Snoid, Andrew & Ors v. Handley, Mark & Ors [1981] FCA 210
Federal Court of Australia
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CATCHWORDS
Trade Practices ~ Consumer protection - Misleading or
deceptive conduct - Use by band of name "Pop Mechanix"
Likelihood of confusion with band using name "Popular
Mechanics".
Injunction - Limitation of area in which order operates.
Trade Practices Act 1974, s.52.
SNOID & ORS. v. HANDLEY & ORS.
N.S.W. No. G91 of 1981
Bowen C.J., Northrop and Morling JJ.
11 November 1981
Sydney.
IN THE FEDERAL COURT OF AUSTRALIA)
)
NEW SOUTH WALES DISTRICT REGISTRY) No. G91 of 1981
GENERAL DIVISION
JUDGES MAKING ORDER:
DATE OF ORDER:
WHERE MADE:
THE COURT ORDERS THAT:
l.
)
)
IN THE MATTER OF THE TRADE
PRACTICES ACT (1974
ANDREW SNOID, PAUL SCOTT, PAUL
MASON, KEVIN EMMETT and
CHRISTOPHER MOORE
Appellants
(Respondents)
CBS RECORDS AUSTRALIA LIMITED
Sixth Appellant
(Sixth Respondent)
MARK HANDLEY, RUSSELL HANDLEY,
MARTIN BISHOP and GARY MANLEY
RDER
Bowen C.J., Northrop and Morling
Jd.
11 November 1981.
Sydney.
The Order made by Ellicott J. on 7 July 1981 be varied by
substituting for paragraph (1) the following:
(1)
The sixth-named respondent by itself its servants and
agents be restrained from engaging in conduct in
trade or commerce in Sydney or Canberra that is
misleading or deceptive or is likely to mislead or
deceive by using the name POP MECHANIX POP MEX or POP
MX or any other colourable imitation of the name
POPULAR MECHANICS or of the name POP MECHS in
connection with the promotion or the performances in
Sydney or Canberra of a band or in connection with
the promotion sale supply or distribution in Sydney
or Canberra of the music songs recordings or video
tapes of or by a band in such a way as to mislead or
deceive members of the public into believing that
such band is the band known as POPULAR MECHANICS of
which the second, third and fourth named applicants
are or have been members.
2. Otherwise the appeal be dismissed.
3. The appellants pay to the respondents their costs of the
appeal other than the costs incurred on 6 November 1981.
IN THE FEDERAL COURT OF AUSTRALIA )
)
NEW SOUTH WALES DISTRICT REGISTRY ) NSW No. G91 of 1981
)
GENERAL DIVISION
IN THE MATTER OF THE TRADE
PRACTICES ACT (1974)
ANDREW SNOID, PAUL SCOTT, PAUL MASON
KEVIN EMMETT and CHRISTOPHER MOORE
Appellants
(Respondents)
CBS RECORDS AUSTRALIA LIMITED
Sixth Appellant
(Sixth Respondent)
MARK HANDLEY, RUSSELL HANDLEY,
MARTIN BISHOP and GARY MANLEY
Respondents
(Applicants)
CORAM: Bowen C.J., Northrop and Morling JJ.
11 November 1981
REASONS FOR DECISION
This is an appeal against the judgment of a single
judge of this Court given in proceedings in which the applicants
(the respondents to this appeal) obtained final injunctions under
s.80 of the Trade Practices Act in relation to breaches of s.52
of that Act. The applicants had alleged that the respondents
(the appellants in the appeal) had engaged and were engaging in
conduct that was misleading or deceptive or was likely to mislead
or deceive contrary to s.52. The applicants also claimed that
the respondents had contravened s.53(d) of the Act but his Honour
found that there had not been any infringement of that section.
No cross-appeal has been brought by the applicants against that
finding.
The dispute between the parties arises out of the great
interest shown by a section of the community in rock and roll
style music and in a version of it known as "the new music".
