Test copyright case for computers

Press, 25 May 1984, Page 7

Test copyright case for computers

PA Auckland The High Court has been asked to stop an Auckland electronics company, John Gilbert and Company. Ltd. selling the 8.8. C. and Electron computers or their programs. The British manufacturer of the two models, Acorn Computers, and its New Zealand agent, Barson Computers, are also seeking damages against Gilberts of more than $500,000. The claim, filed on May 18. is regarded as a test case on New Zealand copyright law as applied to computers. It claims that Barsons had distributed the 8.8. C. computer and other Acorn products to the value

of more than $1.3 million as the exclusive New Zealand distributor since October. 1982. and had established costly marketing and servicing back-up. including warranties.

But since late last year, according to the claim. Gilberts had been importing, advertising, and selling a large number of both the 8.8. C. and Electron computers. their programs, instruction manuals, and brochures. without the licence of Acorn Computers. In particular, the claim alleges that Gilberts induced three North Island secondary schools and the Auckland' Teachers' College to break or cancel contracts

which they had been negotiating with Barsons for Acorn products. A full hearing of the case, including the issue of whether Gilberts had an "implied licence" to import the goods when it bought them from Acorn or Acorn agents in Britain, is not expected to take place for some time. In the High Court at Auckland yesterday. Acorn and Barsons asked Mr Justice Prichard to grant an interim injunction preventing Gilberts copying any Acorn manuals or other products until the full trial took place. They also sought a requirement that Gilberts state on all Acorn products

sold from next Monday that it "is not an authorised Acorn dealer, and Acorn equipment sold by John Gilbert and Company is guaranteed by John Gilbert and Company and not by Acorn Computers." Counsel for both parties said they had agreed not to oppose an interim injunction if the Court ruled in favour of Acorn and Barsons on an earlier point of law. Mr Bob Fisher, for Gilberts. said this point was "whether a manufacturer who makes goods overseas can stop a person who lawfully buys those goods overseas from importing the goods into New Zealand merely on the ground that

the manufacturer also has the New Zealand copyright."

He said that, if this were so. then Acorn would have " two bites at the cherry" of royalties — once when it sold the product in Britain, and again when it was brought into New Zealand

— merely because of the "accident" that it crossed national borders. It would also amount to an "interference in trade" between third parties.

Mr Michael Crew, for Barsons and Acorn, said that section 10 of the Copyright Act, 1962. was being infringed. This was denied bv Mr Fisher

The hearing continues