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England and Wales High Court (Patents Court) Decisions
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Handi-Craft Company & Anor v B Free World Ltd & Ors [2007] EWHC B10 (Pat) (06 September 2007)
URL: http://www.bailii.org/ew/cases/EWHC/Patents/2007/B10.html
Cite as:
[2007] EWHC B10 (Pat),
[2007] EWHC 10 (Pat),
[2007] ECDR 21
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Neutral Citation Number: [2007] EWHC B10
(Pat) |
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Claim No: HC
5C00847 |
IN THE HIGH COURT OF JUSTICE
CHANCERY DIVISION
PATENTS
COURT
B e f o r e :
His Honour Judge Fysh QC
(Sitting as a judge of the High
Court)
____________________
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(1) HANDI-CRAFT COMPANY |
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(2) NEW VENT DESIGNS INC |
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Claimants/Part 20
Defendants |
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-and- |
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(1) B FREE WORLD LIMITED |
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(2) YASMIN BERKOVITCH |
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(3) MOTHERCARE UK LIMITED |
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THE BOOTS COMPANY LIMITED |
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BABY B FREE LIMITED |
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ACTION TRADING LIMITED (in
liquidation) |
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AMIKAM BERKOVITCH |
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PIERO ALBERICI |
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TAMIR BERKOVITCH |
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(10) TTY GENERAL TRADE LINES
LIMITED |
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(11) DVORA BERKOVITCH |
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(12) TAMIR TIROSH |
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Defendants and Nos 1 , 5 and 6 also Part
20 claimants |
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____________________
Dominic Hughes, instructed by Short, Richardson & Forth,
Newcastle-upon-Tyne, appeared on behalf of Defendants 1,2, 5-7, and 9-12
Mr
Piero Alberici (Eighth Defendant) appeared in person
The third, fourth and
sixth defendants were not represented.
Dates of hearing: 9-11, 14-17, 21-25
May and 6 September 2007
____________________
HTML VERSION OF JUDGMENT
____________________
Crown Copyright ©
Introduction and Overview[1]
- This is a dispute about nursing bottles which are
said to afford welcome relief to babies suffering from colic and posseting.
- The moving spirits behind these bottles are two
Americans, father and son: Mr Bob Brown and his son, Dr Craig Brown, a family
doctor. Mr Brown Sr had just retired from the first claimant, Handi-Craft Co
('HandiCraft'), an established toy manufacturer in St Louis, MO when he was
approached by his son with an idea for a venting system for a liquid nursing
bottle. This system, he believed, would relieve the build-up of a partial
vacuum above the level of the liquid which develops whilst a baby is feeding.
HandiCraft saw the potential of the bottle and in due course began developing
and manufacturing it. 'Dr Brown's Natural Flow'[2] bottles were first marketed in the USA in 1997. The bottles
are now manufactured both in the USA and elsewhere and there is no doubt that
the product has been beneficial both to mothers and babies. It has also been
commercially successful, turnover in 2005 in the USA being between US$ 6-10
million[3].
"What a miraculous bottle!! I had been struggling for weeks
to wean my son from breast to bottle in readiness for my return to work.
Feeding times have become a complete nightmare – my son would scream for
up to an hour each time I tried to introduce a bottle and would end up
drinking 1 oz maximum before I would give in and offer the breast. In
desperation I tried using different makes of bottle but none seemed to
make any difference until someone recommended Dr Brown's. On the first
attempt, my son happily took 8oz from the bottle in approx. 5 minutes.
This means that I can finally return to work without having to worry about
daytime feeds. Thank you Dr Brown!" [Philippa from Wimbledon[4]]
- New Vent Designs Inc ('NVD'), an Illinois
corporation and the second claimant was formed by Dr Brown to exploit the
rights in the bottle. It is thus proprietor of the patent in suit EP
(UK) ? 0845971 ('the Patent') and the Community trade mark in suit ?
1111418 : 'DR BROWN'S NATURAL FLOW' in respect of 'infant feeding bottles'. It
also owns the copyright in the artistic work referred to in the
pleadings as 'The Sign' and elsewhere as the 'Dr Brown's logo' – which is also
in issue. HandiCraft has become the worldwide exclusive licencee of NVD in
respect of these and other intellectual property rights in this country and
elsewhere. The written agreements in question are in a Court bundle (G1) but
for present purposes, nothing I think, turns on them.
- This dispute initially covered a number of
allegations including patent, trade mark and copyright infringement, passing
off and conspiracy, together with allegations of sundry tortfeasance by six
personal defendants and corporate tortfeasance by others. The product in
dispute is a competitive nursing bottle called the B FREE bottle.
- The dispute is the fallout from a distribution
agreement for the Dr Brown's nursing bottles which 'went sour'. On 16
September 1997, HandiCraft granted exclusive worldwide distributorship in the
Dr Brown's bottles[5] to a Panamanian company, Action Trading SA ('SA'). This
company (which is not a party to this action) is controlled by the seventh
defendant, a Mr Amikam Berkovitch, who as the claimants see him, is the
eminence grise behind this entire unfortunate and complicated
litigation. As there are four Berkovitch defendants (the other three being Mr
Berkovitch's wife and children), like Counsel, I shall refer to Mr Amikam
Berkovitch simply as 'Amikam'. It was via SA that all the corporate defendants
derived their distribution rights. By the end of 2001, SA was distributing the
Dr Brown's bottle in 18 territories but on 3 July 2002 its distribution
agreement was abruptly terminated by HandiCraft. This led to two bouts of
litigation: proceedings in the USA and the present action.
- The ensuing litigation has been conducted with
determination, disagreement and acrimony. It should however be said that
sensible concessions have been made by both Counsel. Thus, in his closing
speech, Mr Iain Purvis QC who (with Ms Edwards-Stuart) appeared for both
claimants was able to make proposals which had the effect of reducing the
compass of this judgment. For example, the allegation of conspiracy was
abandoned as were the cases against Amikam's daughter Yasmin and his son,
Tamir. Mr Dominic Hughes who appeared for all but three of the defendants,
also made important concessions relating to the corporate defendants and
Amikam.
- This action, which was commenced in April 2005, has
had an interlocutory phase, having been the subject of a judgment, injunction
and order of Laddie J dated 14 June 2005 – to which I shall refer later.
- The pleadings in the case are convoluted, originally
involving permutations upon five causes of action against twelve defendants
and a full measure of joint tortfeasance scattered in between.
The Defendants
- I should next say something about the Defendants.
The number of defendants rose from an initial four to twelve. Their number has
now declined to seven. For this reason I have assumed the convention of from
time to time referring to the defendants as D1, D2, D3 etc as well as
referring to them by personal or corporate names-as seems contextually
appropriate.
- Before trial, settlements were reached with two
well-known defendants, both UK companies: The Boots Co PLC ('Boots')
(D3) and Mothercare (UK) Ltd ('Mothercare') (D4). Thereafter
these companies have had conspicuously little to do with the litigation, their
absence having been the subject of comment from time to time by the remaining
defendants, particularly by a defendant in person, Mr Piero Alberici
(D8). Boots and Mothercare were not represented at the hearing and
henceforth in this judgment, when I refer to 'the defendants' without
qualification, I intend to exclude Boots and Mothercare.
- Save for Boots and Mothercare, all the other
defendants personal and corporate in one way or another have had some
connection with the Berkovitch family, husband and wife, Amikam (D7)
and Dvora (D11). I have mentioned that the allegations of wrongdoing
against the daughter Yasmin (D2) and the son Tamir ('Timi') (D9)
were dropped by the end of the trial and as one would expect, Mr Hughes is
highly critical of why they were sued in the first place. I shall refer to all
the Berkovitches by their first names for convenience. I understand from Mr
Hughes that the Berkovitches hold dual Israeli/British citizenship and reside
both here and in Israel. I should also mention that the Berkovitch family
speak and read English well. But Amikam does not apparently write
English. This was why, so it was said, there is not a single document in this
substantial case which was written by him[6]. He got others (usually Mr Alberici) to attend to the writing
of letters, having first given them instructions as to what to write.
- I shall in fact refer to Tamir Berkovitch as
'Timi' as there is another defendant (D12) having the same first name.
- The following companies are defendants and will be
called 'the Berkovitch companies'[7]:
- B Free World Ltd ('B Free') (D1) This company was
incorporated on 15 June 2004. Yasmin was the sole director till January
2006 and Amikam has bee the sole director since. All the issued share
capital was owned by Yasmin until some time prior to June 2005[8].
- Action Trading Ltd ('Action Trading') (D6) This
company was incorporated on 6 January 1999 as 'Dr Brown's Natural Flow
Ltd' the name having been changed on 14 March 2000. Amikam has been a
director of .this company from the start and Timi was a director from
January 2001 to April 2004. Dvora owned all its issued share capital and
acted as company secretary at various times. Action Trading is now in
liquidation, the winding up order being dated 15 November 2006. Though
in liquidation, it will still be necessary to make certain findings of
fact relating to this company since Amikam and Mr Alberici are sued as
joint tortfeasors in respect of certain acts carried out by it.
- Baby B Free Ltd ('Baby B') (D5).This company was
incorporated in July 2001. The company operated the sales website: www.
babybfree.com, the contents of which will be considered later. Timi was
the director of this company till June 2005 and Yasmin was its secretary
till the same date. Yasmin and Timi owned all the issued capital since
incorporation and up to June 2005. After June 2005 one Eliyahu Harari
stepped into the positions occupied by Yasmin and Timi. I am unsure
whether this company is still trading.
- Concerning these companies, Amikam said:[9]
"…I ran these companies and made all of the decisions
relating to the strategic direction and expenditure of these companies." .
- Mr Purvis submitted that these companies were at
all material times no more than Amikam's alter egos and the pleadings
raised the liability of the Berkovitches for the acts of these companies as
their directors and/or as joint tortfeasors with them.
- TTY General Trade Lines Ltd ('TTY')
(D10) is an Israeli company with a registered office at 19 Ramban in
Jerusalem: see the company search, X/25. Its first director was Dvora (until
2003). Thereafter Timi became the director and I believe, remains so. The
shareholders (and founders) are Dvora's parents, Israel (99.9%) and Chaya
Blattberg. The company is said to have three employees but (see later) this is
doubtful. There remain some mysteries over TTY as Mr Purvis discovered when he
cross-examined Mr Tamir Tirosh (D12) about the company[10]. The company address is the private residence of the
Blattbergs. Though both Amikam and Dvora have given its address as their
address in their witness statements, they do not live there. There is also a
PO Box address given in the company search which may be wrong and the
telephone number is apparently Timi's own number. These discrepancies emerged
by reference to the address for TTY on an invoice from TTY to Dvora dated 4
June 2002 at G/361.
- Through an Israeli sub-contractor, TTY arranged
for the manufacture of the Dr Brown's bottles from 2001 up to the time the
parties went their separate ways. It now sub-contracts the manufacture of the
B FREE bottles in issue. The person who at all material times has been
responsible for getting things done at TTY (that is, manufacture,
packaging/bottle design, sourcing, quality control, packaging printing,
exhibitions, processing orders, and shipping – but, he said, not accountancy
or any financial matters) was Mr Tamir Tirosh, an Israeli citizen
living in a town in the north of Israel called Menahemia. Mr Tirosh, has
stressed that he was at all times an independent contractor to TTY. He has not
been a director or employee of any of the other corporate defendants and
neither is he related to the Berkovitches. I accept this as being true. He is
however a minority shareholder in SA[11]. Mr Tirosh gave evidence which is of particular importance to
the allegation of copyright infringement since it was he who was primarily
responsible for the commissioning (in Israel) of the alleged infringement (a
logo), indirectly on behalf of TTY.
- Save for Action Trading (which is in liquidation),
all the above defendants had a common legal representation during the case.
- Mr Piero Alberici (D8) is a defendant in
person having left the collective Berkovitch defence in March this year on
perceiving a conflict of interest[12]. He has since conducted his defence with skill, courtesy and
determination, having had to make numerous trips from Newcastle-upon-Tyne
(where his wife is unwell) to do so. Mr Alberici, who is a middle aged person,
has at all material times worked as an independent marketing consultant. He
has asked the Court to take into account that he has no legal qualifications
and that prior to these proceedings he had no knowledge whatever of IP
matters. He is now re-training as a child counsellor.
- Mr Alberici is a defendant because from about May
1999 until some time during 2005, his main (but not sole) clients were the
Berkovitch companies and in particular, Action Trading and B Free. He was
latterly paid by way of commission. He has made it clear throughout his
defence that at all times he took all his instructions from Amikam and
sometimes from Dvora. I have already explained that he also acted as Amikam's
English amanuensis. As I understand it, he was responsible for sales and
marketing in the UK and Europe. Initially, in this capacity, he worked closely
with a Mr Mark Roxburgh - another independent sales consultant working on
commission. When Mr Roxburgh ceased to work for the Berkovitch companies, Mr
Alberici assumed Mr Roxburgh's responsibilities as well. In the capacity of
sales director, he became involved with the other defendants, corporate and
personal (including Boots and Mothercare) in the launch of the defendants' B
FREE bottle.
- It was at one time suggested that Mr Alberici was
an employee of one or other of the Berkovitch companies. I find that he was
never an employee of any of these companies and further, that he was neither a
shareholder, officer, director or manager of any of the aforementioned
companies –except for SA (see above). I further find that he became a formal
shareholder in SA for some procedural purpose connected with the US
litigation.
- A company which is not a party to this action but
which much features in the events which have lead to the dispute, is the
Panamian company SA. The Court was not told much about SA but it was
informed on the basis of evidence given during the course of US proceedings
consequent upon the termination of SA's distribution agreement, that Amikam
has a controlling interest in this company and that Mr Alberici had a three
per cent holding in it. Among the other shareholders are inter alia Mr
Berkovitch's Israeli advocates, his London accountants and a retired Israeli
general. Mr Hughes informed me that SA is now 'dormant', though what this
signifies in Panama I am not sure.
- Another player in these events is a Mr Mark
Roxburgh to whom reference has just been made. He was not however,
sued. It transpires that Mr Roxburgh ceased to act for the Berkovitch
companies on 1 October 2004 and is now the sales director of Central Medical
Supplies, Leek, Staffs, who are the distributors of Dr Brown's baby
bottles in the United Kingdom: see X/4. Mr Alberici made an application to
file witness statements from Mr Roxburgh and a Mr Mark Rycroft of a company
called Lindam on the first day of trial. This was opposed by Mr Purvis who
added that if these witness statements were admitted, he would want to
cross-examine on both of them. Mr Alberici could give no assurance that either
Roxburgh or Rycroft would be agreeable to coming to court voluntarily for this
purpose and there the matter rested[13]. I have paid no attention to them.
- This is what Amikam said of Messrs Alberici and
Roxburgh[14]:
"I also gave direction to Piero Alberici …who was in
charge of marketing and Mark Roxburgh a sales manager consultant to Action
[Trading Ltd] but I was not necessarily aware of all details of their
activities."
- There is dispute among the parties about the truth
of the words from this quotation which are in italics and I shall have to
return to this later. I should say that Mr Alberici was targeted by both sides
for his allegedly blameworthy activities. Mr Roxburgh did not escape serious
blame either but having the advantage of absence, appeared to come off better
even though till his departure, he appeared in principle to have been Mr
Alberici's senior.
- In order to understand the structure of this
litigation it will next be necessary to consider some history and for this
purpose, I have borrowed liberally from and amended part of Mr Purvis' opening
skeleton of argument which I find, contains an essentially correct account of
events.
