Australian Mud Company Pty Ltd v Coretell Pty Ltd [2017] FCAFC 44

Australian Mud Company Pty Ltd v Coretell Pty Ltd [2017] FCAFC 44

The appeal was allowed because the primary judge's damages reasoning did not properly address the statutory requirement that recoverable damage be sustained as a result of the threats. On the accepted findings, the Camteq tool was not ready for commercial supply when the threats were made, Coretell knew this, and the evidence did not support that development of the tool ceased or was impeded by the threats. The six-month counter-factual adopted by the primary judge lacked a rational evidentiary foundation and was contrary to compelling inferences. Coretell therefore failed to prove any compensable damage under s 128 of the Patents Act 1990 (Cth).

Jurisdiction
Australia
Judgment Date
17 March 2017
Procedural Posture
Appeal Concerning Damages for Unjustified Threats of Patent Infringement Proceedings / Full Court Appeal From Australian Mud Company V Coretell Pty Ltd (no 7) [2016] FCA 991
Outcome
Appeal allowed; primary judge's orders dated 6 September 2016 set aside; Coretell's amended statement of cross-claim dismissed with costs.
Legal Topics
['unjustified Threats of Patent Infringement Proceedings' 'causation' 'proof of Damage' 'innovation Patents' 'appeal']
['intellectual Property' 'patents' 'damages'] ['unjustified Threats of Patent Infringement Proceedings' 'causation' 'proof of Damage' 'innovation Patents' 'appeal']

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Procedural Posture

Appeal Concerning Damages for Unjustified Threats of Patent Infringement Proceedings / Full Court Appeal From Australian Mud Company V Coretell Pty Ltd (no 7) [2016] FCA 991

Legal Issues

  1. 1 ['Whether Coretell proved that it sustained damage as a result of the threats within s 128 of the Patents Act 1990 (Cth).' 'Whether the primary judge erred by treating the distinction between damage from threats and damage from infringement proceedings as semantical.' 'Whether the evidence supported the counter-factual finding that the Camteq tool would have been ready for commercial supply within six months but for the threat letters.']

Ratio Decidendi

The appeal was allowed because the primary judge's damages reasoning did not properly address the statutory requirement that recoverable damage be sustained as a result of the threats. On the accepted findings, the Camteq tool was not ready for commercial supply when the threats were made, Coretell knew this, and the evidence did not support that development of the tool ceased or was impeded by the threats. The six-month counter-factual adopted by the primary judge lacked a rational evidentiary foundation and was contrary to compelling inferences. Coretell therefore failed to prove any compensable damage under s 128 of the Patents Act 1990 (Cth).

Court Disposition

Appeal allowed; primary judge's orders dated 6 September 2016 set aside; Coretell's amended statement of cross-claim dismissed with costs.

Orders

  • ['The appeal be allowed.' 'The orders of the primary judge dated 6 September 2016 be set aside.' "In lieu thereof, the first respondent's amended statement of cross-claim be dismissed." "In lieu thereof, the first respondent pay the cross-respondents' costs of the amended statement of cross-claim as agreed or...