Britax Childcare Pty Ltd v Infa-Secure Pty Ltd
[2012] FCA 467
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2012-05-09
Before
Middleton J
Source
Original judgment source is linked above.
Judgment (130 paragraphs)
INTRODUCTION 1 In this proceeding the applicant, Britax Childcare Pty Ltd ('Britax') seeks relief from the respondent and cross-claimant, Infa-Secure Pty Ltd ('Infa'), for infringement of nine innovation patents and one Australian standard patent owned by Britax concerning child safety seats, including the tethering and connection means for such seats. 2 The subject matter of the proceeding entails the following 10 patents owned by Britax and the following claims alleged to be infringed: Patent Claims alleged to be infringed Innovation Patent No. 2007100856 ('First Patent') 1, 2 and 5 Innovation Patent No. 2007100854 ('Second Patent') 1, 2, 3 and 4 Innovation Patent No. 2008100763 ('Third Patent') 1, 2, 3, 4 and 5 Innovation Patent No. 2008100764 ('Fourth Patent') 1, 2, 3 and 4 Innovation Patent No. 2008100765 ('Fifth Patent') 1, 2 and 3 Innovation Patent No. 2009100835 ('Sixth Patent') 1, 2, 3, 4 and 5 Innovation Patent No. 2009100836 ('Seventh Patent') 1, 2, 3, 4 and 5 Innovation Patent No. 2009100837 ('Eighth Patent') 1, 2, 3, 4 and 5 Innovation Patent No. 2009100445 ('Ninth Patent') 1, 2 and 5 Standard Patent No. 680150 ('Tenth Patent') 1, 19 and 20
3 The particular wording of the claims, and the integers which inform them, are set out further below in these reasons. These reasons only deal with issues of the construction of these claims. 4 The products which Britax allege infringe the patents in suit include a range of child safety seats manufactured and previously sold by Infa at various times since at least September 2006 and are designated by model numbers CS53, CS54, CS55, CS56 and CS57. Due to the various versions of these products there are 16 different products in issue in this proceeding. 5 Infa denies infringement of the patents based on its contentions as to the construction of the claims in each of the patents in suit. Infa's particular construction of the claims is pressed via the opinion of its expert witness, Mr Newman, who provided affidavit and oral evidence, including a joint expert report written in conjunction with Britax's expert, Mr Hunter, as to the proper way of construing the claims in suit, among other things. The evidence of Mr Newman and Mr Hunter as to the proper construction of the relevant claims is dealt with later in these reasons. I should say at the outset, however, that whilst expert evidence can aid the construction of claims, and the integers which form each claim, claim construction is, in the end, a matter for the Court. 6 Further to denying Britax's case on infringement, Infa filed a cross-claim alleging invalidity of the patents in suit and sought revocation of the claims in suit within them. 7 At the commencement of the trial, Infa's claims of invalidity were based, generally, on the following grounds: the claims of the First to Eighth Patents and Tenth Patent were not fairly based and did not, therefore, comply with s 40(3) of the Patents Act 1990 (Cth) ('the Act') and could be revoked pursuant to s 138(3)(f) of the Act; the inventions so "claimed" in the First to Ninth Patents lacked novelty under s 18(1A)(b)(i) of the Act and could be revoked pursuant to s 138(3)(b) of the Act; the invention so "claimed" in the Tenth Patent lacked novelty and was therefore not patentable under s 18(1)(b)(i) of the Act and could be revoked pursuant to s 138(3)(b) of the Act; the alleged inventions in the First to Ninth Patents did not involve an innovative step as required under s 18(1A)(b)(ii) of the Act and could be revoked pursuant to s 138(3)(b) of the Act; the alleged invention claimed in the Tenth Patent did not involve an inventive step and therefore did not comply with s 18(1)(b)(ii) of the Act and could be revoked pursuant to s 138(3)(b) of the Act; none of the claims in suit in the First to Ninth Patents and claim 19 of the Tenth Patent were clear and succinct and therefore they did not comply with s 40(3) of the Act and could be revoked pursuant to s 138(3)(f) of the Act; Britax was not entitled to the patents pursuant to ss 15 and 138(3)(a) of the Act. This was raised against each of the First to Ninth Patents; and the First Patent (claims 1 and 2), the Third Patent, and the Fifth Patent were not patentable inventions because they were not useful and therefore lacked the required utility to comply with s 18(1A)(c) of the Act. As a result they could be revoked pursuant to s 138(3)(b) of the Act. 8 During the course of the trial, amendment to the pleadings by Infa was sought. 9 Infa sought to raise a new ground of invalidity in relation to the Tenth Patent, namely that the invention was not useful and therefore lacked the required utility. This application for leave to amend arose after evidence was given by certain witnesses relevant to this issue, Mr Bowtell and Mr Hunter. As it eventuated, neither party wanted to lead any further evidence if the amendment were to be allowed, and the issue became one of whether, on the basis of the evidence already led, the ground of invalidity had been made out by Infa. The application to amend was able to be left (as it was) to the giving of reasons as to revocation. 