All wrapped up - the enforceability of clickwrap, sign-in wrap and browse wrap agreements - Phillips Ormonde Fitzpatrick

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All wrapped up - the enforceability of clickwrap, sign-in wrap and browse wrap agreements - Phillips Ormonde Fitzpatrick
Issue 51 • March 2021
 All wrapped up –
                             Supply of essential
the enforceability of
                                oils infringes
 clickwrap, sign-in
                                  method of
 wrap and browse
                              treatment claims
 wrap agreements

                   Lack of                      What do an AI
                 Entitlement                    machine and a
                 breaks glass                   monkey have
                 vase design                     in common?

               Patents | Trade Marks | Designs | IP Research | Legal Services
All wrapped up - the enforceability of clickwrap, sign-in wrap and browse wrap agreements - Phillips Ormonde Fitzpatrick
POF named best
                                                                                     Australian IP firm
                     Welcome                                                         across three categories

                                                                                                                                              Hello and
                     Creativity lies at the heart of the IP world but
                     what it is, where it comes from and who is
                                                                                     of the 2021 Client
                     responsible for it can be hard to pin down.
                     In this edition of Inspire we explore some of the legal
                                                                                     Choice Awards

                                                                                                                                              welcome back
                     difficulties arising from advances in artificial intelligence
                     technology which provide new avenues for generating             We are delighted that POF has
                     inventions. As Helen McFadzean discusses, the process           emerged the winner across
                     of invention has typically been understood as the creative
                     mental activity of a human and patent law in Australia and      three categories of this year’s
                     elsewhere reflects this understanding. As recent patent         Client Choice Awards, the most
                     office decisions indicate, in circumstances where an
                     alleged invention has been generated by an AI machine,          awards of any Australian IP                              POF welcomes new Patent Attorney, Paul Goodall,
                     the absence of a legal person having entitlement to the         firm. We were successful in                              to our Sydney office and welcomes back Senior
                     grant of a patent or being capable of assigning such
                     a right, meant that no patent could validly be filed.           the following categories:                                Associate, Helen McFadzean, to our Melbourne office.
                     Correctly identifying the creator of a design is also           > Best Specialist IP & Related Services Firm;
                     crucial to ensuring the validity of a design registration                                                                POF welcomes new Patent Attorney,                        Welcome back, Helen McFadzean
                     as Duncan Joiner explains. In Manuel Canestrini v Ilan          > Best CX (Client Experience) Firm:
                                                                                        Specialist IP & Related Services; and                 Paul Goodall                                             Returning to POF this year, after her period of parental
                     El one of the two designs in issue was found to be                                                                                                                                leave, is Senior Associate Helen McFadzean. We are
                     invalid and was revoked in light of evidence showing                                                                     Phillips Ormonde Fitzpatrick extends a warm welcome
                                                                                     > Most Innovative Specialist IP &                                                                               excited to have Helen back onboard working with
                     that the visual appearance of the design was conceived                                                                   to our newest Patent Attorney, Paul Goodall, who
                                                                                        Related Services Firm.                                joined the Electronics, Physics and IT Team in our       our Electronics, Physics and IT Team in Melbourne.
                     by someone other than the registered owner.                                                                                                                                       Helen joined POF in 2017 and has been part of the
                                                                                     Beaton Research + Consulting manages the                 Sydney office late last year. He brings with him seven
                     Anita Brown examines the fine line between taking               independent research behind the Awards.                  years of experience working in the engineering field.    IP profession since 2009. Helen has assisted clients
                     creative license in seeking inspiration from an                 Clients and referrers of work complete                                                                            in obtaining patents, designs and trade marks both
                     established brand and appropriation leading to trade                                                                     During his career, Paul predominantly focused
                                                                                     Beaton’s surveys; rating and commenting                  on electronics and telecommunications                    in Australia and overseas, across a large number of
                     mark infringement and misleading and deceptive                  on firms’ performance in delivering services                                                                      technology areas including automation, smart devices,
                     conduct. The decision in In-N-Out Burgers, Inc v                                                                         engineering, working on a variety of different
                                                                                     on a range of criteria. This includes quality,           engineering projects ranging from satellite              medical apparatus, automotive technology, audio signal
                     Hashtag Burgers also highlights that directors who              value for money, price, and innovation.                                                                           processing, image processing, and subsea mining
                     have close personal involvement in the wrongdoing                                                                        systems to developing the electrical systems on
                                                                                     We would like to extend our gratitude to all our         the Deepsea Challenger submarine which was               technology just to name a few. Helen has a history
Inspire March 2021

