, property and chattels (personal and real estate)

  • Rights to enjoy. to physically exclude others from using

  • Justifications

    • If land is owned by no one. everyone can use it which will make it overused and deteriorate

    • Maintenance to keep value

    • Granting property rights in land, the owner has an incentive to maintain and improve the land for their enjoyment. In return for these exclusive rights, society also benefits as the land as maintained and improved

IP as property rights: Issue

  • Intangible property rights:

    We cannot physically touch the rights as they go beyond the physical appearance of the object (The physical copy)

    • Differs from physical property rights (such as the physical copyright of a book)

     

    Labour of the mind and physical labour

    • Does not protect ideas – the object of the rights must have physical form

     

    Monopoly rights

    • Exclusive right to control the communication/production/publication of the object where the right attaches to

    • Commercially benefit

     

Rights in physical property: the IP issue

  • IP rights are different from physical property rights as they are non-physical and hence do not deteriorate by use

    • Selling a copy of a book will not impact the copyright to the work

    • Neither will selling 100 copies…the rights remain intact

    • If you sell your physical house, your property rights will ceise

    • We can’t use the physical property justification

     

Labour theory

  • John Locke’s labour theory (Common law tradition)

    • Physical property based) – IP as rights to property

    • Relationship: right to your body, right to product of labour of body transferability – alienability

    • A person has the right to their own body and when labour of that body is utilised to create a product of value, a relationship arises between the product and the person which entitles the creator to a certain right over that product – a right of property

    • IP rights: Fruits of the creator’s intellectual labour (labour of the mind) and a person hence has a property right over that product

     

Personality theory

  • Immanuel Kant’s personality Theory (Civil law tradition)

    • Relationship: the personality of the author and the work

    • IP is considered an extension of the creator’s personality – unbreakable bond exists between the work and its creator because the creator has infused their personality into the work which therefore bears the imprint of the authors personality

    • Due to this connection, the creator has a economic and moral right to their work that are those of paternity and integrity (rights to attribution and transformation)

     

Incentive theory

  • Society: Needs access to IP objects to improve living standards and provide better care for the increasing population

    • Access to technology (inventions) – patents

    • Access to learning/information – copyrights

    • Economy – IP in general

     

    IP creations: Needs benefits to encourage creation and to disseminate

    • Exclusive property rights such as IP – economy and recognition

    • Task of dissemination

    • Patents: Disclosure of method

     

    Balance: IP strikes a balance between the needs of society and the rights of the creator – IP is therefore not unlimited (subject matter, duration and exceptions)

     

IP justifications – utilitarianism

  • Jeremy Bentham – utilitarianism

    • Just decision is the one that promotes most happiness to most people

    • IP is considered a utility of happiness

    • IP is hence valuable to society because it promotes happiness in the creator as well as society

Summary:

Why do we have IP?

  • Is it not fair that the creator has an exclusive right to benefit from the creation of the IP because:

    1. The IP has been produced with labour of the mind

    2. The creator has infused the IP with their personality

    3. It promotes happiness for society and for the author

    4. It encourages the creator to create what society considers valuable

     

 

 

History of Intellectual property law

History of Intellectual property law

1. Concept of ‘property’ arose from feudalism in the 12th century

 

International treaties: Overview

  • Paris convention 1883 (AU 1925)

    • First major international treaty designed to help the people of one country obtain intellectual property protection in another country. Governs trademarks, patents, and industrial design.

    Berne convention 1886 (The US only joined in 1989; AU 1928)

    • Set outs certain minimum standards for the protection of works and the rights of authors (copyright law)

     

Globalisation

  • Globalization in 1970s-1990: internationalized market (international trade) – IP regulations increases

     

    TRIPS 1994 (WTO): Berne and Paris Convention etc

    • Minimum standards relating to copyrights, neighbouring rights, design, trademarks, geographical indications and undisclosed information with emphasis on enforcement and dispute resolution

    • Issue of enforceability – ICJ

    • WTO members: Minimum rule – trade sanctions

    Trade agreements

    • AUSFTA 2005

    • ACTA 2012: Signed by AU but lacks ratifications; highly criticised for boarder contract measures

     

    International principles

    Minimum rules: Treaties do not provide international jurisdictions of IP infringements

     

    National treatment: Same or better protection for foreigners

Current legislation

  • Statutes/legislation/acts

    • The copyright Act 1968

    • Patent Act 1990 (Cth)

    • Designs Act 2003 (Cth)

    Case law

    Equity

IP as negative rights

  • Rights are negative in character – you only enforce your rights upon infringement

  • Prevent others from using

  • Impact of competition and consumer Act 2010 (Cth): Deception and misleading conduct (s 18) interests with passing off, trademarks

Court processes

  • Federal court of Australia Act 1975

    • Federal court of Australia Act 1975, Judiciary Act 1903

     

    Federal circuit court (Fed Magistrates court) – Less complex

    • Special IP judge

    • Federal circuit court of Australia Act 1999

     

    Common law claims: state/ territory courts or federal court/federal circuit court

     

 

Remedies

 

Available remedies

  • Injunction (Primary): Interlocutory stage (status quo) – equitable

     

    Monetary: Damages or account of profits (equitable) – no double recovery

     

    Ancillary orders: Order for discovery, inspection, seizure of physical evidence, delivery up, prevent removal of assets from junction

     

    Groundless threats: If no basis for infringement claim (Tactic) and damage

     

    Criminal offences: Intentionally or recklessly infringement (counterfeiters) and false entries on register

    • Trademark law, copyright law but now also patents, designs

    • Knowledge required lowered

    • Penalties more stringent

    • Range of offence expanded

IP and its connection with technology

  • Interactions: IP and technology

    • Technology: communication and production

    • Advancements

    • Improves society, helps deal with social challenges – globalisation/aging population

     

    The IP crisis

    • Advancements of technology enables new forms of communicating IP objects that remain unregulated – streaming

    • Makes it easier to produce IP objects (digitalisation IP)

    • Internationalisation of infringements contra national jurisdiction

    • International treaties: no international jurisdiction

 

Week one summary and key points of Intellectual property IP law

 

What is intellectual property?

