Pacific Brands Sport & Leisure Pty Ltd v Underworks Pty Ltd [2006] FCAFC 40

FEDERAL COURT OF AUSTRALIA

Pacific Brands Sport & Leisure Pty Ltd v Underworks Pty Ltd [2006] FCAFC 40

APPEAL – exclusive sub-licence of trade mark – sub-licensor sold business to trade competitor of sub-licensee – sale included assignment of the benefit of the sub-licence – no novation of sub-licence – validity of assignment of the sub-licence – sub-licensee in breach of sub-licence – whether assignee obtained the contractual right to terminate for breach

CONTRACT – assignment of contractual rights – whether all contractual rights, powers and privileges of assignee are proprietary in character and are prima facie assignable – extent to which individual rights, powers and privileges separately assignable CONTRACT – assignment of contractual rights – whether sub-licensor's identity was material to the contract or its performance – construction of the sub-licence – assignment precluded without the consent of the sub-licensee CONTRACT – assignment of contractual right – whether contractual power to terminate for breach severable and capable of independent assignment – whether an integral part of the sub-licensor's bundle of rights CONTRACT – breach of sub-licence – whether purported termination for breach effective – whether sub-licensee's conduct repudiatory – waiver or estoppel TRADE MARKS – assignment of benefit of exclusive sub-licence – whether effective – construction of the sub-licence – whether it precluded assignment without sub-licensee's consent Conveyancing Act 1919 (NSW) s 12 Property Law Act 1958 (Vic) s 134 Trade Marks Act 1995 (Cth) s 8, s 92(4)(b) 36 and 37 Vic c.66 ('the Judicature Acts') s 25(6) Anning v Anning (1907) 4 CLR 1049 cited Norman v Federal Commissioner of Taxation (1963) 109 CLR 9 cited Loxton v Moir (1914) 18 CLR 360 cited Don King Productions Inc v Warren [2000] Ch 291 cited Federal Commissioner of Taxation v Everett (1980) 143 CLR 440 cited Devefi Pty Ltd v Mateffy Perl Nagy Pty Ltd (1993) 113 ALR 225 cited Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd [1994] 1 AC 85 cited Peters v General Accident Fire & Life Assurance Corporation Ltd [1938] 2 All ER 267 cited Moore v Collins [1937] SASR 195 cited Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd (1992) 57 BLR 57 cited Tolhurst v Associated Portland Cement Manufacturers (1900) Ltd [1902] 2 KB 660 cited Jack v Smail (1905) 2 CLR 684 cited Harry v Fidelity Nominees Pty Ltd (1985) 41 SASR 458 cited Olsson v Dyson (1969) 120 CLR 365 cited Vickery v Woods (1952) 85 CLR 336 cited Fightvision Pty Ltd v Onisforou (1999) 47 NSWLR 473 cited Bruce v Tyley (1916) 21 CLR 277 cited British Wagon Co v Lea & Co (1880) 5 QBD 149 cited Davies v Collins [1945] 1 All ER 247 cited Shepherd v Federal Commissioner of Taxation (1965) 113 CLR 385 cited Yanner v Eaton (1999) 201 CLR 351 cited Inglis v The Trustees of The Sailors' Snug Harbour in the City of New York 28 US 99 referred to Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 WLR 896 considered Re Davies & Co; Exp Rawlings (1888) 22 QBD 193 cited Photo Production Ltd v Securicor Transport Ltd [1980] AC 827 cited Tolhurst v Associated Portland Cement Manufacturers (1900) Ltd [1903] AC 414 cited National Carbonising Co Ltd v British Coal Distillation Ltd (1936) 54 RPC 41 cited Australis Media Holdings Pty Ltd v Telstra Corporation Ltd (1998) 43 NSWLR 104 cited Peacocke Land Co Ltd v Hamilton Milk Producers Co Ltd [1963] NZLR 576 cited Pacific Carrier's Ltd v BNP Paribas (2004) 218 CLR 451 cited L/M International Construction Inc v The Circle Ltd Partnership (1995) 49 Con LR 12 cited Denham Bros Ltd v W. Freestone Leasing Pty Ltd [2004] 1 Qd R 500 cited Shevill v Builders Licensing Board (1982) 149 CLR 620 cited Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd (1989) 166 CLR 623 cited Satellite Estate Pty Ltd v Jacquet (1968) 71 SR (NSW) 126 cited DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423 cited Woodar Investment Development Ltd v Wimpey Construction UK Ltd [1980] 1 WLR 277 cited Summers v Commonwealth (1918) 25 CLR 144 cited Integrated Computer Services Pty Ltd v Digital Equipment Corporation (Aust) Pty Ltd (1988) 5 BPR 11 cited Beatty v Guggenheim Exploration Co 122 NE 378 (1919) cited Kammins Ballroom Co Ltd v Zenith Investments (Torquay) Ltd [1971] AC 850 cited GEC Marconi Systems Pty Ltd v BHP Information Technology Pty Ltd (2003) 128 FCR 1 cited Commonwealth v Verwayen (1990) 170 CLR 394 cited Northwestern Fire & Marine Insurance Co v Pollard 238 P 594 (1925) cited Craine v Colonial Mutual Fire Insurance Co Ltd (1920) 28 CLR 305 cited Motor Oil Hellas (Corinth) Refineries SA v Shipping Corporation of India [1990] 1 Lloyd's LR 391 cited Bay of Plenty Electricity Ltd v Natural Gas Co Energy Ltd [2002] 1 NZLR 173 cited Walton Stores (Interstate) Ltd v Maher (1988) 164 CLR 387 cited Musumeci v Winadell Pty Ltd (1994) 34 NSWLR 723 cited Torkington v Magee [1902] 2 KB 427 cited