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[2019] FCA 605
Federal Court of Australia
2019-05-01
Burley J
Original judgment source is linked above.
4.1 Summary of the arguments 37 Foxtel contends that the Registrar breached the rules of natural justice by failing to give it an opportunity to respond to the arguments of Unicom as set out in the Gestalt submissions. 38 Foxtel submits that there is a strong presumption that any statutory power, the exercise of which is capable of having an adverse effect on legally recognised rights or interests, must be exercised in accordance with the dictates of procedural fairness. It submits that the scheme of the Act is such that an opponent has a right to oppose a trade mark application. The evident purpose of s 84A of the Act is to allow the revocation of the registration of a trade mark in circumstances where the mark should not have been registered, considering any errors or omissions that led to the registration, and revocation is reasonable in all of the circumstances. It submits that Section 84A operates to protect the rights of people who potentially would be adversely affected by an improper registration. In the present case, Foxtel submits that the content of the obligation to afford procedural fairness extends to the Registrar giving Foxtel an opportunity to receive and respond to the submissions that were made by Unicom in opposition to the revocation of the trade mark registration. 39 The Registrar disputes the existence of an obligation to afford procedural fairness to Foxtel. She submits that if she decides to consider whether to revoke a registration under s 84A (which she has no duty to do - s 84A(6)), then subsection 84A(5) only requires her to give the registered trade mark owner and the persons listed in s 84A(5)(b) (which are in fact recorded in Part 11 of the Act) an opportunity to be heard. These are the only persons to whom the Registrar owes an obligation to afford procedural fairness or natural justice. She submits that [45] to [49] of the explanatory memorandum to the Intellectual Property Laws Amendment Bill 2006 (Cth) support this construction. Furthermore, she submits that the fact that an applicant may have standing in the present application does not mean that the Registrar owed a duty to afford Foxtel procedural fairness. In addition, the Registrar submits that even if the duty arises, it did not extend to an obligation to provide Foxtel with a copy of the Gestalt submissions. She submits that there is no basis upon which the Court would infer that the submissions on the construction of the Act was the reason for the Registrar's decision. The Registrar's email of 31 October 2017 provided no basis for drawing such an inference. She submits that the decision indicated nothing other than that she considered that she had power to exercise a discretion under s 84A and that she determined that it would not be reasonable to do so in all of the circumstances. There was, she submits, no critical issue arising from the Gestalt submissions on which Foxtel should have been asked to comment on, and no unfairness to Foxtel in not doing so.
4.2 Consideration 40 I find that the Registrar was obliged to afford procedural fairness to Foxtel, but Foxtel has not established that the failure to provide it with a copy of the Gestalt submissions amounted to a material breach of the requirements of procedural fairness. 41 I first turn to the obligation to afford procedural fairness. Foxtel relies on s 5(1)(a) of the AD(JR) Act which provides: 5 Applications for review of decisions (1) A person who is aggrieved by a decision to which this Act applies that is made after the commencement of this Act may apply to the Federal Court or the Federal Circuit Court for an order of review in respect of the decision on any one or more of the following grounds: (a) that a breach of the rules of natural justice occurred in connection with the making of the decision. 42 Section 5(1)(a) does not extend the rules of natural justice beyond their common law application; Kioa v West [1985] HCA 81; 159 CLR 550 at 566, 577, 594. 