 

Legal definition: Intellectual property (IP) refers to exclusive rights granted to individuals or entitled for their creative and intellectual efforts, protected under common law or statutory law. It encompasses a variety of legal protections for intangible assets such as inventions, designs, artistic works and brand identifiers.

Categories of

intellectual property

  • Patents: Protect inventions, new processes, substances, methods, or devices

  • Trademarks: protect brand identifies such as logos, words and symbols

  • Copyrights: Protect artistic and literary works, including books, music, film and software

  • Registered designs: Protect the visual appearance of a product, including layout designs or integrated circuit plans

Subject matters covered by IP

 

  • Copyrights: Literacy, artistic and scientific works; performances and broadcasts

  • Patents: Inventions and scientific discoveries

  • Passing off: Protection against unfair competition and misrepresentation

  • Confidential information: Protection of trade secrets and sensitive information

Why have IP rights?

  • Rationale

    • Protects an individual’s ability to derive value from their creation

    • Encourages innovation by rewarding creators

    • Prevents overuse and degradation of creative works

    • Balances incentives for creators with societal benefits

    Theoretical justifications

    • Labour Theory (John Locke) – IP as a reward for intellectual effort and labour

    • Personality theory (Immanuel Kant) – IP as an extension of the creator’s personality

    • Incentive theory – IP motivates innovation and economic growth

    • Utilitarianism (Jeremy Bentham) – IP maximises societal happiness and progress

Differences between IP and Physical property rights

  • IP is intangible and does not deteriorate through use

  • Selling a copyrighted work does not affect ownership of the rights

  • Unlike physical property, IP rights can exist even after multiple reproductions

History and International Development of IP Law

  • Paris Convention (1883) – Established international protection for patents and trademarks.

  • Berne convention (1886) – Set minimum standards for copyright protection

  • TRIPS Agreement (1994, WTO) – Created global IP enforcement standards

  • AUSFTA (2005) and ACTA (2012) – Modern trade agreements addressing IP protections

Current legislation in Australia

  • Copyright Act 1968 (Cth)

  • Patent Act 1990 (Cth)

  • Designs Act 2003 (Cth)

  • Competition and Consumer Act 2010 (Cth) (Addresses trademark issues)

Enforcement and remedies

Legal process: IP cases are handled in federal and state courts

 

Primary remedies: Injunctions, monetary damages, and ancillary orders (e.g., seizure of infringing goods)

Criminal offences: Counterfeiting, false entries in IP registers and unauthorized reproduction

IP and Technology

  • Advancements in technology challenge traditional IP enforcement.

  • Digitalization and globalization make infringement easier and harder to regulate.

  • International treaties lack a global jurisdiction for IP enforcement.

  • Week 2 Passing off

     

     In this week, will cover the tort of passing off. With its focus on protecting commercial reputations against unauthorised dealings, the tort of passing off has evolved to recognise and enforce unregistered trademarks through common law and has extended its reach to protect get-ups and packaging of products, as well as the exploitable “image” of individuals and corporations.

     

    Passing off is a common law tort that protects the reputation or the goodwill of a trader. Goodwill usually comprise one of the most significant and valuable assets of a business. Goodwill is usually the good name, reputation and the connection between the business and the customers.

     

    The classic form of the tort is when A attempts to pass of his product as B’s by A using the indicia and the distinctive of B’s product. This may be using B’s:

     

    • Trademark (If registered, trademark infringement is perhaps a between alternative)

    • Product design

    • Get up; or

    • Aspects of marketing

    We will explore these legal requirements for an action under passing off together with relevant case law.

     

    Week two lecture structure:

    • Introduction to the concept of passing off: Passing off refers to false representation in which one party misleads consumers into thinking their goods or services are associated with another party’s offerings. This not only affects consumers trust but also the economic interests of the rightful brand owner

    • Historical background of passing off: The origins of this legal concept can be traced back to the early common law practices in England, where it was established to address issues of unfair competition and to protect traders from deceptive practices by competitors

    • Detailed explanation of the cause of Action concerning passing off: The includes understanding legal precedents that define how passing off is adjudicated in courts, including the criteria that need to be met for a successful claim.

     

    Example of situation of passing off

    Consider a hypothetical situation where a new brand markets a beverage product using imagery and branding remarkably similar to that of a well-known established product. This could lead consumers to mistakenly associate the new brand with the established one, resulting in confusion and a potential loss of sales for the original brand.

     

    General definition of passing off

    • Legally, passing off is defined as a misleading act suggesting that one’s goods or services are those of or connected to another’s. This situation can be demonstrated through various elements including:

      • Business name similarities: When two businesses use names that are too alike, it can mislead consumers regarding their offerings.

      • Trademark issues: Registered trademarks can legally protected. If one party uses a mark similar enough to cause confusion, it can lead to trademark infringement claims, complicating the passing off scenario.

      • Product design limitations: If a new product is designed to closely resemble an existing product, it may lead to passing off claims.

      • Get-Ups: This refers to the overall look of a product, which includes packaging, design and presentation that contribute to brand identification.