History
- Early days. From 1997 to June 2004, the Dr
Brown's bottle was distributed in the UK and Europe by SA. This was originally
effected under the written distribution and licensing agreement dated 16
September 1997. After originally using an established UK company, Lindam[15] to distribute the bottles, SA started supplying the bottles
direct to retailers in the UK in mid-2001. From this time the mark "Dr Brown's
Natural Flow" was used everywhere. HandiCraft (and thus SA) also began using
the logo which is the subject of the copyright allegation. The name "Dr
Brown's" was incorporated into the blue and green oval logo on the bottle. On
the bottom of the packaging appeared the following: "Handi-Craft Company,
St Louis, Missouri, USA © 2003, the exclusive Licensee of the mark "Dr Brown's
Natural Flow".
- Examples of the Dr Brown's bottle (and a large
number of other bottles as well) became court exhibits during the course of
the trial.
- I must next mention the reaction of the public to
the appearance of the Dr Brown's bottle since it is of importance in relation
to the allegation of passing off and to what happened when the rival B FREE
bottle made its appearance in 2002. In May 2004, the claimants' was voted
"Mother's Favourite" in a survey conducted by Mother & Baby
magazine. The survey concluded [I/64] :
"This is a classic case of you get what you pay for. It is
worth the extra because it makes such a difference."
- The above survey and parental testimonials were
much used in the advertising and promotion of the Dr Brown's bottle by SA
whilst they were distributing the bottle in the UK, in particular using the
web-site which was operated by Baby B: babybfree.com [16] .
- The Dr Brown's bottle also won a number of awards,
including the prestigious Mother & Baby magazine "Gold Award" in
2002. Notice of this featured on the box in which the bottle was sold and in
advertising[17]. In the years to April 2004, over 220,000 Dr Brown's bottles
were sold in the UK [G2/95-97] whilst over 2 million were sold by HandiCraft
worldwide.
- The US Proceedings. As already mentioned,
during 2002, HandiCraft and SA had a serious disagreement arising out of
Amikam's promotion of the use of "PES" rather than polycarbonate for the
plastic material from which the body of the bottle was made. Amikam's belief
was that use of the PES bottle constituted a health hazard since polycarbonate
bottles tended to leach a chemical called bisphenol-A[18] into the milk. The PES bottle is more expensive to make than
the polycarbonate bottle however and, so it seems, HandiCraft have never been
persuaded of its virtues. HandiCraft nonetheless permitted SA to have
manufactured and to sell the new PES bottle as a Dr Brown's bottle for a
while. Matters came to a head when SA started advertising the new bottles in a
way which actually disparaged the polycarbonate bottles still being sold by
HandiCraft in other parts of the world. As I see it (though this has nothing
directly to do with the present dispute), the relationship then started to
deteriorate: HandiCraft suspected underhand commercial manoeuvre on the part
of Amikam (and SA) over the bisphenol-A saga whilst Amikam suspected greed in
HandiCraft's preference for insisting on the use of polycarbonate[19]. Suffice it to say that at this point (July 2002), HandiCraft
terminated its distribution and licensing agreement with SA.
- SA refused however to acknowledge the termination
and continued to sell the Dr Brown's bottles in the UK and elsewhere as if the
licence were still in force, the construction of the bottles, their packaging
and the advertising used therewith not materially changing. In September 2002
HandiCraft raised an action in the District Court, St Louis, MO seeking to
confirm the propriety of the termination and to recover damages. These
proceedings finally resulted in judgment in HandiCraft's favour[20] that the agreement had indeed been properly terminated. SA
then attempted to obtain a retrial, but this was finally refused on 24 March
2005.[21] SA were ordered to pay $1M in legal costs by the US Court
[L/88] but so I was told, no money has ever been paid. The Court permitted SA
to sell off existing stocks of the Dr Brown's bottle (made of course of PES).
However, no account has ever been given of such sales nor has royalty been
paid therefor. Another result of the US proceedings was that SA was prohibited
from using the 'Dr Brown's Natural Flow' or 'Natural Flow' trade marks.
- B Free is born. Not surprisingly, Amikam
did not take the termination of the licence as a fait accompli. He
believed that the UK market for the Dr Brown's bottle was 'made' by him, by
those he paid to work for him and by SA. He also appears to have believed that
HandiCraft had mischaracterised the bisphenol A debate so as deliberately to
terminate SA's licence in order to take over the market which had so carefully
been created[22].
- Amikam next decided to develop and launch a rival
bottle, to be manufactured in Israel by TTY (D10), and to sell it under the
name "B FREE".
- The "B FREE" mark was I believe coined in 2001. It
was first used by SA from sometime in 2002 onwards to describe the PES
material which SA was by then using to make the Dr Brown's bottle -
under licence . In fact, in 2001, Amikam established Baby B to run the website
entitled "babybfree.com" from which he used to sell the Dr Brown's
bottles. This had its own logo however which was quite different from the
Dr Brown's logo. A few days after the judgment was handed down in the United
States, Amikam also incorporated another UK company "Action Global Trading
Limited", and (through that company) on 17 June 2004, applied for the
registered trade mark "B FREE". Amikam changed the name of this company to "B
Free World Limited" (that is 'B Free' or D1) in August 2004[23].
- The purpose of B Free was to trade in the new B
FREE bottles in the UK. However, it did not do so until January 2005. Instead,
Amikam moved swiftly to market the new bottles in the UK through his
pre-existing companies Action Trading (for UK retail sales). The first B FREE
bottles were first offered for sale at a trade fair in Cologne in September
2004 by TTY (the stand being manned by Tamir Tirosh –D12). Offline sales of B
FREE bottles continued to be made mainly by Action Trading until Laddie J's
injunction.
- The present proceedings. These proceedings
were commenced on 7 April 2005 against B Free, Yasmin, Mothercare and Boots,
the remaining defendants having been joined later. At an early stage, the
claimants moved for interlocutory relief against these four defendants and in
a judgment dated 14 June 2005[24], Laddie J granted comprehensive injunctive relief based
mainly on what he regarded as strong cases of trade mark infringement and
passing off.[25] He hardly in fact considered the claim in patent
infringement.
"because it seems to me that it is much less significant
than the passing off claim."
- In spite of the fact that Amikam tendered no
evidence at the time (he used Mr Alberici, for this purpose), the judgment of
Laddie J was unreservedly critical of the Berkovitches and the strategy Amikam
had adopted to launch the B FREE bottle. He endorsed Mr Purvis' submission on
the evidence before him that the defendants (and Amikam personally) had
deliberately chosen to try to persuade that part of the purchasing public
interested in feeding bottles that the B FREE bottle was a re-incarnation of
and even, an improvement on the DR BROWN'S bottle with which they were
familiar.
"Mr Purvis is quite right to suggest that at this stage the
evidence strongly suggests that the defendants have embarked upon a
campaign designed to teach the purchasing public and indeed parts of the
trade in this country, that B FREE is the new name for DR BROWN's and to
hijack in effect, DR BROWN's reputation for B FREE….it appears that a
significant number of members of the public and the relevant trades in
this country are likely to be deceived….the public has over a period of
some months been taught to associate B FREE with the claimants'
reputation….In my view the case of passing off at this stage is very
strong"
- I would add that all the evidence I have read and
heard at trial strongly vindicate the soundness of Laddie J's interlocutory
conclusions.
- Trade mark infringement and passing off. At
the opening of the case D1, D5 and Amikam gave undertakings
which have made it unnecessary for me to consider at any length the numerous
facts advanced to support this cause of action –though the B FREE logo is also
the subject of both the passing off, trade mark and the copyright infringement
case. I shall however need to address some of these facts in relation to the
case made against Mr Alberici personally.
- Suffice it to say that the strategy behind the
development, launch and marketing of the B FREE bottles was plainly to create
the impression in the minds of the public that they were simply an "improved"
and re-branded version of the DR BROWN'S bottles with which they had become
very familiar. The strategy was implemented in four ways:
- in the design, logo and get-up which was adopted to sell the B FREE
bottles ;
- in the way the B FREE bottles were advertised to the public on the B
Free website ;
- in the way in which the B FREE bottles were presented to retailers
and the way retailers reacted to this presentation;
- the fact that neither Amikam nor any of those working with him such
as Mr Roxburgh and Mr Alberici did anything to put the record right
concerning the true facts.
- I shall however pause in the general narrative at
this juncture. Sensing no doubt the possibility of a tide of prejudice
engulfing his clients' cases on causes of action other than conspiracy,
trade mark infringement and passing off, Mr Hughes asked me to put aside the
latter for the time being. He had in mind the allegations of patent and
copyright infringement and asked for these to be adjudicated separately from
all these other matters. I shall accept his invitation.
- I have mentioned that by the close of the case,
the Claimants no longer in fact relied on any allegation of conspiracy[26].
Patent infringement
Introduction
- The Patent in suit is EP (UK) no 0845971 entitled
'Nursing Bottle'. The earliest priority date claimed is 4 August 1995[27], its proprietor is NVD and it is licenced under a sole and
exclusive licence to HandiCraft. It is a proposal for a simple mechanical
device. Its teaching is to my mind quite straightforward; it contains no
technical terms and the technology involved is refreshingly simple.
- I would mention at the outset that Mr Alberici
though affected by the outcome of the patent infringement action, did not
himself have anything of consequence to say about it, preferring to associate
himself with the case put forward by Mr Hughes.
- It is alleged that claims 1-7 are infringed by the
B FREE bottle and of these claims the claimants have acknowledged that only
claims 1-3 have independent validity. All the subsidiary claims are ultimately
dependent on claim 1 and the real contest centred on claim 1 alone. There is a
counterclaim by defendants D1, D5 and D6 for the revocation of claims 1-7 of
the Patent on the grounds of anticipation, obviousness and insufficiency.
Non-registration of licence
- Paragraph 25B of the Defence reads as follows:
If which is denied, the defendants in this Defence infringed the
Patent as alleged or at all
(1) The First Claimant became the exclusive licencee of the
Patent by virtue of a transaction, instrument or event to which section 33
of the Patents Act 1977[28] applies and, it being at all times practicable to
register the same, the same was not registered within a period of six
months of its date. In the premises, the First Claimant is not entitled to
any damages or an account of profits in respect of acts prior to the date
of registration, and/or
(2) Further or alternatively, and in defence to the claim for
damages or an account of profits, D2, D9 and D11 were not (at the date of
the infringements complained of) aware and had no reasonable grounds for
supposing that the Patent existed.
- The Paragraph 25B(1) allegation was conceded by Mr
Purvis to be well founded. The effect of non-registration (if any[29]) may thus be a matter for consideration at another time.
Innocent infringement.
- Para 25B (B) of the Defence, raises a defence
under PA '77, s 62(1) ('innocent infringement'). The defence was formally
traversed in the reply[30], but was hardly referred to at trial. The only factual
evidence relating to it is that though the corresponding US patent is
identified on the packaging for the Dr Brown's bottles, the Patent is not
identified as such. During his closing address, Mr Hughes told me that if the
Patent is valid and infringed, I need make a finding on this defence only in
relation to Dvora.
The Patent
- The Patent was published on 24 October 2001. I
shall begin by referring to some general introductory matters.
- The Patent is entitled 'Nursing Bottles'. Such
bottles
'prevent the formation of a partial vacuum inside the bottle
during nursing yet resist spills. The nursing bottle is easy to clean and
prevents the formation of a partial vacuum without requiring gaskets.
Moreover an embodiment of the present invention provides a nursing bottle
having a vent unit which is adapted to fit inside the
bottle.'
- The main type of nursing bottle with which the
Patent is concerned is what in fact most people call a 'baby bottle'. The
Patent first describes traditional baby bottles in well -known terms though I
should perhaps mention that both here and at various places in the narrative,
the bottle is said to be suitable for use with any 'liquids' - and not just
milk.
- The narrative continues:
[3]: 'A conventional nursing bottle is tightly sealed except
for the small opening in the nipple. As the baby nurses, the liquid volume
inside the bottle decreases and the air volume increases. However ambient
air is unable to enter the bottle so a partial vacuum is created inside
the bottle. The partial vacuum in turn impedes the flow of the liquid out
of the nipple and forces the baby to suck harder to withdraw the liquid.
As the baby sucks harder on the nipple, ambient air inadvertently and
inevitably enters the baby's mouth and stomach. Excess air in the stomach
and other parts of the alimentary canal causes colic, a condition
characterised by abdominal discomfort and pain……
[4]: Many attempts have been made to provide a nursing bottle
with an air vent to enable ambient air to enter the container during
use….. (and examples from the prior art are given). None of these
nursing bottles completely solves the problem of venting the interior of
the bottle at atmospheric pressure while preventing leaks and spills.
Accordingly a demand still exists for a nursing bottle which prevents the
formation of a partial vacuum inside the bottle during nursing and yet
resists spills.'
- The Patent next explains that the bottles proposed
achieve this dual goal. The consistory clause follows. The Patent is therefore
conceived in classic 'problem and solution' terms. Six embodiments of the
invention are described but for present purposes only the fifth embodiment
merits detailed consideration.
- Before doing this however the Patent picks up
several items of a general kind which are worth mentioning First, the Patent
is concerned with 'nursing bottles' and not just with 'baby bottles' which, as
noted, may contain any suitable 'liquids'.
- Next, the 'nipple cap' is stated not to be
part of the invention[31]; it is often referred to in fact as a 'standard' nipple cap,
the assumption being no doubt that any suitable commercial item may be
selected for this purpose. The nipple cap is attached to the container before
use. It comprises the rubber nipple itself and a collar portion having
internal threading. 'Nipple' may mean the rubber portion of a nipple cap, the
entire nipple cap, and any type of protruding member with a restricted opening
designed to be held inside the mouth during use.'[32]
- The container for the liquid is described in §§10
and 11. It is 'preferably transparent' and has a threaded neck at its radial
centre, 'adapted to receive a standard nipple cap'. The container is rigid or
semi-rigid, being made of plastics or glass and 'preferably has a diameter of
about 3-8cm so it can be handled easily by the small hands of babies'[33]. Its capacity is 0.5 to 1 litre and apart from being
'typically cylindrical in shape' it is 'preferably rounded throughout all or
most of its circumference'. This is borne out by the illustrations in the
Patent which show a bottle having more the appearance of a milk or juice
bottle than say, a yoghurt pot.
The vent unit
- At the heart of all the embodiments is the vent
unit itself which detachably fits within the container: see [12]. This is
called the 'liquid conduit-reservoir', the primary purpose of which is
'to provide a portion of a passage for ambient air into the
container when the bottle is inverted and the liquid contents are being
withdrawn through the nipple.'
- In view of an issue ('the asymmetry point')
raised by the claimants' expert in response to the counterclaim[34], I would observe at this point that the first four
embodiments of the invention (depicted in figs 1-10 of the Patent but neither
described nor reproduced here) involve an air vent which is located to one
side of the bottle. These embodiments therefore require the bottle to be
correctly oriented during feeding for it to function properly[35].
The fifth embodiment
- The fifth embodiment (see Fig 16 below), which is
described in §§ [16] – [20], corresponds in most respects to the Dr Brown's
bottle which is on sale to the public. This embodiment makes use of a
'conventional container 602' and a 'conventional nipple 608 (see fig 15 below)
that can be secured with a threaded ring-shaped collar 610 to the container.'
The 'vent unit' 612 (left of Fig 16) is interposed between the container and
the nipple/collar assembly.