43 In Annetts v McCann [1990] HCA 57; 170 CLR 596, Mason CJ, Deane and McHugh JJ said at [2]: It can now be taken as settled that, when a statute confers power upon a public official to destroy, defeat or prejudice a person's rights, interests or legitimate expectations, the rules of natural justice regulate the exercise of that power unless they are excluded by plain words or necessary intendment … an intention on the part of the legislature to exclude the rules of natural justice [is] not to be assumed nor spelled out from 'indirect references, uncertain inferences or equivocal considerations'." (Citations omitted) 44 In State of South Australia v Honourable Peter Slipper MP [2004] FCAFC 164; 136 FCR 259 Finn J said at [93] (Branson and Finkelstein JJ agreeing): There is no real dispute between the parties as to the principles to be applied. The parties diverge on the principles' application to the present circumstances. Stated in short form those principles are: (i) when a statute confers a power on a public official the exercise of which affects a person's rights, interests or expectations, the rules of procedural fairness regulate the exercise of that power unless those rules are excluded by express terms or by necessary implication: Kioa v West (1985) 159 CLR 550 at 584; Re Minister for Immigration & Multicultural Affairs; Ex parte Miah (2001) 206 CLR 57 at 93; on "necessary implication", see B v Auckland District Law Society [2004] 1 NZLR 326 at 349; (ii) a legislative intention to exclude the rules will not be assumed or spelled out from indirect references, uncertain inferences or equivocal considerations: Commissioner of Police v Tanos (1958) 98 CLR 383 at 396; (iii) an intention to exclude should not be inferred merely from the presence in the statute of rights which are commensurate with some of the rules of procedural fairness: Annetts v McCann (1990) 170 CLR 596 at 598; and (iv) while the rules may be excluded because the power in question is of its nature one to be exercised in circumstances of urgency or emergency: Marine Hull and Liability Insurance Co Ltd v Hurford (1985) 10 FCR 234 at 241; "urgency cannot generally be allowed to exclude the right to natural justice": Minister for Aboriginal and Torres Strait Islanders Affairs v State of Western Australia (1996) 67 FCR 40 at 59; although it may in the circumstances reduce its content: J Wattie Canneries Ltd v Hayes (1987) 74 ALR 202 at 214; State of Western Australia v Native Title Registrar (1999) 95 FCR 93. 45 In Plaintiff M61/2010E v The Commonwealth [2010] HCA 41; 243 CLR 319 at [75] the Court said: It is enough to say that the references in Annetts to "prejudice", "interests" and "legitimate expectations" suggest that the contrast which the Commonwealth and the Minister sought to draw between destruction, defeat or prejudice of a right, on the one hand, and a discretionary power to confer a right, on the other, proceeds from too narrow a conception of the circumstances in which an obligation to afford procedural fairness might arise. The more comprehensive statement of principle by Mason J in FAI Insurances Ltd v Winneke sufficiently answers the submissions by the Commonwealth and the Minister. His Honour said that the obligation to afford procedural fairness is not limited to cases where the exercise of the power affects rights in the strict sense, but extends to the exercise of a power which affects an interest or a privilege. It is then important, in the present matters, to identify the rights and interests affected. 46 More recently in S10/2011 v Minister for Immigration and Citizenship [2012] HCA 31; 246 CLR 636 at [66], Gummow, Hayne, Crennan and Bell JJ said that the question is whether the exercise of a power is "apt to affect adversely what is a sufficient interest" of the party affected. 47 The Registrar accepts that Foxtel had an "interest" in the outcome of the revocation decision, but contends that it was not sufficient to lead to an obligation to afford procedural fairness. First, because the language of s 84A(5) reflects the entire scope of the obligation, which is not owed to a party in the position of Foxtel, but to the persons recorded in Part 11. Those are persons whose interests are affected by a decision to revoke the registration. Secondly, because in any event, the Registrar has no duty under s 84A(6) to consider making a decision. 48 In my view the scheme of the Act and the language of s 84A confers power on the Registrar to affect the rights of Foxtel sufficiently to warrant a finding that the rules of natural justice regulate the exercise of that power. Foxtel intended to be in the position of an opponent to the registration of the trade mark. The Act provides a scheme whereby such persons may oppose a mark, and doing so is encouraged as part of the public good that arises from the register containing only trade marks that are legitimately entitled to be registered; Health World at [22]. Whilst Foxtel is not now an opponent, the reason that it is not is because of the circumstances summarised above, in short because its agent made an error in the process of filing the notice of intention. 