    Case study: Albrecht Discount

     

    The Albert Discount case illustrates the evolution of branding strategies within the highly completive supermarket industry. Tensions among the founding members led to distinct branding and market differentiation strategies, showcasing how brand management is essential to protecting market share. This case is significant for understanding branding laws in a rapidly evolving retail environment.

     

    The origin and History of passing off

     

    The tote of passing off has roots in the 12th and 13th centuries in England, developing through common law and equity principles. In the landmark case Reddaway v Banham, Lord Herschell articulated against the unfair deception of consumers that can lead to illegitimate takeovers of market share by competitors.

     

    Common Law tort and equity

    Common law: Originally perceived as fraud focused on consumer protection and the plaintiff’s rights, over time, the tort’s aim has shifted to addressing the suffering endured by traders. The requirements of intent to deceive have gradually been relaxed to accommodate a broader range of harmful practices.

     

    Equity: This outlines the protection of property rights, particularly the reputation or goodwill associated with a trader’s business, emphasizing the non-monetary aspects of brand identify within the realm of intellectual property law.

    The Modern concept of passing off

    •  

      In the 20th century and beyond, the concept of passing off has broadened significantly. It now covers actions that protect business reputations and goodwill developed over time. Remedies of passing of claims can include:

       

      • Damages: Financial compensation based on the harm suffered, taking into account the intent behind the actions

      • Injunctions: Court orders that prevent the defendant from continuing the infringing behaviour.

      • Accounts of profit: Requires the infringing party to account for any profits made from the misleading activities, ensuring  that the rightful owner is compensated.

       

    Examples of misrepresentation

    In Cadbury v Schwepopers v Pub Squash, complexities in proving passing off through evidence of consumers confusion and brand associations were highlighted, emphasizing the nuances involved in distinguishing marketing strategies in competitive industries.

    Cadbury v Schwepopers v Pub Squash

    • Facts:

      • In the 1980 case of Cadbury Schweppes Pty Ltd v Pub Squash Co Pty Ltd, Cadbury Schweppes, manufacturers of the soft drink "Solo", sued The Pub Squash Co., alleging that Pub Squash's similar advertising and packaging caused consumer confusion and unfairly exploited Solo's market.

      • Cadbury Schweppes claimed that Pub Squash's advertising campaign and packaging were deliberately designed to imitate Solo, causing consumers to be confused or misled into believing that Pub Squash was a product of Cadbury Schweppes.

      The issue:

      • The core issue was whether Pub Squash’s actions constituted the tort of “passing off” meaning misrepresenting their product as that of another, and whether this caused confusion or deception among consumers.

      Held:

      • The appeal by Cadbury Schweppes was dismissed, meaning the court upheld the lower court's decision in favour of Pub Squash.

       

      Why?

      • Fails to establish reputation in yellow cans – often used in lemon drinks

      • Fails to establish that marketing phrases exclusively associated with solo

      • Consumers are aware

      • Cans were different: Nature of marketplace and habits of ordinary consumers

      • Supermarkets: Placed closely together

      • Therefore, there is no misrepresentation

      • CS failed to establish passing off, there was at least some acknowledgment that passing off could happen in advertising when following satisfied:

      1. A misrepresentation

      2. Made by a trader in the course of trade

      3. To prospective customers of his ultimate costumers of his goods or services supplied by him

      4. Which is calculated to injure the business or goodwill of another trader (In the sense that is reasonably foreseeable consequence) and

      5. Which causes actual damage to a business or goodwill of the trader by whom the action is brough or will probably do so.

     

    Legal definitions and legal requirements to prove passing off

     

    Overview of requirements:

    Must be satisfied to prove a case in passing off

    1) Reputation of the plaintiff (Distinctive)

    2) Misrepresentation

    3) Damages as result of misrepresentation

     

     

    Legal definitions of passing off

    The legal definition provided by the courts, such as in Fletcher challenge Ltd v Fletcher challenge, indicates that a defendant’s misrepresentation can significantly harm the plaintiff’s reputation and overall business goodwill, further illustrating the serious repercussions of passing off cases.

    Requirements to prove passing off

    • To successfully claim passing off, several essential elements must be established

      • Reputation: The plaintiff must demonstrate a well-established and distinctive reputation or goodwill linked to the relevant indicia.

      • Misrepresentation: There must be a deliberate misrepresentation by the defendant that causes confusion among the public regarding their goods or services

      • Damage: Actual damage or a substantially significant likelihood of damage must result directly from the misrepresentation, impacting the plaintiff’s business interest.

       

    First requirement reputation

    • Reputation may be assessed through various factors, property interest – reputation of the business/goodwill associated with the business (AG Spalding and brothers v AW Gamage Ltd (1915).

       

      Proof of reputation: Plaintiff must adduce evidence to provide:

       

      • Length of time in the market: Duration and stability of brand presence.

      • Scope of marketing activities: Extent and effectiveness of promotional activities

      • Geographic reach and sales volume: How widespread the brand’s recognition and presence are in the market

      • Details of sales network

      • Volume of sales in number and money value

      • Use of domain and extent website usage by prospective customers

      • Trade name/indicia

      • Additional evidence

    Location: Goodwill versus reputation

    • In Australian law, a well-established business reputation is sufficient for instating a passing off action without requiring actual trading activity, which is more lenient compared to the UK’s stricter regulation.

       

      Is it sufficient for business to prove that it gas reputation in the jurisdiction where passing off occurs or must it demonstrate that It actually trades there?

      • Goodwill: Attractive force that attracts custom (business must be operating (Trading) in the jurisdiction – Requires actual trade

      • Business reputation: How others view the business (Business to be known in jurisdiction) – does others know about the company and what it sells?

      • Australia: Established business reputation in Australian is enough, goodwill (actual trade) must not be proven.