This interest has manifested itself since 1975 in an upsurge of
young bands playing for reward in a variety of venues. This case
arises out of the circumstance that two of these bands have
adopted names which bear a great similarity to each other. Some
of the applicants formed themselves into a band to which they
gave the name 'POPULAR MECHANICS". The respondents, other than
C.B.S. Records Australia Limited ('C.B.S.") formed another band
and called it "POP MECHANIX". It is necessary to give a brief
account of the history of the bands in order to identify the
issues which arise for determination on the appeal.
Late in 1978, a rock music band was formed in Sydney.
The band consisted of four people, one of whom was the applicant
Russell Handley. About 1 March 1979 it adopted '''POPULAR
MECHANICS" as its name. By this time the band consisted of five
people, namely the applicants, Russell Handley and Garry Manly
and three others, Mark Forster, David Lennon and Ian Reckett. On
23 April 1979 it commenced to give live performances of rock
music at various venues in and around the centre of Sydney.
Sometimes it performed at more distant venues, such as Narrabeen
and Ku-ring-gai but most of its performances were in the inner
city area. In Jume 1979 the applicant Mark Handley became the
manager of the band. It gave about 76 performances between the
end of July 1979 and 15 April 1980. Whenever it performed at
these venues it used the name "POPULAR MECHANICS". Several of
the venues could hold up to 1,000 people, but most of them were
smaller and could hold crowds ranging from 80 to 600 or 700
persons. Sometimes they played as a support group to more
popular bands.
In June 1979 an original member of the band was replaced
by a new member. There have been other changes in its membership
since. Mark Handley and Garry Manley have continued as members
of the band since it first called itself POPULAR MECHANICS in
March 1979. The applicant Mark Bishop is the band's producer and
promoter.
In November 1979 the band released an extended play
record entitled "From Here to Obscurity" under its name POPULAR
MECHANICS. Some 750 copies of this record have been sold mainly
in the Sydney area. Shortly after it was released the record
received regular air play on stations 2JJJ Sydney and 2XX in
Canberra. One of the tracks on the record ("Flamingo Road")
received extensive air play on 2JJJ when the record was first
released. It was one of twelve singles played on a rotation
system and it was played three times a day for a period of
approximately six weeks after its release. After that it was
played for several months, probably three or four times a week.
Since then 2JJJ has continued to play it.
On 15 April 1980 the band ceased live performances and
aid not perform live again until 1 November 1980. Between 1
November 1980 and 20 December 1980 it performed on thirteen
occasions. However, in June 1980 a recording entitled "You Get
The Picture/Furniture" was made by the band. This recording was
not released until early December 1980. When released it was
issued under the Basilisk Record label.
The band's performances in November and December 1980
were, except for two in Canberra, at venues in and around the
centre of Sydney. The evidence suggests that at some of these
venues the audiences consisted of many hundreds of people.
On 24 November 1980 a press statement was issued by
Basilisk Records announcing the intended release of "You Get the
Picture/Furniture" by the band. The press release included a
statement that the band had "disbanded" and indicated that a new
band had been formed. After its release early in December 1980,
the record received air play on a number of radio stations around
Australia. The record cover had on it the name of the band in
the form "POP-ULAR MECHAN-ICS". The record itself had on it the
words POPULAR MECHANICS and underneath the words "Produced by Mr.
Bishop and POP MEX. This was not the first time that the short
form "POP MEX" had been used to describe the band. From its
inception members of the band and other persons aware of its
existence referred to it as "POP MEX" and "POP MECHS".
"You Get the Picture/Furniture" was received by 2JJJd
late in 1980 and upon receipt it was played for a period once a
day six times a week. At the date of trial it was still being
Played by 2JJJ about three to four times a week. It was also
being played by other radio stations including 2XX Canberra and
non~commercial FM stations in Melbourne, Brisbane and Sydney.
These non-commercial FM stations apparently command an audience
of some thousands.