<
- The vent unit is then described[36]::
'
'[17:] The vent unit 612 comprises a reservoir tube 614 having a
first end adjacent the top of the bottle 600 and an open second end
projecting sufficiently downwardly in the container that when the bottle is
inverted, the second end is above the liquid level in the inverted
container. The vent unit further comprises a vent insert 616 which abuts
between the reservoir tube 614 and nipple 608. The vent insert 616 prevents
liquid from entering an airway while allowing air to flow from the reservoir
tube 614 through the airway. The insert 616 includes curved slots 620 to
permit liquid to flow through the insert from the interior of the container
to the nipple. The vent unit airway 618 extends between the outside of the
bottle and a point in the reservoir tube above the level of the liquid
trapped inside the vent tube when the bottle is inverted. Thus, the airway
618 and the end of the reservoir tube connect the airspace which forms above
the liquid when the bottle is inverted with the atmosphere, thereby
preventing the formation of a partial vacuum inside the bottle as liquid is
drawn through the nipple……
[19] The vent unit has a threaded collar 626 for securing the
unit on the threaded neck of the container. The top of the unit 612 has
external threads on which the conventional collar 610 and nipple can be
secured.
<
- The description next moves on to how the bottle
works. The following is part of the relevant narrative:
[20]: ….As shown in Fig 15, when the assembled bottle is
inverted so that an infant can suck the liquid through the nipple, some of
the liquid is trapped in the reservoir tube 614 and this liquid flows to the
upper portion 622 of the reservoir tube…Because of the size of the upper
portion 622 of the reservoir tube, and the length of the vent tube 630 the
upper end of the vent tube and in particular the opening 632 in the lower
end of the vent tube is above the level of the liquid trapped in the
inverted reservoir tube. Thus there is a continuous air path from outside
the bottle through the vent tube and through the lower portion of the
reservoir to the air space in the top of the bottle. This allows atmospheric
air to replace the volume of the liquid sucked through the nipple preventing
the creation of a partial vacuum that would make it difficult for the infant
to draw fluid from [sic] bottle'
Claims 1-3
- The parties conveniently broke down (and slightly
edited) claim 1 as follows:
A nursing bottle comprising:
i. a container adapted to contain a quantity of liquid, an air
passage and nipple, characterised in that the bottle further
comprises:
ii. a reservoir tube having a proximal first end and an open
second end
iii. the second end of the reservoir tube projecting
sufficiently downwardly so that when the bottle is inverted, the second
end of the reservoir tube is above the level of the liquid trapped in the
inverted bottle
iv. the air passage between the outside of the bottle and a
point in the reservoir tube above the level of the liquid trapped inside
the reservoir tube when the bottle is inverted
v. the air passage and the reservoir tube allowing atmospheric
air to flow into the bottle to prevent the formation of a vacuum within
the bottle when liquid is withdrawn.
- Claim 2 (similarly edited) reads as follows:
A nursing bottle as claimed in claim 1, wherein the bottle
prevents a vacuum being formed within the bottle when inverted , the nursing
bottle having
vi. a vent unit adapted to fit within the
container
vii. a reservoir tube having an upper and lower
portion
viii. the reservoir tube having a proximal first end adapted
to fit adjacent the top of the container and an open second end projecting
sufficiently downwardly in the container so that when the bottle is
inverted, the open second end is above lhe level of the liquid trapped in
the container
ix. an airway in the vent unit extending between the outside
of the container and a point in the reservoir tube above the level of the
liquid trapped in the reservoir tube when the nursing bottle is
inverted.
- Claim 3 (similarly edited) reads as follows:
The nursing bottle according to claim 2, wherein
x. the vent unit includes a vent tube in communication with
the airway having a distal end
xi. the vent tube projecting into the reservoir tube
sufficiently so the distal end of the vent tube is above the level of
liquid trapped in the reservoir tube when the bottle is
inverted
The skilled addressee
- Before construing the claims in issue I must first
establish the identity of the notional skilled addressee and the common
general knowledge which he (or she for the last time) is deemed to possess
during the mid-1990's. It is through this notional person's eyes that the
Patent falls to be construed and through him also that other matters relevant
to this aspect of the case fall to be judged. I was not addressed at any
length by counsel on the law relating either to the skilled addressee or the
common general knowledge he is deemed to possess. It was I think assumed
(correctly) that I was familiar enough with these matters. For the record
however, the principles which I have followed have been conveniently set out
in Terrell on the Law of Patents, 16th Edn, §§ 6.34-6.39.
- Counsel seemed content for the identification of
the skilled addressee to be left to the evidence of the two experts, Mr
Stephen Tollman for the claimants and Mr Ilan Samson for the defendants. The
primary application for the nursing bottles subject of the Patent is of course
in the baby products industry. The experts' evidence on the matter was not
very different and showed that the baby product industry is a well-defined
undertaking which certainly includes the design and manufacture of nursing
bottles and products ancillary thereto, such as nipples. According to them,
the skilled addressee would therefore be a competent design engineer within
that industry having experience of the needs and problems of babies and their
parents, of the materials used to make products for babies and to some extent,
of the manufacturing processes involved and of relevant commercial
considerations. If necessary, he would be able to seek specialist
manufacturing advice – but, as always under this head, he will be deemed
incapable of inventive capacity. In Valensi v BRC [1973] RPC 337 at
377, Buckley LJ said:
" the hypothetical addressee is not a person of exceptional
skill and knowledge and he is not to be expected to exercise any invention
nor any prolonged research enquiry or experiment. He must however be
prepared to display a reasonable degree of skill and common knowledge of
the art in making trials and to correct obvious errors if a means of
correcting them can readily be found."
The Common General Knowledge
- The evidence given by the experts on this topic
was brief - perhaps because this is not a high-technology field and is one in
which most of today's parents have had some personal experience. Nursing
bottles have been used I suspect, for hundreds of years and most adults will
(sooner or later) be familiar with them - and with their shortcomings. Of the
latter, poor 'suck' (which may lead to colic) and leaking are the most common.
Colic has been an eternal feature of early infancy and alleviating its cause
and symptoms has been a longstanding preoccupation of those involved in making
baby products. All this is very well known. But the detailed medical (as
opposed to the practical) side of colic would not I believe, have formed part
of the common general knowledge.
- The evidence is that the addressee would certainly
be expected to be familiar with all the major brands of nursing bottles which
were generally available in the national and perhaps international markets
during the mid-1990's. He would also be familiar with the principal materials
from which they were manufactured and of the main structural characteristics
and practical limitations of the bottles which were available from the
manufacturer's point of view. He would know about colic and its supposed
causes and would be aware of some of the measures which had by then been taken
by manufacturers in the past to alleviate it. He would know about rubber
nipples varieties of which were available commercially and of how they were
detachably screw- fitted in collars in commercially available nursing bottles.
He would be aware of a variety of containers available for use with
nipple-collars as feeding bottles. These were of different capacities and
design. He would know about basic hygienic practices (e.g. the need for
sterilisation and cleaning) and simple medical considerations associated with
the use of feeding bottles. He would also be aware of major safety legislation
in this field., particularly of some compulsory EN standards. He would be
expected collaborate (if necessary) with outsiders (for example, with
materials and moulding specialists) in developing new products. In such cases,
the addressee could become a temporary team.
The expert witnesses
- It has recently been said that in patent
infringement cases, experts
'come as teachers, as makers of the mantle for the court to
don…What matters is how good they are at explaining things.'[37]
In view of the straightforward nature of the subject-matter and in spite of
some experiments by the defendants' expert, I was not as much assisted by the
experts' evidence in this case as I have been in others. I record however that
both experts were, I think, doing their best to assist the court
- For the claimants: Mr. Stephen
Tollman came to this country from South Africa in 1977 where he trained as
an accountant. He is presently managing director of a leading UK designer and
supplier of baby feeding products, the Vital Group of companies, a position
which he has held since 1996. Before that he worked for a number of companies
having held various positions within the baby accessory and feeding field. He
is obviously a successful businessman in this specialist market. I gained the
impression that his area of expertise was more in the sales and marketing of
these products than in their design and manufacture. He made it clear that he
was neither an engineer nor was he an expert in blow moulding technology –
though he said that he did possess 'certain knowledge about moulding of
plastics': D6/732-733. Mr Tollman struck me as being a reliable, if a somewhat
conservative witness and moreover a witness who in cross-examination was
prepared to revise his initial views[38].
- For the defendants: Mr Ilan Samson.
The man skilled in the art is deemed to possess not a scintilla of inventive
capacity. Mr Samson who for certain purposes speaks to the court assuming the
mantle of this notional person, is an unusual expert since for the last twenty
years, he has worked simply as a full-time inventor. He holds a BSc
(Hon) and ARCS in physics from Imperial College, London and has evidently been
named as an inventor in a number of patents in a number of fields. In the baby
products field, Mr Samson's best known invention relates to breast pumps but
in this field he has also devised spill-proof cups and has proposed a venting
baby-bottle teat. About one third of his inventions are in fact in the baby
feeding field. He was criticised by Mr Purvis for trying to argue his client's
case and for that reason was said to be an unsatisfactory expert. In his
evidence, Mr Samson was I think prone to lecture, expressing lengthy views
about what was and was not within the scope of a patent –and what was an
infringement. I ascribe this licence to his unusual familiarity with the
'patent world' and have taken account of it. I also found that his answers
tended at times to contain unnecessary rhetoric. I have no doubt however that
when he kept to the point, Mr Samson was technically very competent.
Construction: General observations.
- The pervasive requirement for patent
specifications to be construed by the skilled addressee in a purposive
manner is so well known that I need not elaborate on it: see Catnic
Components Ltd v Hill & Smith Ltd [1982] RPC 183 at 243. Claims must
be read in the light of the object of the invention. I have said that the
Patent has been drafted in 'problem/solution' form. As one would expect, the
practical advantage which Dr Brown proposes has been clearly stated in the
specification: that is, colic relief. However none of the claims are limited
by reference to this advantage. Claims do not of course have to be so limited
but in a case like this, it would in my view be wrong to think that the
skilled man would not have this benefit well in mind when understanding the
contents of the Patent.
- I was not addressed at any length on the law of
construction of patents. For the avoidance of doubt, I should perhaps briefly
record my approach to the matter.
.
- I begin with Article 69 EPC which provides as
follows:
'The extent of protection conferred by a European patent
…shall be determined by the terms of the claim…Nevertheless, the
description and drawings shall be used to interpret the
claims.'
- I have of course applied the Protocol on the
Interpretation of this Article, the terms of which are so well-known that I
need not set them out. Next, I have heeded the observations of the higher
courts in two recent cases in particular, the first being the guidance given
by the House of Lords in Kirin-Amgen Inc v Hoechst Marion Roussel Ltd
[2005] RPC 9. In that case, Lord Hoffman said at § 32:
"Construction, whether of a patent or any other document, is of
course not directly concerned with what the author meant to say. There is no
window into the mind of the patentee….Construction is objective in the sense
that it is concerned with what a reasonable person to whom the utterance was
addressed would have understood the author to be using the words to mean.
Notice however, that it is not, as is sometimes said, 'the meaning of the
words the author used', but rather what the notional addressee would have
understood the author to mean by using those words."
- The language actually chosen is thus "of critical
importance". I have also taken aboard Jacob LJ's concise re-statement of the
proper approach to construction in Technip France SA's Patent, (above,
fn 37) at §70 (less sub-paragraph (e) which was criticised by the House of
Lords in Kirin-Amgen (supra)). Further, as Jacob LJ observed in
Technip:
'Pedantry and patents are incompatible.'
Construction and the Patent
- I shall next consider the meaning of some words
and phrases used in the Patent concerning which issues of construction arose.
These are my findings.
(a) A nursing bottle. The term denotes the sum of a
container for liquid, the vent unit which is at the heart of the invention
and a nipple cap[39]. In the claims and in the body of the specification, the
Patent uses an unspecific term for such bottles. Obviously bottles used to
feed infants and small children are of primary interest because the vent
unit is intended to provide colic relief. However, nursing bottles could
also be used in geriatric or trauma nursing – or indeed for veterinary
applications. The latter are neither specifically referred to however – nor
are they excluded. Nursing bottles have various capacities, shapes and
diameters and may be made of glass or more commonly, of known types of
plastic. All types of bottle are provided with a means of feeding liquid by
suction, 'any type of protruding member with a restricted opening' in
fact being suitable (see above). They are pre-eminently used to feed milk to
infants via a nipple or similar protuberance. They are provided with screw
threading on their necks to receive a 'nipple cap'. As noted, no particular
type of nipple or nipple cap is proposed.
(b) 'allowing atmospheric air to flow into the bottle to
prevent the formation of a vacuum within the bottle when liquid is
withdrawn' . The defendants stressed the importance of the words
'atmospheric' and 'to prevent the formation of a vacuum'
arguing that any measurable negative air pressures within the bottle
arising during feeding must be excluded from the claim; the complete
elimination of even such a partial vacuum was at the very heart of the
proposal of the Patent. These words were required, said Mr Hughes, to be
taken literally.
(c) In the post-Kirin-Amgen era, I was surprised by this
argument since it ignores both the involvement of the addressee and the
requirement for purposive construction of the Patent. A vacuum is of course
a condition of degree which is capable of being measured in terms of e.g.
cm. of water. Limiting values of in-bottle pressure are nowhere mentioned in
the Patent. In context, the skilled reader would at once appreciate that
this is a Patent which proposes a feeding bottle affording colic
relief by saving the baby having to suck harder and harder against a
growing 'partial vacuum' in the space above the liquid. It is as simple as
that. The teaching is concerned neither with the subtle degrees of vacuum
which might be of interest to scientists working in say, the Cavendish
laboratory nor with say, a health and safety investigation of imploding baby
bottles. Provided that a satisfactory degree of colic relief is achieved
with the nursing bottle proposed in the Patent, small (particularly
temporary) negative pressures (i.e. 'partial vacuums') above the liquid
level are not in my view, excluded by any of the claims. That I think, is
how the skilled addressee (and, so I would think, the layman too) would read
this phrase.
(d) In this connection, Mr Purvis reminded me of the approach of
Lord Reid in Henriksen v Tallon [1965] RPC 434 in construing the
phrase 'and prevents air from contacting the surface of the ink' Lord
Reid said:
"It would be a very artificial construction of the claim to
hold that because an infringer's plug is not very efficient though
sufficient for commercial purposes, therefore there is no infringement.
That would simply be inviting infringers to take the invention but make it
work inefficiently. This plug does prevent air from contacting the ink but
it does not prevent all air from doing so. I think Lloyd-Jacob was right
in holding that very substantial prevention was enough to constitute
infringement."
(e) 'projecting sufficiently downwardly so that when the
bottle is inverted, the second end of the reservoir tube is above the level
of the liquid trapped in the inverted bottle' These ordinary words
hardly require elaboration; in my view, they are perfectly clear in context.
The purpose of this limitation is to simply ensure that the ingress
of atmospheric air is not impeded by antecedent passage through the liquid
being consumed. Though the drawings of the fifth embodiment do not show a
maximum liquid level, such a level is marked in the first embodiment (111)
which:
'is typically at or about the point of communication between
the liquid conduit and the reservoir'[40].
(f) Colic relief The teaching of the Patent is to provide a certain
advantageous vent unit for use within a nursing bottle. As a result, in their
most common application, such nursing bottles afford relief to infants from
the pangs of colic and to their carers from the inconvenience of posseting.