                                                                                                                                                                                                                                                                  Inspire March 2021
                     of a company may also be found liable.                                                                                                                                            of maintaining excellent client relationships through
                                                                                     clients who nominated us for these awards. We are        successfully sent to the Mariana Trench in 2012.
                     Also in this edition, Annabella Newton looks at                 particularly proud of winning the award for ‘Best                                                                 proactive learning of her clients’ business to better
                     infringement of method of treatment claims by                                                                            Paul started his career in intellectual property in      understand their needs and commercial objectives.
                                                                                     CX (Client Experience) Firm’ as we put our client’s      2016 with a large patent attorney firm in Sydney. His
                     the supply of a product, Melissa Wingard explores               interests at the heart of everything that we do.                                                                  Additionally, Helen is one of our resident experts in
                     the enforceability of online contracts and website                                                                       hands-on experience, developed from his career in
                                                                                     These awards reflect the strength of our relationships   engineering, has allowed him to grasp complex ideas      the field of artificial intelligence and co-presented
                     terms of service and we say welcome to our new                                                                                                                                    a popular two-part seminar alongside Dr Jeroen
                                                                                     with our clients, our genuine commitment to              related to electrical and mechanical engineering
                     and returning members of staff and congratulations                                                                                                                                Vendrig titled ‘IP and the AI Boom’ in late 2019. We
                                                                                     client service, and the calibre of our people.           inventions. We are excited to have Paul onboard.
                     to a number of recent award winners.                                                                                                                                              are delighted to have Helen back onboard at POF.

 2                                                                                                                                                                                                                                                                 3

                     Adrian Crooks, Principal                                        Ross McFarlane | Managing Principal
                     BEng(Civil)(Hons) LLB LLM FIPTA                                 BEng(Elec)(Hons) FIPTA
                         adrian.crooks@pof.com.au                                        ross.mcfarlane@pof.com.au
All wrapped up - the enforceability of clickwrap, sign-in wrap and browse wrap agreements - Phillips Ormonde Fitzpatrick
What do an
                        AI machine and
                        a monkey have
                         in common?
                                   DABUS challenges current
                                legal principles on inventorship.
                     It is believed that as early as the        (including Australian application no.     machine being treated as an inventor.      person’, and not a machine. The UK      It seems that without legislative
                     Paleolithic period, distinguished by the   2019363177), is directed to a food or     In this case, since it was not possible    High Court and EPO each found that      reform, it will be difficult to obtain
                     original development of stone tools        beverage container with a wall profile    to identify a person who can be            an AI machine could hold no rights,     patent protection for an invention
                     over three million years ago, mankind      having pits and bulges as shown in        granted a patent, the application failed   and could not transfer any rights to    devised solely by an AI machine.
                     has been inventing and improving. The      some of the specification drawings        to meet filing formalities. As this        an applicant as successor in title.     It has been argued that this is not
                     concept of inventing has always been       reproduced left. The unique profile       deficiency was not capable of being        In February 2020, the US Patent         necessarily a bad outcome, as
                     regarded as a creative mental activity     enables multiple containers to be         corrected, the application lapsed.         and Trademarks Office issued a          allowing patent applications to be
                     carried out by a human being. Fast         releasably coupled together without       Accordingly, it appears that a patent      decision denying a petition to vacate   filed for inventions generated by
                     forward to the 21st century, the rapid     separate fasteners. The increased         application naming an AI machine           a Notice to File Missing Parts.         AI machines may stifle rather than
                     development in artificial intelligence     surface area is also believed to          as an inventor cannot be validly filed     The Notice indicated that the           promote innovation. In any event,
                     allows generative AI tools to be used      facilitate heat transfer and grip.        in Australia, principally because          application did not ‘identify each      the question of inventorship may
                     to create entirely new designs by          In February 2021, IP Australia issued     there is currently no mechanism for        inventor by his or her legal name’.     not be the only hurdle to protection
                     themselves. This raises the question,      its decision in Stephen L. Thaler         a nominated person to derive title         The USPTO rejected the notion that      for AI devised inventions. Of course,
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                     could an AI system be named as an          [2021] APO 5 addressing the               to the invention.                          an inventor could be construed          there is also the question of whether
                     inventor for a patent application?         inventorship question. It determined                                                 to cover machines, referring to         an invention devised by an AI
                                                                                                          While specific legislation regarding
                     In 2008, Dr Stephen Thaler began           that a patent can only be granted                                                    dictionary definitions and case law     machine during normal operation –
                                                                                                          inventorship varies in different
                     experimentation on a new type              to a person. An AI machine is not                                                    indicating that an inventor must be a   e.g. executing an iterative process
                                                                                                          jurisdictions, related overseas
                     of artificial neural network called        a person, and it is not possible                                                     natural person, and that the inventor   to determine optimum design
                                                                                                          applications naming DABUS
                     DABUS – Device for the Autonomous          for a person to derive title to an                                                   who executes an oath or declaration     features of a product would be
                                                                                                          as the inventor have received
                     Bootstrapping of Unified Sentience.        invention devised by a machine from                                                  must be a ‘person.’                     obvious. Perhaps this will be the
                                                                                                          similar outcomes.
                     By 2018, DABUS reportedly                  the machine as the law does not                                                                                              next question.
                                                                                                          In January 2020, the European              Dr Thaler has appealed the decisions
                     conceived two inventions. Dr Thaler        presently recognise the capacity of                                                  in the UK, EPO, and the Federal
 4                   filed patent applications for the          an artificial intelligence machine to
                                                                                                          Patent Office refused two patent
                                                                                                          applications on the grounds that the       Court of Australia.                                                               5
                     inventions naming DABUS as the sole        assign property.
                                                                                                          applications listed the AI machine         So, what do an AI machine like
                     inventor, and the Artificial Inventor      The Delegate also considered that         DABUS as the inventor and not a            DABUS and a monkey have in
                     Project was born. Patent applications      since Dr Thaler asserted that he did     ‘natural person’, and that designating      common? In the monkey selfie
                     were filed in the major jurisdictions      not devise the invention, but merely      a machine inventor with a name             copyright dispute, it was found that
                     around the world including the UK,         acquired knowledge of the invention      ‘does not satisfy the requirements          the monkey was unable to hold
                     Europe, US and Australia causing the       from the AI machine, Dr Thaler            of the European Patent Convention.’        copyright in a selfie picture because
                     respective patent offices to form a        would not be the inventor.                Similarly, in July 2020, the UK High       it was a non-human creator. Just like
                     view about who can be an inventor.                                                                                                                                      Helen McFadzean | Senior Associate
                                                                Finally, the Delegate concluded           Court upheld a 2019 UK Intellectual        that monkey, DABUS is unable to be
                     One of the inventions described            that the law as it currently stands in    Property Office decision stating that      named as an inventor because it is      BE(Hons) Mechatronics MIP FIPTA
                     in the patent applications,                Australia is inconsistent with an AI      an inventor can only be a ‘natural         not a natural person.                       helen.mcfadzean@pof.com.au
All wrapped up - the enforceability of clickwrap, sign-in wrap and browse wrap agreements - Phillips Ormonde Fitzpatrick
Supply of
                                  Essential Oils
                               Infringes Method
                              of Treatment Claims
                             A recent Federal Court decision1 has shed light
                            on the patentability of naturally-derived essential
                             oils, as well as the applicability of s 117 of the
                               Patents Act to method of treatment claims.
                                                                  By Annabella Newton PhD

