Schultz v Butt (327/84) [1986] ZASCA 47; [1986] 2 All SA 403 (A) (15 May 1986)

Schultz v Butt (327/84) [1986] ZASCA 47; [1986] 2 All SA 403 (A) (15 May 1986)

The Supreme Court of Appeal held that Schultz's conduct in using a Butt-Cat hull, developed by Butt through significant investment and expertise, to create a mould for manufacturing boats in competition with Butt constituted unfair competition. The court found that Schultz's actions amounted to wrongful appropriation of Butt's work, and that the registration of designs by Schultz was fraudulent, as the designs were not new or original and Butt was the true proprietor. The court further held that copyright in works of craftmanship of a technical nature applied retroactively to the Butt-Cat hull, plug, and moulds created after 11 September 1965, and that Schultz infringed Butt's copyright...

Citation
[1986] ZASCA 47
Parties
Appellant: Dennis John George Schultz; Respondent: Hugh Stanley Butt
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
15 May 1986
Case Number
327/84
Procedural Posture
Civil Appeal / Appeal From Eastern Cape Division Judgment
Outcome
Appeal dismissed except for amendments to the order clarifying its scope.
Judges
Corbett, Hoexter, Boshoff, Nicholas, Nestadt
Legal Topics
Copyright Infringement, Unlawful Competition, Registered Design Cancellation, Works of Craftmanship, Novelty and Originality, Passing Off
Intellectual Property Commercial and Corporate Copyright Infringement Unlawful Competition Registered Design Cancellation Works of Craftmanship Novelty and Originality Passing Off

Case Brief

Summary, issues, holding and outcome

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Parties

Dennis John George Schultz

Appellant

Hugh Stanley Butt

Respondent

Procedural Posture

Civil Appeal / Appeal From Eastern Cape Division Judgment

Legal Issues

  1. 1 Whether the copying of the Butt-Cat hull by Schultz constituted unlawful competition.
  2. 2 Whether Schultz infringed Butt's copyright in the Butt-Cat hull, plug, and moulds.
  3. 3 Whether the registration of Schultz's boat hull and boat designs should be cancelled for lack of novelty or originality and fraud.

Ratio Decidendi

The Supreme Court of Appeal held that Schultz's conduct in using a Butt-Cat hull, developed by Butt through significant investment and expertise, to create a mould for manufacturing boats in competition with Butt constituted unfair competition. The court found that Schultz's actions amounted to wrongful appropriation of Butt's work, and that the registration of designs by Schultz was fraudulent, as the designs were not new or original and Butt was the true proprietor. The court further held that copyright in works of craftmanship of a technical nature applied retroactively to the Butt-Cat hull, plug, and moulds created after 11 September 1965, and that Schultz infringed Butt's copyright...

Court Disposition

Appeal dismissed except for amendments to the order clarifying its scope.

Orders

  • Paragraphs 1 and 2 of the order of the court a quo are amended to relate solely to the Butt-Cat hull and to acts after 17 October 1983.
  • Schultz is interdicted and restrained from using any Butt-Cat hull, with or without adaptations or modifications, manufactured by Butt, or any mould made from such hull, for the purpose of manufacturing catamaran hulls in the course of trade.