But that is not the proposal of the invention. As I see it, the proposal of
the invention is to provide means which allows air to enter the bottle from
the teat end without having to pass through the liquid within, so as to abate
the formation of a partial vacuum above the liquid being sucked from the teat.
The thrust of the disclosure is therefore primarily physical and not
physiological.
(g) 'inverted' This word is frequently used in the Patent but does
not require the bottle to be at an angle of about 180?: see for example, the
description of fig 15 (col. 3).
The B FREE bottle and its Blue Condom with Wings
- I shall next describe the B FREE bottle which I
should add, is available in (I think) two sizes. These bottles are made of
PES[41] but neither this fact nor their availability in different
sizes are of relevance to the issue of infringement. In fact, save in one
important respect, the B FREE bottle is in all material respects functionally
identical to the fifth embodiment of the nursing bottle described as in the
Patent[42].
- The B FREE bottle is also a vented feeding bottle,
the major difference between it and the patented bottle being that the B FREE
bottle is detachably fitted with what was called a blue condom with wings
which is fitted around the free end of the vent tube 630 (see Figs 15 and
16 above). The condom, which is just a few centimetres long, is made of a blue
latex (silicone) and at its distal end, it has a slit (thus functionally
replacing the 'opening 632' in the air vent of the patented bottle[43]). The two wings were added to the original condom as a safety
feature but have no bearing on infringement[44]. The blue condom operates in use as a one-way valve.
- A significant fact which may be mentioned at this
stage is that without the condom, both the B FREE bottle and the
patented bottle work in just the same way[45] and vis á vis colic relief, would be equally
effective. What then is the effect of the condom?
- When the baby sucks the teat of the B FREE bottle,
the valve at first remains closed. At a certain stage however the suck causes
a small negative pressure to build up above the liquid in the B FREE bottle
causing the slit valve momentarily to open, admitting atmospheric air and thus
neutralising the partial vacuum. When the baby stops sucking, the valve and
the air passage shut and any remaining vacuum does not get vented. Thus, in
use, there will be a small intermittent negative pressure above the liquid in
the B FREE bottle. And so the process continues as long as the feeding
progresses.
- There is another difference which is said to arise
as a result of the presence of the condom: the so-called 'diving bell
effect'. In my view, this is a lesser matter altogether. The 'diving bell
effect' arises because when the B FREE bottle is filled with liquid (and is
upright) and the tube is inserted, the air in the tube gets trapped and liquid
can hardly enter the tube. This is because the slit valve in the condom
remains closed. On inversion, because of the 'diving bell effect', little or
(as the defendants say) virtually no liquid can enter the reservoir tube.
- For the foregoing reasons, says Mr Hughes, the B
FREE bottle works in a different way to the patented bottle.
Infringement
- Mr Hughes relies upon the two differences in
operation of the bottles to which I have referred, as enabling the B FREE
bottle to avoid infringement. Assuming the Patent to be valid, I think he is
wrong.
- I must first record that from start to finish, and
in spite of the careful explanations of Mr Samson, I became increasingly sure
that the B FREE bottle was indeed the patented bottle which had been
deliberately made to work slightly less efficiently. If that is so,
that hardly helps Mr Hughes' case. This impression was fortified by a number
of secondary indications. For example in one of the Merged Chronological
Disclosure bundles [G3/31], there is a note from Mr Alberici to Amkam and
others entitled 'What do we have to do to prepare for the change to B
Free?'[46]. This shows inter alia that the blue condom is optional. Para
2 of that document says:
'Change the instruction leaflet
-add the image of the condom
–show the condom being cleaned
- point out to mothers that it is
optional
-change all text and logos to say B-Free
-remove all references to Handi-Craft and patent
numbers
Experiments
- Both sides have performed experiments, all of
which were carried out in connection with the parties' contentions on the
issue of infringement and one of which was distinctly 'informal'[47]. The defendant's second 'informal' experiment was in fact
performed by Mr Samson in court (in my presence) at the beginning of the
trial.
- The Claimants' Notice of Experiments is to be
found in A/11. The Claimants' two experiments relate to what they called the
'liquid levels' point and are further considered below. These experiments were
repeated for the benefit of the Defendants and Miss Gillian Smaggasgale[48] of W.P. Thompson & Co, the Claimants' Chartered Patent
Attorney, attended the repetition on their behalf. Miss Smaggasgale was
cross-examined on (inter alia) these experiments and for the record, I found
her to be a fair, competent and clear witness.
- The defendants' further experiments of 23 April
2007 [49] relied on a series of tests carried out on the B FREE bottle,
the Dr Brown's wide neck bottle (and on other bottles) to establish the air
pressures which develop inside those bottles when suction is applied by means
of a peristaltic pump. The experiments were carried out under laboratory
conditions by a testing house in Haifa (Technicon) on behalf of TTY as long
ago as August 2004. They showed ('predictably' said Mr Purvis) that except for
the 'fully vented' Dr Brown's bottle, all the six other bottles showed a small
negative pressure created by the 'suction'. The lowest vacuum recorded during
this test was in fact that generated by the B FREE bottle. There was
cross-examination on these experiments which I do not propose to go into since
it is common ground that there exists a very small negative pressure within
the B FREE bottles whilst it is in use.
- The results of the testing by Technicon were
printed by TTY as a simple bar chart on the cardboard packaging for the
bottle.[50] In the 'best result' case (i.e. that shown by the B FREE
bottle) the negative pressure is so slight as almost to require examination of
the bar chart with a magnifying glass. The accompanying copy reads thus
' In a recent independent test various leading brands of
bottles were tested for the level of vacuum (negative pressure) …The more
negative the pressure level , the harder it is for your baby to feed…The B
Free was proven to have the lowest vacuum making it the easiest way for
your baby to bottle feed …'
The result for the Dr Brown's bottle was not shown. The copy on the
opposite face of the cardboard container reads as follows:
'As the baby suckles liquid from the B Free bottle, air enters
around the collar through the vent and up the tube in the centre. A
conventional bottle without a vent causes feeding problems because of the
vacuum, air bubbles and collapsing teats.'
- Significantly, the second paragraph of the copy on
the rear of the packaging ('What are the Benefits?') tells us more
about the 'feeding problems'
'The B Free air vent helps to eliminate the well-known causes
of COLIC SYMPTOMS such as wind and posseting. It stops the creation of air
bubbles in the milk….The B Free air vent also stops vacuum building up in
the bottle and the problem of teats collapsing. This prevents the hard
sucking needed with a conventional bottle and you will see the difference
immediately.'
- Let me first deal with what I call the 'partial
vacuum' point, the relevant words of the claim (see 'Construction' above)
being the following:
'the air passage and reservoir tube allowing atmospheric air
to flow into the bottle to prevent the formation of a vacuum within the
bottle when the liquid is withdrawn.'.
- As noted, Mr Hughes submits that the words 'to
prevent the formation of a vacuum' must be construed literally; the pressure
in the bottle must remain atmospheric. Since it is common ground that a very
slight negative pressure exists within the B FREE bottle during use, this
integer of the claim, he submits, is not taken.
- I have no hesitation in rejecting this submission
since it completely ignores the requirement of purposive construction
previously mentioned. Mr Hughes' contention is of course literally correct but
when one considers the purpose of the integer in context, it is quite obvious
that such very small negative pressures have no practical effect on the
benefit which the patented bottle delivers. In use, air enters the space above
the liquid in the B FREE bottle and the partial vacuum therein is
sufficiently diminished so as to prevent (or at least ameliorate) the
well known 'feeding problems' – just as the printing on the B FREE packaging
says.
- The evidence is mostly one way. First, it was Mr
Samson's view that the effect of the negative pressure in the B FREE bottle
from 'the ease of drinking point of view' was 'negligible': D7/875 - 876.
- In March 2004, Tamir Tirosh and Amikam are named
inventors in a PCT patent application for the B FREE bottle[51] whose operation was said to be 'essentially vacuum free'.
According to this patent 'essentially vacuum free' operation means,
'a container that does not require added sucking force to be
applied by the user of the container to contain liquid from the container.
Further no appreciable vacuum force is created in the container during use
of the container due to venting….The definitions set forth herein for
'essentially vacuum free' and 'nearly vacuum free' contemplate that a
minimal vacuum force will be created to draw air into the container as the
liquid is exiting the container'
In cross-examination, Mr Samson accepted that this was an
accurate description of the operation of the B FREE bottle: D7/871 and 873.
It will be recalled that by the date of application for this patent, the
results of the Technicon tests (which the defendants now rely upon to deny
infringement) were known to at least Mr Tirosh of TTY[52]. In fact, even in February 2005, the B FREE bottle was
still being promoted by Mr Alberici to retailers thus[53]:
'(ii) the medical references on the pack relate to the vacuum
free system inside the bottle that is shared by both
brands'
- Mr Hughes' answer to these in-house views was that
they were irrelevant for present purposes; they were of no probative value as
they were mere puffs. In my judgment, that is no answer. The repeated view of
the defendants was that though a miniscule vacuum undoubtedly existed, unlike
the products of trade rivals, it had no appreciable effect upon the purpose
and benefit of the product viz. to alleviate 'feeding problems'. Construed
purposively, that is the entire aim of the integer in question. The existence
of the minor partial vacuum above the liquid in the B FREE bottle is
insufficient to impair its benefits to a baby.
- There was other evidence on the 'partial vacuum'
point as well, but I need not refer to it. In my view this is an argument on
non-infringement which must fail.
- I should next deal with gaskets which
(see the Patent §5) are said not to be required in the patented bottle –the
benefit being I think, that there is less to keep clean if there are no
gaskets. It seems to be proposed as a minor advantage. Mr Hughes says that on
his expert's definition of the word, the blue condom may properly be regarded
as a gasket and that this should be borne in mind on the issue of construction
of the claims. Mr Purvis did not accept this definition but that
notwithstanding he observed that this word did not occur in any claim
and thus, need not be considered in relation to infringement. In fact, Mr
Samson was not as definite about this point as Mr Hughes led me to believe. He
said that the word 'gasket' is "not a particularly precise term" and that the
slit in the blue condom "could" be called a gasket[54]. Mr Purvis submitted that the argument was irrelevant. I
agree. The 'no gasket' benefit was not apparently considered worth identifying
in any claims and I am not as it were, 'equitably' importing it into
the claims in issue via the back door.
- Mr Hughes' final non-infringement argument (the
so-called 'liquid levels' point) was associated with the attack on the Patent
based on insufficiency (see below). Para 3 of the Grounds of Invalidity [A/9]
reads as follows:
'Further or in the alternative, claims 1 to 7 do not specify how
much liquid is to be placed in the container for the purposes of testing
infringement of those claims notwithstanding that the outcome of the
infringement test (as set out in claims 1-7) may be dependent on the
quantity of liquid in the container.'
- The core point here centred on the fact that the
Patent nowhere prescribes the level of liquid which is to be used in the
patented bottle for the claimed results to ensue. Mr Samson developed the
point (which has a number of facets including the 'diving bell effect') in his
first witness statement [§§75-81]. The liquid levels point touches the
requirements that:
i The container is 'adapted to contain a quantity of
liquid'
ii 'the second end of the reservoir tube project[s]
sufficiently downwards so that when the bottle is inverted the second end
of the reservoir tube is above the level of the liquid trapped in the
inverted bottle.'
iii The air passage [is] above the level of the liquid trapped
inside the reservoir tube
- I confess to finding Mr Samson's evidence on
this point unreal - for a number of reasons. At one stage for example he
envisaged filling the entire container with liquid[55] . There is of course no precise level to which a
bottle should (or must) be filled – as every parent knows. The approximate
quantity of liquid which is to be offered to the baby is first dependent upon
there capacity of the bottle and which is determined by the manufacturer. It
also depends on the age of the baby. Moreover (in my experience at any rate)
the appropriate liquid level within such a container is approximately
indicated in some way on the bottle itself. In my view, the reader of the
Patent would fill the bottle to the sort of level which on angled inversion
for feeding, results in it being in the approximate position illustrated (for
example) on the B FREE packaging to which I have already referred.
- The Defendants' third point on non-infringement
was the subject of Mr Samson's 'informal' experiment with the B FREE bottle in
the witness box[56]. Mr Samson wished to demonstrate that because of the 'diving
bell effect' only a very little liquid collected in the bottom
of the reservoir after inversion whilst a number of drops of liquid adhered by
surface tension to the walls of the reservoir above the vent tube. I
observed this myself and I also observed that within a matter of seconds, some
of these drops trickled down into the pit of the reservoir[57] below the level of the air vent. I remain unconvinced
by this experiment that the Defendants' experiments advance their case on
non-infringement an iota.
- Before leaving the 'liquid levels' topic, I
should take up the following from Mr Samson's evidence[58]:
" I would add that, on reading the Patent, the purpose behind
the requirements in the claims relating to the liquid levels in the bottle
and in the reservoir tube is probably to prevent leakage."
[Emphasis added]
In my view, though leakage is obviously undesirable in any
nursing bottle, that cannot be right. The primary purpose of this feature is
a facet of the primary purpose of the Patent itself viz. to allow the
passage of ambient air from outside the container into the space above the
liquid being withdrawn so as to replace the partial vacuum being thereby
created, without passage of air through the liquid in the container.
Mr Tollman's evidence (with which I respectfully agree) put the point thus[59]:
"Many other design features have been incorporated into
bottles which claim to reduce colic. However, none of these allowed air to
enter the bottle from the teat-end and pass into the bottle entering at
its base without passing through the liquid."
- I have also considered the brief evidence on
infringement of claims 2 and 3 but in the light of my findings on claim 1, I
do not consider it to be necessary to add anything more concerning these
claims. In my view, if the Patent is valid it is infringed by the B FREE
bottle.
Validity of the Patent
- The Grounds of Invalidity [A/9] challenged
claims 1-7 of the patent and are fourfold:
(1) Non-entitlement to the earliest priority date. As noted,
this has been conceded but does not now appear to take the counterclaim
forward in any material respect. I need not further consider this
allegation;
(2) Lack of novelty in the light of two patents
(i) US Patent ? 5, 449,098 and
(ii) Swedish Patent ? 8200147;
(3) Obviousness in the light of the two patents abovementioned
and common general knowledge, and
(4) Insufficiency. I have set this pleading out above. As
pleaded this appears to me more like a complaint of ambiguity than a
proper ground of insufficiency. But I need not I think, go into this. As
it turned out, this ground became more of a 'squeeze' argument on
infringement than a traditional attack under this head.
Novelty
- As will be seen, it is my view that neither of
the prior art citations anticipate any of the claims in issue. In reaching
this conclusion, I should nonetheless record my approach to the matter –
though again I was not addressed by Counsel on this topic. I have followed the
classic guidance given by Sachs LJ in General Tyre & Rubber Co v
Firestone Tyre Co [1972] RPC 4567 at 485[60]. For anticipation to occur the antecedent document must
contain clear and unmistakable directions to do what the patentee has claimed
in the claim under consideration.
Obviousness: the law.
- I was not specifically addressed at length on
this subject and again I did not detect dispute between the parties as to the
general principles to be applied. The burden is of course on the Defendants to
make good this objection. The approach to obviousness which I shall adopt is
the fourfold, structured approach proposed by Oliver LJ in Windsurfing
International v Tabur Marine Ltd [1985] RPC 59 at 73:
" …The first [step] is to identify the inventive concept
embodied in the patent in suit. Thereafter, the court has to assume the
mantle of the normally skilled but unimaginative addressee…at the priority
date and to impute to him what was, at that date, common general knowledge
of the art in question. The third step is to identify what if any,
differences exist between the matter cited as being 'known or used' and
the alleged invention. Finally, the court has to ask itself whether,
viewed without any knowledge of the alleged invention, those differences
constitute steps which would have been obvious to the skilled man or
whether they require any degree of invention."