                     Background                                      The Patent                              Method Of Treatment Claims                 of treatment claims were not a               commercial customers rather              Conclusions
                     Mr Hood, the applicant, filed the               In its broadest form, the claimed       The respondents contended that             known use of a known material.               than directly to consumers. The          The decision highlights that
                     patent in suit, Australian Patent               invention was an ‘essential oil         the method of treatment claims             By the priority date, it had been            infringement case was therefore          claims to products sourced
                     No 721156 entitled ‘Essential oil               derived from shrubs of the genus        were invalid on the grounds that           established which chemical                   based on s 117 of the Patents            directly from plant and animal
                                                                     Kunzea’. The claims include several     they claimed a ‘known use of a             compounds in tea tree oil were the           Act, which states that if the use        species, such as essential oils,
                     and methods of use’, after finding
                                                                     other product claims together           known material’ and also that              active ingredients. In their inventive       of a product by a person would           may not be sufficiently different
                     several native shrubs growing on
                                                                                                             they lacked an inventive step.             step arguments, the respondents              infringe a patent, then the supply       from nature to qualify as patentable
                     his Tasmanian farm. One of these                with various method of treatment
                                                                                                                                                        tried to show that Kunzea ambigua            of that product by one person to         subject matter in Australia.
                     shrubs, Kunzea ambigua of the                   claims that use such an oil. Claim      There is a very long history of
                                                                                                                                                        essential oil contained many of the          another is an infringement of the        Methods of treatment using
                     Myrtaceae family, yielded an oil that           5, the broadest method claim, was       Australian Aboriginal people using
                                                                                                                                                        same active ingredients as tea tree oil,     patent by the supplier, as long as       these naturally-derived products
                                                                     directed to a method of treatment       native plants for medicinal purposes,
Inspire March 2021

