Ownit Homes Pty Ltd & Ors v D. & F. Mancuso Investments Pty Ltd & Ors [1988] FCA 202
Federal Court of Australia
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CATCHWORDS
COPYRIGHT - Alleged infringement of architectural plans - display
home - original artistic work - in whom the copyright vested -
extent of copying - qualitative assessment of extent of
similarity - alleged reproduction of substantial part of plans -
copying of ideas.
Copyright Act 1968 (Cth) ss.36(1)
OWNIT HOMES PTY. LTD. First Appellant
DAUDI PTY. LTD. Second Appellant
JEFFDET OSMAN Third Appellant
- and -
D. & F. MANCUSO INVESTMENTS PTY. LTD. First Respondent
DOMENICO MANCUSO Second Respondent
TONY MANCUSO and ANGELA MANCUSO Third Respondents
Coram: Fisher, Pincus & Einfeld Ju.
Brisbane
29th April 1988
FEDERAL COUPT OF
AUSTRALIA
PAING Fay
\ REG STAY
7 aN
IN THE FEDERAL COURT OF AUSTRALIA )
)
QUEENSLAND DISTRICT REGISTRY ) No.G165 of 1987
)
GENERAL DIVISION )
ON APPEAL FROM THE SUPREME COURT OF
QUEENSLAND
BETWEEN:
OWNIT HOMES PTY. LTD.
First Appellant
- and -
DAUDI PTY. LTD.
Second Appellant
- and -
JEFFDET OSMAN
Third Appellant
- and —
D.& F. MANCUSO INVESTMENTS PTY. LTD.
First Respondent
- and -
DOMENICO MANCUSO
Second Respondent
- and -
TONY MANCUSO and ANGELA MANCUSO
Third Respondents
MINUTES OF ORDER
JUDGES MAKING ORDER
WHERE MADE
DATE OF ORDER
THE COURT ORDERS THAT:
FISHER, PINCUS & EINFELD JJ.
BRISBANE
29 APRIL 1988
oo oe oe
1. The appeal be dismissed.
2. The appellants do pay to the respondents their costs of
the appeal.
Note: Settlement and entry of orders is dealt with in Order 36 of
the Federal Court Rules.
we
IN THE FEDERAL COURT OF AUSTRALIA )
)
QUEENSLAND DISTRICT REGISTRY ) No.G165 of 1987
)
GENERAL DIVISION )
ON APPEAL FROM THE SUPREME COURT OF
QUEENSLAND
BETWEEN:
OWNIT HOMES PTY. LTD.
First Appellant
- and -
DAUDI PTY. LTD.
Second Appellant
- and -
JEFFDET OSMAN
Third Appellant
- and -
D.& F. MANCUSO INVESTMENTS PTY. LTD.
First Respondent
- and -
DOMENICO MANCUSO
Second Respondent
- and -
TONY MANCUSO and ANGELA MANCUSO
Third Respondents
REASONS FOR JUDGMENT
CORAM: Fisher, Pincus & Einfeld JJ.
29th April 1988
THE COURT: This appeal is brought to this Court from a decision
in the Supreme Court of Queensland of 6 August 1987, and is
brought pursuant to s.131B of the Copyright Act 1968 ("the Act").
The first and second appellants ("Ownit" and "Daudi") at the
2.
relevant times were respectively a "designer and builder of
dwelling-houses" but more particularly a builder of project
homes, and a "designer of dwelling—-houses". The third appellant
("Mr. Osman") is a draftsman, formerly self-employed as a
designer of dwelling-houses, but upon the incorporation of Daudi
on 3 June 1981 he became the managing director thereof. The
respondents are respectively a construction company ("Mancuso
Investments") one of the directors thereof and the father of the
male third respondent and the owners of land upon which a_ house
was constructed for them by Mancuso Investments ("Mr & Mrs
Mancuso"),
The circumstances in which this appeal arises can be
shortly stated.
