Dart Industries Inc v The Decor Corporation Pty Ltd and Rian Tooling Industries Pty Ltd

179 CLR 101

Dart Industries Inc
vThe Decor Corporation Pty Ltd and Rian Tooling Industries Pty Ltd

Court:
High Court of Australia

Judges: Mason CJ
Deane J
Dawson J
Toohey J
McHugh J

Legislative References:
Patents Act 1952 - The Act
Income Tax Assessment Act 1936 - s 31(1)
Patents Act 1952 - s 93(b); s 94

Hearing date: 3-4 December 1992
Judgment date: 29 September 1993


Order

Appeal dismissed with costs.

Application for special leave to cross-appeal refused with costs.

Vary the order of the Full Court of the Federal Court by replacing in para3 the word "contributed" by the words "are attributable".

[1]
The patent infringement proceedings are reported in Dart Industries Inc v Decor Corporation Pty Ltd (1988) 11 IPR 385 and Decor Corporation Pty Ltd v Dart Industries Inc (1988) 13 IPR 385 .

[2]
Dart Industries Inc v Decor Corporation Pty Ltd (1990) 20 IPR 144 , at 152.

[3]
ibid, at 154.

[4]
Decor Corporation Pty Ltd v Dart Industries Inc (1991) 104 ALR 621 , at 629.

[5]
ibid, at 631-632.

[6]
See Neilson v Betts (1871) LR 5 HL 1 , at 22; Lever v Goodwin (1887) 36 Ch D 1 , at 7; Patents Act 1990 (Cth), s122(1).

[7]
cf Meagher, Gummow and Lehane, Equity: Doctrines and Remedies, 3rd ed (1992), at 659-660.

[8]
(1968) 122 CLR 25 , at 34.

[9]
See Patents Act 1952 (Cth), s118(1); Patents Act 1990 (Cth), s122.

[10]
My Kinda Town Ltd v Soll [1983] RPC 15 , at 55; Potton Ltd v Yorkclose Ltd (1989) 17 FSR 11 , at 14, 15; Sheldon v Metro-Goldwyn Pictures Corp (1940) 309 US 390 , at 399.

[11]
See Baltic Shipping Co v Dillon (1993) 176 CLR 344 , at 376.

[12]
See Siddell v Vickers (1892) 9 RPC 152 , at 162-163; My Kinda Town Ltd v Soll [1983] RPC, at 57-58.

[13]
See Odeon Associated Theatres Ltd v Jones [1973] Ch 288 , at 294, 299, 305; Federal Commissioner of Taxation v St Hubert's Island Pty Ltd (In Liq) (1978) 138 CLR 210 , at 228.

[14]
(1926) 26 SR(NSW) 585.

[15]
ibid, at 591.

[16]
ibid, at 593.

[17]
Dart Industries Inc v Decor Corporation Pty Ltd (1990) 20 IPR, at 151.

[18]
(1968) 122 CLR, at 39.

[19]
Kohler's Dictionary for Accountants, 6th ed (1983), at 362-363.

[20]
(1980) 620 F 2 d 1166, at 1175.

[21]
See My Kinda Town Ltd v Soll [1983] RPC, at 55.

[22]
See, eg, Crosley v The Derby Gas-Light Co (1838) 3 My and Cr 428 [ 40 ER 992 ]; Peter Pan Manufacturing Corp v Corsets Silhouette Ltd [1963] RPC 45 , at 59-60; My Kinda Town Ltd v Soll [1983] RPC 15 ; Potton Ltd v Yorkclose Ltd (1989) 17 FSR 11 .

[23]
(1874) 90 US 518 .

[24]
ibid, at 528-529.

[25]
cf the example given by Hodgson J in E I Du Pont de Nemours and Co v Commissioner of Patents (No.3) (1989) 15 IPR 296 , at 307.

[26]
(1934) 72 F 2 d 163.

[27]
ibid, at 165.

[28]
ibid, at 166.

[29]
Schnadig Corp v Gaines Manufacturing Co Inc (1980) 620 F 2 d, at 1174: cf Sheldon v Metro-Goldwyn Pictures Corp. (1939) 106 F 2 d 45, at 54; Alfred Bell and Co Ltd v Catalda Fine Arts Inc (1949) 86 F Supp 399, at 415; with Carter Products Inc v Colgate-Palmolive Co (1963) 214 F Supp 383, at 403.

[30]
(1940) 309 US 390 .

[31]
ibid, at 409.

[32]
(1939) 106 F 2 d, at 52.

[33]
(1943) 139 F 2 d 264.

[34]
See Frank Music Corp v Metro-Goldwyn-Mayer Inc (1985) 772 F 2 d 505, at 516.

[35]
[1983] RPC, at 57.

[36]
(1926) 26 SR(NSW), at 593.

[37]
See, eg, Westinghouse Electric and Manufacturing Co v Wagner Electric and Manufacturing Co (1912) 225 US 604 , at 620-622; Duplate Corp v Triplex Safety Glass Co (1936) 298 US 448 , at 458.

[38]
(1990) 20 IPR, at 152.

[39]
(1843) 2 Hare 543 , at 560 [ 67 ER 224 , at 231].

[40]
(1990) 20 IPR, at 152.

[41]
ibid, at 154.

[42]
(1991) 104 ALR, at 630-631.

[43]
(1968) 122 CLR, at 42-43.

[44]
See Baffsky v Brewis (1976) 51 ALJR 170 , at 172; 12 ALR 435 , at 438; The Commonwealth v Introvigne (1982) 150 CLR 258 , at 262, 274; Muschinski v Dodds (1985) 160 CLR 583 , at 590.

