ORAKA TECHNOLOGIES LIMITED v GEOSTEL VISION LIMITED [2018] NZHC 769

ORAKA TECHNOLOGIES LIMITED v GEOSTEL VISION LIMITED [2018] NZHC 769

The Court held Technologies was entitled to a notional licence fee assessed as a reasonable royalty at the date of infringement (mid-2001); Geostel, as main beneficiary of the breach, is the appropriate notional licensee; after weighing the cup's importance, available alternatives (design-around, offshore manufacture), competitive pressure from the incumbent licensee Graders, and commercial realities, a reasonable licence fee is $6.00 per cup assembly; applied to 85,000 cup assembly equivalents the award is $510,000, with interest and costs reserved for further submissions.

Citation
(2018) 131 IPR 363
Parties
First Plaintiff: Oraka Technologies Limited; Second Plaintiff: Oraka Graders Limited; Third Plaintiff: Michael William Schwarz; First Defendant: Geostel Vision Limited; Second Defendant: Paul Daynes; Second Defendant: Gordon Robertson; Third Defendant: Napier Tool & Die Co Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
23 April 2018
Procedural Posture
Copyright Infringement (intellectual Property) / Remitted to High Court for Assessment of Quantum by Notional Licence Fee (damages Assessment)
Outcome
Judgment for first plaintiff Oraka Technologies Limited against all defendants for NZD 510000; interest and costs reserved
Legal Topics
Notional Licence Fee, User Principle, Damages Assessment, Lost Profits, Apportionment, Design Around Alternatives
Intellectual Property Copyright Civil Procedure Contract Licensing Notional Licence Fee User Principle Damages Assessment Lost Profits +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 5 Authorities cited 15 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Oraka Technologies Limited

First Plaintiff

Oraka Graders Limited

Second Plaintiff

Michael William Schwarz

Third Plaintiff

Geostel Vision Limited

First Defendant

Paul Daynes

Second Defendant

Gordon Robertson

Second Defendant

Napier Tool & Die Co Limited

Third Defendant

Procedural Posture

Copyright Infringement (intellectual Property) / Remitted to High Court for Assessment of Quantum by Notional Licence Fee (damages Assessment)

Legal Issues

  1. 1 Quantum of damages for copyright infringement based on a notional licence fee
  2. 2 Identification of parties to the hypothetical negotiation (licensor and licensee)
  3. 3 Appropriate date for assessment of the notional licence fee

Ratio Decidendi

The Court held Technologies was entitled to a notional licence fee assessed as a reasonable royalty at the date of infringement (mid-2001); Geostel, as main beneficiary of the breach, is the appropriate notional licensee; after weighing the cup's importance, available alternatives (design-around, offshore manufacture), competitive pressure from the incumbent licensee Graders, and commercial realities, a reasonable licence fee is $6.00 per cup assembly; applied to 85,000 cup assembly equivalents the award is $510,000, with interest and costs reserved for further submissions.

Court Disposition

Judgment for first plaintiff Oraka Technologies Limited against all defendants for NZD 510000; interest and costs reserved

Orders

  • Judgment for the first plaintiff in the sum of NZD 510,000
  • First plaintiff to file submissions on interest by 4 May 2018