Up to 1983 Mr. Osman had produced for Ownit drawings and
designs of dwelling houses, either on his own account, or as_ the
servant or employee of Daudi. Late in 1983 Mr. Osman produced
plans for a house entitled "Envoy Series 2", being a smaller
version of a previous series of designs known as the "Diplomat",
and a variation on the "Envoy" and "Envoy Series 1" designs. In
1984 Ownit constructed a display home to the plans of the Envoy
Series 2.
The learned trial judge, Kelly SPJ, found, first, that
the Envoy Series 2 plans were an "original artistic work" within
the meaning of the Act and, secondly, that Ownit and Daudi were
jointly and severally the owners of the copyright in the plans of
the Envoy Series 2 of which Mr. Osman was the author. Upon. the
3.
hearing of the appeal the respondents, by notice of contention
challenged these findings.
Mr & Mrs Mancuso were in 1985 intending to build a house
upon land which they had purchased, and to this end they
inspected various project or display homes including the Envoy
Series 2 display home constructed at the Carindale Display
Village. There was evidence that Mr & Mrs Mancuso retained 2
brochures containing details of the house from their inspection.
Subsequently, Mr & Mrs Mancuso engaged a Mr. Caruso, a
draftsman, with a view to designing for them a house
incorporating at least the prominent features of the Envoy Series
2. The trial judge found that Mr & Mrs Mancuso showed Mr.
Caruso one or both of the brochures they had retained from their
inspection of the Ownit display homes. Mr. Caruso in turn
retained one of the brochures he was shown. Mr. Caruso, in
discussing the design of their prospective home with Mr & Mrs
Mancuso made it clear to them, however, that a direct copying of
the plans of another house would infringe the copyright in those
plans.
Mr. Caruso then produced drawings showing a design
incorporating some of the basic concepts of the design of the
Envoy Series 2. These drawings were subsequently shown to Mr &
Mrs Mancuso, who instructed Mr Caruso to make several changes to
bring the design closer to the design of the Envoy Series 2.
These changes were duly included by Mr. Caruso, who then produced
a set of working drawings. It was from these drawings that a
4.
house was erected by Mancuso Investments under the building
licence of the second respondent between September 1985 and March
1986.
The trial judge found that the copyright in the plans of
the Envoy Series 2 had not been infringed by Mr & Mrs Mancuso in
that there had not been a reproduction of the Ownit plans or a
substantial part thereof. No argument was advanced at trial on
8.71 of the Act; instead the judge addressed himself only to an
infringement in the ordinary course, pursuant to s.36(1) of the
Act, of the copyright in the Ownit plans by either the Mancuso
plans or the house subsequently constructed therefrom.
The appellants have appealed on 3 grounds as set out in
their notice of appeal as follows:
"GROUNDS:
2. That the learned trial judge erred in finding that
the working drawings forming part of exhibit '5' in
the Writ Action and/or the Third Respondent's house
constructed in accordance with those drawings did
not infringe the copyrights subsisting in the Envoy
Series 2 drawings, or drawings for the Envoy series
of houses.
3. That the learned trial judge erred in finding that
the drawings forming part of Exhibit ''5' in the
Writ Action and/or the Third Respondents said house
did not reproduce a substantial part of the
drawings for the Envoy Series 2 house, or drawings
for the Envoy Series of houses.
4. That the learned trial judge erred in failing to
give any or sufficient weight to the fact that the
working drawings forming part of Exhibits '5' in
the Writ Action were copies from the drawings for
the Envoy Series 2 house when assessing whether the
drawings forming part of Exhibit '5' in the Writ
Action and/or the Third Respondents said house were
sufficiently similar to the Envoy Series 2 drawings
to constitute infringements of the copyright in the
Envoy Series 2 drawings."
5.
The respondents, as already related, filed a notice of
contention as follows:
"NOTICE TO APPELLANTS OF CONTENTIONS TO BE ARGUED BY
RESPONDENTS.
1. The learned trial judge erred in finding that the
drawings described as the ''Envoy Series 2' were an
artistic work in which separate copyright subsisted.