[45]
Webster's New International Dictionary, 2nd ed unabridged, cited in Sammons v Colonial Press (1942) 126 F 2 d 341, at 350-351 and Alfred Bell and Co v Catalda Fine Arts (1949) 86 F Supp 399, at 415.

[46]
Patents Act 1952, s118(1); Patents Act 1990, s122; Cartier v Carlile (1862) 31 Beav 292 [ 54 ER 1151 ]; Colbeam Palmer Ltd v Stock Affiliates Pty Ltd (1968) 122 CLR 25 , at 43.

[47]
Potton Limited v Yorkclose Limited (1989) 17 FSR 11 , at 15.

[48]
Sheldon v Metro-Goldwyn Corp (1940) 309 US 390 , at 399; My Kinda Town Ltd v Soll [1983] RPC 15 , at 55; Potton (1989) 17 FSR, at 15.

[49]
Kohler's Dictionary for Accountants, 6th ed (1983), at 362-363.

[50]
(1980) 620 F 2 d 1166, at 1175.

[51]
The concept of opportunity cost was also recognised by this Court, although in a different context to the present case, in Hungerfords v Walker (1989) 171 CLR 125 , at 143.

[52]
Depending upon the circumstances, however, the absorption may not be as great as in the case where the product first chosen is capable of being added to the range.

[53]
(1980) 620 F 2 d, at 1172.

[54]
Siddell v Vickers (1892) 9 RPC 152 , at 162.

[55]
(1992) 110 ALR 301 , at 319-320; see also Odeon Theatres v Jones [1973] 1 Ch. 288, at 299.

[56]
Kohler, op cit, at 257.

[57]
Hirsch, Advanced Management Accounting, (1988), at 50-51.

[58]
Helmkamp, Managerial Accounting, (1987), at 165, 239, 550; Hirsch, op cit, at 51.

[59]
Helmkamp, op cit, at 239; Hirsch, op cit, at 51.

[60]
(1942) 126 F 2 d, at 348.

[61]
See Alfred Bell (1949) 86 F Supp, at 415.

[62]
(1979) 79 ATC 4 , 352.

[63]
(1989) 15 IPR 296 .

[64]
ibid, at 307.

[65]
(1986) 4 NSWLR 566 , at 571.

[66]
(1968) 122 CLR, at 44.

[67]
Vol 3, 14.03[B]; see also McCarthy, Trademarks and Unfair Competition, 2nd ed (1984), vol 2, s30:26B

[68]
(1874) 90 US 518 .

[69]
ibid, at 528-529.

[70]
(1980) 620 F 2 d, at 1172.

[71]
(1939) 106 F 2 d 45, at 54.

[72]
ibid

[73]
See Sheldon v Metro-Goldwin Corp (1940) 309 US 390 .

[74]
(1904) 70 NE 480 (Mass)

[75]
(1906) 77 NE 774 .

[76]
(1963) 214 F Supp 383.

[77]
ibid, at 402.

[78]
See for example, Century Distilling Co v Continental Distilling Corp (1953) 205 F 2 d (3d Cir) 140.

[79]
(1980) 620 F 2 d, at 1174.

[80]
(1926) 26 SR(NSW) 585.

[81]
ibid, at 593.

[82]
(1968) 122 CLR 25 .

[83]
ibid, at 39.

[84]
cf Leplastrier (1926) 26 SR(NSW) 585.

[85]
Teledyne Industries Inc v Lido Industrial Products (1982) 68 CPR (2d) 204, esp at 210-214; followed in Hutton v Canadian Broadcasting Corp (1989) 29 CPR (3d) 398, at 458-459.

[86]
Teledyne (1982) 68 CPR (2d), at 210.

[87]
(1949) 86 F Supp, at 415.

[88]
(1984) 752 F 2 d 1326, at 1333.

[89]
(1939) 106 F 2 d 45; approved by the United States Supreme Court in Sheldon v Metro-Goldwyn Corp (1940) 309 US 390 .

[90]
(1985) 772 F 2 d 505, at 516.

[91]
See Kamar (1984) 752 F 2 d, at 1333; Taylor v Meirick (1983) 712 F 2 d 1112 (7th Cir), at 1121-1122.

[92]
(1942) 126 F 2 d, at 349. For an illustration where the defendant did not satisfy this burden of proof, see Manhattan Industries v Sweater Bee By Banf Ltd (1989) 885 F 2 d 1 (2d Cir), at 7-8.

[93]
Sheldon (1940) 309 US, at 408; also see Frank Music (1985) 772 F 2 d, at 516; Manhattan Industries (1989) 885 F 2 d, at 7-8.

[94]
(1985) 772 F 2 d, at 516; also see Myers v Callaghan (1885) 24 F 636 (CCND Ill), at 638, 639; same case on appeal, sub nom. Callaghan v Myers (1888) 128 US 617 ; Sheldon (1939) 106 F 2 d, at 52, 53; affirmed (1940) 309 US 409 ; Levin Bros v Davis Mfg Co (1934) 72 F 2 d 163 (8th Cir); Ruth v Stearns-Roger Mfg Co (1935) 13 F Supp 697 (DCD Colo); Sheldon v Moredall Realty Corporation (1939) 29 F Supp 729 (DCSDNY), at 731.

[95]
(1870) 76 US 788 , at 804; cited with approval in Sammons (1942) 126 F 2 d, at 348-349.

[96]
See Frank Music (1985) 772 F 2 d, at 516; Kamar (1984) 752 F 2 d 1326; Aitken, Hazen, Hoffman, Miller v Empire Construction Company (1982) 542 F Supp 252; Wolfe v National Lead Co (1959) 272 F 2 d 867 (9th Cir); Sammons (1942) 126 F 2 d 341.

[97]
See for example, McCarthy, op cit, 30:26B.


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