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we ek Ba Ruler ama Dent dae aeente ienlanie Lelet then ttl nll LeeAnn tates eae ak rand ~
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CATCHWORDS
TRADE PRACTICES - Misleading or deceptive conduct -
Representation that goods have a particular standard or
quality - Misleading conduct in relation to characteristics of
goods - Fragrance advertised as "like" certain well known
perfumes - Statements made that even an expert could not teli
difference - Evidence to show a prima facie basis that aroma
of fragrances was unlike that of the perfumes - Use of
packaging describing the fragrances as "like" the perfumes -
Application for interlocutory iuniunction.
PRACTICE - Application for orders requiring respondents to
disclose information regarding source of supply of fragrances
and their packagind.
Norwich Pharmacal Co v The Customs and Excise Commissioners
£19741] A.C. 133 applied.
Trade Practices Act 1974 ss.52, 53{a), 55.
N.S.W. G 135 of 1985
BENTLEY FRAGRANCES PTV LIMIVED and CHARLES OF THE RITZ GROUP
LIMITED v GDR CONSULTANTS PTY LIMITED and ALIMEAST PTY LIMITED
Wilcox J.
Svdnev
7 June 1985
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES' DISTRICT REGISTRY
GENERAL DIVISION
CORAM; WILCOX J.
DATE: 7 JUNE 1985
PLACE: SYDNEY
THE COURT ORDERS THAT:
l. The respondents. each of them,
BETWEEN
AND:
No. 135 of 1985
BENTLEY FRAGRANCES PTY
EIMTTED
First Applicant
CHARLES OF THE RiTZ
GROUP LIMITED
Second Applicant
GDR _ CONSULTANTS PTY
LIMITED
First Respondent
ALIMEAST PTY LIMITED
Second Respondent
MINUTE OF ORDERS
their servants and
agents be restrained until further order from
Mattel At ees hn ae ee
oo
ey
ahd inca DR RT ALi Ws Skerries nat Kim et sie cilan el anneal lettre anes iin eenhe 6
engaging in conduct in trade and commerce that 15
misleading and deceptive or likely to mislead or
deceive by:
(a)
(b)
using or causing to be used the names
"L'Air du Temps", "Oscar de la Renta" and
"Oprum" or any of them in any brochure,
literature, advertisement or writing or
in any container or packaging used for or
in connection with the manufacture.
distribution or sale of any perfume,
perfume concentrate, parfum de toilette
or eau de toilette; or
representing whether orally or in writing
that the product manufactured,
distributed or solid by the respondents or
either of them 15 indistinqguishable in
perfume or fragrance or has a close
likeness in perfume or fraqrance to any
perfume, perfume concentrate, parfum de
toilette or eaux de toilette distributed
in Australia by the first applicant under
the name or under a name which includes
the name "L'Air du Temps", "Oscar de la
Renta" of "Opium" or any of them.
me fy ee wa,
sta mm
27 A
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ad!
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5 ern
tat. .
pnteinaner be rater se wan eect ia nae the
-y
ie
Paras aecgt to Senta wesc : - . ' tok
La A penn . - .
That each of the respondents by one of its
directors within seven (7) davs file and serve on
the applicants an affidavit which states in respect
of each of the three packaged bottles of fragrance
which constitute Exhibit B in these proceedings
whether:
(a) the respondent acquired the package, the
bottle and the fragrance from three
different suppliers;
(b) the respondent acquired the fraqrance in
the bottle from one supplier and the
package from another supplier: or
(c) the respondent acquired the fragrance in
the bottle in the vackage from one
supplier,
and if in respect of all or anv of the three
packaged bottles of fragrance the answer to (b) or
(c) 18 in the affirmative, states in respect of
each of the three packaged bottles of fragrance
SRT PIRATE PAT See ne er ne one? tot wag time
* at '
Y
et aban Dee ce ie ener nt ee En ne eee a tne ne a ne te ie at te a ta at ek te Ble te
- ' ee a . . wt
wet th ee ek er nek ne ee a ee te ae ee Be ee eo
F
a
d 4.
Bi -
ad
ih
3 (d) the name of the supplier or suppliers of
j the fragrance in the bottle or the
ae fragrance in the bottle in the package.
