NESTLE PRODUCTS SDN. BHD. 1. ) MAD LABS SDN. BHD. 2. ) CHOW KIEN LOON

QR codes per se are not subject to IP proprietorship; no implied contract arose post-trial so Mad Labs is not entitled to royalty based solely on printing; Mad Labs did possess the proprietary capability to control and sell the dynamic QR Code functionality and returned control at end of trial; Nestle unlawfully used the Mad Labs capability (control over dynamic redirection) from May 2015 to October 2018 without Mad Labs' permission and was negligent, entitling Mad Labs to compensation and damages (quantum to be assessed); Mad Labs was negligent in failing to disable/redirect harmful links and Nestle succeeds in its negligence claim (damages to be assessed); claims of defamation and...

Citation: WA-22IP-31-04/2019 (Mahkamah Tinggi)
Parties: Plaintiff (suit WA 22 IP 31 04/2019); Defendant (suit WA 22 IP 85 12/2019): Nestle Products Sdn Bhd; Defendant (suit WA 22 IP 31 04/2019); Plaintiff (suit WA 22 IP 85 12/2019): Mad Labs Sdn Bhd; Defendant (suit WA 22 IP 31 04/2019): Chow Kien Loon
Court: High Court
Jurisdiction: Malaysia
Judgment Date: 29 September 2023
Case Number: WA-22IP-31-04/2019 (Mahkamah Tinggi)
Procedural Posture: Consolidated Civil Suits Involving Intellectual Property, Contract and Tort Claims (qr Code Dispute) / Judgment (grounds of Judgment Resolving Appeals; Quantum to Be Assessed Separately)
Outcome: Partial judgment: mixed findings. IP/proprietary ownership claims and implied-contract/royalty claims dismissed; both parties succeeded on negligence claims against each other; Mad Labs entitled to compensation for unlawful use/unjust enrichment and negligence by Nestle; Nestle entitled to damages for Mad Labs'...
Legal Topics: QR Code Proprietorship, Implied Contract, Negligence Duty of Care, Unjust Enrichment and Restitution, Quantum Assessment, Evidence (google Analytics), Corporate Veil, Permanent Injunction
Source Language: Malay/English

Intellectual Property Contract Tort Negligence Unjust Enrichment Defamation Trade Libel Injunctions +8 more

Case Brief

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Parties

Nestle Products Sdn Bhd

Plaintiff (suit WA 22 IP 31 04/2019); Defendant (suit WA 22 IP 85 12/2019)

Mad Labs Sdn Bhd

Defendant (suit WA 22 IP 31 04/2019); Plaintiff (suit WA 22 IP 85 12/2019)

Chow Kien Loon

Defendant (suit WA 22 IP 31 04/2019)

Procedural Posture

Consolidated Civil Suits Involving Intellectual Property, Contract and Tort Claims (qr Code Dispute) / Judgment (grounds of Judgment Resolving Appeals; Quantum to Be Assessed Separately)

Legal Issues

1 Whether Mad Labs owned proprietary or IP rights in the Trial QR Code
2 Whether an implied contract existed post-trial permitting royalties/cost-per-print
3 Whether Nestle was negligent in continued use of the Trial QR Code after the trial period

Ratio Decidendi

Court Disposition

Partial judgment: mixed findings. IP/proprietary ownership claims and implied-contract/royalty claims dismissed; both parties succeeded on negligence claims against each other; Mad Labs entitled to compensation for unlawful use/unjust enrichment and negligence by Nestle; Nestle entitled to damages for Mad Labs'...

Orders

Mad Labs and CKL do not own any proprietary or IP rights in the Trial QR Code
No implied contract existed between Mad Labs and Nestle and no royalty payment is due to Mad Labs on that basis