Those who are interested in the music which POPULAR
MECHANICS plays are mainly young people between the ages of 12
and 30. At least half of them are of school age. Those who
attend the major venues where the band plays include business
people, office workers, and school students. It appears that the
smallest venues in the inner city area are attended by more avant
garde young people.
The type of music which bands such as POPULAR MECHANICS
play is referred to as "the new music". It is unnecessary, and
probably impossible, to give an accurate description of this
music. It is sufficient for present purposes to say that the
type of music played by the POPULAR MECHANICS band is much the
same as that played by the POP MECHANIX band. That is to say,
they both play "the new music".
The learned trial judge found that by early 1981 the
name "POPULAR MECHANICS" meant to young people, particularly in
Sydney, a young band which performed live in the inner city area
of Sydney and had put out the records to which we have referred.
In other words, he found that the name had become distinctive of
the applicants' band. Evidence was given at the trial that the
band had attracted considerable publicity, much of it favourable,
in magazines which circulate amongst people interested in the
type of music played by POPULAR MECHANICS and POP MECHANIX. Some
of these magazines circulate nationally and others locally in
Sydney. Their circulations range up to 35,000 copies per issue,
but each copy is read by several people. His Honour found that
the break in the live performances of the POPULAR MECHANICS band
did not destroy the band's reputation. He found that, as at the
end of 1980 and as at the time POP MECHANIX appeared on the
Australian scene in March 1981, the Australian band was
reasonably well known in Sydney amongst those interested in "the
new music". His Honour further found that POPULAR MECHANICS'
reputation had not been shown to extend beyond Sydney or
Canberra.His Honour's finding on this matter is of some
importance to one aspect of the appeal and we set it out
verbatim:
"However, although its records are played and
sold in other cities and some of the magazines I
have referred to circulate there, I am not
satisfied from the evidence before me that
"POPULAR MECHANICS" among persons who attend
live performances and buy records of rock and
roll music in those places means the Sydney band
in which the applicants are interested. It may
well be the fact but the evidence in my view
does not establish it."
(See p. 215).
POPULAR MECHANICS did not give a live performance after
20 December 1980. However, the record "You Get The
Picture/Furniture" continued to get publicity. In the early part
of 1981 some of the magazines circulating amongst the new music
devotees contained references to POPULAR MECHANICS. Some of
these references inferred that the band had disbanded. Reference
was also made to Russel Handley joining another band. However,
his Honour found that although some members of the public would
have believed that POPULAR MECHANICS had ceased to exist by
mid-March 1981 when POP MECHANIX commenced their Australian tour,
there would still have been a substantial number of people who
knew the name POPULAR MECHANICS and who believed that the band
was still about and distributing its records. He further found
that many people would also have expected it to start playing
live again.
It is now necessary to refer to the respondents' band.
Their band was formed in New Zealand in April 1979 and adopted
the name POP MECHANIX in December 1979. At first the band
consisted of four of the respondents. An additional member, the
first respondent, joined it in October 1980. It made its first
recording in August 1980. The record was released and
distributed in New Zealand through C.B.S. New Zealand. Further
recordings were released in October 1980 and February 1981. The
band attracted favourable attention at the New Zealand Sweetwater
Music Festival in early 1981. Reports on that festival and POP
MECHANIX's part in it appeared in the Sydney "Sun-Herald" on 1
February 1981 and in one of the magazines already referred to.
Following its success at the Sweetwater Festival it was decided
that the band should undertake an Australian tour. The members
of the New Zealand band first became aware of the existence of
the Australian band in February 1981, prior to their coming to
Australia. Mr. Karpin, of C.B.S. had become aware of the
Australian band late in 1980. Late in February 1981 he had a
conversation with Mr. Bishop during which the existence of the
New Zealand group POP MECHANIX was mentioned. Mr. Bishop warned
Mr. Karpin that it would have to change its name.