J as the case may be, to the respondent:
2 (e) the address of the supplier or suppliers:
reas
(£) the quantity of like goods acquired from
Pewee)
the supplier or suppliers: and
(q) the date of each supply.
* 3. The costs of this application be the applicants'
costs in the principal proceedings.
: 4. Stand the matter over until Tuesday 25 June 1985 at
_ 9.30 a.m.
5. Liberty to anv party to apply on twenty-four hours'
' notice. That liberty 15 in respect both of the
orders that have been made or the matter of
directions for further steps in the proceedings
te a
NOTE: Settlement and entry of orders is dealt with in
Order 36 of the Federal Court Rules.
cae
OE eae elas Rinweheied Mae ee et
eta
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e
angethin ec
eT
BON ed
Pe. nee Se
Se ve Neer a de te a
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run so tet Ea wt, uF : : "
we tL ee Clea Ea mm ER he tat Nein Oe Membre a AEE Ae te lk al ale ae ae ne el re de te aa er a ene
IN THE FEDERAL COURT OF AUSTRALIA )
)
NEW SOUTH WALES DISTRICT REGISTRY ' No. 135 of 1985
)
GENERAL, DIVISION )
BETWEEN : BENTLEY FRAGRANCES FrY
LIMITED
First Applicant
CHARLES OF THE RITZ
GROUP LIMITED
Second Applicant
AND: GDR_ CONSULTANTS PTY
LIMITED
First Respondent
- ALIMEAST PTY LIMITED
Second Respondent
CORAM: WILCOX J.
DATE: 7 JUNE 1985
PLACE: SYDNEY
EX TEMPORE REASONS FOR JUDGMENT
This is an Application for interlocutory injunctions
in relation to the distribution of what are called in the
evidence "fragrances". The applicants are two companies. The
first applicant, Bentlev Fragrances Pty Limited, is a company
saab ic ded haa.:ietnh dacteteseehademnenehbemaetdentdaaes ait ianetmaenenncanet meme niemaes eee amen endh tadceriehletaiee seem sede adc aneeeienem aieaat ie temeencadaieie ainmmteahantimcaactt tak tata nena htamtiade alii ea aiden hal
awe oa ft + 7s - " ~) ~
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ant
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2.
incorporated in New South Wales which has for a number of
vears distributed within Australia three perfumes or
fragrances which appear to have a considerable reputation,
both in Australia and elsewhere. The affidavit of Mr Bruce
Moonie, the supply director of the first applicant, indicates
that the company is the sole distributor of those fragrances
within Australia. Distribution has taken place over varving
times in respect of each of the three fragrances. The company
has distributed a fragrance manufactured by a company called
Nina Ricci and styled "L'Air du Temps" since at least 1967. a
fragrance produced by Oscar de la Renta Limited and called
"Qscar de la Renta" since 1981 and, since 1977. a fragrance
styled "Opium" which is apparently produced by Yves St Laurent
and distributed by Charles of the Ritz Group Limited. a United
States company which is the second applicant. The evidence
indicates that each of the three names is the subject of a
trademark registered in Australia, the trademark 1n respect of
"Opium" being registered in the name of the second applicant.
Mr Moonie's affidavit sets out the net wholesale
value after sales tax of the Australian sales by Bentlev
Fragrances for each of the fragrances. The sums are
considerable, currently ranging from $2.7 million per vear in
the case of "Opium" to $651,000 in the case of "Oscar de la
Renta". Mr Moonie also establishes that substantial sums were
spent during 1984 bv the first applicant in advertising each
of the three perfumes. those sums running into hundreds of
TET Geen yt tren me ne tem ee ere ee eae on so ae ee
MoT ye
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thousands of dollars. It appears to be clear that the first
applicant as distributor and the second applicant as the
overseas supplier and owner of the trademark "Opium" have a
considerable interest in maintaining the reputation of the
three fragrances and in maximizing sales in Australia of those
fraqrances.
There have recently appeared in magazines of wide
circulation, namelv "Womans Day" and "TV Week", advertisements
placed bv or on behalf of one or both of the respondents. The
advertisements for practical purposes are in the same terms.