2. The learned trial judge erred in finding that the
First Plaintiff and Second Plaintiff (first and second
appellants here) were owners of the copyright in the
Envoy Series 2 drawings at any time prior to 7th May
1987."
The first question is whether copyright subsists in the
plans of the appellant and in whom that copyright if any, is
vested. The brochures which were taken by Mr & Mrs Mancuso and
one of which was thereafter retained by Mr Caruso, were described
thus by the trial judge at pages 2-3 of his reasons:
"One of these documents (exhibit 13) was a single sheet
which on one side showed a plan of the house but
without any dimensions and on the other side a
perspective drawing of the house. The other document
(exhibit 24) was a page from a brochure which showed a
number of the homes in the Carindale Display Village
including the Envoy Series 2. This page showed on one
side the plan of the house, also without any
dimensions, and on the other side a photograph of the
house."
The plans, sketch and photograph contained in these
documents were the only plans of the Envoy Series 2 to which Mr &
Mrs Mancuso had access. It is in these, therefore, and perhaps
in the Envoy Series 2 house itself as constructed and inspected
by Mr & Mrs Mancuso, that for the purposes of the appeal there
must be found to be copyright.
6.
The plans, the sketch and the photograph in the two
brochures (hereinafter together called "the plans") show a two
storey house with a lounge, dining room, family room, kitchen,
laundry and garage within the ground floor, and either 3 or 4
bedrooms, the fourth being optional, and bathroom and toilet on
the first floor. The plan to exhibit 13 also shows an optional
rumpus room adjoining the ground floor. Most distinctive about
the house is, however, the way in which it is roofed. From the
sketch in exhibit 13 and the photograph in exhibit 24, it can be
seen that the roof from the front of the house is in 4 sections,
all in different planes, but pitched at the same angle. Two of
these roof sections are rectangular in shape. The other two are
"L" shaped, with the shorter stroke of the "L" in each case set
adjacent to the other. They do not adjoin, as one section is set
higher from the ground than the other. The resulting roofline,
created particularly by these two "L" shaped sections, counsel
for the appellants described as a "broken 2".
Whether or not this term is one of science or merely a
somewhat inappropriate description of the roofline depicted was
not made clear, nor were its origins disclosed. In any event,
the house is in our opinion distinctively roofed by an
arrangement of 4 planes of roofing. Generally, however, the
house as depicted in the plans and elevations, sketched and
photographic, has no very innovative or exceptional features.
The rooms are all rectangular and are set out in a configuration
similar to many houses of its type. It was conceded by the
appellants that no great originality, in the common sense of the
word, is displayed in the design of the house. Neither was there
7.
any originality, in the same sense, in the designs from which the
Envoy Series 2 has been derived, as described supra.
The subsistence of copyright in architectural plans as a
general proposition is clear. Copyright may subsist, under s.32
of the Act, in an "original literary, dramatic, musical or
artistic work" and the definition of "artistic work" is such as
to make clear that "artistic quality" is unnecessary. In
contrast, under the 1911 Act, although specific protection was
given to an "architectural work of art", that was so defined as
to require "artistic character or design". On the face of it,
that change in wording appears to make it easier to establish
copyright in respect of buildings or plans of buildings.
Although the work must be "original" and the requirement of
"originality" has been the subject of substantial consideration
by the courts, no conclusive authority appears to have been
pronounced.
In Ladbroke (Football) Ltd v William Hill (Football) Ltd
(1964) 1 WLR 273 Lord Hodson at p.285 said that:
",.. common place matter put together or arranged
without the exercise of more than negligible work,
labour and skill in making the selection (or house
design) will not be entitled to copyright. 'Whether
enough work, labour & skill is involved, and what its
value is, must always be a question of degree'. Cramp
& Sons Ltd v Frank Smythson Ltd. [1944] 2 All E.R. at
p-97, per Lord Parkert
Lord Pearce at p.291 said,
"The word "original" does not demand original or
inventive thought, but only that the work should not be
copied and should originate from the author."
8.
