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European IP Bulletin, Issue 20, March - Designs

Designs

6.   Dyson Vacuums Up the Secondary Market

In the Dyson v Qualtex [2004] EWHC 2981 (Ch) decision of 21 December 2004, Mann J provided a useful review of the law of unregistered design right.

The action was a claim by Dyson for infringement of its unregistered design right which it claimed in respect of a number of parts for its vacuum cleaners, copies of which were made by Qualtex for use in Dyson vacuum cleaners. Qualtex was one of the UK's leading suppliers of spare parts for domestic appliances. It sought to defend its position by claiming that the parts could not be protected under the Copyright Designs and Patents Act 1988 (CDPA) as they were not original and they were commonplace. Qualtex also argued that the purpose of the ‘must fit’ and ‘must match’ exceptions was to protect spare parts manufacturers, and therefore the exceptions should be construed in its favour accordingly.

Mann J disagreed with the submissions put forward by Qualtex. He ruled that Qualtex had infringed the 14 unregistered design rights belonging to Dyson by copying each of the parts which were the subject of the action.

Mann J held that the wording of the ‘must fit’ exception did not have to be construed particularly narrowly or widely. It did not matter if there was more than one way of achieving the fit between the subject article and the one to which it is fitted: if the design chosen is a way of achieving that fit, then regardless of how many ways of achieving that fit are available, there is no design right in the connecting part. It was insufficient for a defendant to use the must fit exception successfully to argue that the design features of an article merely enabled it to be connected with another. It had to be proven that the features allowing the fit also allowed the article to perform its function.

Qualtex also argued that the design right protection had commenced on Dyson’s marketing of a prototype. Section 216 of the CDPA sets the term of the design right at the lesser of 15 years from the end of the calendar year in which the design was first recorded in a design document or an article was first made to the design, whichever occurred first, or if articles made to the design are made available for sale or hire within five years from the end of that calendar year, 10 years from the end of the calendar year in which it first occurred.

Again, Mann disagreed. He accepted Dyson’s argument that “making an article available” implied capability to satisfy orders from customers.

Finally, Qualtex argued that Dyson was estopped from asserting its rights since they had knowledge of the sales of the parts and had encouraged the continued sale by standing by and not taking action immediately.

Mann J held that mere acquiescence or inaction was no bar to Dyson maintaining breach of design right. Rather, knowledge must to be actual knowledge at an appropriate corporate level. Qualtex had argued that the practice in the industry was to be aware of new suppliers of spare parts, but the facts showed knowledge at Dyson only at the level of a marketing account manager. Mann J considered that even if Dyson had objected, Qualtex would have continued to manufacture to force Dyson to take action, therefore no detriment flowed to Qualtex. Central to the facts of the case was Qualtex’s claim that it was following the industry-recognised practice of ‘testing the water’ with the introduction of its rival parts on to the market. Mann J brushed this aside. Qualtex was merely trying to establish a new “estoppel by entrapment”.

As a result, manufacturers considering the introduction of potentially infringing products onto a market must be aware of the extensive rights that might exist in spare parts and the precise duration of those rights.


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McDermott Will & Emery

McDermott Will and Emery