Atari Inc & Futuretronies Australia Pty Ltd v Fairstar Electronics Pty Ltd [1983] FCA 2

Atari Inc & Futuretronies Australia Pty Ltd v Fairstar Electronics Pty Ltd [1983] FCA 2

Although the applicants' trade mark case was arguable, it was likely to fail because the respondent was dealing in genuine Atari goods bearing marks affixed by Atari Inc. and was not using the marks in the relevant infringing sense or misleading customers as to what the marks signified. The applicants had not established misleading conduct about the respondent's own warranty and servicing arrangements. The balance of convenience was against interlocutory restraint because refusal would cause minimal or no irreparable harm to the applicants, while restraint during the period before trial would substantially affect the respondent's business.

Jurisdiction
Australia
Judgment Date
23 December 1982
Procedural Posture
Application for Interlocutory Injunctions in a Trade Mark and Misleading Conduct Dispute / Interlocutory Summons
Outcome
Interlocutory injunctions not granted; summons adjourned indefinitely, with undertaking accepted, procedural directions made, costs reserved, and records and accounts ordered to be kept.
Legal Topics
['parallel Importation of Genuine Goods' 'trade Mark Infringement' 'interlocutory Injunctions' 'balance of Convenience' 'warranty and Servicing Representations']

Case Brief

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Procedural Posture

Application for Interlocutory Injunctions in a Trade Mark and Misleading Conduct Dispute / Interlocutory Summons

  1. 1 ["Whether the respondent's importation and sale in Australia of Atari Video Computer Systems bearing trade marks affixed by Atari Inc. infringed the applicants' trade marks." 'Whether the respondent made misleading representations about its capacity to maintain, service or repair the imported Video Computer Systems.' 'Whether purchasers from the respondent were represented as entitled to receive three video cartridges from Futuretronics Australia Pty. Ltd.' 'Whether the balance of convenience justified interlocutory injunctive relief.']

Ratio Decidendi

Although the applicants' trade mark case was arguable, it was likely to fail because the respondent was dealing in genuine Atari goods bearing marks affixed by Atari Inc. and was not using the marks in the relevant infringing sense or misleading customers as to what the marks signified. The applicants had not established misleading conduct about the respondent's own warranty and servicing arrangements. The balance of convenience was against interlocutory restraint because refusal would cause minimal or no irreparable harm to the applicants, while restraint during the period before trial would substantially affect the respondent's business.

Court Disposition

Interlocutory injunctions not granted; summons adjourned indefinitely, with undertaking accepted, procedural directions made, costs reserved, and records and accounts ordered to be kept.

Orders

  • ["The respondent's undertaking to attach to or deliver with all future sales a warranty in terms submitted to the court was accepted." 'The summons was adjourned indefinitely.' 'A defence was ordered to be given 28 days from the date of judgment.' 'Mutual discovery without notices was ordered 14 days after the...