It should be noted, however, that works which might seem
to have fulfilled Lord Pearce's minimal requirements had not
always been held to be "original": see for example G.A. Cramp &
Sons Ltd. v Frank Smythson Ltd. (1944) A.C. 329.
In the New Zealand case of Beazley Homes Ltd v
Arrowsmith [1978] 1 N.Z.L.R 394 McMullin J. in considering
whether plans of low-cost houses, showing little or no
architectural innovation, were indeed "original" for the purposes
of the Copyright Act 1962 (N.Z.) said at pp.402-403.
"I do not think that the similarity, which on account of
the considerations I have just mentioned (the various
restrictions upon a designer of low-cost housing), the
plaintiff's plans bear to other plans of a common' type
precludes the claim of originality being made for
them... Indeed it seems that there may be some force in
the plaintiff's claim that because the range for skill
and design are limited, the need for their exercise is
greater. The architect and plan drawer are not
deprived of all opportunity for exercising their skill
and judgment."
The "skill and judgment" of Mr. Osman in this case is in
our opinion clearly sufficient to characterize his work as
"original" within the meaning of the Act. That the constituent
parts of the house design are not novel does not preclude this
conclusion. Lord Pearce in Ladbroke said at p.291:
"In deciding therefore whether a work in the nature
of a compilation is original, it is wrong to start
by considering individual parts of it apart from
the whole ... For many compilations have nothing
original in their parts, yet the sum total of the
compilation may be original."
Furthermore, the "original" character of the Envoy Series 2
plans is not compromised by the evolution thereof from the
9.
previous designs of the author. We adopt the words of Street J.
in Ancher Mortlock Murray & Woolley Pty. Ltd v Hooker Homes Pty.
Ltd. {1971] 2 N.S.W.L.R. 278 at p.281 in considering a house
design of similar origins:
"The development of these original designs in a_ series
referable to each type of house does not present any
difficulties to the plaintiffs. It would be absurd if
the author of a work were precluded from reviewing and
improving that work as often and to such great or
little extent as he may deem necessary lest, by such
review and improvement, he should forfeit the
protection of the copyright law."
Whitford J. in L.B. (Plastics) Ltd v Swish Products Ltd [1979]
RPC 551 at p.569 made similar remarks. The "original" character
which would otherwise subsist in Envoy Series 2 is not therefore
precluded from so subsisting nor is it "forfeited" by reason of
its genesis as an adaption of previous original designs. (See
also Ogden Industries Pty. Ltd. and Ors Kis (Australia) Pty.
Ltd. [1982] 2 N.S.W.L.R. 28; Warwick Film Productions Ltd. v
Eisinger [1967] 3 W.L.R. 1599; University of London Press Ltd. v
University Tutorial Press Ltd. [1916] 2 Ch.601).
We turn secondly to consider the question in whom is
vested the copyright subsisting in the plans in the brochures.
Mr Osman was the author in 1983 of plans, elevations and
sketches of Envoy Series 2. Daudi, however, had been
incorporated in 1981 and had employed Mr Osman since its
incorporation. The respondents submitted that there was no
evidence that Mr. Osman was employed under a contract of service
at relevant times. On the other hand, he said in evidence that
he considered himself to have been an employee of Daudi since
10.
1981. Although flimsy, that evidence was in our view enough to
raise a prima facie case of a contract of service. By virtue,
therefore, of 8s.35(6) of the Act the owner of the copyright,
given nothing more, was Daudi. Daudi, however, on 4 September
1985 entered into a deed assigning "the copyright in the drawings
and all right, title and interest therein whatsoever" to itself
and Ownit jointly and severally.
By a further deed of 7 May 1987, recital K of which
reads "Doubts have arisen as to whether Osman or Daudi and Ownit
are the legal owners of such copyright;", Mr Osman purported to
assign to Daudi and Ownit any copyright he had in the drawings he
had produced whilst in Daudi's employ. The evidence is not very
clear as to when the alleged infringements occurred, but as' the
construction of the house did not commence until September 1985,
any infringement constituted by the construction took place at a
time when Daudi and Ownit were both interested in the copyright.