       

    Goodwill versus reputation: Australia position (2)

    • Confusion: The expression “goodwill” if often referred to in conjunction with “reputation” in this context as being the “property right” of the plaintiff that is entitled to protection, and it is the adoption of this expression and the concept which it embodies that has led come courts to require the carrying on of business by the plaintiff in the forum for him to succeed.

      • The real question is whether the owner of the goods has established a sufficient reputation with respect to his goods within the particular country in order to acquire a sufficient level of consumer knowledge of the product and attraction “For it to provide custom which, if lost would be likely to result In damage to him”

      • Not necessary for a trader to have a place of business in Australia or even sell its good here to be successful in maintaining an action of passing off

      • Prove reputation

      • Variety of means including advertisements on television or radio, or in magazines and newspapers within the forum

      • Constant travel of people between other countries and the forum, and that people within the forum (whether residents or persons simply visiting there from other countries) are exposed to the goods of the overseas owner.

       

    Goodwill versus reputation (3)

    Reputation means ConAgra Inc v McCain foods

     

    So, establish reputation (knowledge of business) in the jurisdiction is enough to satisfy part of element 1. It is not necessary to prove goodwill or actual trade.

     

    Cases

     

    ConAgra Inc v McCain foods

    • This case illustrates that, while the plaintiff does not need to have engaged in actual trade in Australia, it is crucial to prove sufficient reputation within the jurisdiction to sustain a passing off claim, highlighting the geographical nuances in brand protection laws.

       

      Facts:

      • The appellant (ConAgra) manufactured and sold in the United States of America a range of frozen food products which were not offered for sale in Australia

      • The respondent (McCain) commenced manufacturing and selling in Australia a similar range of products using the same name “Healthy choice” and a similar get up of packaging

       

      • The respondent also distributed to wholesalers and retailers of frozen food products in Australia, a brochure known as a “trade presenter” which was used to advertise the products and encourage the wholesalers and retailers to stock the products for sale in Australia. The trade presenter stated that the Healthy choice products had achieved a high level of sales in the United States of America and failed to make it clear that the products sold in the United States of America and the products for sale in Australia were not the same products.

       

      Held:

      • Traders must have a reputation in the Jurisdiction. No need to show actual trade, but reputation must be established with reference.

     

     

    Ownership of reputation: Geographical indicators:

    • When more than one trader has the right to the same reputation.

    • No need for plaintiff to be the only source of the reputation attached to a particular trade object.

     

    Geographical indicators

    • Where the name indicated origin: Spanish Champagne case (Bollinger v The Costa Brava Wine Company (1961) Ch 262

      • Objection of a Champagne maker to use the term ‘Spanish Champagne’ for sparkling wine made in Spain

      • Plaintiff: Term champagne only applies to sparkling wine made in champagne, France.

      • using the words “Spanish champagne” is misleading

       

      There is a right of property in the use of champagne acquired by long usage. This defendant has adapted the plaintiff’s appellation of origin on wine which has no connection with it. Their conduct is calculated to mislead the public.

    Honest concurrent use

    • Where two traders independently use the same trade name (or indicium)

      • Honest concurrent use may be a defence of passing off – first trader will normally have had a sufficient reputation at the time the second comer also begun trading under the name.

      • Case by case basis

      • Plaintiff denied access to remedies

      • Not an excuse under ACL’s 18

       

      A person may carry on business under their own name although they may not register the name as a trademark

       

    First requirement continued: Distinctive reputation

    • Distinctive reputation

       

      Plaintiff must establish a distinctive reputation in the relevant indicum.

      • Def Indicia: Anything that makes a product visually distinctive for examples signs, words, terms, trademarks, packaging

      • Distinctive: Capacity of goods to distinguish itself from goods of other traders: Beyond the shape and function of product

      • Most indicia possess distinctiveness as they go beyond describing the product

    Distinctive reputation: Indicia

    • Central to developing reputation

    • Issues with certain Indicia: Words of general/descriptive meaning

    • Initially used to describe the goods (the primary meaning)

    • However, with time it might develop a secondary meaning to consumers. It is this secondary meaning that might generate distinctiveness for the plaintiff when

    • Secondary meaning/distinctiveness: The indicia becomes so exclusively connected to their product, that it will prevent competitors from associating the indicia with their products

     

     

    Distinctive indicators of reputation

    • Indicia that must distinguish goods or services in the marketplace can include:

      • Trademarks and trade Names

      • Packaging designs

      • Slogans or promotional materials

       

      Misrepresentation requirements

      A critical aspect that must clearly evidenced is that the defendant’s actions occurred in the course of trade, casing substantial public confusion regarding the similarities between their goods and those of the plaintiff.

    Reddaway v Banham [1896] AC 199: Secondary meaning descriptive words

    • Plaintiff sold belting for machinery that was called ‘camel hair belting’

    • Primary meaning: Belting was made of camel hair

    • Many years, plaintiff only suppliers consumers (Exclusive association)

    • Defendant: Also produced belting made of camel hair and starts calling their belt ‘camel hair belting’

    • Held:

      • P had established a reputation associated with the term so that buyers exclusively associated the term with the Plaintiff. When the defendant used the term and suggested that its product originated from the plaintiff when it was not, it was unlawful

      • P prove: Use was exclusive, extensive and pervasive (extent and nature of use): consumers exclusive association w P and no other trader (difficult to prove).

       

    McCain international Ltd v Country Fair Foods [1981]: Secondary meaning descriptive words

    • Secondary meaning of indicia must be demonstrated to be used so extensively, pervasively and exclusively that consumers associate that product with the plaintiff and no other traders

      •  Plaintiff objects to defendant’s use of term “oven chips” which P has originally used

      • Issue: is the word solely descriptive or has it developed a secondary meaning that is distinctive?