10 Infa also sought to expand its allegations of external fair basis, because of the evidence of Mr Hunter. Again, this was ultimately to be a matter of legal argument, based upon the evidence of Mr Hunter (which evidence was accepted by Britax). There has been an exchange of written submissions between the parties that has enabled the parties ample opportunity to deal with these matters. I will address this matter in later reasons dealing with revocation. 11 Infa also contended that in the course of, and prior to, this proceeding, Britax made unjustified threats of patent infringement proceedings. To the extent that this Court finds that the Infa products do not infringe any of the Britax patents, or that any of the claims of those patents are invalid, Infa contended that such threats of infringement made by Britax were unjustifiable. Whether there have been unjustified threats will follow from the findings made in relation to the other allegations made in this proceeding. I observe that the unjustified threats do not relate to all the patents, and much will depend on whether there has been infringement, and the extent of any infringement. 12 The Court originally ordered that only the question of liability be determined as this stage, although it became apparent during the course of the trial, and has become apparent in the course of preparing these reasons, that the complete disposal of these proceedings will involve a number of staged enquiries and determinations even as to liability. 13 For instance, one issue that the parties agreed should remain for later determination (if necessary) was when various sales of infringing products occurred, and the relevant date from which infringement could occur. 14 Further, the parties had approached infringement and revocation on the basis that one or other of the expert witnesses as to construction would be accepted by the Court. From that approach, certain consequences as to infringement and revocation followed. However, as I have not accepted completely either expert witness on construction, the approach adopted by the parties causes it own difficulties in the circumstances of this proceeding, having regard to the different combinations and permutations that may result from findings on construction. 15 As the High Court of Australia said in Kimberly-Clark Australia Pty Ltd v Arico Trading International Pty Ltd (2001) 207 CLR 1 at [34]: … [t]he issues in revocation actions, particularly those which turn upon construction, notoriously intersect and overlap. 16 In the circumstances of this proceeding, with the number of patents and issues in dispute as to construction alone, the intersection and overlap is extensive. 17 Claim construction is central to this proceeding. The following was observed in the text Patent Law in Australia by Bodkin C, (Thomson Lawbook Co, 2008) at p 220: …the novelty and inventiveness of a claim cannot be assessed until its precise scope has been determined; neither can it be decided whether a claim has utility or is fairly based on the disclosure of the specification without a determination of its meaning and scope; and the infringement or otherwise of a claim may depend on a careful analysis of what it encompasses. 18 As I have already noted, Messrs Hunter and Newman prepared and provided to the Court a joint expert report in which they identified points of agreement and difference as to the meaning and interpretation of terms within the patents in suit. The joint expert report also identified points of agreement and difference between the experts as to the presence of integers within the claims in suit in various models and versions of the Infa products. The experts agreed that a large proportion of the points of difference of opinion between them as to the presence of integers in Infa products were directly or indirectly a consequence of differences of opinion between them as to the meaning of terms within and the interpretation and understanding of the patents in suit. 19 The parties themselves have already reached some consensus on infringement on the basis of a particular construction of the patent. However, as noted, this was on the premise that I adopt the views of one or other of the expert witnesses. I have good reason to believe that once the construction issues are decided, similar consensus could be reached on the basis of the findings of the Court. In addition, the issues concerning revocation will become crystallised once the proper construction of each patent is finalised, and the task of determining Infa's cross-claim can then proceed on the basis of the correct construction of each patent. 20 Therefore, in accordance with the approach dictated by s 37M of the Federal Court of Australia Act 1976 (Cth), the Court will first deal with the construction issues as presented by the parties.