Australian Mud Company Pty Ltd v Globaltech Corporation Pty Ltd (No 7) [2024] FCA 445

Australian Mud Company Pty Ltd v Globaltech Corporation Pty Ltd (No 7) [2024] FCA 445

No discount for tax paid is to be applied to the account of profits because the respondents failed to adduce evidence of tax paid. Damages are to be paid by both respondents; the account of profits is payable by the first respondent alone. The applicants are entitled to indemnity costs from 11am on 22 February 2023 because the judgment is more favourable than the applicants' offer to compromise, having regard to the practical relationship between the respondents and their assets.

Parties
First Applicant: Australian Mud Company Pty Ltd; Second Applicant: Reflex Instruments Asia Pacific Pty Ltd; First Respondent: Globaltech Corporation Pty Ltd; Second Respondent: Globaltech Pty Ltd
Jurisdiction
Australia
Judgment Date
01 May 2024
Procedural Posture
Pecuniary Relief Proceedings After Patent Infringement Finding / Final Orders and Costs Following Determination of Damages and Account of Profits
Outcome
Applicants successful in obtaining final orders for damages and account of profits, and awarded indemnity costs from 22 February 2023.
Legal Topics
Patent Infringement, Account of Profits, Damages, Costs, Offer to Compromise
Intellectual Property Law Civil Procedure Patent Infringement Account of Profits Damages Costs Offer to Compromise

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Parties

Australian Mud Company Pty Ltd

First Applicant

Reflex Instruments Asia Pacific Pty Ltd

Second Applicant

Globaltech Corporation Pty Ltd

First Respondent

Globaltech Pty Ltd

Second Respondent

Procedural Posture

Pecuniary Relief Proceedings After Patent Infringement Finding / Final Orders and Costs Following Determination of Damages and Account of Profits

Legal Issues

  1. 1 Whether final order with respect to damages and account of profits should be made against both respondents
  2. 2 Whether a discount on the account of profits award should be applied for paid tax
  3. 3 Whether interest should be calculated on the profits less amounts for taxation

Ratio Decidendi

No discount for tax paid is to be applied to the account of profits because the respondents failed to adduce evidence of tax paid. Damages are to be paid by both respondents; the account of profits is payable by the first respondent alone. The applicants are entitled to indemnity costs from 11am on 22 February 2023 because the judgment is more favourable than the applicants' offer to compromise, having regard to the practical relationship between the respondents and their assets.

Court Disposition

Applicants successful in obtaining final orders for damages and account of profits, and awarded indemnity costs from 22 February 2023.

Orders

  • The Respondents pay the Applicants damages of $3,827,009 plus interest of $1,327,274.
  • The First Respondent pay the Applicants by way of account of profits $2,121,807 plus interest of $682,545.