                                                                                                                                                                                                                                                                                              Inspire March 2021
                     Mr Hood tested among friends and                                                                                                                                                it can be shown that the recipient
                                                                     in which the essential oil is applied   including to treat infections, skin        and it would therefore be obvious that                                                may be considered patentable
                     family and anecdotally appeared                                                                                                                                                 would use the product in a way that
                                                                     topically to relieve pain, minimize     problems, colds and nasal conditions.      Kunzea ambigua essential oil would be                                                 subject matter although these
                     to have antimicrobial and anti-                                                                                                    suitable for use in the treatment of a       would infringe the patent. This may
                                                                     bruising, or to assist in healing.      Evidence showed that approximately                                                                                               claims may still fail for lack of
                     inflammatory properties. Mr Hood                                                                                                   similar range of ailments as tea tree oil.   be because the product only has          novelty or inventive step. This
                     had Kunzea ambigua essential oil                                                        70% of essential oils come from                                                         one reasonable use, or because
                                                                     Product Claims                          around 12 plant families. One of the       However, the Court considered this line                                               decision also demonstrates how
                     listed on the Australian Register of                                                                                                                                            the product was supplied with            infringement by supply under
                                                                     Early in the proceedings, the           most well-known Australian essential       of reasoning to be based on ex post
                     Therapeutic Goods (ARTG) for the                                                                                                                                                instructions or inducement to use        s 117 of the Patents Act can apply
                                                                     applicant accepted that product         oils in October 1996 (the priority date)   facto analysis that did not explain why
                     treatment of various conditions                                                                                                                                                 the product in a way that would          to method of treatment claims.
                                                                     claims 1 to 4 were invalid on the       was tea tree oil, which is derived from    the skilled person would have been
                     including influenza, arthritis, and                                                                                                                                             infringe, such as an advertisement.
                                                                     basis that they lack novelty. Because   several plants of the Myrtaceae family     drawn to consider Kunzea ambigua as
 6                   muscular aches and pains.                       of this, the Court acknowledged         and was known to be useful in the          a potential therapeutic agent in the first   The Court found that some of the                                                          7
                     Mr Hood sued several parties                    it was unnecessary to rule on           treatment of various ailments. However,    place, much less analyse an essential        alleged infringers had supplied Kunzea
                     for infringement of the patent,                 whether those claims are also invalid   no evidence presented showed that          oil derived from Kunzea ambigua in           ambigua essential oil to customers
                     alleging that the respondents                   because they were not for a manner      Kunzea ambigua had been previously         the expectation that it would also           with advertisements and other
                     supplied Kunzea ambigua essential               of manufacture. The Court did note,     used for therapeutic purposes.             provide a useful treatment. The Court        marketing material which suggested
                     oil to commercial customers. In                                                                                                    therefore concluded that the method          the oil is useful in the treatment
                                                                     however, that it was highly arguable    The Court found that as the evidence
                     response, the validity of the                                                                                                      of treatment claims were inventive.          of conditions which fall within the
                                                                     whether the raw oil extracted from      did not establish that an essential oil                                                 scope of the method of treatment
                     patent claims was challenged.                   Kunzea ambigua was sufficiently         derived from Kunzea ambigua had            Infringement By Supply                       claims. The Court considered that
                     The proceedings were combined                   different from a product of nature to   been used for therapeutic purposes                                                                                               Dr Annabella Newton | Senior Associate
                                                                                                                                                        Mr Hood contended that the                   this did provide an inducement to
                     and heard together in 2018.                     qualify as patentable subject matter.   before the priority date, the method                                                    the customer to use the oil in a way
                                                                                                                                                        respondents Kunzea ambigua                                                            MChem(Hons) MCommrclLaw PhD AMRSC MRACI GAICD
                     1
                         Hood v Bush Pharmacy Pty Ltd [2020] FCA 1686 (23 November 2020)                                                                essential oil was supplied to                that would infringe that patent.             annabella.newton@pof.com.au
All wrapped up - the enforceability of clickwrap, sign-in wrap and browse wrap agreements - Phillips Ormonde Fitzpatrick
Sydney Business
                           Down N’ Out in
                            Burger Battle
                                 The Sydney burger bar formerly known as
                                 Down N’ Out looks set to remain nameless
                                 after it lost its recent Federal Court appeal
                                   with US burger chain In-N-Out (INO).