      • Descriptive name does not indicate the source of the goods but its nature

      • The name oven chips having used primarily for the purpose of describing a particular kind of article and not for the purpose of establishing the source or origin. The plaintiff is not entitled to any monopoly simply because the product was novel, GFand the name was novel. As the plaintiff have taken a risk of choosing descriptive words, they run the risk that the defendant cannot be prevented from using those same descriptive words so long as they make it clear that their brands of the product are not the same as the brand of the plaintiff.

      • The court of appeal held that the words “Oven chips” was not exclusively associated with the plaintiff.

       

    Distinctiveness - Indicia

    What sort of Indicia can have a reputation in the market place

    • Distinctive words/phrases that go beyond the function and appearance of the product

    • Word of descriptive/general meaning if they have a secondary meaning exclusively associated with the plaintiff

    • Trademark or trade name

    • Other material or activity has become associated or identified in the minds of the public

    • Examples: Title of a television program; get up of goods; slogans and television commercials; reputation of professional ballroom dancer; or fictitious film characters

    • Instead of words, appearance or packaging may also indicate a reputation of the plaintiff

     

    Rechitt and Coleman products Ltd v Borden Inc (1990)

     

    Packaging and appearance may indicate reputation of supplier of goods

    Facts:

    • Since 1956 RC has sold lemon juice in lemon shaped squeeze bottles (55ml); same size as real lemons with the word 'jif' on the side

    • RC threatens competition with passing off action if they sell lemon juice in lemon shaped bottles - they are the only company doing it (monopoly)

    • 1985: Borden starts advertising lemon juice in lemon shaped bottles but different size, other differences

    1. Red caps, yellow labels, 'Real lemon' in red letters

    2. Shape: Flat side to prevent it from rolling over

    • RC sues for passing off (injunction)

     

    Held

    Action successful:

    • Misrepresentation

    • Consumer exclusively associated the lemon shaped container with that of the plaintiff

    • Balance of probabilities: if not restrained consumers will be mislead (substantial number) into marking wrong purchase In thinking respondents juice is the jiff juice,

     

    Packaging and appearance

     

    Distinctive reputation in shapes and packaging depend on:

    1. Reputation distinctive and exclusive association in minds of consumers

    • Does consumers exclusively associate the shape/packaging/appearance with the plaintiff

    • Appearance/shape/packaging must go beyond function

      1. Misrepresentation: defendant represents their product as that of the plaintiff when this is in fact not true

      2. Balance of probabilities: If not restrained consumers will be mislead (substantial number) into making wrong purchase (compares to intended purchase)

     

    Personality - Character merchandising

     

    Passing off can be used to prevent unpaid, exploitation of an actual or fictional public personality - celebrities, Instagram, Facebook or YouTube.

    • The commercial exploitation of the names and likeness of real persons and fictitious characters

    • Purpose: marketing of goods and services frequently seek to establish an association with a well-known person (Sports star, entertainer, former politician etc) with a feature film, a television program, a fictitious character or event

    • Boosts goodwill of company through the goodwill (fanbase) of the celebrity

     

    Henderson v Radio Corporations (1960) 60 SR (NSW) 576

    • Radio corporation covered its ballroom dancing music record with a photograph of the Henderson's, a successful ballroom dancing team

    • They did not authorise this use and sue for passing off

    • The action was successful

    Pacific Dunlop v Hogan (1989)

    • Hogan's famous crocodile Dundee's knife scene was imitated by a character in an advertisement for sale of pacific Dunlop Grosby shoes

    • Hogan's successfully sued for character merchandising (passing off)

    Abandonment of reputation

    • Once established, reputation can be lost

    • 5 years from trading has seized

     

     

    Second requirement: Misrepresentation

    There are two parts to the misrepresentation element

    1. Act of the defendant should be made by the defendant in the course of trade

    2. Defendant's act should have confused or deceived consumers (substantial proportion), or potential consumers, into believing that the defendant's goods or services are the plaintiffs goods or services or that there is some connection between them.

     

    Definition misrepresentation

    The courts use misrepresentation/deception/confusion interchangeably

    • Misrepresentation: Statement/conduct that is false or misleading (intent not required)

    • Confusion: Consumers wonder if two product are related

    • Deception: Consumers confused and draws the wrong conclusion (intent to mislead)

     

    Damages for passing off

    • Intent to mislead

    • Successful in their intent to mislead (Cadbury Schweppes v Pub Squash) consumers have been deceived and drawn the wrong conclusion

     

    Target of misrepresentation

    The public at large: Substantial number of the public would be mislead by the defendant's conduct

    • Well and less informed consumers - Spanish Champagne matter

    • Specific group product target: Specific part of the population

      1. Often has specific knowledge of the products: professionals etc

      2. This can prevent deception - Hodgkinson matter 

     

    Albrecht Stores concept

    • Original concept: Small stores, no fresh produce, private brands, no marketing, limiting opening hours

    • Private brands contra well known brands

    • Issue with Trademarks

    • Logo and name

    • Confusion but not misleading

     

    Third requirement: Causation

     

    Causation

    Third element in the 'classical trinity' is damage or a likelihood of damage to the reputation, business or goodwill of the plaintiff

    • A plaintiff suffered damages as a result of misrepresentation

    • All that is required at this stage is a probability or likelihood of damage if the threat is carried out (injunction)

    Example of damage

    • Damage to reputation/goodwill - quality

    • Loss of license fee (character merchandising)

    • Unauthorised use will restrict the plaintiff's ability to use its reputation to launch other products of its own in the particular area or field

    • Damage caused to the reputation of the plaintiff must be a real and tangible risk of damage, not a mere possibility.