At the time of the drawings, however, only Daudi had an interest.
It thus appears that Daudi and Ownit were properly
joined as plaintiffs as owners of the copyright but that Mr.
Osman had no cause of action. At the same time, it should be
added that the deed of 7 May 1987 does not appear to have had any
effect, as it was entered into well after the alleged
infringements occurred.
The issue however on which the appellants have appealed
is the question of the infringement of the copyright. The
trial judge in considering whether there was a breach, adopted
11.
the passage in Copinger & Skone James on Copyright, 10th ed. at
para 408:
"... there is no infringement unless it is established
that the defendant has produced a work which both
closely resembles the plaintiff's and has been produced
by a direct or indirect use of those features of the
plaintiff's in which copyright subsists."
His Honour appears to have found, without expressly
stating his finding, that the respondent had copied, or "produced
by a direct or indirect use of" the plans of the appellants. His
Honour found against the appellants, however, on the question
whether the respondents had made a "substantial reproduction" of
the plans. In doing so he considered both sets of plans and the
houses themselves, and their basic similarities and
dissimilarities.
Counsel for the appellants advanced two lines of
argument with respect to infringement of copyright. First, it
was argued the trial judge did not attach any or any sufficient
weight to the finding that the respondents had copied the plans
of the appellants at the time when he considered whether or not
there had been a reproduction or a_ substantial reproduction.
This line of argument appears to be rooted in the "rough
Practical test" advanced by Petersen J. in University of London
Press Ltd. v University Tutorial Press Ltd [1916] 2 Ch. 601 at
p.610 "... that what is worth copying is prima facie worth
protecting" - a test in which Lord Reid in Ladbroke saw "much
wisdom" (at p.279). However, as Sir Owen Dixon remarked,
"stealing from one author is plagiarism; stealing from three
authors is research" (The Dictionary of Australian Quotations,
12.
Heinemann 1984).
The appellants submitted that there was here such strong
evidence of copying by the respondents, as to support an
inference or conclusion that there has been a copying in
accordance with one limb of the test as stated in Copinger &
Skone James. The argument then ran that such an inference or
conclusion will go to emphasise the significance of any evidence
of similarity between the "copy" and that which has been
"copied". Had the trial judge, the argument continued, followed
this line of reasoning, he would have given added weight to the
similarities between the two sets of plans and respective houses,
and attached lesser weight to any dissimilarities between them.
In support of this contention, counsel relied upon the
dicta of Wilson J. in S.W. Hart & Co. Pty Ltd v. Edwards Hot
Water Systems (1985) 159 C.L.R. 466 at p.484 as follows :
"The question remains whether the trial judge's
finding of reproduction 1s to be sustained. As I
have shown, the trial judge dealt separately with
the two factors which are involved in
reproduction, namely similarity and copying.
Although his findings on each of those factors,
separately considered, may be sustained, I believe
that to consider them in that fashion in the
circumstances of this case is to introduce an
artificiality into the process which overlooks the
interdependence that naturally characterises the
two factors. There may be cases where this is
not so. If a case is to succeed where there is
no evidence of access to the copyright drawings,
the similarity of the impugned product to the
drawings will be required to be so strong as_ to
itself sustain, without more, an inference of
copying. On the other hands in a case _ where
there is st rong evidence in support of an
Inference of cop vend such evi ence as there is
similarity ma on added si nificance:
must, of seats SEIT amount to ae eficient
13.
similarity of a substantial part of the copyright
work. But such dissimilarities as are apparent
may be seen as no more than a deliberate attempt
to obscure what has actually taken place, namely,
the appropriation of another person's labour. In
Ancher, Mortlock, Murra & Woolley Pt Ltd v.