                     In the case of In-N-Out Burgers                                                         d) insufficient weight was given to
                     v Hashtag Burgers1, the Court                                                                the difference in the meaning
                     upheld the primary judge’s ruling                                                            and ideas the marks conveyed;
                     that Hashtag’s use of Down N’ Out                         Hashtag’s appeal              e) s  ignificant or dispositive weight
                     infringed trade mark registrations for                   contended that the                  was placed on aural similarity and
                     In-N-Out, constituted passing off and                                                        setting aside the material visual
                     misleading or deceptive conduct.                           primary judge’s
                                                                                                                  differences between the marks;
                     At first instance, Justice Katzmann                         assessment of               f) f raming the central question
                                                                                                                                                       that the pair had acted dishonestly,   Finally, in a blow for Kagan and        Business owners and brand creators
                     found the directors of Hashtag,                          deceptive similarity                                                     it found the evidence supported        Saliba, the Full Court found in         must walk the fine line between
                                                                                                                 as one focussed on imperfect          the initial finding that it was ‘no    favour of INO on its cross appeal       inspiration and appropriation
                     Benjamin Kagan and Andrew                                 when comparing                    recollection; and
                     Saliba, jointly and severally liable for                                                                                          coincidence’ that Kagan and Saliba     that the pair were joint tortfeasors    when developing trade marks and
                     their conduct before Hashtag was                            the registered              g) a  pparent weight was placed          had chosen the name Down N’ Out,       with Hashtag. It found that each        branding that are based on those
                                                                               trade mark In-N-                   on evidence of confusion             and that it had been selected with     director’s conduct went beyond          of another business. Failure to
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                                                                                                                                                                                                                                                                                Inspire March 2021
                     incorporated – but not liable as joint
                                                                                                                  from social media posts and          full knowledge of the INO trade        the proper role of director so          understand and appreciate the
                     tortfeasors with the company after                       Out with Hashtag’s                  not weight on the absence of         marks. The Full Court identified a     as to descend into the realm            risks, may lead to a potentially
                     its incorporation. INO successfully
                     cross-appealed this decision, with
                                                                              Down N’ Out mark                    evidence of actual confusion.        number of matters that supported       of ‘close personal involvement’.        embarrassing and costly rebrand.
                     the Full Court finding them to be                           was incorrect               On each point, the Full Court             this finding and which the primary     This was on the basis that:             This case also serves as a reminder to
                     joint tortfeasors for trade mark                                                        rejected Hashtag’s contention             judge referred to including:           a) the pair were the sole              company directors that courts will look
                     infringement and passing off.                                                           that the approach was in error.           > t he concession that INO                directors of Hashtag;               beyond the corporate veil in cases of
                                                                                                             Hashtag also challenged Katzmann              inspired the name;                 b) o nly they made decisions as        trade mark infringement, passing off
                     The trial decision (discussed here)
                                                                                                             J’s finding that there had been           > t he acceptance that the ‘N-out’        to Hashtag’s management;            and misleading and deceptive conduct.
                     prompted Hashtag to rename its
 8                   Sydney restaurant the ‘Nameless                   a) the presence of the word BURGER   a deliberate appropriation of                 component of the mark was          c) t hey alone received the                                                       9
                     Bar’, with the business appearing                     within the INO trade marks had    the US restaurant’s trade marks,              a direct lift from IN-N-Out;           profits derived from it;
                     to capitalise on the publicity                        not been given any weight;        branding and reputation, and              > K  agan and Saliba had knowledge    d) t here was no difference between
                     the court case generated.                          b) t here was a failure to assess   that Kagan and Saliba had acted               of the ‘legendary’ INO and Kagan       the individual who operated the
                     Hashtag’s appeal contended that                                                         dishonestly in relation to an email           had attended a pop (up?) event         business prior to incorporation
                                                                            the effect of the arrows                                                       run by INO in Australia; and
                     the primary judge’s assessment of                                                       denial sent to In-N-Out regarding                                                    and the way in which they
                                                                            within the INO mark;             use of INO’s trade marks ‘Animal
                     deceptive similarity when comparing                                                                                               > a  request to make the Down             operated it through the corporate
                     the registered trade mark In-N-Out                c) u
                                                                           ndue emphasis was placed         Style’ and ‘Protein Style’.                   N’ Out logo like the INO logo,         vehicle after it was formed; and
                     with Hashtag’s Down N’ Out mark                      on the ‘N-Out’ aspect of           Whilst the Full Court found that the          with the subsequent choice of      e) t he pair were knowingly involved
                     was incorrect, on the basis that:                                                                                                     font, colour and a yellow arrow                                            Anita Brown | Principal
                                                                          the INO trade marks;               evidence did not support a finding                                                   in the company’s wrong doing.       BA LLB MIPLaw GAICD
                                                                                                                                                           reflecting INO’s branding.
                     1
                         In-N-Out Burgers, Inc v Hashtag Burgers Pty Ltd [2020] FCA 193                                                                                                                                                  anita.brown@pof.com.au
All wrapped up - the enforceability of clickwrap, sign-in wrap and browse wrap agreements - Phillips Ormonde Fitzpatrick
Lack of
                                  Entitlement
                                  breaks glass
                                  vase design
                          The validity of an Australian design
                        registration requires that the registered
                      owner is properly entitled to the design rights.