    Remedies

    Anton Piller orders:

    • A court order that provides the right to search premises and seize evidence without prior warning - prevents the destruction of evidence

    Injunctions:

    • A court order to compel or prevent a party from doing certain acts pending the final determination of the case. Prevents the defendant from continuing the possible misrepresentation until judgement has been issued

    1. Requires likelihood of damage (high probability, not too remote)

    2. Even if innocent: likelihood of damage can be proven

    Damages: Loss of profit, loss of reputation, loss of license fee (intent most likely requires)

    • Requires intent to deceive (most likely)

    • Requires proof of actual damages

    • If advised of passing off - intent

     

    Account of profit: Type of equitable granted in cases where a defendant has profited from an equitable wrong - defendant must pay to the plaintiff profits made from wrongdoing

     

1. Trademark law protection

 

In this week we will cover trademark law including the definition of what a trademark is, its function as well as the legal requirements for acquiring trademark protection.

 

Trademarks are a form of intellectual property rights that are regulated by the Trade Marks Act 1995 (Cth). A trademark is a sign used or intended to be used, to distinguish goods or services dealt with or provided in the course of trade by a person from goods or services so dealt with or provided by another person, see S 17 TM Act 1995. Trademarks, therefore allow a business to protect their registered goodwill as a form of property (the trademark) and use it as a badge of origin. This in turn assists consumers to associate products with the business of origin that can prove valuable not only from a consumer perspective in selecting products but also from a marketing perspective.

 

Today:

  • Introduction to Trademark law

  • Origin and History of trademark law

  • Elements of trade mark protection

 

 

Introduction: The concept of Trademark laws

Tade mark: A sign used or intended to be used, to distinguish goods or services dealt with or provided in the course of trade by a person from goods or services so dealt with or provided by any other person, see section 17 of the Trade mark Act 1995

Why we have seen it as such an important aspect of society that we allow business to register trade marks

Businesses evolved

  • Businesses have evolved over time from offering a single product to many, demonstrating the importance of unique marks to distinguish their offerings

  • Passing off deals with unregistered marks that require proof of reputation; however, registered trademarks provide automatic recognition of property interests.

Functions of trade mark law

  • Managing property interests: Turns goodwill into property rights allowing for transfer and licensing

    • Registration grants exclusive rights to use the trade mark can be renewed indefinitely

    • Classification includes 34 goods classes and 11 services to reduce confusion in the market

  • Reducing search cost: increases consumer efficiency by making product origins recognizable

    • Making the product (quality) recognisable to consumers

    • Consumers will spend less time searching

    • Example BOSE, APPLE, SONY, LOGITECH

  • Promoting the product (Business): Encourages demand for products, establishing the trademark as a badge of origin that signifies quality and reputation.

    • Increases demand for the specific product

    • Increase demand for the generic product, not willing to pay for marketing/packaging

  •  

Benefits of registering a trade mark

Insights from professor Dan Hunter outline the key advantages of registering a trade mark compared to relying Soley on passing off, Including legal protections that safeguard investments in brand identity

Challenges of passing off

  • While passing off can protect a business's reputation, it requires costly proof of reputation, whereas registering a trademark protects the investment in building that mark itself

  • Key differences include the easier burden of proof in trademark infringement cases compares to passing off, which requires showing misrepresentation.

 

History of trade mark

 

The origins

  • Trademarks date back to ancient societies where creators marked their pottery, evolving into more formalized systems

  • In England, significant trademark legislation evolved through acts starting with the Merchandise Marks Act 1862, leading up to the modern TM Act 1995 Implemented in Australia

 

England: History

  • 19th Century: Lobbying for TM reg system

  • Merchandise Marks Act 1862 (UK): No reg system and criminal fraudulent marketing of goods

  • Trademark Registration Act 1875 (Uk)

    • Registry of Trade Marks

    • Exclusive rights (particular goods - classes)

    • Registration required to commence infringement proceedings

    • A Trade Mark: Name of individual of business (distinctive); written signature, distinctive device/mark/heading label/ ticker, letters/words figures (combo)

    Patents, designs and TM Act 1883 (UK)

    • Adding 'fancy words or words not in common use'

    • Amended 1883" invented word (s) - no ref to quality or character of goods; not geographical name

Australia: History and influence

The colonies had their own acts mirroring UK laws until the establishment of federal regulation after Federation in 1901. The current Trade Mark act was enacted in 1995, with several amendments since to enhance trademark protections.

 

Trade Mark registration: 4 types

 

Trade Mark registration: 4 types

  • Standard trade mark (our focus): See def later in the presentation

  •  

    1. Certification trade marks: Use of a sign certified in a relation to quality accuracy, origin, or mode of manufacture - Section 169 e.g., National heart foundation certification mark

     

    1. Collective trade marks - Used by members of an association to distinguish products of members section 162

     

    1. Defensive trademarks - Used to prevent others from using a well known sign for goods or services for which the trademark is not registered - Section 185

     

    Standard trade marks

    Certification trade marks: Indicate the quality or origin of goods

    Collective Trade Marks: Used by association members

    Defensive Trade Marks: Protect against use of well-known signs in unrelated areas

What is required to successfully register a trade mark in Australia?

 

Element 1: ss 6 What is a sign? 

The process involves application, examination, reporting, opposition scenarios and ultimately registration, which is initially valid for ten years.

 

Element 1: ss 6 What is a sign? 

What qualifies as a sign

  • A sign can be words, letters, numbers, logos, designs or even sounds and scents, as long as they are not confused with the goods themselves

  • Developments post-1995 allowed for broader scope in protecting shapes and packaging as signs.