Hooker Homes Pt Ltd fISTT] 2 = N.S.W.L-R. 278
Street J. (as he then was) noted the fine line
that may exist between the conduct of an architect
who, having inspected an original plan or house,
then proceeds to embody the architectural concept
in an original plan prepared by him and that of an
architect who merely proceeds by way of copying
what he has seen. His Honour observed [1971] 2
N.S.W.L.R., at p.284 that it may be that _ onl
after making a finding of copying, that is to say,
of unfair or wunconscientious use of the author's
Tan or building, that significance will attach to
the degree of similarity. In finding an
infringement in the case before him, his Honour
acknowledged that his assessment had been coloured
by the unmeritorious use made by the defendant of
the plaintift's plans and houses [1971] 2
N.S.W.L.R., at pp. 288, 289."
We have added the emphasis in all citations in these reasons.
In the last sentence of this passage Wilson J. was
referring to a particular paragraph in Street J.''s reasons on
p.289 of the report of his reasons. Street J. said in that
paragraph when dealing with the question of resemblance
"In evaluating the whole of the material that has
been canvassed during this hearing in order to
form an opinion upon which to found the answer to
this question, m assessment is coloured b the
unmeritorious use made by the defendant of the
aintiffs' ans an ouses. If the defendant's
architect had drawn the plans that are here
challenged as infringements after a mere
inspection and examination of the plaintiffs'
plans and houses, the present case would fall
within what I have earlier described as the grey
band. The similarities and the dissimilarities,
weighed together and weighed separately, might
well have led me to the conclusion, particularly
in the split level house, that no infringement had
occurred. The defendant might well have been
credited with having engaged in a bona fide
application of the concept and ideas of Mr.
Woolley, and not in an unfair copying of his
14.
expression of concept and ideas. But I have
already, for reasons stated, inferred that the
defendant did engage in unfair copying of the
plaintiffs' plans and_ houses. This adds
significance to the similarities that do exist and
diminishes significance from the dissimilarities."
Gibbs C.J. made a like reference on p.474 of his
reasons in S.W. Hart:
"On the contrary, in the light of the fact that the
respondent actua copie the appellant's
drawings, obviously for the purpose OF
appropriating the benefit of the appellant's
labour, and having regard not merely to the
volume, but to the significance, of the
Similarities between the respondent's products and
the drawings, I consider that Brinsden J. and _ the
Majority of the Federal Court were right in
concluding that the respondent did reproduce a
substantial part of the appellant's drawings."
It is in the light of the dicta of these three judges
that the appellant contends that the trial judge erred in not
attaching significance, when assessing resemblance, to a finding
of deliberate copying. If this approach had been adopted, it
was said, a finding of substantial reproduction would inevitably
have been made.
It is our view that such a conclusion does not
necessarily follow and that the appeal should not be upheld on
this ground. In neither of those two cases was 1t said that
such an approach must be followed as a matter of law. In each
of the cases there was no direct evidence of access, or of
copying, and each finding of copying was made by way of
inference. Similarly the various findings of deliberate
copying, of copying "for the purpose of appropriating the benefit
of the appellant's labour", of "unmeritorious use", and of
15.
"unfair copying" were substantially based on facts inferred. To
the extent that there was no explanation proffered by the
defendants, such findings of moral turpitude may well have been
justified and had some relevance in the circumstances of each
matter. It could hardly determine conclusively the question of
copying or have much, if any, impact on the finding of
resemblance. In particular, in Ancher Mortlock neither the
employed architect of the defendant, nor any of its employed
architectural draftsmen, its marketing manager and its employees
who had engaged in gathering data about the plaintiff's housing
was called. It was thus perfectly understandable that Street
J.'s assessment of resemblance was coloured by what he assessed
as the ""unmeritorious use" made of the plaintiff's plans and
houses. There was also no evidence before Street J. which would
support a finding that there had been merely a "bona fide
application of the concept and ideas" of the plaintiff's
architect rather than an "unfair copying of his expression of his
concept and ideas".
In the present matter, there was direct evidence before
the trial judge on the two topics of access and copying. As
earlier mentioned the person who was found to have drawn the
offending plans gave evidence, having been called by the
appellants, of what in fact happened. Purthermore, the
respondents gave direct evidence of what in fact had occurred.
