APPLICATION OF FROSTED FOODS LIMITED FOR EXTENSION OF LETTERS PATENT
High Court of Australia
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G
IN THE HIGH COURT OF AUSTRALIA.
APPLICATION OF FROSTED FOODS
i
LIMITED FOR EXTENSION OF LETTERS ;
PATENT.
REASONS FOR JUDGMENT.
_ Delivered at__ _ _-
on Friday, 16th April, 1948.
40358 A. HL. Perriven, Acrixe Govr. Pata,
WOM |
APPLICATION OF FROSTED FOODS LIMITED FOR
EXTENSION OF LETTERS PATENT
JUDGEMENT STARKE J.
This is an application by way of Originating Summons on
the part of Frosted Foods Limited for the extension of Letters
Patent No. 2475/1930 and a Patent of Addition No. 2258/31.
The patents are for "improvements in or relating to
refrigerating apparatus". It seems a valuable and useful
invention. It is of American origin and the Letters Patent in
respect of the invention were granted in Australia to Frosted
Foods Incorporated of Delaware,United States of America. That
company assigned the Letters Patent to the applicant, an
English company which changed its name in July 1947 to Birds
Bye (Holdings) Limited.
The applicant was registered as the proprietor of the
patents in 1938 but so far its change of name has not been
entered in the Register of Patents.
The patents expired on 6th January 1946.
The application for extension is based upon Sec. 84(6) of
the Patents Act 1903-1935 which provides that,where by reason
of hostilities between His Majesty and any foreign State, the
patentee as such has suffered loss or damage (including loss of
opportunity of dealing in or developing his invention owing to
his having been engaged in work of national importance
connected with such hostilities) an application under this
section may be made by originating summons for an extension
of Letters Patent, and that the Court in considering its
decision may have regard solely to the loss or damage so
suffered by the patentee.
The burden is on the applicant to satisfy the Court that
the patentee as such has suffered loss or damage. The words
2.
which follow "including loss of opportunity ete." do not, I
think, apply to this case for there is no evidence that there
has been a loss of such opportunity owing to the applicant having
been engaged in work of national importance connected with the
war. Apparatus according to the Letters Patent has never been
manufactured in Australia nor has the invention been used in
Australia. But the evidence is that the invention has been
exploited and used in America under American patents on a
considerable scale and also that the applicant has exploited
and used the invention in Great Britain under British patents
on a substantial but considerably lesser scale. According to the
evidence filed in support of this Summons the applicant intended
to establish its business first in Great Britain and then to
exploit the invention in Australia and other parts of the British
Empire. Some discussion and negotiation took place about 1938 with
'a view to the exploitation of the Australian patents but they were
'merely exploratory" in their nature and nothing came of them. By
the date of the outbreak of wer in September 1939 the applicant
states that it had proceeded so far in the training of staff in
the manufacture of apparatus and in other development work in
Great Britain that it would have been able, if the war had not
intervened, to begin exploiting the invention in Australia by the
beginning of 1940 and would have succeeded by the beginning of 1942
in placing a number of machines for use in Australia on terms not
less favourable than those which obtained in Great Britain. But
according to the evidence the outbreak of war prevented the
applicant taking any effective steps to exploit the Australian
patents. Trained personnel were lost to the applicant; travel end
the recruiting of personnelwererestricted. These difficulties, it
seems, are gradually being overcome but it will take some time
before the applicant can develope the invention in Australia.
Upon the cessation of hostilities in September 1945 the applicant
3e
states that it took such action as was possible to exploit its
invention in Australia. It appointed a person to take charge of
exploitation in Australia and later sent him to America so that
he might become acquainted with the methods of manufacture and
use end with the latest develop. nents of the invention. So
far (1948) however, apparatus made in accordance with the
Letters Patent has not been made or imported into Australia.
Down to the beginning of the year 1942 it is clear, I
think, that the existence of hostilities had nothing to do with
the failure of the applicant and its predecessor in title to
develope the invention in Australia. But after that date the
existence of hostilities did, I think, prevent the applicant
developing the invention in Australia. Its loss or damage by
reason of hostilities cannot be quantified: indeed I doubt if
the applicant or its predecessor would have made any profit in
Australia from the invention during the life of the Letters
Patent even if hostilities had not intervened. The cost of
the necessary apparatus would have been considerable and the
market was, I should think, somewhat limited. Neither the
applicant nor its predecessor in title, however, had the full
benefit of the monopoly created by the Letters Patent owing to
the hostilities between His Majesty and foreign States. The
real loss or damage sustained by "the patentee as such" is loss
of opportunity of developing the invention in Australia (See
Wohlers Patent 40 R.P.c. 49).
The invention has been used in both the United Kingdom
and in New Zealand. Letters Patent for the invention have been
extended in the United Kingdom until the 17th June 1951 and in
New. Zealand until the 4th January 1952.
In all the circumstances an extension of the Letters Patent
is granted until the 4th January 1952. The extension will be by
way of regrant to the Birds Eye (Holdings) Limited. But the
he
applicant must first enter in the Register of Patents its change
of name from Frosted Foods Limited to Birds Eye. (Holdings)
Limited.
The regrant will be upon the usual B.T.H. terms.
And an office copy of this order will be lodged with the
Commissioner of Patents at his office.
The applicant will pay the costs of the Commissioner of
Patents of and occasioned by the Originating Summons, such costs
to be taxed.