INFORMATION TOOLS LIMITED V CODESHED LIMITED HC AK CIV-2010-404-000377

INFORMATION TOOLS LIMITED V CODESHED LIMITED HC AK CIV-2010-404-000377

On the material before the Court the plaintiff demonstrated a serious question to be tried that the OAP (including original form) belonged to it under the service agreement; the balance of convenience favored limited interim relief to secure the object program for continuity of service while source code was placed with an independent third party in escrow because of re‑engineering risks and some uncertainty as to the defendant's financial position, with damages being an adequate remedy for the defendant.

Citation
openlaw-5c226360_0c7d_4700_9d5a_80890a520d52.pdf
Parties
Plaintiff: Information Tools Limited; Defendant: Codeshed Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
27 January 2010
Procedural Posture
Breach of Contract; Copyright Act 1994; Fair Trading Act 1986; Estoppel / Application for Interim Injunction (urgent, Heard in Chambers)
Outcome
Interim injunction granted in part
Legal Topics
Ownership of Software and Source Code, Interlocutory Injunction, Source Code Escrow, Service Agreement Construction, Balance of Convenience, Undertaking as to Damages
Contract Intellectual Property Copyright Commercial Equity Injunctions Ownership of Software and Source Code Interlocutory Injunction Source Code Escrow +3 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 3 Authorities cited 3 Party arguments 2
Sign in to unlock

Parties

Information Tools Limited

Plaintiff

Codeshed Limited

Defendant

Procedural Posture

Breach of Contract; Copyright Act 1994; Fair Trading Act 1986; Estoppel / Application for Interim Injunction (urgent, Heard in Chambers)

Legal Issues

  1. 1 Whether the Online Analysis Program (OAP) and its source code are the plaintiff's property under the service agreement (clauses 7.1 and 7.2)
  2. 2 Whether there is a serious question to be tried on ownership of the software
  3. 3 Whether interim injunctive relief is justified on the balance of convenience and adequacy of damages

Ratio Decidendi

On the material before the Court the plaintiff demonstrated a serious question to be tried that the OAP (including original form) belonged to it under the service agreement; the balance of convenience favored limited interim relief to secure the object program for continuity of service while source code was placed with an independent third party in escrow because of re‑engineering risks and some uncertainty as to the defendant's financial position, with damages being an adequate remedy for the defendant.

Court Disposition

Interim injunction granted in part

Orders

  • Defendant to deliver up to the plaintiff the current object program known as the Online Analysis Program forthwith
  • Defendant to deliver up the source code and developments to the software for the Online Analysis Program to an independent third party agreed by the parties within 24 hours or failing agreement to an independent third person fixed by the Court, such third party to hold the source code and developments in escrow...