It was open to the trial judge to make such use of this evidence
as he wished, to support, if he considered it appropriate, his
finding of resemblance. He cited in his reasons, and relied
upon, the judgment of Street J. im Ancher Mortlock and that of
16.
Gibbs C.J. in S.W. Hart and would certainly have been aware of
the use which they made of their findings on copying to support
their positive findings of resemblance. Equally, of course, it
is open to use the degree of similarity to assist in reaching a
subjective conclusion on whether there has been a copying of the
plaintiff's work (see per Upjohn L.J. in Francis Day & Hunter Ltd
v. Bron [1963] 1 Ch. 587 at p.618). It is pertinent also to
note that in those passages Upjohn L.J. commenced by emphasizing
the separate nature of the two stages. He said :
"This (an infringement) is really a question of
fact and nothing else, which depends upon the
circumstances of each case, but it is a question
of fact which must be taken in two stages. The
first stage is objective, and the second stage is
subjective. The first question is whether the
alleged infringing work ... is similar to the work
of the original author."
Likewise at p.623 Diplock L.J. (as he then was) referred
to those two stages as "two elements" and states the first
element as the necessity for "sufficient objective similarity
between the infringing work and the copyright work or a
substantial part thereof ...".
In the circumstances of this matter, the trial judge
made no express finding on the question of copying, though there
was positive evidence on the basis of which it was open to him to
do so if he considered it appropriate. It would appear either
that he assumed such a finding and proceeded to deal with
resemblance or alternatively deliberately chose to deal with the
two questions in the sequence stated by Upjohn L.J. and Diplock
17.
L.J. in Francis Day. There was evidence, however, on the basis
of which he might well have refrained from passing judgments as
harsh on the conduct of Mr Caruso and the Mancusos as those of
Gibbs C.J. and Wilson J. in S.W. Hart and Street J. in Ancher
Mortlock. The circumstances, at least from the point of view of
the draftsman, were very different.
Mr Caruso gave evidence that Mr and Mrs Mancuso came to
him with at least one brochure and requested him to "basically
design a home similar to that". Sketches were duly prepared by
Mr Caruso following some reference to the brochure, but there is
evidence that these sketches depicted a house quite different to
that in the brochure. Mr Mancuso picked up these sketches from
Mr Caruso's office and took them home to discuss them with his
wife. Approximately a week later Mr Mancuso spoke again with Mr
Caruso to discuss the design. Mr Caruso's evidence was that Mr
Mancuso wanted the design "more towards that original idea", i.e.
the design depicted in the brochure. Included among the changes
requested by Mr Mancuso were the reintroduction of a "broken 2"
roof-line, and the removal of a bay window. Mr Caruso's
evidence was that in this second discussion no reference was made
to the brochure although it remained in his possession, but
rather that Mr Mancuso and he were dealing with and discussed
only the sketch plans he had prepared. In our opinion, this
case falls squarely into the "grey band" of Street J. and it was
clearly open to the trial judge to find that the causal link
between the two works has been established. Equally, if he had
given specific consideration to the topic, he might have accepted
that there was a "bona fide application of the concept and ideas"
18.
rather than an unfair copying of the expression of the concept
and ideas.
In this matter, the trial judge made no express finding,
as already stated, on the question of copying or a _ causal
connection between the work of Mr. Caruso and that of the
appellants. Doubtless he refrained from doing so because on this
issue there was no conflict between the direct evidence of Mr
Caruso and that of the appellants. The trial judge considered,
in the first instance, the issue of substantial resemblance and,
having resolved this element in favour of the respondents, it was
unnecessary for him to make an express finding on the issue of
copying. We are not prepared to accept the submission that the
trial judge erred in this regard. There was no positive
obligation on him, as a matter of law, to adopt the approach
propounded by the appellants. This is because neither of the
judges of the High Court did more than cite the element of
copying as supporting their predetermined view on resemblance.
Street J. agreed that he allowed what he saw as the unmeritorious
copying to colour his approach to resemblance. This his Honour
was perfectly entitled todo, as he had before him "a jury
question", but there was no authority which obliged himas a
matter of law to adopt this approach.