49 Section 84A contemplates that the Registrar may revoke a trade mark registration in circumstances where the trade mark should not have been registered. Sections 54 and 55 of the Act make plain that a trade mark must not be registered where an opposition is on foot, and where the Registrar has not given the opponent and the applicant an opportunity to be heard on the opposition. The "interest" of Foxtel is in persuading the Registrar that, in all the circumstances that existed when the trade mark was registered, the trade mark should not have been because, but for the error in filing the notice of intention to oppose there would have been an opposition on foot at the time of registration (s 84A(1)). In my view this is a form of possible adverse affectation that is sufficient to qualify as an interest to attract the protection of the rules of procedural fairness. 50 Although s 84A(5) only specifies the registered trade mark owner, and other persons recorded under Part 11, as the persons that must be given an opportunity to be heard before a decision to revoke registration, it does not in turn follow that Foxtel do not have a right to procedural fairness. The principles of procedural fairness may excluded only by "plain words of necessary intendment": Plaintiff M61 at [74]. An "intention to exclude the rules of natural justice is not to be inferred from the presence in the statute of rights which are commensurate with some of the rules of natural justice"; Annetts at [2]. No such clear expression of intention to exclude is present in s 84A. 51 Furthermore, the fact that under s 84A(6) the Registrar is not obliged to make any decision under s 84A does not serve to avoid the existence of the obligation to afford procedural fairness. Having decided to consider the exercise of power under s 84A, the obligation to ensure that the assessment conducted under that section is procedurally fair arises; Plaintiff M61 at [77]. 52 The question then arises as to the content of the obligation in the present case. 53 During the course of considering the exercise of her power, the Registrar invited Unicom to make submissions on the subject. Unicom, via Gestalt, then made a 5 page submission (the Gestalt submissions) in which it contended, after setting out extracts of the Explanatory Memorandum of the Act, that it was "abundantly clear that s 84A is not intended to apply in the current situation" and that it would be contrary to the purpose of the section to revoke the trade mark. It also made detailed submissions going to the facts of the present case. 54 Foxtel submits that the Court should infer that the Registrar relied on the Gestalt submissions in making the decision; prior to the decision the Registrar indicated clearly that she intended to revoke the trade mark, and after receiving the Gestalt submissions she changed her mind, which was reflected in the decision. The only intervening event was the Gestalt submissions, which raised two substantive issues. The first concerned the factual matrix, where the submissions laid the blame for the error at the feet of Allens (see [17] above). This, Foxtel accepts, was a known fact and had been exposed to the Registrar in the course of its application for revocation. Foxtel does not rely on this submission in support of its denial of natural justice submission. The second was the submission as to the construction of s 84A having regard to the secondary materials. Foxtel submits that this was new matter that influenced the Registrar's decision, and Foxtel submits that it ought to have had an opportunity to respond to it. 55 In SZBEL v Minister for Immigration and Multicultural and Indigenous Affairs [2006] HCA 63; 228 CLR 152 at [32] the High Court (Gleeson CJ, Kirby, Hayne, Callinan and Heydon JJ) said: In Alphaone the Full Court rightly said: "It is a fundamental principle that where the rules of procedural fairness apply to a decision-making process, the party liable to be directly affected by the decision is to be given the opportunity of being heard. That would ordinarily require the party affected to be given the opportunity of ascertaining the relevant issues and to be informed of the nature and content of adverse material." (emphasis added) 56 In Minister for Immigration & Border Protection v SZSSJ [2016] HCA 29; 259 CLR 180 the Court said at [83] (emphasis added): Ordinarily, affording a reasonable opportunity to be heard in the exercise of a statutory power to conduct an inquiry requires that a person whose interest is apt to be affected be put on notice of: the nature and purpose of the inquiry; the issues to be considered in conducting the inquiry; and the nature and content of information that the repository of power undertaking the inquiry might take into account as a reason for coming to a conclusion adverse to the person. 