POP MECHANIX commenced live performances in Victoria on
17 March 1981 and since then has performed regularly in Australia
at venues in Melbourne, Sydney, Canberra and other cities. It
has played as a support band to SPLIT ENZ, a band which also
originated an New Zealand and which came to Australia some years
ago. SPLITZ ENZ has since enjoyed considerable success both in
Australia and overseas. After the arrival of POP MECHANIX in
Australia it received considerable publicity, much of it being
related to problems it was having over its name. Publicity was
also given to the threat of proceedings by POPULAR MECHANICS and
to the fact that such proceedings were subsequently brought.
One of the records made by POP MECHANIX in New Zealand
was released by C.B.S. in Australia and widely distributed in all
States except Tasmania. The band has appeared twice on the
A.B.C. programme "Countdown" which is said to have a total
viewing audience of some three million people. "Countdown"
programmes are repeated by the A.B.C., so that, in effect, there
have been four appearances by POP MECHANIX oon this programme.
Most of the exposure to the public of POP MECHANIX has occurred
since the applicants instituted their proceedings. As stated
earlier much of the publicity has referred to the proceedings and
to the problems arising out of the use of the name POP MECHANIX.
The record released by C.B.S. in Australia has on it the
words "POP MECHANIX" and a reference to the three songs recorded
on it. The record sleeve has the words POP MECHANIX in large
lettering on it, but there is no reference to the band being a
New Zealand band. The venues at which POP MECHANIX has played in
Sydney have included a number in the inner city area.
A witness of considerable experience of popular music,
particularly of the "new music", gave evidence that he found the
two bands to be quite similar. They played a similar type of
music and they had a similar style on stage. He said that the
same age group of persons would be likely to buy the sort of
music the two bands produced. He said that the failure of such
bands to give live performances tended to make people expectant
about them. He said that as at May 1981, especially in the light
of the court case, there was an interest in the whereabouts of
POPULAR MECHANICS and this was contributed to by their recently
released record. He thought that the majority of young people
went out to see regular bands and tended to go more to see the
band than the personalities on stage. Whether a band changed a
couple of its members was neither here nor there to such young
people.
The evidence at the trial showed that the records of
both bands are sold in the same retail outlets. They are likely
to be found following one another in the same rack.
The facts as we have stated them are drawn from his
Honour's judgment. Whilst Mr Hughes Q.C., who appeared for the
appellants, argued that his Honour's decision was erroneous in a
number of respects to which we shall shortly refer, we did not
understand him to argue that his Honour's judgment misstated any
10.
of the evidence. Nor was it submitted that any of the facts as
we have stated them were not fairly open to be found by his
Honour.
In our opinion it was well open to his Honour on the
above facts to find that the appellants' conduct was misleading
or deceptive or likely to mislead or deceive. Indeed, we would
have thought that it was not only likely, but almost inevitable,
that such conduct would mislead or deceive a significant number
of persons interested in music of the kind played by the two
bands. There is a great similarity in the names POPULAR
MECHANICS and POP MECHANIX. The bands play similar music. They
have a similar style on stage. Their audiences are drawn from
the same age group. Their records are sold in the same shops.
No reference is made on the record covers in which POP MECHANIX's
records are sold to the fact that it is a New Zealand band. The
bands play the same type of "new music".
His Honour's finding that the use of the names POP
MECHANIX and POP MX without more by the respondents was likely to
mislead or deceive was attacked in various ways. It was argued
that it was not sufficient for the applicants to prove that the
respondents' conduct gave rise to confusion, even if that
confusion occurred at what was described as "the point of sale".
It was said that if a confused person had his confusion removed
before he took any action there was no infringement of s.52.
