Cortis Exhaust Systems Pty Ltd v Kitten Software Pty Ltd [2001] FCA 1189

Cortis Exhaust Systems Pty Ltd v Kitten Software Pty Ltd [2001] FCA 1189

The restraint of trade clause should be read down to restrain only marketing, sale, and distribution of software performing the same or similar functions as the Works for three years. ServiceMaster constituted a breach of this clause. There was no copyright infringement in the SIM logo or manual as these were not substantial or reproduced by photographic process. The respondents engaged in misleading and deceptive conduct under s 52 by promoting ServiceMaster as an upgrade to SIM and targeting existing New Age customers, resulting in loss and damage to the applicant.

Jurisdiction
Australia
Judgment Date
28 August 2001
Procedural Posture
Civil / Judgment
Outcome
Applicant succeeds on restraint of trade and misleading/deceptive conduct claims; no copyright infringement established; damages assessed.
Legal Topics
['restraint of Trade' 'copyright Infringement' 'misleading or Deceptive Conduct' 'assignment of Assets']
['contract' 'copyright' 'trade Practices'] ['restraint of Trade' 'copyright Infringement' 'misleading or Deceptive Conduct' 'assignment of Assets']

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Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 ['Whether respondents breached Deed of Assignment restraint of trade provision' "Whether applicant's copyright in SIM manual and logo was infringed" 'Whether respondents engaged in misleading or deceptive conduct under s 52 of the Trade Practices Act' 'Whether applicant engaged in unconscionable conduct regarding the Deed']

Ratio Decidendi

The restraint of trade clause should be read down to restrain only marketing, sale, and distribution of software performing the same or similar functions as the Works for three years. ServiceMaster constituted a breach of this clause. There was no copyright infringement in the SIM logo or manual as these were not substantial or reproduced by photographic process. The respondents engaged in misleading and deceptive conduct under s 52 by promoting ServiceMaster as an upgrade to SIM and targeting existing New Age customers, resulting in loss and damage to the applicant.

Court Disposition

Applicant succeeds on restraint of trade and misleading/deceptive conduct claims; no copyright infringement established; damages assessed.

Orders

  • ['Damages assessed at $80,000; applicant to bring in short minutes to effect judgment.']