                     The Australian Designs Office                              business known as ‘Formacy’ from        2017 in his capacity as product         Vase’ having a visually different base   a new design may combine visual
                     decision in Manuel Canestrini v                            March 2017 until February 2018          designer in the Formacy business.       and a visually different connection      features from existing designs and
                     Ilan El1 demonstrates that a failure                       when the Owner resigned from the       The evidence included dated email        between the vase and base.               so even if the Owner had taken
                     to satisfy this requirement can                            partnership. Part of the Requestor’s    exchanges demonstrating that the        In contrast with the evidence            and combined visual features from
                     result in revocation of a design                           evidence was the Owner’s                Requestor had conceived of the          submitted in respect of the ‘963         the Requestor’s earlier designs,
                     registration. The decision also                            resignation email which noted “As       visual appearance and included          design, the Requestor’s evidence         the Owner may nonetheless be
                     highlights that a request for                              for the designs that we’ve developed    alternative and final design versions   with respect to the ‘962 design          entitled to the ‘962 design.
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                                                                                                                                                                                                                                                Inspire March 2021
                     revocation will be successful only if                      and the products produced to            circulated by the Requestor to          was undated and no supporting            On the basis of the evidence
                     the lack of entitlement challenge is                       date - These are all yours.”            other partners of the business.         material was provided to indicate        provided, the Delegate was not
                     supported by sufficient evidence.                          The Owner did not contest or           There was no evidence the                when the design had been                 satisfied that the Requestor was
                                                                                participate in the proceedings          Requestor had any contractual           conceived. The Owner’s resignation       a designer of the ‘962 design and
                     Background                                                 although the Delegate noted             relationship with the other             email was therefore found not to         the request to revoke the ‘962
                     The decision concerned Australian                          that the onus remained with the         partners of the business. It was        disentitle the Owner from the ‘962       Registration was declined.
                      Design Registrations 201911962                            Requestor to establish, on the          also noted that conception of the       design in the absence of evidence
                      and 201911963 (the ‘962 and ‘963                          balance of probabilities, that the     ‘963 design occurred during the          that the design was conceived
                      Registrations). The Registrations                         Owner was either not entitled or        period of the partnership and so        during the partnership period.
10                    were applied for by Ilan El (the                          not solely entitled to the design.      the Owner’s resignation email           Crucially, the Requestor’s evidence                                             11
                     ‘Owner’) in April 2019 and were                                                                    disclaiming designs made during         of design conception included
                      subsequently registered in early
                                                                                The Decision                            the partnership was relevant.           images of several different vase
                     July 2019 with the Owner recorded                          The ‘963 Registration related to a     The Delegate was satisfied               designs but none having the same
                      as the sole designer. A request                           ‘Cannon Vase’ design consisting of a    based on the evidence that the          visual features as the ‘962 design.
                      for revocation of the Registrations                        cannonball object within a cannon-     Requestor was the only person           The Delegate conceded that the
                      was made by Manuel Canestrini                              shaped vase seated in a base.          entitled to be the registered owner     vases in the Requestor’s evidence
                      (the ‘Requestor’) in late July 2019.                      The Requestor’s evidence                of the ‘963 design and the ‘963         resembled the ‘962 design but
                                                                                 demonstrated that he had conceived     Registration was therefore revoked.     noted mere visual similarity is, in      Duncan Joiner | Senior Associate
                     The Owner and the Requestor
                                                                                 and finalised this design in late     The ‘962 Registration related to an      isolation, insufficient to establish     BAeroEng (Hons) LLB (Hons), LLM (IP)
                      had been business partners in a
                                                                                                                        alternative version of the ‘Cannon      entitlement. It was also noted that          duncan.joiner@pof.com.au
                      Manuel Canestrini v Ilan El [2020] ADO 2 (25 June 2020)
                     1
All wrapped up - the enforceability of clickwrap, sign-in wrap and browse wrap agreements - Phillips Ormonde Fitzpatrick
All wrapped up
                         The enforceability of clickwrap, sign-in
                          wrap and browse wrap agreements
                     There is a running joke being shared                                                           those terms and conditions. Taking
                     online among IT professionals                                                                  Facebook as an example, when you
                     that the leading force in digital                                                              provide your details to set up an
                     transformation was the COVID-19                                                                account there is a notice above the
                     pandemic, not the CEO or CTO as                                                               ‘Sign Up’ button that says ‘By clicking
                     one might expect. While humorous,                         …how do you                          Sign Up, you agree to our Terms,
                     there is an element of truth to this.                   ensure that your                       Data Policy and Cookie Policy.’ Terms,
                     As the world went into various forms                                                           Data Policy and Cookie Policy are
                     of lockdown, many businesses
                                                                             online contracts                       hyperlinks which take you to those
                     were forced to go online with their                     or website terms                       relevant terms and conditions.
                     offering of goods and services, in
                     some instances erecting websites
                                                                            of service are valid                    It is worth noting that the Courts’
                                                                                                                    position on what constitutes which
                     and payment platforms overnight.                        and enforceable?                       type of ‘wrap’ agreement can