57 The relevance of the nature and content of information that the repository of power undertaking the inquiry might take into account was explained in the footnote to that proposition in SZSSJ, which included reference to the Full Court decision in Commissioner for the Australian Capital Territory Revenue v Alphaone Pty Ltd [1994] FCA 293; 49 FCR 576 at 591 - 592 (emphasis added): Where the exercise of a statutory power attracts the requirement for procedural fairness, a person likely to be affected by the decision is entitled to put information and submissions to the decision-maker in support of an outcome that supports his or her interests. That entitlement extends to the right to rebut or qualify by further information, and comment by way of submission, upon adverse material from other sources which is put before the decision-maker. It also extends to require the decision-maker to identify to the person affected any issue critical to the decision which is not apparent from its nature or the terms of the statute under which it is made. The decision-maker is required to advise of any adverse conclusion which has been arrived at which would not obviously be open on the known material. Subject to these qualifications however, a decision-maker is not obliged to expose his or her mental processes or provisional views to comment before making the decision in question. 58 In my view, a relevant issue for consideration by the Registrar, which was known to Foxtel prior to the Gestalt submissions, was the application of s 84A of the Act to the known facts. In its submissions in support of its application under s 84A, Allens specifically addressed this point. There can have been no doubt as to the relevant "issue". The Gestalt submissions merely raised an aspect of the construction of s 84A that reflected an opposing view to that propounded by Foxtel. This was an issue that was obviously open on the known material. 59 Furthermore, were there to have been a denial of procedural fairness, one can readily conclude that it would not have deprived Foxtel of the possibility of a different outcome. The issue to which Foxtel points was a matter of statutory construction that the Registrar found in its favour. The language used in the decision indicates that the Registrar determined that she should consider the exercise of her discretion under s 84A(1). It will be recalled that the decision contains a finding that it is "not reasonable" to revoke the registration of the trade mark, and that the Registrar has "taken into account all of the circumstances and [found] that the discretionary power to revoke under s 84A should not be exercised in the present circumstances". This language indicates that the Registrar did not accept the Gestalt submission that s 84A cannot apply where the error or omission lies at the feet of a person other than the Registrar, but instead applied herself to the consideration of the exercise of discretion set out in s 84A(1). In Minister for Immigration and Border Protection v WZARH [2015] HCA 40; 256 CLR 326 at [60], Gageler and Gordon JJ said that (emphasis added): ...denial of procedural fairness is established by nothing more than that failure, and the granting of curial relief is justified unless it can be shown that the failure did not deprive the person of the possibility of a successful outcome. The practical injustice in such a case lies in the denial of an opportunity which in fairness ought to have been given. 60 See also Stead v State Government Insurance Commission [1986] HCA 54; 161 CLR 141 at 145 - 147. This conclusion is reinforced by the finding, set out in section 6 below, that Foxtel has not established an error of law on the part of the Registrar. 61 Foxtel next submits that the Court ought not to accept the Registrar's email of 31 October 2017 as reflecting the true basis for the decision. It contends that the reasons set out in the Gestalt submissions more accurately reflect the basis for the decision because of the circumstantial matters to which I have referred in [54] above, as well as the content of the conversation between Ms Evans and the Registrar of 1 November 2017. I reject that submission. Firstly, as I have noted, the email of 31 October 2017 sets out a basis for the decision that is inconsistent with the Gestalt submissions. Secondly, the acceptance by the Registrar that Gestalt's submissions "influenced" the change of position does not advance matters beyond the proposition that the submissions led to a reconsideration of the matter by the Registrar. As she said in her letter to Unicom of 28 September 2017, had Unicom not responded, the Registrar intended to revoke the trade mark. Thirdly, I am not prepared to infer that the decision does not set out, in short form, the reasons of the Registrar, in circumstances where Foxtel chose not to seek reasons from the Registrar pursuant to s 13 of the AD (JR) Act.
