Telecommunications, Media And Technology (TMT) Law Update – Volume 42

JUDGMENTS

Business purchaser did not have ongoing implied software licence

On 8 June 2021, the Federal Court considered the factors to be taken into account when determining the existence of an implied software licence: QAD Inc v Shepparton Partners Collective Operations Pty Ltd [2021] FCA 615. The proceedings related to an alleged infringement of copyright by the purchaser, based on its continued use of software licensed by the plaintiff to the vendor. The licence agreement between the plaintiff and the vendor required the plaintiff's consent to an assignment, and the plaintiff subsequently stipulated a transfer fee as a condition of assignment. The purchaser declined to pay the transfer fee but contended it had an implied licence to continue using the software, essentially on the basis that the plaintiff had not objected to the ongoing use of the software during the course of negotiations. Thawley J concluded that an implied licence existed during the period