They show a reproduction of a bottle of a fragrance stvled
"Joy de Jean Patou. Paris". and a reproduction of a bottle
stvled "like/tel Joy by Joanne". The bottles are of similar
volumetric capacity but the desians of the bottles are quite
dissimilar. The advertisement compares the cost of what I
will call the original product with the cost of the likeness
and the difference is marked $125 in the case of the original
and $19.95 in the case of the likeness. In prominent printing
the advertisement includes the words. "and your nose can't
tell the difference". It then qoes on to announce: "New from
Joanne - stunning likenesses of -" and it lists 12 well-known
perfumes. They include "L'Air du Temps", "Opium" and "Oscar
de la Renta". The advertisement qoes on to state that Joanne
believed that the world's top perfumes are too expensive and
that they have an alcohol base that dries the skin, "so Joanne
assembled a team of clever voung scientists to develop a new
wot
eel.
wet ee
ene) arachnids ee ab me Ba er ote NP a el en ee Ee eee
4. evr da
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ease 7 def tans'
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:
A erasthen Une toatiie oe we
4.
range of true likenesses of the world's 12 top perfumes". It
includes the words, "and thev succeeded". After commenting on
the difference in the base the advertisment includes these
words:
"Now vou can envelop vourself in the romantic,
million dollar aura of whichever Joanne
likeness vou choose for just a few cents a
dav. You 11 be the envy of your friends ...
because only you will know its Joanne and not
the brand costing perhaps hundreds of dollars
more. Not even experts could tell the
difference."
I think it 1s quite clear that the advertisement is
conveying to readers that what is offered for sale by Joanne
1s not the same as the original fragrance. This appears not
only because of the repetition of the word likeness both in
the body of the advertisement and in the mail order coupon
at 1ts foot but also because of the very description of how
1t came about that Joanne is able to offer these products
for sale.
However, the applicants complain that a reader of
the advertisement would be led to believe that the
fragrances offered for sale by Joanne are indistinauishable
in point of aroma from the original perfumes of which thev
are likenesses. In his affidavit Mr Mosnie. who has been
emploved in the industry for 14 vears and who claims to be
competent to distinguish fragrances on the basis of smell.
states that he has compared by smelling each of the three
original fragrances with the product advertised and sold bv
the respondents and that each of the relevant original
a 4, 4 -.
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at
perfumes 1s distinctly different from the likeness marketed
REC etary ae
by the respondents. Mr Moonie's evidence was not challenced
either by cross-examination or by evidence in reply. I
therefore proceed on the basis that. for the purposes of
this application, it is established that there 1s in fact a
nat bee
distinct difference between the original perfume and the
celevant "likeness"; at least in so far as the three
perfumes with which this application is concerned.
ae eee
There was some question as to whether Mr Moonie
Aas amerhek oe S
should be reqarded as an expert. It seems to me that he
does have expertise. The art of distinguishing fragrances
is something which I would have thought was best learned on
. the job by people who work in the industry. No doubt there
Ne
are matters of scientific learning which may be used in
support of an opinion on that matter but I would not have
fe bed aie hee
thought it was necessarv to have scientific or academic
qualifications in order to sav that there was a distinct
difference between the perfumes. However, it does not seem
Wm mee W etlve
to me to matter verv much whether Mr Moonie should be
regarded as an expert or not. The fact 1s that the
advertisement makes two claims in respect of not telling the
difference. Firstly it makes a claim in effect that
non-experts cannot tell the difference: it does this in two
ways, both by the bold heading to which I have referred --
"and your nose" -- and also by the reference to "vour
friends" not appreciating the difference. This seems to me
Feed ene nk neste nee ee eed alts ye Gdns
et Res,
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6.
clearly to indicate that ordinary people will not be able to
distinguish between the oriainal and the imitation.
However, the advertisement goes on to say that "not even
experts could tell the difference". So wnether or not Mr
Moonie 18 reqarded'as an expert or. for present ourposes. an
ordinary person, his evidence indicates that the statement
in the advertisement is false.
Under those circumstances it seems to me that there
1s at the very least a serious question to be tried as to
_whether the publication of the advertisements constitutes
misleading or deceptive conduct within s.52 of the Trade
Practices Act 1974 and also whether there is a false
representation that goods have a particular standard or
quality within the meaning of s.53(a) of the Trade Practices
Act and probably also as to whether the respondents have not
engaged in conduct that is liable to mislead the public as
to the characteristics of goods within the meaning of s.55
of the Trade Practices Act. I do not think that the
qgravamen of the applicants' case is. or indeed could be.
that the products look alike or that it is represented that
the respondents' product is the applicants' product. As I
have said the get-up is quite different and the
advertisement makes it quite plain that the products are not
the same.
a
Bete
ay
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Pe RP ne I ole
tem eek Ne eee
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7.
