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ARTICLE · 27 JULY 2017

Patent threats – A muddy area

Patent owners should ensure that they have a justifiable position before making any threat to sue for patent infringement.

AustraliaIntellectual Property

Australian Mud Company Pty Ltd v Coretell Pty Ltd [2017] FCAFC 44 is a recent Australian federal court decision which highlights that patent infringement litigation can be a double edged sword.

The Key Facts

  1. Australian Mud Company Pty Ltd (AMC) owned an innovation patent.
  2. AMC wrote to Coretell Pty Ltd (Coretell) alleging that Coretell's 'Camteq' product infringed its patent. AMC threatened to commence proceedings.
  3. Section 128 of the Patents Act 1990 (Cth) (Section 128) states:
    1. Where a person, by means of circulars, advertisements or otherwise, threatens a person with infringement proceedings, or other similar proceedings, a person aggrieved may apply to a prescribed court, or to another court having jurisdiction to hear and determine the application, for:

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