When the issue is one of obviousness, I have of course also
borne in mind the numerous warnings against the danger of ex post
facto analysis and the temptation of hindsight assessment. I was also
reminded that in adjudicating obviousness, the important evidence is that of
the properly qualified expert witness.
- I have already considered the first two stages
of the Windsurfing analysis but it may be worth while identifying what
I consider to be the inventive concept of the Patent: it is a nursing
bottle wherein any partial vacuum above the liquid which forms as the liquid
is consumed, is relieved by enabling ambient air to enter the bottle from its
teat end to pass through the bottle to enter the space above the liquid
without passing directly through it.
US Patent ? 5,449,098 [Offman] September
1995
- The Offman patent is entitled 'Fluid flow
controller for bottle'. The bottle within which the Offman 'controller' is
mounted, is neither described as a being nursing/baby bottle nor is it one,
since it has no teat (or teat collar) or anything remotely similar. Offman is
not therefore an anticipation of any of the claims of the Patent and I shall
therefore pass on to the attack based on obviousness. I would mention that
neither party knew whether Offman's proposal had ever been put into practice –
though because of the way it is made, Mr Purvis was sceptical as to whether it
would be possible to do so.
- The Offman controller is for use with
narrow-necked bottles where it is said to prevent what Mr Purvis colourfully
termed 'glugging' - by which he means (I think) the tendency in such bottles
for the contents to emerge unevenly as a result of the simultaneous passage of
air into the bottle to relieve an intermittent partial vacuum which develops
as a result of the bottle being emptied. Though its application to carbonated
drinks is certainly highlighted, the disclosure is clearly not limited to use
with any particular liquid since its mode of operation does not depend on the
nature of the liquid in the bottle. It is merely for soft drinks[61]. There is provision for closure of the bottle containing the
'controller' by means of a screw cap and co-operating collar. One may also, I
think, safely assume that the reader would understand that consumption of
liquid would be via the lips or by pouring it into a glass. The end purpose is
however to ensure the smooth egress of the contents of the bottle. Offman
begins thus:
'The invention relates to an apparatus which is attached
inside a narrow-necked bottle such as one used for the storage of soft
drinks. Narrow necked bottles are often used to limit the discharge of gas
from a soft drink. With the use of the present invention, when the bottle
is inverted the fluid inside the bottle flows out of the bottle
smoothly.'
- Offman proposes a number of variations but the
basic idea is the same: the partial vacuum which intermittently develops in
the space above the fluid as the contents are consumed, is alleviated by the
provision of replacement air via a venting hole in the side of the neck and
the 'controller'. The 'controller' is a combined tube and 'reservoir' fitted
in the neck of the bottle (or the collar) which allows ambient air to flow
through the tube and into the space above the fluid. The reservoir is a
manifold or bulb which also isolates any fluid flowing down the air tube when
the bottle is inverted, thus ensuring an unimpeded passage of air into the
space above the liquid.
- Not surprisingly, it was common ground that what
was absent from Offman was only the pre-characterising features of
claim 1 of the Patent; the rest is there[62]. This, said Mr Purvis, is vitally important since Offman's
bottle is simply nothing like a nursing or feeding bottle. In reply, Mr Hughes
pointed out that neither the Patent nor Offman are concerned with the mode of
delivery of the liquid to the mouth once it has got out of the container; the
teaching of neither disclosure was directed to that. He also invited me to
note (correctly) that the Patent is not limited to any particular design of
liquid container even if Offman is directed to narrow-necked bottles in
general. In order to understand Offman's disclosure it is best to describe the
proposal in a little more detail.
- Reproduced below are Figs 2, 3, 5 and 6 of the
Offman patent.
<
- With reference to all the figures reproduced in
this judgment, the air inlet hole numbered 12, is a narrow passage which
allows ambient air into the reservoir 7 via a co-operating aperture in the
neck of the bottle 2. The function of the reservoir 7 is to contain the small
amount of liquid in the tube 9 (or 10) which flows down it when the bottle is
inverted for drinking. When this happens, all that liquid will occupy the
upper part 23 of the reservoir 7, thus permitting air to flow into the bottle
via the tube. Leakage is avoided by pointing the vent 12 upwards in the
reservoir. The reservoir is 'affixed' to the inside opening of a flat
disc-shaped ring 8 which carries a number of holes 11 through which the liquid
1 being consumed, flows. The disc-shaped ring 8 may either be 'affixed' to the
inside wall of the bottle neck or in other embodiments (see fig 6 below for
example), to the inner wall or top of the open detachable cap 17 which may be
closed by an outer cap 22 threaded to engage with the detachable cap 17. In
the latter case, the co-operating air vent 19 is made in the side of the
detachable cap.
<
- In use, the bottle is partially inverted at an
angle suitable for drinking. When liquid is consumed, ambient air enters the
air inlet hole 12 (or 19) and flows through the unfilled end of the reservoir
7, up the tube 9 to the air cavity above the fluid 4. The tube 9 is affixed to
the reservoir at an angle such that when the bottle is inverted the open end
of the tube 15 is located at the corner of the container which contains air
14. In this way, only the small amount of the liquid which had been in the
tube prior to its angled inversion will flow into the top of the reservoir.
- The Claimants' expert Mr Tollman[63] was critical of how the controller might be made to work in
practice. But in at least fig 6 it is intended to be detachable for
re-use in the same or another bottle. If it is re-used it will no doubt also
have to be cleaned. On cross-examination, Mr Tollman agreed that this would
indeed be so: D6/729-732.[64]
<
- Fig 5 shows part of the controller fitted into
the neck of a bottle prior to its angled inversion. The top of the reservoir
is large enough to contain the entire amount of liquid which was in the tube 9
before angled inversion. Figure 3 shows a perspective view of the controller.
<
Col 2 line 61-Col 3 line 2 of Offman reads as
follows:
' The lower part of the reservoir 13 should be as large as the
top part of the reservoir 23 in order to contain the full amount of liquid
which will flow into it when flow is stopped due to stoppage of drinking
and holding the container upright. The liquid which was contained in the
top part of the reservoir 23 will not leak outside the bottle through the
air tube 12 but rather will be contained in the bottom part of the
reservoir 13 and then slowly continue flowing down the tube 9 to the
bottom of the bottle'
Mr Hughes submitted that this passage showed that the bottle
could be put to the mouth i.e. drunk from directly – or it could be poured
into for example, a glass. I agree[65].
.
- The narrative summarises the practical benefit
of the Offman proposal thus:
'The present invention results in a steady, strong, fluid flow
from a narrow-necked inverted bottle without a resulting gurgling and
intermittent flow.' [Col 3, lines 6-10].
- As previously mentioned, the only
physical difference between the device the subject of claim 1 of the Patent
and Offman's flow controller is. that claim 1 is for a nursing bottle
which must therefore be fitted with some form of nipple and nipple cap – what
in the Patent are described as a 'conventional nipple' and a 'standard
nipple-cap'. For present purposes, the important point is this: Both Offman's
bottle and the nursing bottle of the Patent work on a 'liquid trap' method of
relieving the partial vacuum above the liquid being consumed, without allowing
ambient air to pass through the liquid. The obviousness argument with regard
to the Offman citation was thus unusual since what is lacking in it is stated
in terms not to form part of the invention the subject of the Patent;
it is found (as one would expect) in the pre-characterising part of the
claims. It was common ground that Offman plus nipple and nipple-cap would fall
within claim 1.
- One thus quickly arrives at the last stage of
the Windsurfing enquiry; one is in truth considering an analogous
application of a bottle working in the same way as that proposed in the
Patent. The essential question on obviousness is therefore: Would it have been
obvious to the skilled addressee at the priority date, looking for improvement
in nursing bottles, with Offman to hand and without knowledge of the
invention, to consider fitting a standard teat / teat cap combination onto the
Offman bottle?
- The issue was considered by the parties in a
practical and commercial way. The experts addressed the obviousness question
from the point of view of whether the addressee would be
(i) likely, and
(ii) able
to make such a change. I have two difficulties about this.
First, I have grave doubts whether commercial considerations should feature
in the obviousness enquiry. As Oliver LJ said in Windsurfing
(supra at p.72):
" What has to be determined is whether what is now claimed as
inventive would have been obvious, not whether it would have appeared
commercially worthwhile to exploit it."
Furthermore, it must not be forgotten that when the enquiry
relates to obviousness, evidence of commercial considerations is usually
what has been called, secondary evidence. Like long-felt want or
commercial success for example[66], it may be relevant as an aid to assessing the primary
evidence. In this case, most of the expert evidence was in my view,
secondary evidence.
- Mr Purvis said that the answer to the question
posed in paragraph 122 above was firmly 'no'. He submitted that the proposal
of Offman was a 'curiosity' and would have been regarded by a designer of baby
bottles as hardly more than the utterance of an amateur or of a mechanical
eccentric. It was 'fiddly beyond belief'[67]. The addressee would at once appreciate that the proposal was
incapable of being commercially manufactured and would not even bother to
investigate whether a nipple and cap could be fitted onto Offman's 'pop'
bottle. In a word, the skilled man would give up. Though he stressed the
'extreme difficulty' in getting Offman to work at all, I noticed nevertheless
that Mr Purvis never went quite so far as to suggest that Offman simply
would not work.
- On the other hand, Mr Hughes saw no reason for
initial rejection on the part of the skilled man; at once appreciating what
Offman taught regarding the relief of the partial vacuum, he would work from
it. Moreover, so Mr Hughes submitted, he would have had no particular
difficulty in adapting the bottle neck to take a standard nipple and cap
combination and then, if called upon to do so, having it manufactured. If it
was necessary for present purposes to go that far he would legitimately be
able to consult with (for example) a plastics expert as how best to achieve
it.
- When the issue is obviousness, the views of the
experts are vital. So what do they say? Both address the question raised in
paragraph 122 above.
- Before considering this evidence however I must
address what I believe to have been threshold misunderstandings about the
approach to the prior art. This involved both experts. Mr Tollman basically
rejected Offman because his view was that (inter alia) in their work,
baby bottle designers do not look seriously at the potential utility of
products sourced from other industries[68]. Mr Samson on the other hand assumed that the baby bottle
designer had undertaken a general search in the prior art for useful ideas for
improving baby bottles before stumbling upon Offman[69]. Neither of them apparently appreciated that for the purpose
of assessing obviousness, Offman (alone) had been given to the addressee by a
notional but unseen hand, that he was assumed to take a practical interest in
it whether he liked it or not and then, with the mentality of constructive
optimism, he had to express an informed technical view on it in the light of
the common general knowledge.
- Mr Samson's view was robust: the principle of
operation of the Offman bottle would strike the skilled man looking for
improvement in baby bottles, as an attractive starting point. He would at once
see the virtue in the 'liquid trap' method of relieving the partial vacuum and
at once be aware of the 'downstream' benefit to the nursing baby. Furthermore,
he would not consider Offman difficult to adapt in order for it to carry one
of the numerous commercially available teats/teat caps with which he was
familiar.. Indeed a design engineer in the baby bottle field who did not
recognise the potential of Offman, said Mr Samson, would not last long in his
job[70]. In spite of sustained cross examination about the
practicality of ever making Offman a reality he said [71]:
" I am saying that it is totally practical. I would agree
that there are easier ways of making a bottle like that, but this thing is
totally make-able."
- In his witness statement, Mr Tollman raised a
numerous practical difficulties about being able to do anything at all with
Offman – assuming that the skilled man went so far as to try to adapt Offman
to the baby bottle field in the first place. A propos the latter, he
said first of all that in the baby product field there was no
'cross-fertilisation' from other fields; the addressee would not therefore be
interested in Offman from the start. He said[72]:
" The specialist nature of the field means that there is a
high barrier to entry for general manufacturers and consequently there is
there is a limited scope for a cross-fertilisation from one field to the
other."
Mr Samson disagreed, noting that inter alia plastic
moulding techniques are common to other fields[73]. I need not resolve this debate because I believe that Mr
Tollman starts from a mistaken premise (see above); however hermetic the
baby bottle field may be, the skilled man is assumed for present
purposes to have Offman in his hands and not to throw it straight into the
wastepaper basket.
- I should however deal with more of Mr Tollman's
evidence on Offman since on cross-examination, he had to retreat on a number
of points from views previously expressed in his Report. In fact, in this way,
a number of Mr Tollman's initial difficulties with Offman disappeared
completely. Thus:
- On four occasions, he stated that Offman was for fizzy drinks (Mr
Purvis' 'pop' point) and that Offman's real intention 'is to keep
gas/air in the liquid'[74]. He agreed that this was not so: D6/719-722.
- Offman was not limited to the liquid in the container being poured;
it could be drunk from the bottle too: D6 /722-724
- Offman and the device in the Patent worked in the same way:
D6/724-726.
- The innards of Offman are not permanently attached to each other and
the fig 6 embodiment was detachable:D6/726-732.
- 'Asymmetry of the Offman bottle'. I have already touched upon this[75]. In addition, Mr Alberici cross-examined Mr Tollman
about an angled feeding bottle made by Mr Tollman's company, Vital: See
Court exhibit 7 and D7/822-825.This feature in Offman would not I
consider, have deflected the skilled reader.
- Cleaning problems were not as bad as he had first suggested. It was
noted for example that both parties' bottles were provided with little
cleaning brushes for this purpose.
- I noted that not much was said about the shape
of the Offman container other than it was 'narrow-necked' and thus suitable
primarily for soft drinks. In a document put to Mr Tollman entitled 'The
history of the feeding bottle', under the chapter 'Upright Feeders'
one reads as follows:
'Upright feeders have been around since the early
20th century. Many of the early models were crude affairs made
in low quality glass and were mainly the narrow-neck type with pullover
nipples.'
An illustration of such bottles is provided, next to the more
common wide necked bottles. Thus the fact that Offman's containers are
narrow-necked does not rule it out for either direct use or adaptation for
use as a nursing bottle[76]. Indeed, the Patent itself envisages a container whose
external diameter may be 'about 3-8cm so that it can be held easily by
the hands of small babies' (col. 4 line 1).The neck of such containers
would of course be rather less than their external diameter and Court
exhibit 5 is indeed a narrow necked version of the Dr Brown's bottle. I see
no compelling evidence of difficulty in adapting a container of the sort
described by Offman to take commercial nipples/nipple collars; indeed there
is no evidence of which I am aware to suggest such a difficulty.
- The evidence on the difficulties of possible
manufacture of the innards of the Offman device was lengthy, complex and
conflicting. Since a good deal of it went more to commercial considerations
than anything else, I need not go into it at any length. I was far from
convinced that such difficulties were grave.
- Let me take one example, however: Mr Tollman saw
problems with the manufacture of the Offman tube and reservoir. D6/732-737. Mr
Hughes therefore put two items to him in this connection. First, there was a
small plastic laboratory pipette which resembled the controller (Exhibit 6).
He then invited Mr Tollman to consider inner part of a narrow-necked Dr
Brown's bottle. He agreed that both could be made by blow moulding[77] but in relation to the latter he added: ' not of that size
indicated in the illustrations'. The illustrations he was referring to
were those in Offman. However, the illustrations in a patent specification are
not of course to be regarded as working drawings: Terrell
(16th edn) 7-102. Again I remained unconvinced of real difficulty.