However, the most sianificant characteristic of
perfume no doubt 1s the aroma that it gives off. and to sav
that the aroma of one is indistinaquishable from another. if
im fact that statement is not true. seems to me to involve
an arguable case. in relation to each of the three sections
of the Trade Practices Act to which I have referred. In
referring to an arguable case I have in mind at least the
standard of "a serious question to be tried", although I
would have thought on a prima facie basis the strength of
the case could be put much higher. There seems to me to be
quite a strong case under those sections.
The evidence indicates that the advertisement was
seen by an emplovee of the first applicant, Josephine Rigon,
who thereupon went to the address shown on the order couron
shown in the advertisement at Kinagsarove, a suburb of
Svdney. She there purchased a bottle of each of the three
fragrances, marked by the respondents as being "like Opium".
"like L'Air du Temps" and "like Oscar de la Renta". It is
the contents of those bottles which were compared by Mr
Moonie with the original products. The packaging in respect
of each of those three bottles is similar. The bottles are
in a shape which is quite dissimilar from the shape of the
bottles of the original perfumes. The package bears on the
outside of it words both in the English lanquage and French
language, the English version being: "Essence o11 perfumed
Paar)
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ones
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et
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8.
by Joanne; ingredients fragrance. dipropolene. glycol;
fragrances like/tel Opium" and, on the bottom, "Generic
Perfumes International, 128 1 Delta BC 34 M T3 TC - made in
Canada".
In velation to the conduct of the respondents in
marketing the products packaged in that way. the applicants
rely heavily upon the use of the relevant names, "Opium",
"L'Air du Temps" and "Oscar de la Renta", both on the
outside of the package and on the bottle. Those names are
used, but in the context of the following the words.
"like/tel" with the addition of the words, "by Joanne".
Counsel for the applicants arques that the words
"like/tel" will not necessarily inform the person who sees
the package or the bottle that the contents are different
from the original. He points to the comparative size of the
letters of those words as against the letters of the name
and suggests that people are likely to be merely confused.
He emphasises that the names have considerable reputation
and that not all persons who purchase will appreciate that
the get-up is different.
Alternativelv, counsel puts the submission that a
statement that a product is "like" the original must be read
in this context as a statement that it is like it in terms
of aroma, being the most relevant characteristic of a
PEE BT eR i em mn en ee re re mene oe pe ee ce ty ee tae
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- ne ' . Yo een ~- "4 OOF
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9.
fragrance. In short, he seeks to put the matter two ways,
depending on the view that is taken as to whether the
purchaser appreciates the fact that the package and the
bottle are making a statement that this 1s not the original
but merely like~ the' original.
In relation ta this claim, 1t seems to me that
there is a serious question to be tried. within the meaning
of that phrase as used in the authorities. It may be that
the claim in respect of this matter is not as strona as in
respect of the advertisement, but I think it is correct. as
counsel suggests, that whether or not the purchaser
appreciated the significance of the word "like" he or she is
likely to be mislead. If he or she did appreciate that
siqnificance, then I think he or she would understand it to
Mean that 1t was like the original in terms of the aroma of
the product; and that, on the evidence, 1s an incorrect
statement. If, on the other hand, one assumes that this was
not appreciated because of the size of the lettering, then
the person is likely to be in a position of having his or
her understanding dominated by the use of the name, causing
a belief that this is indeed the same product.
I come then to the balance of convenience in
respect of the granting of interlocutory relief along the
lines of that sought in para.1 of the amended Application.