Hornsby Building Information Centre Pty. Limited v. Sydney
Building Information Centre (1978) 140 C.L.R. 216 and Cadbury
Schweppes Pty. Limited v. Pub Squash Pty. Limited (1980) 2
N.S.W.L.R. 851 at 859 were relied upon in support of this
ll.
proposition. It was said that as a result of the exposure which
POP MECHANIX had enjoyed, the public would be no longer likely to
be misled or deceived even if there had been confusion in their
minds at an earlier stage. Mr. Hughes referred to the evidence
eof one witness, the proprietor of a record store, who said that
he had pointed out to customers purchasing the bands' records
that the bands were different. He also placed great stress upon
the failure of the applicants to call any witnesses to say that
they had been misled. He made the point that POP MECHANIX could
be described as an "up-market" band when compared to POPULAR
MECHANICS, because it played to larger audiences at more
prestigious venues. He also relied on the references in
magazines to the two bands, these references making clear to the
reader that they were indeed two separate bands.
We accept that there is some substance in Mr. Hughes'
argument. That is to say, we accept that there would be some
people whose confusion would be removed in the ways he has
indicated. But that is a far cry from saying that the applicants
did not make out a case that a significant section of the
relevant public would be likely to be misled if the appellants'
band continued to play and be advertised in Sydney and Canberra
under the name POP MECHANIX. Mr. Hughes referred us to the
evidence of five witnesses who said they had been initially
confused when they heard of the appellants' band but that their
confusion had been dissipated by subsequent knowledge which they
obtained. But we do not think this evidence assists the
appellants' case. Each of the five witnesses were actually
12.
involved in what might be described as the rock music trade. One
was the editor of a trade magazine, another an employee of an FM
radio station, another a record producer for a large music
publisher, another a booking agent for bands and yet another, a
record shop retailer. We think it significant that ail these
witnesses, knowledgeable as they were of the rock music scene,
were confused when they first heard of POP MECHANIX. Because of
their involvement in the trade their confusion was, in one way or
another, removed. But the great majority of people who would be
likely to hear the two bands in live performances or on radio,
and would be likely to buy their records would not be in the
trade. It is true that those who had read references to the two
bands in magazines or newspapers and who had remembered what they
had read might well not be misled. But it cannot be assumed in
favour of the appellants that all, or even the majority of,
people would be so knowledgeable as to be able to distinguish one
band from the other.
The facts of this case do not make it necessary to give
any close consideration to the meaning of "likely" where that
word is used in s.52. As Bowen C.J. pointed out in Tillmanns
Butcheries Pty. Limited v. Australasian Meat Industry Employees'
Union (1979) 27 A.L.R. 367 at 375, the word "likely" is one which
has various shades of meaning. As his Honour pointed out:
"The word 'likely' is one which has
various shades of meaning. It may mean
'probable' in the sense of 'more probable than
not' - 'more than a 50 per cent chance'. It may
mean 'material risk' as seen by a reasonable
man 'such as might happen'. It may mean 'some
possibility' - more than a remote or bare
13.
chance. Or, it may mean that the conduct
engaged in is inherently of such a character
that it would ordinarily cause the effect
specified."
In that case his Honour was considering the meaning of
the word where used in s.45D of the Act and found it unnecessary
to determine its precise meaning as used in that section. Deane
J. also considered the meaning of "likely" in s.45D. At p.382 he
said:
"The conclusion which I have reached is
that, in the context of s.45D(1), the preferable
view is that the word 'likely' is not synonymous
with 'more likely than not' and that if relevant
conduct is engaged in for the purposes of
causing loss or damage to the business of the
relevant corporation, it will suffice, for the
purposes of the sub-section, if that conduct is,
in the circumstances, such that there is a real
chance or possibility that it will, if pursued,
cause such loss or damage."
In our opinion, whatever the shade of meaning be
attributed to the word "likely" in s.52, the conduct complained
of by the applicants can properly be said to be likely to mislead
or deceive. Indeed, as we have already said, we would think that
it is almost inevitable that people will be misled or deceived by
it. ,
Mr. Hughes further argued that, whatever may have been
the position in the early part of 1981 at the time the applicants
commenced their proceedings, and certainly at the time of trial,
any confusion which formerly existed had disappeared. He
submitted that his Honour had not given sufficient consideration
to this matter and that he had confined his attention to the
14,
question whether the similarity in the names of the two bands had
caused confusion and would have been likely to mislead or deceive
as at March 1981 or shortly thereafter. The trial did not take
Place until approximately three months after the New Zealand band
appeared on the Australian scene.