- The upshot of all this evidence is twofold.
First, I do not believe that the Offman proposal is the absurdity that Mr
Purvis would have us believe. It would certainly require working on, probably
with a plastics blow moulder but I entirely reject Mr Purvis' contention that
'the manufacture of Offman was a research project in itself'. More
significantly, the evidence relating to Offman made me think that of the two
experts, the evidence of Mr Tollman (who frankly said he was not an engineer[78]) was less reliable on this citation than that of Mr Samson.
In addition to his scientific background and his continuing interest in
technical matters, Mr Samson had worked with people in the baby product
industries: Report F/1/§8.
- In my judgment, the Offman citation would at the
priority date give the skilled addressee all he required to design a nursing
bottle falling within claim 1 of the Patent using no more than his common
general knowledge. The fitting of a nipple/nipple cap to the Offman bottle
(which is anyway not part of the invention of claim 1) could be effected using
commercially available products to fit on the Offman liquid container- which
in the fig 6 embodiment, was already threaded to take a detachable cap. More
likely however, the neck of Offman would be modified in accordance with
current nursing bottle design thinking. This could be done in association with
a plastics blow moulder if necessary. I do not think that any of this involves
any degree of invention and thus the attack on the Patent based on Offman
succeeds.
Claims 2 and 3 and Offman.
- Both claims 2 and 3 of the Patent are dependent
on claim 1 but were said by Mr Purvis to be independently valid. Claim 2 adds
integers to limit the nature of the vent unit and the reservoir tube. In claim
3, the vent tube projects into the reservoir sufficiently so that its distal
end is above the level of liquid trapped in the reservoir when the bottle is
inverted.
- The parties seem to have paid little attention
to these claims and I have in fact found rather little extra expert evidence
directed to them – apart from general assertions of validity or invalidity as
the case may be[79]. In his first report however, Mr Samson did condescend to
some detail regarding in particular, claim 3[80] . He considered that the presence of a 'vent tube .projecting
into the reservoir tube etc' if absent in Offman (which he thought however was
only arguable) was a trivial matter and was certainly not a feature whose
adoption involved the taking of an inventive step. A propos claim 3, Mr
Hughes also pointed to the wording of claim 1 (d) of Offman (which is of
course part of its disclosure). This states that the air inlet tube is
inserted into the reservoir. If that is done, he said, it need not be
flush with the side but it must be above the level of any liquid trapped
therein. I agree.
- In summary, claim 1 being in my view invalid,
there is no extra matter in claims 2 or 3 which on the evidence could save the
Patent.
Swedish patent ? 8200147 [Andersson] 1982
- This is undoubtedly a proposal for a nursing
bottle which 'eliminates the risk' of air bubbles getting into the baby's food
and into its stomach thus causing 'stomach ache'. Again, there was no evidence
that it has been used commercially. We all worked from a rather poor
translation from the Swedish so allowance for this must be made in the
passages quoted below. Several embodiments of Andersson are described but I
need only focus on that depicted in fig. 1 reproduced below. I would add that
it was common ground that a baby is not fed from an inverted bottle in the
vertical as shown in fig 1, but rather at a variety of angles.
- The nipple end 24/29 of the bottle is entirely
conventional being screw – fitted to the container 10 via a screw ring 26.
Item 23 is the baby food and 22 the air space above it.
<
- The Andersson proposal consists of a double
-walled container for a 'liquid baby food such as gruel', the outer container
being marked 10 and an inner 'separate insertion pipe' fitting within 10 -
being marked 13 in the diagram. This leaves a narrow 'outer space'18 between
the container proper 10 and the insertion pipe 13.The container has an
external thread 11 (which co-operates with the screw ring 26) and an inward
facing flange 12.The insertion pipe also has a flange 14 which lies against
the container flange 12 and clearance is provided between the two by radial
spacing ridges 15. Suitable clearances are arranged between the various
constituent members such that there is an air passage from around the screw
ring, past the threading, between the flanges, into the narrow cylindrical
space 18.The insertion pipe 13 does not go all the way to the bottom of the
container however, but only so far as to leave an annular space 19 above the
bottom 20 of the container to allow air to pass into the space above the food.
Arrows indicate the direction of airflow when the bottle is in use.
- The container is now filled with baby food, the
insertion pipe placed in the food in the container and the teat/teat collar
screwed onto it. The bottle is ready for use. It is inverted (at a convenient
angle) and the teat given to the baby. As the baby sucks 'a certain
underpressure is obtained in the container'. As a result, outside air now
'bubbles up through food which is situated in the outer space 18'. The
air bubbles rise up to the top of the container through the feed and out over
the annular space19 thereby relieving the partial vacuum in the space 22. The
narrative continues (trs p 4, ll 7-10):
'Thereby the desired pressure compensation is obtained which
results in that the child may suck out food from the air free food inside
the pipe 13.'
- Another passage from Andersson seems worth
quoting (trs. p3, ll 20-25):
'In order for the feeding bottle to operate in the best
possible way, the pipe 13 shall lie relatively close to the wall of the
container 10 so that the volume of the food enclosed in the outer space 18
will be small in relation to the volume baby food which is situated in the
inner space which mainly is constituted by the interior of the pipe
13.'
- There are diagrams of other embodiments all of
which (like fig 1 above) show air bubbles present in the feed locked in the
narrow annular passage 18.
- The Andersson bottle clearly has the same
overall purpose as that in the Patent, namely to prevent colic through
ingestion of air by a nursing baby struggling against an increasing partial
pressure in the bottle. However, does Andersson work in the same way as the
device subject of claim 1? In my view it does not.
- In fact, the experts had to do some guessing as
to how Andersson worked. In so far as they could make practical sense of it,
they disagreed, much of their disagreement stemming from the use in Andersson
of the word 'gruel'[81] (just once) in the phrase 'liquid baby food such as gruel'
and the consequences of using (or rather, not using) such a high consistency
feed. A topic of debate for example, was the likelihood of leakage arising
were milk to be used instead of gruel. There is no need to take time with
this; in my view, the addressee would consider the use of any liquid baby food
to be within the ambit of the disclosure. Whether leakage were to render the
device unsaleable or not would be a matter of trial and error.
- However, it is the claimants' case that as baby
drains the contents of 'the interior of pipe 13', the small volume of liquid
feed trapped in the annular space 18 remains where it is, bubbles still
streaming up through it as long as the baby sucks. Follow- on arguments arose
as it whether this hypothesis had properly been put to the experts. My view
may be briefly stated; when I read Andersson for the first time this is
exactly how I understood it to work and subsequent evidence has not changed my
mind. There were no experiments and it is for the defendants to show that this
explanation is plainly wrong. I have several times stated how I believe the
bottle of claim 1 works[82]: it provides a liquid trap so as to allow air to relieve the
partial vacuum above the liquid in the bottle without passing through that
liquid. This is not Andersson.
- Mr Samson suggested[83] that if a very little liquid baby feed was initially
placed in the Andersson bottle and the bottle was inverted and tilted for
feeding, then there might indeed just be a direct air passage from the ambient
to the space above the feed and no air would need to pass through the feed.
The Patent, said Mr Hughes, was virtually silent as to how much liquid was to
be placed in the bottle before a feed; the bottle could be full or virtually
empty. In my view the imagined use of such tiny quantities of liquid is a fair
example of the sort of improbable scenario that arises mainly in the trial of
patent cases. Both the Patent and Andersson propose devices for nursing babies
and not dormice and even if Mr Samson's hypothesis (for that is what it is) is
correct, I do not think for a moment that the skilled addressee reading
Andersson would have in mind Mr Samson's grotesque possibility.
- Having dealt with the experts' views on
Andersson, I shall next consider the specific attacks made on the Patent based
on it.
- I do not think that one can find either an air
passage or a 'reservoir tube' as called for in claim 1 anywhere in Andersson,
let alone a reservoir tube in which liquid is trapped 'when the bottle is
inverted'. The attack based on lack of novelty clearly fails.
- As for obviousness based again on the
Windsurfing approach, it is rather difficult to know where to begin.
There have it seems, been quite a number of proposals for relieving the
partial vacuum above liquid in bottles which is caused by the liquid being in
some way drawn off – resulting in some positive benefit to the user of the
bottle. But that is not enough. Save for Offman (which does this in exactly
the same way as that proposed in the Patent), the means used to do this are
all different. Some proposals may be more effective that others. Andersson
appears to be just another such proposal. The several steps required to bring
Andersson within claim 1 would involve in reality a radical restructuring of
his basic teaching and I cannot find any compelling reason for so doing
without the benefit of hindsight. What would be required involves re-thinking
the whole Andersson proposal. Indeed, working with gruel, for all I know,
Andersson may work well enough for there be no incentive for any change at
all.
Patent infringement and validity:
Conclusion
- In my judgment, the Patent is invalid on the
ground of obviousness in the light of Offman only and thus, this part of the
claim fails. If I am wrong about validity and the Patent is valid, it is
infringed as alleged. The attack on validity based on Andersson, fails in any
event.
Copyright Infringement
Tamir Tirosh [D12]
- Evidence relating to the origination of the B
FREE logo was given primarily by Tamir Tirosh [D12], so it will be
convenient to record my assessment of Mr Tirosh as a witness at this juncture.
In § 16 above, I accepted Mr Tirosh's evidence that at all material times he
was an independent manager/consultant/contractor to TTY – in effect their
factotum in Israel except significantly, in respect of any financial
matters. All financial matters were dealt with by the director, Mr Blattberg.
It will further be recalled that all (or virtually all) the Dr Brown's
and B FREE bottles sold in Europe at the times of interest in these
proceedings were manufactured in Israel for TTY and that Mr Tirosh was in
charge of this and of the dispatch of the packaging and bottles to the UK.. He
received his instructions mainly via TTY, but also on occasion, directly from
Amikam (or sometimes, from Mr Alberici) acting usually on behalf of Action
Trading [D6] but also on behalf of the other UK corporate defendants. I find
that Mr Tirosh was at all material times paid by TTY (only) and that though he
had working contact with Amikam, Mr Roxburgh and Mr Alberici, he played no
part in any decision-making by any of the UK corporate defendants
- All three of his witness statements refer inter
alia, to this - and to the origination of the logo. His third witness
statement was devoted to correcting errors in his second witness statement and
in addition, asking for his first witness statement (which was made for the
interlocutory proceedings), to be withdrawn entirely. Mr Tirosh was
cross-examined. He understood and spoke English quite well. Nonetheless, I
found some of the answers he gave to be confusing and on more than one
occasion, I had reason to think he was being evasive. I do not however suggest
that he was trying to mislead the court. Though I have therefore treated his
evidence with caution, I would not place it in the unsatisfactory category in
which I have put evidence from the Berkovitches (see below).
- He stressed that he was just doing the job for
TTY (or their client, Promedico – see below) who paid him 'a fixed monthly
payment'. I also accept that he believed that he personally had done
nothing blameworthy within the jurisdiction.
The pleadings relating to copyright
infringement
- The amended particulars of claim identify the
subsistence of copyright in a logo (called 'the Sign' throughout the pleading
–and indeed elsewhere[84]) which consists of the words 'DR BROWN'S' in an oval setting
having a 'turquoise green' border , the word 'DR' being printed in the same
tone of green as the border and the word 'BROWN'S' in clear 'see-through'
stencil effect: A/2/§4. There is also a detail in this mark upon which Mr
Hughes relied: a stylised stethoscope may be seen just above the words 'DR
BROWN'S'. This stethoscope may perhaps be better appreciated by using a
magnifying glass. I reproduce below an enlarged rendering of the
Claimants' logo[85].
<
- Infringement is alleged by allegations of both
primary and secondary infringement and also by multiple joint tortfeasance.
- Primary infringement[86] [A/2/§29] is said to arise by copying (or by copying a
substantial part of) the claimants' logo, by issuing copies thereof to
the public in the UK and/or by authorising the same. Primary
infringement is alleged against B Free, Baby B Free, Action Trading, Yasmin,
Amikam, and Timi Berkovitch, Mr Alberici, Mothercare and Boots.
- Secondary infringement[87] [A/2/§30] is alleged by the importation, possession sale
etc of B FREE bottles bearing the logo in the knowledge that they bore
infringing copies. This is alleged against the same defendants less Mothercare
and Boots. Particulars of knowledge of a very general kind are given,
including notoriety in industry that logos are the subject of copyright.
Specific notice is not mentioned.
- As already noted, some of these defendants
including Mothercare, Boots, Action Trading, Yasmin and Timi are no longer in
the action.
- Joint tortfeasance. In a separate section
of the pleading, joint liability for copyright infringement with B Free and/or
Action Trading by the importation of articles bearing the logo with the
relevant knowledge is also alleged against TTY [A/2/33]. And in addition,
joint liability with TTY is alleged against Mr Tirosh [A/2/36-37] – in effect,
a joint co-liability.
The origin of the B FREE logo
- Since subsistence and ownership of the copyright
in the logo is now conceded and furthermore and since a degree of copying is
admitted to have taken place (but not however, copying of a 'substantial part'
of the copyright work), I need not record more than the brief facts relating
to 'copying'.
- The original defence pleaded a case of
completely independent design (see the deleted parts of para 29 of the Amended
Defence (in A/3)). The defendants now plead that they are 'not presently aware
of all the details concerning the origin of the B Free logo'. The defence of
TTY and Tamir Tirosh is also relevant to this allegation: see A/8,
particularly § 5(3) thereof. Authorising the use of the logo in the UK is
specifically denied by Mr Tirosh on the basis that that was done by others,
particularly by Mr Blattberg (i.e. by Dvora Berkovitch's father) 'acting on
behalf of TTY'.
- First, I reproduce below an enlarged copy of the
alleged infringing logo. The word 'free' in this logo has the same clear 'see
through' stencil effect as the word 'Brown's' has in the claimants' logo[88].
- During 2001, a substantial (and independent)
Israeli company, Promedico Ltd ('Promedico'), who were former distributors of
Dr Brown's bottles in Israel, began to distribute B FREE bottles in Israel for
TTY. Mr Tirosh, who was involved in this, said that Promedico needed inter
alia a new logo for this purpose and that Promedico therefore
commissioned a local self- employed designer, one Zmira Geva, to do the
necessary work –with the help of Mr Tirosh as TTY's representative. Mr
Tirosh's job was, so he said, to 'guide' her. In §§ 15 and 16 of his second
witness statement Mr Tirosh described the process:
'15 At the end of the year 2001 Promedico an Israeli company
was appointed by TTY the Products' sole distributor in Israel. Since
according to the Licence, the Sign could be used only on Dr Brown's
Bottles, Promedico resolved in January 2002 to develop a new logo
comprising Action Trading's trade mark B FREE for marketing all the
Products including Dr Brown's bottles manufactured by TTY and distributed
by Promedico in Israel. under the Licence.
- For that purpose, Promedico commissioned Mrs
Zmira Geva a self-employed designer who designed the B Free trade mark. My
directions to Mrs Geva were that the B Free trade mark should be different
from the Sign. Mrs Geva and I were aware of course of the Sign but at no
time was there a depiction of it in front of us when Mrs Geva designed the B
FREE trade mark under my guidance. I made sure that the features of the B
Free trade mark inter alia the typeface , were completely different from
those used in the Sign.'
- Mrs Geva was not called to give evidence nor
were there any written instructions to her regarding her design brief[89].
- One working day before this cross-examination,
the defendants unexpectedly (and without convincing explanation) produced a
number of new documents apparently retained by Mr Tirosh on behalf of TTY.