I have indicated that the evidence establishes a
oe ee Oe RCI EN TER I ORO TE TE I LG OTe TD I EE ETS TBO
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s
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16.
ry of
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Hacer! See teeden®.
considerable trade in the original perfumes by the
applicants and a considerable investment in their reputation
as a result of advertising. There 1s no evidence as to the
bee
position of the respondents. It-appears to be a fair
inference that thev have incurred the expenditure of two
: magazine advertisements -- how much that would amount to in
dollar terms I do not know -~ and there 1s nothing to
indicate any other expenditure. I do not know whether they
have laid in any stock of the products or outlaved capital
in anv other wav.
ere eee ed
Under those circumstances I think I have to
approach the matter on the basis that if the respondents are
allowed to continue to sell their products, pending the
final disposal of the matter, the applicants will be
7 confronted, or may be confronted, with competition by
' products which sell at something like 20 per cent of the
+ cost of their products and which are stated to he
indistinguishable in terms of the oniv significant
characteristic of the products. If people believe that
statement and choose to purchase the respondents' products
instead of the applicants' products, thev suffer the loss of
sales. If people believe the statement and purchase the
rene van
respondents' products, being people who would not have been
prepared to spend five times as much to purchase the
ve
ans
applicants' products, then it can be said that the
applicants have lost nothing in terms of sales. However, if
aD Neely
het
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Phe Ta EE Ae RR OS RE me een ee rr cee moe
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wee ra . ; tet
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e
the position is that the products are unlike that of the
applicants, and if it is a fragrance which does not attract
the approval of purchasers, then it seems to me that there
1s a real potentiality for damage to the reputation of the
product's marketed by the applicants.
I think that 1t is a reasonable apprehension of anv
vendor of a product of high reputation that the reputation
of the product, and therefore its commercial value, would be
damaged by the marketing of a cheaper product which is
wn le tee ae 0s sede ee oe ne
falsely stated to have the same relevant characteristic. If
such damage occurs, then 1t is almost impossible for the
1 applicants to prove the facts to quantify the extent of
their damage. If, on the other hand, an injunction is
granted, the position will be that the respondents are
precluded from proceeding with the marketing of these
' products. If, in the end, it turns out that the Application
.! fails, the respondents would at least be able to point to
some material to indicate the extent of the response that
they have had from the initial advertisement. It would not
i be easy to assess their damages, but I think that there 1s
\ some basis upon which the Court could assess a figure which
was likely to provide proper compensation for then.
I think that considerations of the balance of
convenience point to the granting of injunctions and I
propose to qrant injunctions broadly in terms of para.1 of
=
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12.
the amended Application. I think it is correct to say, as
has been arqued on behalf of the respondents. that as at
presently framed it 1s too wide in that it refers to
products other than those referred to in oara.3 of Mr
Moonie's affidavit. I will come back to the precise form
of the order in due course.
There 1s a further aspect of the matter. In para.7
of the Application, the applicants sought an order that the
respondents, by one of its directors, within seven days file
and serve on the applicants an affidavit which, in relation
to each of the relevant perfumes, supplies certain
information. The basis upon which that application was made
was the decision of the House of Lords in Norwich Pharmacal
Co v The Customs and Excise Commissioners £19743 A.C. 133.
During the course of argument, I indicated to counsel for
the applicants that the orders sought in para.7, appeared to
be too broad. They seemed to have been drawn on the
assumption that the products marketed by the respondents
were packaged and imported in that form. It mav well be
that this 1s so. but there 1s no evidence of that fact. The
respective packages do state that the products were made in
Canada, but that is not inconsistent with the possibility
that 1t was imported into Australia in bulk. and not under
any particular brand name. and here packaged by the
respondents or one of them, or some other person.
- 4
" ona a aan ot . 24 ¥
' . me wow ee Seon ES se
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a
BS EE ae aera mee ks dace ae le aaah ee ea A ak ae es Dah nm ak a a ee
'
13.
Soy
heya a
Counsel then sought and obtained leave to amend the
Application so as to proffer an alternative form of order.
contained in para.6A of the amended Application. That order
tyes aoe
|
would require the respondents to file and serve affidavits
stating whether the respondents acquired the package. the
bottle and the fragrance from three different suppliers;
whether the respondents acquired the fragrance in the bottle
from one supplier and the package from another supplier. or
whether the respondents acquired the fragrance in the bottle
AO A le ne a we te i a
in the package from one supplier and, if in respect of all
or any of the three packaged bottles or fragrances the
answer to either of the last two questions was in the
affirmative, to state in respect of each of the three
packaged bottles of fragrance, the name of the supplier or
suppliers. the address of the supplier or suppliers. the
quantity of like goods acquired from the supplier or
suppliers and the day of each supply.