We do not think that his Honour failed to turn his
mind to the question whether the use of the name POP MECHANIX was
misleading or deceptive or likely to mislead or deceive as at the
time of trial. Indeed, it is clear that he did just that.
Having carefully referred to the evidence he said at p.43 of his
judgment :
"It was also put in argument that as a result of
the exposure which POP MECHANIX had had, the
public would no longer be likely to be misled or
deceived even if, as I understand the argument,
there may have been confusion in their minds at
an early stage. It is true that the band POP
MECHANIX has played very regularly since it
commenced in Australia, particularly in Sydney
and Melbourne and that there has been a degree
of exposure on the programme 'Countdown'. There
have been some sales of their records ... and a
slight exposure on radio. However, I have no
doubt ... that the relevant public still regards
the name POPULAR MECHANIX and to some exent the
name POP MEX as referring to the band in which
the applicants are interested. I am also
satisfied that the applicants intend to continue
to sell and issue records under the name POPULAR
MECHANICS or the name POP MEX and to resume live
performances using that name. In these
circumstances whatever the degree of exposure of
POP MECHANIX that may have occurred, I think it
will only lead to the deception of the public if
the two bands continue to operate in the same
market using their respective names. I take
this view because, in my opinion, the names are
so similar that, unless some step is taken to
distinguish them, members of the relevant public
are likely to be deceived and misled."
15.
And he further said at p.45 of his judgment:
"It will be apparent that I have formed this view
based on the close similarity of the names, the
nature of the relevant consuming public and the
similarities between the bands and the venues in
which they are likely to play and the fact that
their records are being sold in shops along side
one another in various parts of Australia."
His Honour was clearly of the view that the reputation
of the POPULAR MECHANICS band continued up to the time of trial.
We do not see any basis for disturbing his Honour's finding on
this matter. It is supported by the evidence as to the
continuing sales of the band's records and by the evidence that
there was an expectation that the band would shortly reappear in
live performances. It is further supported by the evidence that
one of the band's records was being played about three to four
times a week on station 2JJJ in Sydney and was also being played
on other radio stations, including a Canberra station. Mr.
Hughes invited us to find that his Honour was in error in finding
that POPULAR MECHANICS had, as at the date of trial, such a
reputation as would lead to the public being misled by the
appellants' band being called POP MECHANIX. So far from being
persuaded that his Honour was in error on this matter, we share
his opinion on it.
It was further submitted that some of the evidence led
by the applicants to show that members of the public had been
confused was inadmissible. We do not find it necessary to deal
with this argument as his Honour's findings are clearly
16.
Supportable by evidence which was indubitaly admissible.
However, we should point out that his Honour made clear in his
reasons that his decision was not based on the impugned evidence.
It was also argued that his Honour failed to give weight
to the absence of evidence of any actual deception at the point
of sale. It was said that such evidence could easily have been
adduced had it been available. But such evidence, even if it
had been called, would have been of limited importance at the
trial. It certainly would not have been decisive. The court
must itself determine whether there is a likelihood that the
relevant persons will be misled. That is what his Honour did in
this case and it was correct that he should do so. In any event,
we think that the evidence that people in the trade were confused
points strongly to the probability that persons not in the trade
would also have been confused and would have taken some step as a
result of that confusion, for example, buying a record.
It was further submitted that his Honour faaled to give
sufficient consideration to the evidence suggesting that the two
bands played in different markets. In particular, it was argued
that if his Honour had given any weight at all to Mr. Righi's
evidence, he would have necessarily have found that the two bands
operated in distinct markets. But we do not think that Mr.
Righi's evidence, even if accepted in its entirety, cuts down to
any significant extent the other evidence to which we have
referred. On any view of the evidence, there is a likelihood
that persons interested in music played by one band will also be
interested in music played by the other.
