Scomadi Ltd & Anor v RA Engineering Co. Ltd & Ors

Scomadi Ltd & Anor v RA Engineering Co. Ltd & Ors

The Supplementary Agreement was a binding contract supported by consideration, including continuation of the venture and variation of royalty terms. Hanway made a significant design contribution, resulting in joint ownership of the relevant designs. The SA permitted both parties to manufacture and sell scooters based on the jointly owned designs if the Claimants found a third-party manufacturer. Both RCD1 and RCD2 were valid but of narrow scope; the GT scooter infringed RCD2 but not RCD1, while the GP1 and GP2 did not infringe either. The Defendants were entitled to manufacture and sell the scooters under the SA, and no liability for infringement arose except for the GT in relation to RCD2.

Parties
Claimant: Scomadi Limited; Claimant: Scomadi Worldwide Limited; Defendant: RA Engineering Co. Limited; Defendant: Yiming Chen; Defendant: MotoGB Limited; Additional Counterclaimant: Changzhou Hanwei Vehicle Science & Technology Limited Company
Jurisdiction
England and Wales
Judgment Date
27 October 2017
Procedural Posture
Intellectual Property Dispute (contract and Design Rights) / Judgment After Full Trial
Outcome
Judgment for the Defendants on the main contractual issues; partial finding of infringement for the GT model only.
Legal Topics
Registered Community Design, Contract Interpretation, Joint Ownership of IP, Infringement, Consideration, Estoppel
Intellectual Property Contract Law Registered Community Design Contract Interpretation Joint Ownership of IP Infringement Consideration Estoppel

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 6 Authorities cited 20 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Scomadi Limited

Claimant

Scomadi Worldwide Limited

Claimant

RA Engineering Co. Limited

Defendant

Yiming Chen

Defendant

MotoGB Limited

Defendant

Changzhou Hanwei Vehicle Science & Technology Limited Company

Additional Counterclaimant

Procedural Posture

Intellectual Property Dispute (contract and Design Rights) / Judgment After Full Trial

Legal Issues

  1. 1 Whether the Supplementary Agreement (SA) was a binding contract and supported by consideration
  2. 2 Whether the Defendants' manufacture and sale of scooters was permitted under the SA
  3. 3 Validity and infringement of Registered Community Designs (RCDs)

Ratio Decidendi

The Supplementary Agreement was a binding contract supported by consideration, including continuation of the venture and variation of royalty terms. Hanway made a significant design contribution, resulting in joint ownership of the relevant designs. The SA permitted both parties to manufacture and sell scooters based on the jointly owned designs if the Claimants found a third-party manufacturer. Both RCD1 and RCD2 were valid but of narrow scope; the GT scooter infringed RCD2 but not RCD1, while the GP1 and GP2 did not infringe either. The Defendants were entitled to manufacture and sell the scooters under the SA, and no liability for infringement arose except for the GT in relation to RCD2.

Court Disposition

Judgment for the Defendants on the main contractual issues; partial finding of infringement for the GT model only.

Orders

  • Declaration that Defendants are entitled to manufacture and sell the GT, GP1, and GP2 scooters under the SA.
  • Declaration that RCD1 and RCD2 are valid; RCD3 is invalid.