Counsel for the respondents resists the making of
eS Ne ke ee er ee
any order along these lines. saying that the request amounts
to a fishing expedition designed to provide material for
some other action against some other respondent. I think
that there 1s no doubt that the applicants hope to obtain
information which will enable them to consider whether they
should take action against other parties. but I do not think
that that 1s a legitimate objection to the type of order
Mahl OAD ee
a
which 1s sought. In Norwich Pharmacal, the application was
' +
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ow,
p eer reewencree tom ace IRR a eP OY aN NEP CTS EY I ce ene ee
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ic
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14.
brought against the Customs and Excise Commissioners in
order to obtain information as to the person involved in
importing a particular chemical compound into the United
Kingdom in breach of tne rights of the appellants. The
Commissioners were not suqdested to have acted wronaly in
any way, but they were involved in the transaction as a
government agency and it was held that this was enough to
entitle the appellants to an appropriate order. In that
case it was made to appear to the court that some person was
acting wrongfully. The purpose of the proceedings was to
find out who was that wrongdoer in order that proceedings
might be taken against him. I can see no difficulty in
principle in making an order such as that made in Norwich
Pharmacal against a respondent who is himself both a
wrongdoer and a person who can cast light on the identity of
some other wrongdoer. The present applicants could have
brought a separate action simply seeking relief along the
lines of that sought in para.6A or 7 and without seeking anv
other relief against the present resnondents. It cannot be
a proper obrection that they have chosen to do the two
things in the one Application. There is, of course, this
distinction between the present case and the Norwich
Pharmacal case, namely that in the Norwich Pharmacal case it
was made to appear to the court that there definitely was
some other person who had acted wrongfully. In the present
case this is not clear. It is conceivable that, as I have
said. the fragrances were only packaged by the respondents
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15.
el
be
and that they are the only people who have acted in any way
in contravention of the Trade Practices Act or in breach of
any trademark rights. It is for that reason that I think
that' the relief to be granted should be restricted to
De ee ee Bab teh eh
: finding out the facts Gbout the nature of the vackaging and
1t should not go on to require the information sought in
para.7.
However, it seems to me that the modified claim for
relief contained in para.6A is relief to which the
applicants are entitled. The applicants, through their
counsel, have given to the Court the usual undertakings as
to damages. Having regard to that fact and for the reasons
that I have set out, I make the following orders: I order
that the respondents, each of them, their servants and
agents be restrained until further order from engaging in
conduct in trade and commerce that is misleading and
deceptive or likely to mislead or deceive bv:
(a) using or causing to be used the names
"L'Air du Temps". "Oscar de la Renta" and
"Opium" or any of them in any brochure.
literature, advertisement or writing or
in any container or packaging used for or
in connection with the manufacture,
distribution or sale of any perfume,
perfume concentrate, parfum de toilette
or eau de toilette: or
sis o . '
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16.
(b) representing whether orally or in writing
that the product manufactured,
distributed or sold by the respondents or
either of them is indistinqguishable in
perfume or fragrance or has a close
likeness in perfume or fragrance to anv
perfume, perfume concentrate, parfum de
tollette or eaux de toilette distributed
in Australia by the first applicant under
the name or under a name which includes
the name "L'Air du Temps". "Oscar de la
Renta" or "Opium" or any of them.
I further order in accordance with para.
amended Application. The proper order for costs
6A of the
is that the
costs of this application be the applicants' costs in the
cause. I stand the matter over until Tuesday, 25 June at
9.30 am and I will give any party liberty to apply on
twenty-four hours' notice. That liberty is in respect both
of the orders that have been made or the matter of
directions for further steps in the proceedings.
I certify that this and the fifteen (15)
preceding pages are a true copy of
the Reasons for Judgment herein of
his Honour Mr. Justice Wilcox. '
Associate: Kou wee WOH 2R ,
Date: 7 June 1985
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4 . Counsel for the applicant: Mr S D Robb
. Solicitors for the applicant: Messrs Baker & McKenzie
3 Counsel for the respondent: Mr A P Whitlam
; Solicitors for the respondent: Messrs Helliars
Date(s) of hearing: 7 June 1985
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