  • A sign is the following of any combination of the following

  • Any letter, word, name , signature, numeral

  • Artistic expressions: logos, drawings, pictures, diagrams

  • Device, Brand, heading, Label, Ticket which is physically associated with goods

  • Aspect of packaging, shape, colour

  • Sound or scent

  •  

    Must be separate from the product, Trade Mart must go beyond the function of the goods/services

Sign: Developments

Packaging and shape

  • Prior to 1995: Tm does not protect the shape/packaging of a product

  • After 1995: Packaging crest on seal of bottle of wine was a trade mark in packaging (Hamish and Co Ltd 1998)

Case study:

Koninklijke Philips Electronics v Remington (200) 100 FCR 90

TM infringement: Three headed shave by Philips

 

Burchett J: What is a Trade Mark

  • The mark is added as something distinct from the goods. It may be closely bound up with the goods, as when it is written upon them or stamped into them or moulded onto them (See Coca-Cola Co v All-Feet distributors (1999) 96 FCR 107, or in the case of liquid it may be sold in a container so formed as to constitute at once both containers and mark. But in none of these cases is the mark devoid of a separate identify from that of the goods

  • The alternative ways of using a trade mark in relation to goods do not include simply using the goods themselves as the trade mark. The reason in plain: It is to be assumed that goods In the market are useful and if they are useful other trader may legitimately  wish to produce similar goods (unless of course, there are, for the time being, subsisting patent design or other rights to prevent them from doing so) and it follows that a mark consisting of nothing more than the goods themselves could not distinguish their commercial origin, which is the function of a mark.

  • The shape of shaver could not be separated form the product itself, so cannot be a trade mark.

 

Decision

  • I take the same view of the Remington shaver as he did. Its visual impact seems to me to be dominated by the solidity, even bulkiness of the saving head. That functional reasons account for this appearance is beside the point; It is the appearance itself that matters. The Remington shaver shows a palpable difference form the finer lines of the registered design.

The appeal should be dismissed with costs.

 

Koninklijke Philips Electronics v Remington (200) 100 FCR 90

In the case the court ruled that Remington's product, a shaver with a similar shape to the Philip's registered design, did not infringe Philip's trade mark or design, finding substantial differences and no fraudulent imitation.

 

The main reasons

  • Design infringement: The court determined that there were substantial differences of material kind between the registered design and the Remington product, meaning there was no obvious or fraudulent imitation.

  • Trademark Infringement: The court held that Remington had not used the offending marks as a trade mark, meaning that sign was not used "upon or physical or other relation to the goods"

  • Distinctness: "The courts considered the definition of trade mark under the 1995 Act and the registrability of shape as a trade mark, concluding that the sign relied on by Philips was not capable of distinguishing the goods from those of other undertakings

 

The significance:

The case highlights the importance of demonstrating how a product feature is used as a trademark, and how the court will interpret the changes to trade mark law made by the 1995 Act.

 

Considerations for packaging and shape.

So shape can be Trade Mark which includes the entire shape of either the goods or packaging. Trade Mark is available if function of the product does not determine the shape however the shape must go beyond function

  • Shape and creativity can be registered

  • Shape can be combined with shape to generate Trade Mark protection

  • Mark and product cannot be the same thing

Colour, sound and scent

Mark must be capable of being represented graphically (writing, drawing, graph, formula) Difficulty to overcome section 40 in terms of

 

Scent: Cannot be inherent to product must go beyond the product

  • Must be able to be separated from product

  • The scent of a perfume cannot be registered as Trade Mark


Sound or a piece of music often combined with words

  • Twentieth century Fox movies

  • Kraft Vegemite

 

Combination of colours

  • Single colour may may not be enough (Woolworths Limited v BP [2006] FCAFC 52

 

 

Element 2: Section 17

Used or intended to be used to distinguish goods or services from goods originating from another person/business.

Distinguishing goods and services

Owners must use the mark or intend to use it to distinguish their products from other products

  • Used to distinguish - Distinctiveness: Attributes of Trade mark and its ability to distinguish itself from other products and its uniqueness.

  • The case of Woolworths V BP highlights the requirement for establishing distinctives through use. A mark can gain distinctiveness over time, exemplified by the usage and promotion strategies. 

The legal concept: To distinguish section 41

Section 41: Trade Mark is registerable if it is inherently distinctive or, has acquired distinctiveness through use

  • Inherently distinctive: invented words

  • Not distinctive: Deceptive of product/kind of goods/ quality/ intended purpose

  • Becomes distinctive through use

The legal concept: To distinguish section 41 continued

Trade Mark will be taken to be capable of distinguishing the goods/services of the applicant from those of other traders unless subs (3) or (4) applies

  • EX: Section 41(3) and (4) applies to a mark which lacks any inherent adaptability to distinguish and where the applicant has not used the trade mark before the filing date in respect of the application to such an extent that the trade mark does in fact distinguish the designated goods or services as being those of the applicant.

No capacity to distinguish

Grounds for rejection/ Opposition

  • Section 41: Grounds for rejection if Trade Mark not capable for distinguishing goods/services from those of other traders

  • Section 57: Grounds for opposition

 

Combination of elements will always go towards creating a more unique sign. So if you combine colours with shapes and words to create a unique sign for the company there is a much high likelihood of it being able to be distinguished.