5.1 The arguments 62 Foxtel contends that the making of the decision was an improper exercise of the power conferred by s 84A of the Act because it was so unreasonable that no reasonable person could have so exercised the power. 63 It submits that the Registrar intended to revoke the trade mark until the intervening event of receiving the Gestalt submissions, after which she changed her mind. The decision, viewed against that background, lacked evident and intelligible justification because Foxtel had: (a) intended to oppose the registration, and had prepared its notice of intention days in advance; (b) through Allens, attempted to file its notice of intention, and until 8 September thought it had done so; (c) had fallen victim to the failure of the eServices payment function, and had committed its own error in failing to check for a valid filing receipt (falling under 84A(2)(a)). Furthermore there was no evidence of any circumstances, whether by use of the trade mark or legal proceedings or otherwise making it appropriate not to revoke the registration within s 84A(3). Upon learning of the errors, Foxtel immediately moved to cure the problem within 11 days of the end of the opposition period. Revocation of the trade mark would not cause Unicom necessarily to lose its rights permanently, but rather would expose the trade mark application to the scrutiny of an opposition. By reason of these matters, Foxtel submits that the decision was unreasonable within the meaning of that term in Minister for Immigration and Citizenship v Li [2013] HCA 18; 249 CLR 332 at [68], Minister for Immigration and Border Protection v Singh [2014] FCAFC 1; 231 FCR 437 at [43] - [48], and Minister for Immigration and Border Protection v Stretton [2016] FCAFC 11; 237 FCR 1 at [11]. 64 The Registrar submits that the only reason given by Foxtel in its request for the Registrar to consider the exercise of her discretion is that it intended to file a notice of intention, but failed to do so. The evidence shows that, after considering that request, it was not reasonable to revoke the registration. A reasonable person could come to that conclusion in the context of the statutory power in s 84A. Courts do not, she submits, lightly interfere with the exercise of this statutory discretion: Li [66], [106] - [108].
5.2 Consideration 65 Foxtel relies on ss 5(1)(e) and 5(2)(g) of the AD(JR) Act: 5 Applications for review of decisions (1) A person who is aggrieved by a decision to which this Act applies that is made after the commencement of this Act may apply to the Federal Court or the Federal Circuit Court for an order of review in respect of the decision on any one or more of the following grounds: (e) that the making of the decision was an improper exercise of the power conferred by the enactment in pursuance of which it was purported to be made. (2) The reference in paragraph (1)(e) to an improper exercise of a power shall be construed as including a reference to: (g) an exercise of a power that is so unreasonable that no reasonable person could have so exercised the power. 66 In her decision, the Registrar expresses the view that it is not reasonable to revoke the trade mark, and that she has taken into account all of the circumstances in concluding that the discretionary power to revoke under s 84A should not be exercised. Extensive reasons are not provided. This is not a fault on the part of the Registrar. Section 84A does not oblige the Registrar to give reasons, and Foxtel has not sought them under s 13(1) of the AD (JR) Act. In such circumstances, a supervising court must focus on the outcome of the exercise of power in the factual context presented and assess, for itself, its justification or intelligibility, bearing in mind that it is for the repository of the power - here the Registrar - and it is not for the Court to exercise the power: Singh at [45]. Indicia of legal unreasonableness must be found in the scope, subject, and purpose of the particular statutory provisions in any given case: Singh at [48]. 67 The scheme of the Act reflects an intention on the part of the legislature to ensure that the register be "pure", as said in Health World by French CJ, Gummow, Heydon and Bell JJ at [22]. This favours the accommodation of those parties who wish to exercise their right under s 52 of the Act to oppose a trade mark application. On the other hand, the Act and Regulations provide deadlines for the filing of documents in relation to oppositions to ensure their timely progression and resolution; see, for example ss 52 and 68 of the Act, and Regulations 5.6 and 7.1. Furthermore, s 88 provides an opportunity for an aggrieved person to seek rectification of the Register by the cancellation of the trade mark. 68 Before the Registrar was evidence of the events that led to the failure to file the notice of intention within the prescribed time. She was notified that Foxtel had given instructions to file the notice on the last day available and that Allens had attempted to file the document electronically, but had failed to notice the document had not been filed. These events were characterised in the Gestalt submissions as being "a failure on the part of the attorneys to complete and check the process". Foxtel characterised the failures as "errors". 