Among these was a contemporaneous page from Mrs Geva's 'work in progress':
X/23. This is a black and white copy and shows three oval logos of the kind
under consideration. All three incorporate both the words B FREE and
surprisingly, 'Dr Brown' (sic) within the same oval, the only apparent
difference between them being in the typeface of the word 'Free'. Mr Tirosh
confirmed that the colour scheme of the original was the same as the of the B
Free logo in issue. I found Mr Tirosh's account of his working with Mrs Geva,
confusing.
Copying of a 'substantial part'
- Counsel drew my attention to the leading modern
case on this topic: Designer's Guild v Russell Williams [2001] 1 WLR
2416 (HL) particularly the speech of Lord Millett at pp 2425-2426:
" Once the judge has found that the defendant's design
incorporates features taken from the copyright work, the question is
whether what has been taken constitutes all or a substantial part of the
copyright work. This is a matter of impression, for whether the part taken
is substantial must be determined by its quality rather than its quantity.
It depends upon its importance to the copyright work. It does not depend
upon its importance to the defendant's work….The pirated part is looked at
on its own …and its importance to the copyright work assessed . There is
no need to look at the infringing work for this
purpose.".
- I was also referred to Copinger
15th Edn, §§ 7-57 and 7-59 where the authors pose the question:
"Have the essential features and substance of the copyright
work been adopted?"
- Mr Hughes submitted that the logo in issue was
what he called 'a simple artistic work'. He said that in such cases the courts
look to virtually exact reproduction of an artistic work for infringement to
be found. He relied for this submission on the well-known case of the 'hand on
the voting slip': Kenrick v Laurence (1890) 25 QB 99. The more simple
the copied idea, the less likely it is to constitute a substantial part of the
copyright work, he submitted.
- In my judgment, in copying the Dr Brown's logo,
Mrs Geva took a substantial part of the Claimants' copyright work. I have
reached this conclusion first as a matter of impression unaffected by the
circumstances of the copying. The one logo makes the same visual impression on
me as the other: see paragraph 172 below. Though the artistic work in issue
may not be of inherent aesthetic merit or the outcome of exalted drafting
achievement, the skill and labour which go into devising logos for products
and services cannot these days, be under-estimated. Thousands of pounds are
regularly paid for the creation of simple logos[90]. Indeed it may be that in this area of design, the really
simple logos are the most effective and successful commercially.
Conclusions
- I have re-read the cross-examination of Mr
Tirosh [91] (together with other relevant matters relating to the
allegation of copyright infringement) and, have come to the following
conclusions on the facts.
- First, Mrs Geva copied a substantial part of the 'Dr Brown's' logo
when she designed the B FREE logo: CDPA '88 s 16(3) (a). In comparing
the two logos a reasonable person would not use a magnifying glass.
Rather, the two are to be compared at the same sort of distance from the
eye as a purchaser or user of an object to which such logo was affixed
or printed would be likely to see it.
- The substantially copied features are: an oval logo partly framed
within a thin turquoise green surround, the interior of the oval being
entirely Oxford blue in colour. The use of two groups of stylised
lettering therein wherein the first group of letters is in the same
turquoise green colour as the surround and the second group in
see-through stencil, piercing the Oxford blue colour of the oval.
- Mrs Geva did what she did under the direct instructions of Mr
Tirosh. I do not believe Mr Tirosh's evidence that his directions to Mrs
Geva were simply that the new logo was to be 'different' to the Dr
Brown's logo. There was more to it than that. I have noted that there is
no evidence as to how Mr Tirosh had his contribution to the design
process, defined by TTY – who after all, were paying him at the time.
- All this copying was carried out in Israel. Further, there is no
evidence that anyone except Promedico (and possibly TTY) authorised such
copying. In any event, if it occurred, this was again done in Israel.
With regard to the allegations against Amikam and his companies and
Dvora, there is no evidence of any particular authorisation uttered from
this country – though I have no doubt that at the time, he and Dvora
were well aware of what was being done by TTY and by Mr Tirosh .
- Mr Alberici played no part whatever in the origination of the
B FREE logo-in spite of some suggestion that he did[92]. He neither copied nor authorised the copying to which
I have referred. In fact there is no evidence that Mr Alberici knew
anything about the origination of the B Free logo until around
the time of these proceedings.
- The allegations of primary infringement against Amikam, Dvora
the Berkovitch companies and Mr Alberici, therefore fail.
- Regarding secondary infringement, the situation is different,
since it involves issues of importation, possession and distribution etc
together with the relevant knowledge. B FREE bottles ( and the
printed packaging threfor) all bearing the B FREE logo in issue were
undoubtedly imported and/or distributed in the course of business and/or
sold within the jurisdiction by all of the UK corporate defendants. I
will show in the next section that these companies were Mr Berkovitch's
alter ago (as indeed he now admits). They therefore possessed the
relevant knowledge at the time these acts were carried out. Amikam's
liability as director of Action Trading will also be considered in the
final section – as will the allegations made against Dvora. In my
judgement, the UK corporate defendants are therefore secondary
infringers of the copyright in the logo.
- The liability of TTY depends first on the circumstances of
importation and will be considered later: see paragraph 211.
- I shall also deal with the case of joint tortfeasance against Mr
Tirosh.with TTY when I deal with the allegations against TTY. I can
however say now that the part of the case against Mr Tirosh personally,
based on alleged licencing or authorising the use of the logo by the UK
corporate defendants in the UK is not supported by any facts (A/2/36,
last sentence).
- With regard to the secondary infringement alleged against
Mr Alberici, the situation is more complicated. The relevant acts
alleged are 'importing, possessing and distributing in the course of
business, selling and offering for sale [B FREE bottles and
packaging]' in the jurisdiction with the relevant knowledge. Mr Alberici
certainly offered bottles for sale within the jurisdiction but I have
found no specific evidence that Mr Alberici did any of these things with
the relevant knowledge..
- Moreover, in the light of my earlier findings regarding origination,
it is clear that Mr Alberici did not know that the B FREE logo was an
infringing copy. But did he have reason to believe it was? Can he be
imputed with constructive knowledge?
- In this connection, I have taken into account two matters. First, it
is well established that in secondary infringement cases, suspicion is
not enough –which is why a solicitor's letter containing a sufficient
summary of the facts (relating to subsistence, ownership and
identification of the work in issue) is invariably sent to put the
recipient on adequate notice before action. In this case I have been
unable to find a letter to Mr Alberici of this kind, sent within the
relevant period, before he was personally made a defendant. Secondly as
Mr Alberici frequently pointed out, he knew nothing of intellectual
property law until he became involved in this case. Though ignorance of
the law is of course no excuse, it seems to me all the more important
when laymen are made personal defendants in copyright infringement
actions, that proper advance notice is given.
- With regard to the possession of the requisite knowledge, the burden
is on the claimant[93]. I do not therefore believe that any case of copyright
infringement has been made out against Mr Alberici.
- I shall conclude this section with a quotation
from the interlocutory judgment of Laddie J. Concerning his impression of
these two logos (but in the context of passing off), he said this [94]:
"They look very similar from a distance and no doubt to those
who are minded to think that there is a connection between the defendants'
B FREE product and the claimants' product, the similarity of the design of
the logo would reinforce that view."
I completely agree.
- I have appended to this judgment as Annex
A a side-by-side reproduction in colour of the two logos.
Passing off and Trade Mark
infringement
- This is the part of the case with which Laddie J
was almost exclusively concerned at the interlocutory stage. I have read his
judgment[95] and in the introductory part of the present judgment, I have
referred to some of the facts and matters which led him to the conclusions he
reached. It is fair to say that he took a very poor view of the activities of
the then first two defendants, that is, B Free and Yasmin Berkovitch. His
comments about Amikam (who was not yet a defendant) were even more astringent.
I have of course have had the benefit of the bigger picture, having seen much
more of the case. As a result, I am able fully to endorse what Laddie J has to
say about those three defendants. I do not propose to record more facts than
are necessary in this judgment – particularly in the light of Mr Hughes'
concessions on passing off and trade mark infringement and the abandonment of
the conspiracy charge.
- It is clear in the light of the considerable
evidence available at trial that from about Spring of 2001, Amikam
orchestrated a group of persons (mostly his family), to assist him in varying
degree in executing a deliberately illegal and dishonest course of commercial
conduct in relation to nursing bottles. He intended to hijack the considerable
goodwill which had by then been built up in England around the Dr Brown's
bottles to launch what was to become the B FREE bottles. He did this by
falsely portraying the B FREE bottles to both trade and public as being
improvements on the Dr Brown's bottles when they were not. And having himself
been intimately connected with establishing the Dr Brown's bottles on this
market, he was in an unrivalled position to do so. This is text book passing
off and was rightly entitled 'The Deceptive Scheme' in the Claimants'
pleadings: A/2/§15. It is the foundation of the causes of action in passing
off and trade mark infringement and I shall have more to say about it.
- Not surprisingly, Laddie J's order[96] reflects the serious view he took at the time. The order is
truly comprehensive restraining D1 and D2 (in general terms)
from dealing in feeding bottles incorporating the claimants' air vent (by
reference to a sample) or from using the marks 'Dr Brown's' or 'B FREE' or
either the claimants' logo or the B FREE logo, in relation to feeding bottles.
D1 and D2 are also enjoined from making any misrepresentation to the
public (for example) that any products sold under a different name are
products previously known as Dr Brown's.
- Before trial, Mr Hughes offered certain
undertakings under this head. By the time of his closing submissions, Mr
Hughes sent revised draft undertakings to the Court on behalf of B Free
(D1), Baby B (D5) and Amikam (D7). The first two
paragraphs of these undertakings (injunctive relief and delivery up etc) have
been drafted in terms which are commonly used at the conclusion of a
successful passing off and trade mark infringement action. It remains to be
seen how far these can usefully be incorporated into part of the order I shall
make at the conclusion of this case. The third paragraph however relates to
damages and is in very much draft form. Moreover Amikam is prepared to submit
to an enquiry or account only in respect of 'passing off due to the
packaging'. If (as I suspect), 'the packaging' is intended to refer just to
the cardboard box in which the B FREE bottle was sold, in my view, Amikam's
offer falls short of the mark.
- The first thing which struck me about these
undertakings is that they do not concern the corporate defendant through which
most of the infringing activity complained of passed: Action Trading
(D6). In his witness statement, Amikam says of D1, D5 and D6[97]:
"..I ran these companies and made all the decisions relating
to the strategic direction and expenditure of these companies."
This admission, which could hardly be in broader terms, was
amply borne out by Amikam's cross-examination and by other evidence. Why
this is of importance is because, although Action Trading is now in
liquidation, Amikam was at all material times its director when it was in
full swing. Mr Purvis epitomises the relevant pleading[98] by arguing that Action Trading was simply Amikam's £2
alter ego and that therefore, whatever may be the corporate status of
Action Trading now, he is jointly and severally liable with it for any
tortfeasance established against it when it was trading –both as a
director (see A/2/§14/c) and as a joint tortfeasor.
- As unconditional undertakings are now offered in
respect of the pleaded activities of B Free and Baby B, the case against these
companies in passing off and trade mark infringement must stand admitted. Had
Action Trading not gone into liquidation, those same pleaded acts would I
think, a fortiori have led to the same result against it. How does this
affect Amikam who was not only the director of Action Trading at all material
times but (on his own admission) its driving force as well?
Director's liability
The law
- The law on this subject is well-developed and
reference was made in this connection to inter alia C Evans & Son Ltd v
Spritebrand Ltd [1985] 1 WLR 317 which, as Mr Hughes reminded me, was a
decision on a preliminary issue. From this case and Counsel's submissions I
have come to the following conclusions regarding the position of directors of
companies which are tortfeasors:
- The liability of a director is a specific and recognisable instance of
general joint tortfeasance : see below.
- If the alleged tort is not one for which the claimant must
prove a particular state of mind or knowledge then if the facts
sufficiently implicate the director personally in the tort committed by
the company, he may be liable together with the company.
- Directors are the company's agents and therefore, under the general
principles of agency, they are inherently at risk of being jointly and
severally liable with the company for acts committed by it.
The facts
- The only remaining director relevant to this
enquiry is Amikam and the only relevant company is Action Trading – Amikam's
directorship of B Free having begun only last year. I have carefully reviewed
the evidence of Amikam's working relationship with Action Trading and have no
doubt that he is jointly and severally liable with it in respect of its
passing off, trade mark and copyright infringements. Before its liquidation,
Action Trading was in fact his principal alter ego.
General Joint Tortfeasance
The Law.
- I was referred by counsel to extracts from
Terrell 16th Edn §8-38-8-44 for an overview of this subject.
I am fairly familiar with the authorities cited in these chapters,
particularly The Koursk (see below), Morton-Norwich v Intercen,
Unilever v Gillette and Unilever v Chefaro. I was also asked to
consider the more recent case of Generics (UK) Ltd v Lundbeck A/S,
(CA), Unrep. 2 August 2006. I regard the following observation of Mustill LJ
in Unilever v Gillette [1989] RPC 583 at 608 as being of relevance to
the present allegations of joint tortfeasance:
" As to the authorities on the subject, if I am right in the
view just expressed that they are really cases on the facts, I suggest
that there is little to be gained by matching the circumstances of each
case against each of the allegations in the draft amended statement of
claim."
- When two or more persons' involvement in the
commission of a tort is, on the facts, part of a common (and not a similar)
design, they are joint tortfeasors. Facilitating the commission of the tort
(such as by supplying an article to someone) is not however enough whereas
authorising it may be. The court must therefore first identify the 'design'
and then come to a conclusion as to whether the parties' designs are
co-incident. Thereafter, liability will depend on the facts and in the end,
the court has to make a value judgement in the light of that evidence. If
there has been a full trial (as opposed say, to an application for a strike
out), the court will be in a particularly good position to assess joint
liability.
Some facts
- As for the allegation of 'common design' in the
present case, we are principally concerned with passing off. There is also an
allegation of joint tortfeasance against Mr Tirosh in respect of the same
passing off and also of copyright infringement by the import of bottles etc
bearing the B FREE logo by TTY. The 'common design' in relation to passing off
is in fact Mr Purvis' 'Deceptive Scheme': to filch the claimant's undoubted
goodwill in this country which is associated with the Dr Brown's baby bottle,
in order to deceive the trade and public into thinking (contrary to the fact)
that their B FREE bottle was a new and improved version of it.
- It said by Mr Hughes (and also by Mr Alberici)
that passing off has been perpetrated by the Berkovitch companies and/or by
Amikam himself and not by any others. Time and again, Mr Alberici stressed
that he was an independent person and that everything he did in relation to
the marketing and sale of B FREE bottles was directed, approved and supervised
by Amikam. Mr Tirosh likewise stressed that he was merely an independent
person doing an ordinary job for TTY. The problem for both Mr Alberici and Mr
Tirosh is that they were both highly valued, key persons when the acts
complained of were carried out, both of them being in positions of trust and
responsibility within organisations of very modest size. In fact, in Mr
Tiroshs' case, it seems likely that he was the only independent person working
for TTY. As such, in my view, Messrs Alberici and Tirosh were bound to exert
themselves to the best of their ability on behalf of those who paid them.
These relationships were intended to be mutually productive[99] and not just 'arm's length' commercial transactions; they
involved actions not aims. As far as the UK corporate defendants, Amikam and
TTY, were concerned, that was the sole reason for these gentlemen being at
there at all.