                     So, as the world engages in this digital                                                       differ to the generally accepted
                     transformation and e-commence                                                                  understanding of what is meant by
                     becomes the predominant way of                                                                 clickwrap from an IT perspective, and
                     buying goods and services, how do                                                              emphasises the importance of having
                     you ensure that your online contracts                                                          lawyers also review any proposed
                     or website terms of service are                   all the terms and conditions                 website layout and agreements.           the screen cluttered? Is the entire   Manifestation of Assent                   one end of the validity spectrum
                     valid and enforceable? Thankfully,                of use before they are able to              Justice Beach in Dialogue confirmed       screen including the terms and        Like the question of reasonable notice,   and browse wrap agreements on
                     Justice Beach of the Federal Court                click the ‘I agree’ button.                  that whether online agreements or        conditions visible at once? Are the   the courts will apply an objective        the other.’ In Dialogue, Justice
                     in Dialogue Consulting v Instagram1                                                            terms and conditions are enforceable     links to the terms and conditions     standard to whether there was a           Beach found that whilst there
                     has recently considered the question              Browsewrap                                   is a question of reasonable notice and   in different colours or contrasting   manifestation of assent by the user       was a valid arbitration agreement
                     of the formation of contract when                 The website doesn’t require any              manifestation of assent. He noted        with the background? Are the          to the terms and conditions. If there     formed using Instagram’s ‘sign-in
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                                                                                                                                                                                                                                                                                     Inspire March 2021
                     using ‘browsewrap’, ‘clickwrap’                   agreement or affirmative action to           that the US Courts have a large body     terms and conditions spatially        has been reasonable notice to the         wrap’ agreement, Instagram had
                     and ‘sign-in wrap’ agreements.                    be taken in respect of the terms and         of case law on the subject, and that     coupled with the ‘I agree’ or ‘Sign   user that a particular act, such as       waived its rights to rely on such
                     In Dialogue, Instagram was                        conditions. The use of the website,          the Australian common law contains       Up’ button? The layout of your        clicking a button, signifies that there   arbitration clause. Instagram’s
                     looking to obtain a stay of the                   continuing to engage with or use             and applies similar principles.          website is critical not just from     has been acceptance of the terms          stay application was therefore
                     proceedings on the basis of that                  the services provided is taken as                                                     a user experience perspective.        and conditions, then if the user clicks   dismissed. Should you require
                     there was an arbitration agreement                the user agreeing to be bound by            Reasonable Notice                         The use of a hyperlink for the        the button, they are taken to have        assistance in determining at which
                     between the parties which arose                   the terms and conditions, usually           Reasonable notice is an objective         terms and conditions won’t            accepted all the terms and conditions     end of the spectrum your internet
                     from Dialogue’s acceptance of                     published somewhere else on                 test to determine whether there           preclude a court from determining     even if they do not know what they are.   contracting is at, please contact us.
                     the online Instagram terms and                    the website. A common example               was sufficient notice given so that       that there is reasonable notice,      It was noted in Dialogue that whilst
12                   conditions. Dialogue opposed the                  of browsewrap agreements is in              a reasonably prudent person would         provided that the links through       internet commerce has created new                                                 13
                     application and denied there was a                the ‘terms and conditions’ found            understand that an offer to enter into    to the terms and conditions are       and different situations for the courts
                     valid arbitration agreement. Taking               in the footer of many websites.             a contract was being made. Did the        clear and conspicuous such that       to consider, it has not changed the
                     guidance from US Courts, Beach                                                                person entering into the contract         a reasonably prudent website          requirement that a touchstone of a
                     J observed that they classified                    Sign-in Wrap                               have actual or constructive notice        user would have been put on           contract is the manifestation of assent
                     agreements into one of three types.               The user of the site is notified that       of the provisions of the contract?        constructive notice of them.          either through writing or conduct.
                                                                       there are terms and conditions              In considering whether reasonable         The fact that one does not read       In assessing internet contracts the
                     Clickwrap                                         associated with their use of the site,      notice has been provided, the             the terms and conditions does         Federal Court noted that the US
                     Those in which users of the site                  and that by clicking the ‘sign-in’ button   courts will look at the layout and        not mean that the user has not        courts place online contracting on ‘a     Melissa Wingard | Special Counsel
                     are required to scroll through                    they are agreeing to be bound by            user interface of the website. Is         accepted them provided that the       spectrum of validity, with clickwrap      BA(Eng&Hist) LLB(Hons) GradDipLegPrac
                                                                                                                                                             user is given reasonable notice.      and sign-in wrap agreements on            GradDipAppFin&Inv MCyberSecOps
                     1
                         Dialogue Consulting Pty Ltd v Instagram, Inc [2020] FCA 1846                                                                                                                                                            melissa.wingard@pof.com.au
All wrapped up - the enforceability of clickwrap, sign-in wrap and browse wrap agreements - Phillips Ormonde Fitzpatrick
Awards and
                                                                                                                                           Alexis Keating of Phillips Ormonde
                                                                                                                                           Fitzpatrick Lawyers won the IPTA
                                                                                                                                               Trade Mark Prize for 2020

