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ARTICLE · 30 NOVEMBER 2007

A Screeemer Of An Error: “Best Efforts” In A Patent Licence

Spruson & Ferguson Lawyers
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In a judgement made on 6 July 2007 by Judge Murphy in the County Court of Victoria, the standard imposed on a licensee by a "best efforts" obligation in the context of getting an early stage product to market was examined.

AustraliaIntellectual Property
Chris Bevitt
Chris Bevitt
Alex Rhydderch
Alex Rhydderch
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Framish Holdings Pty Limited v Force Industries Pty Limited [2007] VCC 680

Overview

In a judgement made on 6 July 2007 by Judge Murphy in the County Court of Victoria, the standard imposed on a licensee by a "best efforts" obligation in the context of getting an early stage product to market was examined.

What Happened?

Framish was the owner of a patented invention known as the "Allysnake Screeem". The Allysnake Screeem is essentially a horn for a skateboard.

Framish granted Force an exclusive licence to exploit the patent for skateboards and inline skates. Force warranted that "it will use its best efforts... to maximise the sale of products."

Some design work was needed to get the product to market. Force commissioned Framish and an external designer to assist with the design work. The design work was completed but the resulting component was unsatisfactory.

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