17.
Mr. Hughes submitted that there was no evidence at the
trial that when a record is played on radio an announcement is
made of the name of the band or artist making the record and
that it was therefore not possible for the applicants to rely
upon the playing of their records on radio as establishing their
reputation. We do not think there is any substance in this
submission. In the first place, there is direct evidence that at
least on some occasions the name of the applicants' band was
mentioned. In the second place we think it 1s notorious that it
is the almost invariable practice for the name of the artist
producing a record to be announced when that record is played on
the radio. Perhaps on the odd occasion the artist's name is not
announced, but we think his Honour was entitled to assume that on
most occasions when the appellants' records were played, the name
of their band would be mentioned.
It is further submitted that his Honour's judgment was
vitiated by an erroneous view which he took of the object of s.52
of the Act, namely, that its intended operation included the
protection of traders. Whether or not it is one purpose of the
section to protect the interests of traders, it is clear that the
section can be resorted to by traders;,to protect their interests.
See Hornsby Building Information Centre Case (supra) per Stephen
J. at p. 226. For the purpose of the present appeal nothing
turns upon the validity of his Honour's view because he clearly
decided the case upon the basis that the appellants' conduct was
likely to mislead or deceive members of the public. His Honour's
decision was not based upon a finding that the applicants'
18.
interests would be adversely affected, although that was an
almost necessary consequence of his finding that the public would
be misled or deceived. We are not to be taken to be disagreeing
with his Honour's observation. But it is unnecessary for us to
pass upon it for the purpose of deciding this appeal.
It was submitted that the form of the first injunction
granted by his Honour was too wide. This injunction was in the
following terms:
"(1) the sixth-named respondent by itself its
servants and agents be restrained from
engaging in conduct in trade or commerce
that is misleading or deceptive or is
likely to mislead or deceive by using the
name POP MECHANIX POP MEX or POP MX or any
other colourable imitation of the name
POPULAR MECHANICS or of the name POP MECHS
in connection with the promotion or the
performances of a band or in connection
with the promotion. sale supply or
distribution of the music songs recordings
or video tapes of or by a band in such a
way as to mislead or deceive members of the
public into believing that such band is the
band known as POPULAR MECHANICS of which
the second, third and fourth named
applicants are or have been members"
No exception was taken to the other injunctions which were so
framed as to enjoin conduct in the Sydney and Canberra areas.
But it was submitted that having regard to his Honour's finding
that the applicants had not established a reputation outside
those cities, the applicants were not entitled to injunctions
restraining any conduct outside those cities. We think there is
substance in this submission. Unless the reputation of the
applicants' band is shown to extend beyond the Sydney and
Canberra areas it is not possible to say that any member of the
19.
public outside those areas will be misled or deceived or would be
likely to be misled or deceived. It is true that the first
injunction granted by his Honour follows the well known form
adopted in appropriate cases in other jurisdictions. See, for
example, the form of injunction often granted in proceedings to
restrain one trader from passing off his goods as those of
another. (See, for example, Seton's Judgments and Orders, 7th
edition, Volume I at p. 616). But where, as in this case, there
has been a hearing and the evidence has been found not to
establish any reputation outside Sydney or Canberra, we think it
preferable that the injunctions granted should be so framed as to
confine the conduct enjoined to conduct in those places. If the
first injunction were to remain in its present form, the question
of the reputation (if any) of the applicants' band in places
other than Sydney and Canberra would fall to be determined in
contempt proceedings. We think this is undesirable. For this
reason we think that Order 1 made by his Honour should be amended
by inserting the words "in Sydney or Canberra" after the words
"commerce", "performances" and "distribution" where they appear
in that order. Otherwise, the appeal should be dismissed.
On the question of costs we think that a just order
would be that the appellants pay to the respondents their costs
of the appeal, other than the costs incurred on 6 November 1981.
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