At the end of
September, a case was heard in the Intellectual Property Enterprise Court
(IPEC) which highlights both the strengths and weaknesses of that court
and its streamlined procedures. The case was T & A Textiles v
Hala Texile UK Ltd and others, and it was heard before Mr Douglas
Campbell sitting as a Deputy High Court Judge. The judgment has just been
handed down.
This was primarily a
case about copyright infringement of the artistic designs for bed
linen, although there was also a complaint concerning the registered
design of some packaging and a counter-claim of making threats contrary to s 26
of the Registered Designs Act 1949. Although a number of designs
were involved, the court looked specifically at the claimant's design
known as Chantilly, and the defendant's design known as Richmond,
which are shown here.
Claimant's 'Chantilly' design |
Defendant's 'Richmond' design |
Having established that
the defendant had had access to the claimant's designs, it might seem
that all the court had to do was assess the extent to which the one
design copied the other. But this was not necessary, since the
defendant's defence was not only one of independent creation, but of
prior creation. And the court took the view that the defendant had
in fact been selling their Richmond product before the date that the
claimant claimed to have designed their product, and so the copyright
infringement claim failed.
However as is evident
from the judgment, the court had to make this finding based on
inadequate evidence and in some instances, poor
cross-examination of the witnesses. As many readers will know, the
major 'selling point' for the IPEC is its procedures to maintain a
tight control over both the cost and the complexity of the overall
case. Thus the case management (CMC) aspect is key to keeping the
hearings slick and relevant. But where matters are complicated, or
become more complicated than at first appreciated, such limitations
may have an adverse impact on the administration of justice.
In this particular case
two things occurred to make the otherwise sensible CMC directions
rather too rigid when it came to trial. The first was that discovery
did not go well: the claimant needed extra prompting to deliver the
original digital design files and even when they were made available,
there were discrepancies between the dates on the files, and the
dates the claimant asserted the works had been created. This matter
was not adequately resolved at trial. Furthermore, the defendant was
unable to deliver up the design files for its products as these were
the property of a company in Pakistan which was not prepared to
release them. But potentially more damaging to the defendant's case
was the accusation that a statement by one of its key witnesses (Mr
Amin, said to be the designer of the Richmond and other alleged
infringing designs) had been forged without his knowledge. There were
counter claims that the claimant had tried to coerce Mr Amin into
providing a statement which supported the claimant's case. Since Mr
Amin lives in Pakistan and did not appear either in person or via
video link before the court, this posed difficulties in testing his
evidence. The judge was therefore forced to look very carefully at
the balance of probabilities when assessing both the incomplete
evidence and the less than probing cross examination. In addition,
both parties sought to submit new evidence just two days before the
trial, some of which the judge agreed to, and thus it meant that
counsel had much less time to prepare their respective cases than
would normally be expected with careful case management.
On the matter of the
registered designs, the court found that the claimant's registered
design was invalid by virtue of there being a previous existing
design in use by a number of other people. With regard to the defendant's counter-claim, the claimant was found to have made threats
contrary to s 26 RDA. This was in respect of a letter from the claimant's solicitors to
eBay which referred to the impending legal action. This letter was
found to have gone beyond what is normally acceptable under s 26(3)
RDA - 'mere notifiction' of a rightsowner's claim to a particular
piece of intellectual property - as it implied that eBay could also
become liable in the same action, if they (eBay) did not remove the
listings complained of.
I doubt if the claimant
T & A Textiles will seek to appeal. They are unlikely to count
this case as being their finest hour, and can truly be said to have
lost the case. Had the parties spent more time prior to trial in
trying to achieve a settlement, during which the salient facts about
dates might have become available, a great deal of the legal costs
might have been avoided. For the IPEC, although undoubtedly the
correct findings were made, this sort of rushed and half prepared
case does not serve as a good advertisement for justice, or as a good
use of the court's time. Perhaps a second CMC and a postponed (and
then possibly unneeded) trial would have produced a more satisfactory
outcome.
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