Turning to the issue of resemblance, or Similarity,
there is no doubt that it is a matter for objective determination
by the trial judge. Upjohn L.J. in Francis Day at p.618 said of
"resemblance" or "similarity":
19.
"This is purely an objective question of fact and
depends in large degree upon the aural perception
of the judge, but also upon the expert evidence
tendered to him; but it is essentially a jury
question."
In Ancher Mortlock at p.286 Street J. said :
"The decision upon the issue of similarity is an
original decision for the court itself. It is to
be reached upon an assessment of such similarities
and dissimilarities as appear to the court between
the plans and buildings under consideration ...
But the important point is that, in distinction
from the judicial process in relation to expert
evidence such as normally encountered in
litigation, a court in the present type of
litigation is entitled, and, indeed, bound, to
form and act on its own original opinion."
Counsel for the appellants attacked the reasoning of the
trial judge on the ground that, in setting out in his reasons a
list of the similarities as well as the dissimilarities, he
considered the question on a quantitative rather than a
qualitative basis. This argument was based on the listing by
the trial judge of four similarities and five dissimilarities.
It followed, it was contended, that his conclusion that there was
not substantial resemblance was made on a quantitative
assessment, contrary to the view expressed by Lord Reid in
Ladbroke at p.277.
It is apparent from the judgment of Gibbs C.J. in S.W.
Hart that the same criticism was levelled at the reasoning of the
trial judge in that matter. However the former Chief Justice
found that since the correct principle had been recognised and
there was no other factor which would point to the trial judge
having misapplied that principle, the argument should fail. In
this matter, the trial judge equally identified the correct
20.
principle. Although he listed the similarities and
Gisimilarities it is clear that he decided the issue of
similarity on a qualitative basis rather than a quantitative
basis.
We are further confirmed in our view that the trial
judge's findings on the question of similarity ought not to be
disturbed by another consideration.
The evidence as to similarity here is such that either
of the two following conclusions may be safely reached. They
are either that enough has been shown by Mr Mancuso and Mr Caruso
to support a finding that the alleged infringing work is not
similar to the whole or a substantial part of the copyright work,
or, alternatively, that all that was "copied" from the copyright
work was the style of or "idea" behind the work.
With respect to the first alternative, we rely primarily
upon the findings of the trial judge, with whom we agree. on
the second alternative we place considerable reliance upon' the
"broken 2" roofline, held out by the appellants as a matter of a
distinctive nature in the copyright design. The design of the
house of Mr. & Mrs. Mancuso did not incorporate this "broken 2"
roofline, but rather had only one L-shaped roof section, the
shorter stroke of which is over the stairwell of the house. The
substantial part of the design of the appellants is thereby not,
in our opinion, reproduced with the requisite similarity. The
trial judge was in our view correct in finding that the alleged
infringing work adopted no more than the concept and idea behind
21.
the copyright work. Such an adoption does not amount to a breach
of copyright. It should be added that, where as here the
copyright material is of a relatively simple rather commonplace
kind, the task of establishing infringement is inherently more
difficult. As Mr. Ricketson in his work "The Law of Intellectual
Property" says at p.170:
"If the part taken represents the application of a high
degree of skill and labour on the part of the author,
it may be regarded as substantial although
comparatively slight in quantitative terms."
As an example of the application of that principle, in addition
to the cases cited by the author, see Kenrick and Co. v Lawrence
and Co. (1890) 25 Q.B.D. 99 at p.102.
The appeal must be dismissed with costs.
I certify that this and
the 2Q preceding pages are
a true copy of the Reasons
for Judgment of The Court.
ROE
Associate
Dated: ag/+/%.
Counsel for the Appellants: Mr. G.L. Davies 9.C. with
Mr. P.D. McMurdo
Solicitors: Hopgood & Ganim
Counsel for the Respondents: Mr. S.S.W. Couper
Solicitors: John C. Walker & Noble
Hearing Date: 23 November 1987