In the matter of Painaway Australia Pty Ltd (in prov liq)(admin apptd) - Painaway Australia Pty Ltd v JAKL Group Pty Ltd & ors [2011] NSWSC 205

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Painaway Australia Pty Ltd (in prov liq)(admin apptd) - Painaway Australia Pty Ltd v JAKL Group Pty Ltd & ors [2011] NSWSC 205 Hearing dates: 3, 4, 8-11 February 2011 Decision date: 24 March 2011 Before: Ward J Decision: Held that a binding agreement came into existence by mutual assent (or on the application of principle of conventional estoppel) under which Painaway has exclusive licence regarding intellectual property, trade marks and formulas, such licence not validly terminated by Nature's Remedies. Short minutes of order to be prepared. Catchwords: CONTRACT - OFFER & ACCEPTANCE - whether offer constituted by signing of licence and shareholders agreements by some parties thereto - whether inferred acceptance thereof - whether manifestation of mutual assent to contract - HELD - contract established by mutual assent - ESTOPPEL - whether conventional estoppel applied to preclude denial of licence agreement - HELD - conventional estoppel established - INTELLECTUAL PROPERTY - whether exclusive licence in respect of registered trade marks and formulas -whether registered owner of trade marks can contractually fetter statutory right to use trade mark - whether confidential information in formulas is assignable - HELD - exclusive licence - statutory right of registered owner can be so fettered by contract - confidential information not property assignable as such - CORPORATIONS - whether pre-incorporation contract - HELD - no pre-incorporation contract Legislation Cited: Corporations Act 2001 (Cth) Therapeutic Goods Act 1989 (Cth) Trade Marks Act 1995 (Cth) Trade Practices Act 1974 (Cth) Fair Trading Act 1987 (NSW). Cases Cited: Aarn E Levine and Co Inc v Calkraft Paper Co 429 F Supp 1039 (1976) Ainsworth v Criminal Justice Commn (Qld) [1992] HCA 10; (1992) 175 CLR 564 Air Great Lakes v K S Easter (Holdings) (1985) 2 NSWLR 309 Aquaculture Corp v New Zealand Green Mussel Co Ltd (1985) 5 IPR 353; (1986) 10 IPR 319; (1990) 19 IPR 527 Attorney-General (NSW) v Brewery Employees Union (NSW) (1908) 6 CLR 469 Aussie Airlines Pty Ltd v Australian Airlines Ltd (1996) 68 FCR 406; (1996) 139 ALR 663 Australian Blue Metal Ltd v Hughes and Ors [1962] 3 All ER 335 Australian Broadcasting Corporation v XIVth Commonwealth Games Limited (1988) 18 NSWLR 540 Aztech Science v Atlanta Aerospace (Woy Woy) [2005] NSWCA 319; (2005) 55 ACSR1 Banks v Transport Regulation Board (Vic) (1968) 119 CLR 222 Barrier Wharfs v W Scott Fell & Co (1908) 5 CLR 647 Baulkham Hills Private Hospital Pty Limited v G R Securities Pty Limited (1986) 40 NSWLR 622 Boardman v Phipps [1967] 2 AC 46; [1966] 3 All ER 721 Bowden Wire Co Ltd v Bowden Brake Co Ltd (1914) 31 RPC 385 Brambles Holdings v Bathurst City Council [2001] 53 NSWLR 153 Branir Pty Ltd & Ors v Owston Nominees [No 2] Pty Ltd & Anor [2001] FCR 1833; (2001) 117 FCR 424 B Seppelt & Son Limited v Commissioner for Main Roads (1975) 1 BPR 9147 Budget Rent A Car System Pty Ltd v Kay Rent A Car Pty Ltd (1985) 8 FCR 116 Campbell v Backoffice Investments Pty Ltd (2009) 83 ALJR 903 Coles v Wood [1981] 1 NSWLR 723 Commonwealth of Australia v BIS Cleanaway Limited [2007] NSWSC 1075 Con-Stan Industries Australia Pty Ltd v Norwich Winterthur Insurance (Australia) Ltd (1986) 160 CLR 226 Corrs Pavey Whiting & Byrne v Collector of Customs (Vic) (1987) 14 FCR 434 Crawford Fittings Co and Ors v Sydney Valve & Fittings Pty Ltd and Anor (1988) 14 NSWLR 438 Cypjayne Pty Ltd v Rodskog [2009] NSWSC 301 Decro-Wall International SA v Practitioners in Marketing Ltd [1971] 1 WLR 361 Delphic Wholesalers Pty Ltd v Elco Food Co Pty Ltd (1987) 8 IPR 545 DPC Estates Pty Ltd v Grey & Consul Development Pty Ltd [1974] 1 NSWLR 443 Electronic Industries Ltd v David Jones Ltd (1954) 91 CLR 288 Empirnall Holdings v McMahon Paull Partners (1988) 14 NSWLR 523 Equuscorp Pty Ltd v Glengallan Investments Pty Ltd [2004] HCA 55; (2004) 218 CLR 471 Ermogenous v Greek Orthodox Community of SA Inc [2002] HCA 8; (2002) 209 CLR 95 Eslea Holdings Ltd v Butts (1986) 6 NSWLR 175 Film Bars Pty Limited v Pacific Film Laboratories Pty Limited (1979) 1 BPR 9251 Forster v