                       recognition in                                                                                                      Following the extensive research process carried
                                                                                                                                           out by IAM Patent, our attorneys were praised
                                                                                                                                           for their incredible attention to detail, ability to

                        2020 & 2021
                                                                                                                                           meet deadlines despite mounting time pressure,
                                                                                                                                           and extensive international contacts.
                                                                                                                                           In addition to our tier 1 firm ranking, we are also
                                                                                                                                           pleased that a number of POF attorneys have
                                                                                                                                           been individually endorsed by IAM Patent for
                                                                                                                                           their work. POF Managing Principal Ross
                                                                                                                                           McFarlane, Principals Ray Evans, Matthew
                                                                                                                                           Ford and Edwin Patterson, and Special
                                                                                                                                           Counsels Saskia Jahn and Mark Williams,
                            Our firm and attorneys have recently been recognised                                                           were all highlighted for their prosecution
                             by a number of leading publications and directories.                                                          work. Additionally, Deputy Managing
                                                                                                                                           Principal Chris Schlicht, and Principal
                                                                                                                                           David Longmuir from Phillips Ormonde
                                                                                                                                           Fitzpatrick Lawyers were highlighted for
                                                                                                                                           their great work in Patent litigation.
                                                                                                                                           POFL Associate Alexis
                     We are proud of our top-tier rankings,                                         each business’ unique needs.”          Keating takes home the IPTA
                     and of the individual achievements           …our attorneys were               Additionally, a number of our          Trade Mark Prize 2020
                     of our attorneys, outlined below.                                              attorneys received individual praise   Alexis Keating of Phillips Ormonde
                     We’d also like to extend our
                                                                     praised for their              for their work in prosecution,         Fitzpatrick Lawyers won the IPTA
                     thanks to our clients who have               “incredible attention             enforcement and litigation. POF        Trade Mark Prize for 2020. Now
                     helped make these achievements                  to detail, ability             Principals Michael O’Donnell, Anita    in its second year, the prize is
                     possible through the feedback they                                             Brown and Russell Waters, as well      awarded to a candidate who has
                     have contributed as part of the
                                                                    to meet deadlines               as Senior Associate Marine Guillou,    demonstrated excellence in the
                     judging and research process.                  despite mounting                were all highlighted for going         academic subjects leading to
                                                                      time pressure,                beyond what is expected to satisfy     qualification as a trade marks
                     MIP IP Stars Awards                                                            client needs, as well as for their     attorney, and who has shown
                     2020 – Rising Stars                              and extensive                 attention to detail and timeliness     the potential to make substantial
                     POF attorneys Michelle Blythe,                    international                in their work. Greg Chambers,          contributions to the profession.
                     Helen McFadzean, and Dr Annabella                   contacts”                  Chris Schlicht and David Longmuir      Alexis practises across the
                     Newton have been named among                                                   of Phillips Ormonde Fitzpatrick        full scope of IP rights, with
Inspire March 2021

                                                                                                                                                                                                  Inspire March 2021
                     2020’s Rising Stars in the MIP IP                                              Lawyers were also individually         a particular focus on trade
                     Stars awards. This is a fantastic                                              noted for their experience and         marks and brand protection.
                     achievement for Michelle, Helen                                                diligence in their enforcement and     Alexis has acted in contentious
                     and Bella, and we’d like to                                                    litigation in the trade marks space.   matters before the Trade Marks
                     congratulate them on these awards.                                             The WTR is a globally renowned         Office, Designs Office and
                                                                                                    guide – Firms qualify for a            Administrative Appeals Tribunal.
                     Each year MIP research analysts
                                                                                                    listing based on their depth           She has also acted in matters
                     receive and analyse a lot of
                                                                                                    of expertise, market presence          before the Federal Court of Australia
                     information on law firms and                                                                                          and the Supreme Court of Victoria,
                                                                                                    and the level of work on which
14                   practitioners that provide IP
                                                                                                    they are typically instructed.         both at trial and appellate levels.                    15
                     services. Traditionally, the individual
                     listings in the IP Stars awards           WTR 1000 2021 –                      IAM Patent 1000 2021                   Deputy Managing Principal Chris
                     feature senior IP practitioners that                                                                                  Schlicht had this to say:
                                                               Tier 1 ranking                       – Tier 1 ranking
                     provide IP services. However, this                                                                                    “Alexis has been with the firm now for three
                                                               POF has also been recognised as      We are delighted that POF has          years and makes a terrific contribution
                     special listing focuses on some                                                once again been recognised as a
                                                               a leading firm for Prosecution and                                          to the services that we provide to our
                     of the best up-and-coming IP              Strategy, and Enforcement and        tier 1 patent prosecution firm in
                     practitioners below partner level                                                                                     clients. She is a valued member of the
                                                               Litigation in the World Trademark    this year’s IAM Patent 1000, touted    team and we are very pleased with this
                     who contribute to the success of          Review (WTR) 1000 for 2020           as “one of, if not the best patent
                     their firms and clients. We are very                                                                                  recognition of her skill and efforts.”
                                                               – and was described as “very         attorney firm in Australia when it
                     proud to have three IP practitioners                                           comes to maintaining decades-          We’re very proud to see Alexis’ efforts and
                                                               client-oriented and the services
                     recognised as rising stars.                                                    long, happy client relationships”.     contributions recognised through this award.
                                                               provided are always adapted to
All wrapped up - the enforceability of clickwrap, sign-in wrap and browse wrap agreements - Phillips Ormonde Fitzpatrick
Melbourne                Sydney                  Adelaide           Hobart
                                              Level 16                 Suite 15.02, Level 15   Level 3            PO Box 79
                                              333 Collins St           4-6 Blight St           74 Pirie Street    Woodbridge
                                              Melbourne VIC 3000       Sydney NSW 2000         Adelaide SA 5000   TAS 7162
Contact      us& info@pof.com.au
 Calidad Pty Ltd
1
                 Ors v Seiko Epson Corporation+61 3 9614
                                              & Anor       1944
                                                       [2020] HCA 41   +61 2 9285 2900         +61 8 8232 5199    +61 3 9614 1944
All wrapped up - the enforceability of clickwrap, sign-in wrap and browse wrap agreements - Phillips Ormonde Fitzpatrick
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