Mars UK Ltd v Teknowledge Ltd [1999] EWHC 226 (Pat) (11 June 1999)

Mars UK Ltd v Teknowledge Ltd [1999] EWHC 226 (Pat) (11 June 1999)

There is no common law defence overriding statutory copyright and database rights in the context of re-calibrating coin discriminators for new coins. The statutory framework is exhaustive and does not admit a public policy exception for repair or updating in relation to computer programs or databases. Reverse engineering encrypted information in a lawfully purchased product does not constitute a breach of confidence, as the information does not retain the necessary quality of confidence once the product is on the market and accessible to skilled persons. No obligation of confidence arises merely from the presence of encryption.

Citation
[1999] EWHC 226 (Pat)
Parties
Claimant: Mars UK Ltd; Defendant: Teknowledge Ltd
Jurisdiction
England and Wales
Judgment Date
11 June 1999
Procedural Posture
High Court Chancery Division Trial / Judgment and Costs Order After Full Trial
Outcome
Claimant succeeded on copyright and database right infringement; Defendant succeeded on breach of confidence; costs apportioned.
Legal Topics
Copyright Infringement, Database Right, Breach of Confidence, Reverse Engineering, Costs, Common Law Defence, Public Policy Exception
Intellectual Property Commercial Law Copyright Infringement Database Right Breach of Confidence Reverse Engineering Costs Common Law Defence +1 more

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Parties

Mars UK Ltd

Claimant

Teknowledge Ltd

Defendant

Procedural Posture

High Court Chancery Division Trial / Judgment and Costs Order After Full Trial

Legal Issues

  1. 1 Whether a common law defence (right to repair/spare parts) applies to copyright and database right infringement in the context of re-calibrating coin discriminators
  2. 2 Whether reverse engineering encrypted information in a lawfully purchased product constitutes a breach of confidence
  3. 3 Whether the common law defence, if available, would also apply to breach of confidence

Ratio Decidendi

There is no common law defence overriding statutory copyright and database rights in the context of re-calibrating coin discriminators for new coins. The statutory framework is exhaustive and does not admit a public policy exception for repair or updating in relation to computer programs or databases. Reverse engineering encrypted information in a lawfully purchased product does not constitute a breach of confidence, as the information does not retain the necessary quality of confidence once the product is on the market and accessible to skilled persons. No obligation of confidence arises merely from the presence of encryption.

Court Disposition

Claimant succeeded on copyright and database right infringement; Defendant succeeded on breach of confidence; costs apportioned.

Orders

  • Defendant restrained from infringing copyright and database rights in relation to Cashflow discriminators.
  • Claimant awarded two-thirds of its assessed costs, with credit to Defendant for costs on breach of confidence issue.