Jododex Australia Pty Ltd [1972] HCA 61; (1972) 127 CLR 421 General Electric Co v General Electric Co Ltd [1972] 1 WLR 729; [1972] 2 All ER 507 G R Securities v Baulkham Hills Private Hospital Pty Limited (1986) 40 NSWLR 631 Hanson v Radcliffe UDC [1922] 2 Ch 490 Heap v Hartley (1889) 42 Ch D 461 (CA) Heggies Bulkhaul v Global Minerals Australia (2003) 59 NSWLR 312 Hillas v Arcos Ltd (1932) 147 LT 503 Hoy Mobile Pty Ltd v Allphones Retail Pty Ltd (No 2) [2008] FCA 810; [2008] ATPR 42-410 Ibeneweka v Egbuna [1964] 1 WLR 219 Industrial Equity Ltd v Lyons (NSWSC unreported, Cohen J, 15 October 1991) Inline Logistics Ltd v UCI Logistics Ltd [2002] R.P.C 32 Integrated Computer Services Pty Ltd v Digital Equipment Corporation (Aust) Pty Ltd (1988) 5 BPR 11 Integrated Lighting & Ceilings Pty Limited v Phillips Electrical Pty Limited (1969) 90 WN (Pt 1) (NSW) 693 Lawfund Australia Pty Limited v Lawfund Leasing Pty Limited (2008) 66 ACSR 1 Lohar Corp Pty Ltd v Dibu Pty Ltd (1976) 1 BPR 9177 Mackay v Dick (1881) 6 App Cas 251 Marra Developments Ltd v B W Rofe Pty Ltd [1977] 2 NSWLR 616 Masters v Cameron (1954) 91 CLR 353; (1954) 28 AJLR 438 Mid-City Skin Cancer & Laser Centre v Zahedi-Anarak [2006] NSWSC 844 Milne v Sydney MC (1912) 14 CLR 54 MK & JA Roche Pty Ltd v Metro Edgley Pty Ltd [2005] NSWCA 39 Moorgate Tobacco Co Ltd v Philip Morris Ltd (No 2) (1984) 156 CLR 414 Morison v Moat (1851) 9 Hare 241; 68 ER 492 Neeta (Epping) Pty Ltd v Phillips [1974] HCA 18; (1974) 131 CLR 286; (1974) 3 ALR 151 Newbery v James (1817) 35 ER 1011 Norman v Federal Commissioner of Taxation (1963) 109 CLR 9 Pacific Brands Sport & Leisure Pty Ltd v Underworks Pty Ltd [2005] FCA 288 Pacific Carriers v BNP Paribas (2004) 218 CLR 451 Pioneer Kabushiki Kaisha v Registrar of Trade Marks (HCA, unreported, Aickin J, 1 November 1977) Prints for Pleasure Ltd v Oswald-Sealy (Overseas) Ltd [1968] 3 NSWR 761 Ray v Davies (1909) 9 CLR 160 Re Judiciary and Navigation Acts (Advisory Opinions Case) [1921] HCA 20; (1921) 29 CLR 257 Re Keene [1922] 2 Ch 475 Reid v Moreland Timber Co Pty Ltd (1946) 73 CLR 1 RJ Baker Nominees Pty Ltd v Parsons Management Group Pty Ltd [2010] WASCA 128 R T & Y E Falls Investments Pty Limited v The State of New South Wales & ors [2001] NSWSC 1027 Secured Income Real Estate (Aust) Ltd v St Martins Investments Pty Ltd (1979) 144 CLR 596 Smith Kline & French Laboratories (Aust) Ltd v Secretary, Dept of Community Services and Health (1990) 22 FCR 73 The Commonwealth v Verwayen (1990) 170 CLR 394 Thomas v Sorrell (1674) Vaughan 330; 124 ER 1098 Thompson v Palmer (1933) 49 CLR 507 Toll (FGCT) v Alphapharm (2004) 219 CLR 165 Trans Realties Pty Limited v Grbac [1975] 1 NSWLR 170 TS & B Retail Systems Pty Ltd v 3Fold Resources Pty Ltd (No 3) [2007] FCA 151 United Dominion Corporation Limited v Brian (1985) 157 CLR 1 University of New South Wales v Moorhouse Angus & Robertson (Publishers) Pty Ltd [1975] HCA 26; (1975) 133 CLR 1 Vroon BV v Fosters Brewing Group Ltd [1994] 2 VR 32 Waldorf Apartment Hotel v Owners Corp SP 71623 [2010] NSWCA 226 Waltons Stores v Maher (1988) 164 CLR 387 Watson v Foxman (1995) 49 NSWLR 315 Winter Garden Theatre (London) Ltd v Millenium Productions Ltd [1947] 2 All ER 331 Texts Cited: McKeough et al, Intellectual Property: Commentary and Materials (4th edn) Meagher, Gummow and Lehane's Equity - Doctrines and Remedies (4th edn) Radan et al, Equity and Trusts (2nd edn) Stuckey 'The Equitable Action for Breach of Confidence: Is Information Ever Property?' (1981) 9 Sydney Law Review 402 Category: Principal judgment Parties: Painaway Australia Pty Ltd (Applicant) JAKL Group Pty Ltd (First Respondent) Mickey Rose Investments Pty Ltd (Second Respondent) Angelo's Angels Pty Ltd (Third Respondent) Nature's Remedies Pty Ltd (Fourth Respondent) John William Carroll (Fifth Respondent) Linda Jane Carroll (Sixth Respondent) Angelo Hyder (Seventh Respondent) Elias Michael Nassar (Eighth Respondent) Representation: Counsel: J Svehla (Applicant) J Ireland QC with C Cassimatis (First, Fourth, Fifth & Sixth Respondents) D Stack (Second, Third, Seventh & Eighth Respondents) Solicitors: Holding Redlich (Applicant) PA Legal (First, Fourth, Fifth & Sixth Respondents) Kemp Strang (Second, Third, Seventh & Eighth Respondents) File Number(s): 10/253120