69 Section 84A(1) requires that the Registrar be "satisfied": (a) that the trade mark should not have been registered, taking account of all the circumstances that existed when the trade mark became registered, whether or not she knew then of their existence, and (b) that it is reasonable to revoke the registration, taking account all of the circumstances. Subsection 84A(2)(a) provides, relevantly, that the circumstances to be taken into account in s 84A(1)(a) include any errors, including errors of judgment, or omissions that led directly or indirectly to the registration. Subsection 84A(3) provides that the circumstances to be taken into account under subsection 84A(1)(b) include: any use that has been made of the trade mark; past, current, or proposed legal proceedings relating to the trade mark; other action taken in relation to the trade mark; and any special circumstances making it appropriate to revoke or not revoke the registration. Subsection 84A(6) provides that the Registrar does not have a duty to consider whether to revoke the registration under the section. 70 The Explanatory Memorandum to the Intellectual Property Amendment Bill 2006 (Cth), which introduced subdivision C to Part 8 of the Act, provides in relation to s 84A(6): 47. Subsection 84A(6) clarifies that the Registrar does not have a duty to consider whether to revoke a registration, whether or not the Registrar is requested to do so. 48. This means that third parties will not have a right to urge the Registrar to consider revocation of a trade mark in particular situations. Revocation of registration under section 84A is not intended to provide a way of settling competing claims to ownership of a trade mark. This can be pursued through the courts, with section 86 of the Trade Marks Act providing for the Federal Court to cancel a registered trade mark. Nor is it intended to be a mechanism for parties to file de facto oppositions after a trade mark has been registered. This provision is only intended to provide an administrative mechanism to undo a registration where it was wrongly registered. 49. This subsection will not prevent third parties bringing potentially invalid registrations to the Registrar's attention. Nor will it prevent the Registrar from considering such submissions and acting on them. It clarifies that the Registrar is under no duty to consider any such input from third parties, so that such parties are not in a position to insist that the Registrar acts on their information. This is reasonable given the other remedies that such parties can access. 71 The other remedies to which the Explanatory Memorandum refers includes the opportunity on the part of a third party, if aggrieved, to seek revocation of the trade mark pursuant to s 88 of the Act. 72 Taken together, the terms of s 84A leave a broad scope for the Registrar to exercise her discretion. By contrast, s 84B provides that the Registrar must revoke the registration of a trade mark if: (a) a notice of opposition was filed in accordance with s 52(2) (or an application for an extension of time to file a notice of opposition was made in accordance with the regulations); (b) the Registrar failed to take account of the opposition in deciding to register the mark; and (c) the Registrar becomes aware of the failure within 1 month after the notice was filed. 73 In my view, the decision of the Registrar to decline to revoke the trade mark fell within the decisional freedom to exercise her discretion granted by the terms of the Act and the factual context of the decision (Stretton at [7] (Allsop CJ)), and was not unreasonable in the sense for which Foxtel contends. The three matters specifically drawn to the attention of the Registrar by Foxtel prior to the decision were: the failure of the eServices lodgement to be accepted, the failure on the part of Allens to obtain a receipt for the transaction and thereby detect the failure, and the decision on the part of Foxtel to instruct Allens to lodge the notice of intention on the last day available for it to do so. By indicating in the decision that she had considered "all of the circumstances", the Registrar informed Foxtel that she had taken into account the mandatory considerations set out in ss 84A(2)(a) and (3). The Explanatory Memorandum at [48], quoted above, makes plain that the legislative intention underlying s 84A is not to provide a mechanism for parties to file de facto oppositions after a trade mark has been registered. Furthermore, Foxtel is not deprived of the opportunity to seek the revocation of the trade mark by bringing an application pursuant to s 88 of the Act. In these circumstances the exercise of the power by the Registrar was not so unreasonable that no reasonable person could have so exercised it. 74 Accordingly, this ground of the application for review has not been established.
Foxtel Management Pty Limited
Registrar of Trade Marks
[1994] FCA 293
(2002) 209 CLR 597
(1985) 159 CLR 550
(2001) 206 CLR 57
(1958) 98 CLR 383
(1990) 170 CLR 596
(1985) 10 FCR 234
(1996) 67 FCR 40
(1987) 74 ALR 202
(1999) 95 FCR 93
[2006] HCA 63