Test to distinguish: Clark Equipment Co v Registrar of trademarks (1964)

No definition of 'inherent adaptability to distinguish' in the Act

  • Whether a mark is adapted to distinguish [will] be tested by reference to the likelihood that other persons, trading in goods of the relevant kind and being actuated only by proper motives 'will think of the word and want to use it in connection with similar goods' in any manner which would infringe a registered trade mark granted in respect of it"

  • Test applies to any form of sign, not just words e.g., Kenman Kandy Case (P 1082 in Textbook)

Distinguishing goods and services

E and J Gallo Winery v Lion Nathon Australia Pty Ltd (2010) 

  • The requirement that a trade mark 'distinguish' goods encompasses the orthodox understanding that one function of a trade mark is to indicate the origin of 'goods to which the mark is applied'

  • Distinguishing goods of a registered owner from the goods or others and indication a connection in the course of trade between the goods and the registered owner are essential characteristics of a trade mark 

 

Coca-Colo Company v All-Fect Distributions Ltd (1999) 96 FCR 10

  • "Use as a trade mark is use of the mark as 'badge of origin' in the sense that it indicates a connection in the course of trade between goods and the person who applies the mark to the goods

  • So the owner must both use the trade mark or intent to use it to distinguish goods and as a badge of origin

 

The BP v Woolworths Case

 

Demonstrating acquired distinctiveness

Woolworths Ltd v BP plc (No 2) (2006) 154 FCR 97

  • BP seeks to register the colour 'predominantly green in respect to parts of service station

  • Granted but Woolworths appeals decision

  • Woolworths service stations: Supermarket logo along with colour red, green and white; 1996 green was pantone 347 C - 2011 green changed to green Pantone 354C (Same as supermarket)

  • BP survey: strong association v green and BP

  • Decision: No exclusive use of green (also yellow)

 

Proving that a colour alone is sufficiently distinctive can be difficult, as seen in BP's unsuccessful attempt to trade marl a specific shade of green. Colour trademarks are less likely to be approved if the colour is generic or functional within the relevant industry.

 

Trade Marking a single colour in Australia is difficult because its generally considered to have a low degree of inherent distinctiveness, Requiring applicants to demonstrate extensive use and acquired distinctiveness through evidence that the public associates the colour with their specific goods or services.

No inherent adaptability to distinguish

May be registrable if there is distinctiveness through use - S 41(3)

  • Think about primary and secondary meaning of indicia in passing off

  • Remember the camel belting matter (primary and secondary meaning)

Sings that initially may be purely descriptive can with extensive use develop an ability to distinguish

  • 'Oregon' for power tools

  • Orange for sparkling wine - plain orange label

  • Dyson and an orange and silver sticker

 

 

Use or intend to use

Used or intention to use: Ownership

Registration requirement: Owner must use the sign or intent to use it as a trade mark - The owner must use it or intent to use it to distinguish its products from other products

 

Registration: You must be the owner of the mark

  • No defined in Act but section 27(1) (a): A person who claims to be owner can make application to register

  • Question of proprietorship: Make/author/creator): first used/intention to use; person entitled to use (acquired)

  • Fraud: Proprietorship defeated

Owner must have legal capacity (person or entity)

Intent to use

Intent to use is unconditional (Rawhide Case 1962)

 

Unconditional intention

Actual: At some point in the future

  • Must be an actual intention to use and cannot be used a tactic to prevent others from registering.

  • Must be intended to be used as a trade mark (Badge of origin)

  • Distinguish goods

  • Not just describe product - most go beyond description (unique)

  • Johnson v Johnson v Unilever: Word caplets (Tablet) not distinguishable.

 

Used or intended use (2)

It will satisfy the require to used or intend to use if someone else has been authorised to use the trade mark and if not now then some point in the future

 

Used by others section 27

  • Intent is established if the owner establishes that they have or intends to authorise another person to use the Trade Mark

  • No need to ID this person

  • Applied to a product/service

Use in Australia

You are required to intend to use it in Australia if you want to register a trade mark in Australia

  • Minimal use in Australia is sufficient, see Thunderbird Products Corp v Thunderbird Marine Products Pty Ltd (1974) 131 CLR 592 where it was held single sale was sufficient use in Australia

  • Distribution of brochures, use of Trade Mark price list, dispatching goods from international provider to Australian distributor but perhaps also from international provider to consumer (intent)

  • E and J Gallo Winery v Lion Nathan Australia Pty Ltd (2010) 241 CLR 144: Whether registered TM owner used TM in Australia but no knowledge that their product had been sold in Australia (Parallel import)

Held: Use even without intent to use in Australia so Trade Mark was not removed for non-use (registry)

 

  • Must be actual and not only preparatory

  • Cannot be providing samples

Geographical: Australia

Trade marks are geographical - must be used as a trade mark in Australia (Some connection with Australia)

 

E.g,: Is burger Kind v Hungry Jacks

  • Whilst burger king owns hungry jacks in Australia, the trade mark for burger king was already owned by another company in relation to burgers in Australia

  • Burger Kind (US) chose a new brand for their Australian Chains

  • Burger king has since taken over the trade mark of burger king in Australia, However due to the positive reputation of Hungry Jacks, burger king has not changed the brand of Hungry Jacks in Australia

 

Nothing inherently wrong about registering a mark that has been used by another trade in another country

  • But courts frown upon any attempt by one trader to appropriate the mark of another trader, although that trader is a foreign trader and the mark has only been used by him in a foreign country

  • It therefore seizes upon a very small amount of use of the foreign trade mark in Australia to hold that it has become identified with and distinctive of the goods of the foreign trader in Australia

Not equal to Trade Mark use

Company, Baines names

Registration of a company name does not constitute use of that name as trade mark. Business name distinguished from registration of a trade mark

 

Registration of a domain name will not constitute use as trade mark

If you register domain name it must have a connection to your business.

 

 

 

 

 

Is there honest concurrent use?