THJ Systems Ltd & Anor v Sheridan & Anor [2023] EWCA Civ 1354 (20 November 2023)

THJ Systems Ltd & Anor v Sheridan & Anor [2023] EWCA Civ 1354 (20 November 2023)

The Court held that the risk and price charts generated by the OptionNET Explorer software are original artistic works within the meaning of the Copyright, Designs and Patents Act 1988, authored by Mr Mitchell and owned by THJ. The judge at first instance applied the wrong legal test for originality, but the evidence supported originality under the correct test. The Defendants' admission of infringement, conditional on proof of subsistence and authorship, was binding and precluded contesting infringement at trial. The two pleaded instances of display constituted infringement, and the matter should proceed to an inquiry as to damages or account of profits.

Citation
[2023] EWCA Civ 1354
Parties
Claimant: THJ Systems Limited; Claimant: OptionNet LLP; Defendant: Daniel Sheridan; Defendant: Sheridan Options Mentoring Corporation
Jurisdiction
England and Wales
Judgment Date
20 November 2023
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal and Cross Appeal From High Court
Outcome
Defendants' appeal dismissed (save for restricting declaration to risk and price charts); Claimants' cross-appeal allowed; declaration of infringement granted; inquiry as to damages or account of profits ordered.
Legal Topics
Copyright, Artistic Works, Software Copyright, Communication to the Public, Pleadings and Admissions, Case Management, Remedies
Intellectual Property Law Civil Procedure Copyright Artistic Works Software Copyright Communication to the Public Pleadings and Admissions Case Management +1 more

Case Brief

Summary, issues, holding and outcome

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Parties

THJ Systems Limited

Claimant

OptionNet LLP

Claimant

Daniel Sheridan

Defendant

Sheridan Options Mentoring Corporation

Defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal and Cross Appeal From High Court

Legal Issues

  1. 1 Whether the risk and price charts generated by the OptionNET Explorer software are original artistic works in which copyright subsists
  2. 2 Whether Mr Mitchell is the author and THJ the owner of copyright in the charts
  3. 3 Whether the Defendants infringed copyright by communicating the charts to the public in the UK

Ratio Decidendi

The Court held that the risk and price charts generated by the OptionNET Explorer software are original artistic works within the meaning of the Copyright, Designs and Patents Act 1988, authored by Mr Mitchell and owned by THJ. The judge at first instance applied the wrong legal test for originality, but the evidence supported originality under the correct test. The Defendants' admission of infringement, conditional on proof of subsistence and authorship, was binding and precluded contesting infringement at trial. The two pleaded instances of display constituted infringement, and the matter should proceed to an inquiry as to damages or account of profits.

Court Disposition

Defendants' appeal dismissed (save for restricting declaration to risk and price charts); Claimants' cross-appeal allowed; declaration of infringement granted; inquiry as to damages or account of profits ordered.

Orders

  • Declaration that the risk and price charts generated by the OptionNET Explorer software are original artistic works authored by Mr Mitchell and owned by THJ.
  • Declaration that the two pleaded instances of display constituted infringement of THJ's copyright.