- The difference between Mr Tirosh and Mt Alberici
is that Mr Tirosh is a resident of Israel - and so are his employers and this
introduces a territorial consideration into the enquiry so far as he is
concerned.
- In Sabaf SpA v MFI Furniture Centres Ltd
[2005] RPC 209 at 218, Lord Hoffmann said this of joint tortfeasance:
" The test for such secondary liability in English law is
whether the acts were done pursuant to a common design so that the
secondary party has made the act his own."
- A related argument advanced by Mr Alberici was
that in the present case, the 'act' could in truth, never have been 'his own';
it was always being done for or on behalf of one of the UK defendant companies
or for Amikam personally. But that is a misunderstanding of what Lord Hoffmann
is saying since it overlooks the element of commonality; on the same facts, it
takes two (or more) to be joint tortfeasors, each in his own way being a
wrongdoer.
- Much of the evidence as to who did what was
given by the Berkovitches so I should next assess them as witnesses.
Th Berkovitches as witnesses
- All the family spoke good English, indeed in the
case of the children, very good English. They all struck me as being astute,
resourceful and uncompromising people. In addition, Amikam was both socially
and physically a powerful personality and a persuasive person. On the other
hand, the children had I think, genuinely less commitment to their father's
unswerving dedication to business, giving the impression of having been nudged
into the baby bottle business by their parents. Although Yasmin and Timi are
no longer defendants, their evidence is still relevant to this aspect of the
action since at the time, they were in theory performing a number of functions
in conjunction with the ongoing defendants, corporate and individual.
- The collective impact of the evidence of the
Berkovitch family, spoke more of rehearsal than truth. For example, in
cross-examination, whenever a useful answer might have been be expected, the
usual Berkovitch reply was variations of: "I just can't remember". In
particular, the evidence of Amikam and Dvora was so obviously loaded with
self-interest that I became sceptical about just about all of it, even down to
the addresses they gave on their witness statements[100]. I am therefore of the view that in relation to all
important matters on which Amikam and Dvora gave evidence, unless a fact is
capable of independent verification or assessment for comparison, I shall not
accept it. There is one qualification to be made in the case of Amikam. As the
hearing went on, Amikam willingly accepted more and more personal
responsibility for the events which had occurred –leading no doubt to his
undertakings. But he was also quick to blame both Mr Roxburgh and Mr Alberici
for what had happened - as and when convenient.
- In view of this, of Amikam's undertakings and
what I have already said about him, in what follows I shall be most concerned
to assess the roles of Dvora, Mr Alberici and of TTY and Mr Tirosh. In order
to do this however, I must first record some further facts.
Further facts: Who did what?
- I have already commented on the complexity of
the pleadings. My task in sorting out the allegations of joint liability was
made no easier by the Claimants' 'scattergun' approach to the evidence.
Conspiracy may have gone but Mr Purvis still had first to demonstrate the
existence of The Deceptive Scheme in relation to each of the personal
defendants. This led to some false starts. As Mr Hughes noted, the facts on
tying the defendants togrther came to some extent from documents used in the
US proceedings - which are presently irrelevant.[101]
- Not surprisingly, the evidence on this part of
the case occupied a fair time at trial. I shall not review it in detail
however even though it is interconnected since its effect overall can I hope,
be appreciated with fair accuracy simply by focussing on individuals.
Amikam Berkovitch: Joint liability
- I have already held Amikam to be jointly liable
with Action Trading as its director. It seems to me abundantly clear in
addition that Amikam:
- Was the source and origin of all major and even many minor decisions
made by or on behalf of the three corporate defendants in the
jurisdiction, and
- Exercised great personal influence over his family at all material
times.
- Exercised substantial control over Messrs Roxburgh and Alberici.
- Was still angered over the past history of this dispute[102]. This resentment in my view, made objectivity in
answering any 'sensitive' questions put to him very difficult.
- Amikam also played a major role in the
commercial activities of TTY as may be seen from the extracts from his
depositions in the US proceedings: see L/16-24. Mr Tirosh, who had been
working with Amikam before he provided consultancy services to TTY[103], gives further details of the close relationship with TTY[104].
- Within the limited circle involved both here and
in Israel, communication seems to have been informal, regular and easy. Much
of Amikam's direction was oral as he was not happy about writing in English (a
fact confirmed by Mr Alberici). Thus, the numerous letters concerning all
sorts of matters which were signed by Mr Alberici tend to create a false
impression of authorship and command. They were I think, largely (but not all)
written by Mr Alberici as Amikam's amanuensis – just as Mr Alberici contends.
- It was Amikam who hired Messrs Roxburgh and
Alberici, established what their duties were to be and in major matters,
supervised their day to day work. They looked to him to be paid. They reported
to him on developments of significance to the business on virtually a daily
basis. I accept however that Amikam left the details of how his wishes were to
be implemented to those having delegated authority as the following extract
from Mr Tirosh's cross-examination shows[105]:
Q. So Amikam Berkovitch would give you instructions as to what
to make and you would make them; is that right?
A. Amikam Berkovitch was not giving specific instructions
because he is not a person of many
details.
Q. So who was giving you instructions as to what to
make?
A. In terms of packaging, most of the time Mr.
Alberici.
And later (under cross-examination by Mr Alberici) at p1055:
Q. When I contacted you to make changes to the packaging, was
your understanding that I would have done that with the prior approval of
Mr. Berkovitch?
A. Yes.
- Save in so far as it concerns patent
infringement, I find that the allegations of general joint tortfeasance made
against Amikam in the amended particulars of claim, para 14(c) also to have
been proved[106].
Dvora Berkovitch: Joint liability
- Pleadings. The amended pleading which
affects Dvora is drafted only in relation to her activities for and on
behalf of B Free: A/2/§38[107]. It will be recalled that B Free was in fact Yasmin's
company and was the corporate vehicle specifically chosen to sell B FREE
bottles in early January 2005[108] some months before the interlocutory injunction was made.
The pleading[109], is limited to an allegation that in every case, Dvora
personally infringed the copyright in the logo by issuing copies of it
to the public without the consent of the Claimants (i.e. an allegation of
primary infringement) and that she personally passed off B FREE bottles
'by disposing of articles likely to deceive the public'. The particulars
relied on were the same as those pleaded in relation to the allegations
against B Free. The only relief sought against Dvora is for damages and there
is no allegation raised against her of joint tortfeasance. The case
nevertheless proceeded as if the pleading against her had been made on a
broader basis. This may have occurred because as Dvora saw it, Action Trading
and B Free were in reality the same 'entities'. The activities of the one
company seamlessly merged into the other see D9/1145 and 1148-1149. But that
is not the way it was pleaded.
- The facts. Dvora was in fact, neither an
employee of Action Trading nor of B Free. Her status vis a vis these
companies at the time was somewhat clarified in cross-examination where,
particularly in her evidence regarding how she was paid, she made some
astonishing remarks[110] . In cross-examination, it emerged that the intermittent
payments made to her ('I was paid from time to time'[111]) were not salary but were payments from Amikam to one or
other of these companies as repaid director's loans[112]. Having in her witness statement said that she owned two
shares in Action Trading, she later admitted that she in fact owned the entire
company: D 9/1133.
- Dvora worked from the family home at 2 Emmett
Close, Shenley, Herts[113] but as the invoices (together with other documents) show,
she was more than a mere 'office assistant' as Mr Hughes suggested. But she
was not a salesperson either since her dealings were with TTY and retailers
only and in the latter case, by paper only..
- In my view, Dvora played an important part in
the smooth day to day running of both Action Trading and B Free. She was
personally in charge of processing all orders of B FREE bottles from TTY for
both Action Trading and B Free: see X/26 A and B, together with the
cross-examination thereon: 9/1136-1140. If things went wrong with a delivery
for example, she sorted the problem out. She was told what and how much to
order by Messrs Roxburgh and Alberici. She was of course thoroughly familiar
with the products themselves and performed a part in securing their safe
passage from TTY in Israel to a warehouse near Aylesbury and thence to
retailers and the public: see D8/1121-1122 and D9/1158-1162. In doing
this she certainly issued of copies of the claimants' logo to the public but
always on behalf of these two companies. She was not a primary
infringer of copyright. By the same token , she was not personally
passing off. She may well have been a joint tortfeasor with those companies,
but, as I have said, that is not what is pleaded.
- I would also mention in view of the following
section which relates to TTY, that Dvora's evidence of her dealings with TTY
(of which she was a director) was in my view, not to be believed: see X/ 30
and D9/1153. Moreover, she looked upon all the corporate defendants as
'Me and my husband, an entity. I mean as a family': D9/1148.
TYY and Mr Tirosh[114]: Joint liability
- I have already to some extent, considered the
facts touching TTY (and Mr Tirosh) in relation to copyright infringement. But
to conclude the matter I must establish some facts regarding whether TTY and
Mr Tirosh can be said to have committed any tort within the
jurisdiction as alleged.
The facts
- All the B FREE bottles were manufactured in
Israel for TTY and were shipped by TTY into the UK against orders from one or
other of the UK corporate defendants. The shipping was by sea which was
arranged from Israel. Exhibit X/26 is an example of a TTY invoice to B Free;
the bottles were shipped marked 'C&F'.
- Regarding ownership of the goods so shipped, Mr
Tirosh's evidence was clear; he was entirely responsible for shipping the
goods into the UK as far as the port of entry, on behalf of TTY:
D8/1047. Thereafter, ownership of the goods on landing remained with TTY until
they were paid for:D8/1046-1048 and X 30.
Liability of TTY
- Copyright infringement. TTY were the
importers into the jurisdiction of bottles and packaging bearing the logo and,
subject to the statutory question of knowledge or 'reason to believe', are
therefore secondary infringers as alleged in para 31 of the amended
particulars of claim. As to knowledge or 'reason to believe', the origination
of the infringing logo has been the subject of detailed findings earlier in
this judgment. Acting through Mr Tirosh, TTY was intimately involved in the
substantial copying of the claimants' logo and in addition, were in frequent
communication with Amikam over all manner of dealing in B FREE bottles and
with Mr Alberici in dealing with (at least) the packaging. This, together with
the particulars given in sub-paras (a)-(c) of the amended particulars of claim
makes me sure that TTY are secondary infringers of copyright as alleged.
- Passing off. As for passing off, it is
said that TTY had put on the market in this country, deceptive products (viz B
FREE bottles) likely to cause confusion to the public and damage to the
Claimants and that it is both directly liable for passing off itself and in
addition, is liable with B Free and/or Action Trading for all their
acts of passing off: see paras 34 and 35 of the amended particulars of claim.
Passing off by B Free stands admitted and I have already recorded my views
regarding this cause of action vis-à-vis the activities of Action Trading,
above. In this connection, in paragraph 53 of the claimants' closing written
submissions, Counsel assembled thirteen factual matters[115] which in combination, so Mr Purvis submitted, could
legitimately be relied upon to inculpate TTY as joint tortfeasors as pleaded.
I agree.
- I therefore find the allegations of joint
liability (only) against TTY, proved as alleged.
Liability of Mr Tirosh.
- The pleadings allege joint liability with TTY:
see para 37 of the amended particulars of claim.
- I am driven by the evidence to think that Mr
Tirosh is in reality at least 'half' of TTY and probably much more. Mr
Purvis not unreasonably suggested that he was TTY. It employs no one
else[116] and the evidence concerning Mr Blattberg is conflicting.
Whereas Dvora paints her father as a sprightly octogenarian this is not the
picture I got from Mr Tirosh. Timi, the other director, judging by the 'laid
back' impression he made as a witness, seemed to me to be quite uninterested
in baby bottles. He was in fact a professional basketball player with the
Newcastle Eagles. Mr Tirosh saw to the design of the infringing logo (see
above), he procured the manufacture of the product and its packaging by sub-
contractors: D8/896-897,994,997-998 and 1005-1006. It was he who received and
implemented orders fro the UK corporate defendants and as I have shown, it was
he who single-handedly saw to the shipping of the goods into the UK. He
represented TTY at international shows such as the baby products fair at
Cologne in September 2004 where the B FREE bottle was launched and where he
demonstrated it to for example representatives of Mothercare: see D8/1049.
- I am satisfied from the evidence that Mr Tirosh
did not personally carry out any of the acts of copyright infringement
or passing off complained of; these were nominally effected by TTY (see §§
209-210 above). All these acts were however procured and implemented by him as
part of a bipartite, common design with TTY. In truth, in doing all this, he
was acting as TTY's (only) agent and as such, he is jointly liable with TTY:
see The Koursk [1924] P 140 at 155.
Passing off: Mr Piero Alberici's
Liability
- Finally I come to the allegations made against
Mr Alberici which in the light of my decision on copyright infringement, are
now confined to the allegations of passing off and trade mark infringement –
the latter being a relatively minor matter. The relevant pleadings are to be
found in the amended particulars of claim, paras 12, 14(c), 15 ('The Deceptive
Scheme'), 26 (trade mark) and 27 (passing off). The general allegation, which
is one of joint tortfeasance, is made in Para 12 which reads as follows:
' [Mr Alberici] is an employee, part owner and officer of
Action [Trading] but describes himself as a 'consultant' to B Free World
Ltd. He was or is a consultant and employee of Action Trading… In his
capacity as a consultant to B Free World Ltd, [Alberici] signed a
statement of truth on behalf of B Free World Ltd. His witness statement in
these proceedings establishes that he is in day to day charge of sales and
marketing for B Free World Ltd and for Action Trading Ltd. The claimants
will say that in the premises [Alberici] is directly responsible for
carrying out of all the acts of sale and offer for sale of feeding bottles
….by B Free Ltd and Action Trading Ltd which are complained of in these
proceedings and is therefore jointly and severally liable with B
Free World Ltd and Action Trading Ltd for those acts.' [Added
emphasis]
- Some time was spent in cross-examination in
establishing Mr Alberici's relationship to the Berkovitch companies since he
is on record as saying different things about this at different times. The
correct position is I believe, this: Mr Alberici was at all material times a
consultant to the UK corporate defendants, probably more with Action Trading
than with the others. He was paid on a commission basis by one or other of the
companies or possibly, by Mr Berkovitch himself.
- Before coming to the facts I should first say
that Mr Alberici had a singularly difficult task in this case which was made
harder by the fact that he was a litigant in person. His first problem, as
previously mentioned, was that he was the author of many letters of
importance which are relevant to the issue of passing off. As he has
explained, most of these letters were in truth dictated by Amikam who cannot
it seems, write English. Had they been written and signed by Amikam the case
against Mr Alberici would I think have seemed weaker - but certainly not
non-existent. It is virtually impossible at this distance from events to sort
out which letters and e-mails are to be regarded as Mr Alberici's own and
which Amikam's. Secondly, after Mr Roxburgh's departure from Action Trading on
1 October 2004, Mr Alberici became UK sales and marketing director. This was a
position of responsibility and trust in what was a very small organisation.
Thirdly, Mr Alberici struck me as an alert, dynamic and intelligent man with
general experience of commerce albeit more on the marketing and sales side.
All this inevitably has an impact on the view I have taken on the allegation
of joint tortfeasance –which is the substance of the case against him.
- As a witness, I found Mr Alberici to be a person
trying to assist the court yet having a firm instinct for self- preservation.
He tried to answer questions put to him and did not suffer from failures of
memory. Nevertheless I have received some of his evidence with considerable
caution since a number of the answers he gave by way of explanation for what
he wrote in letters, are scarcely credible. I have already paid tribute to his
industry and courtesy in the way he conducted his case[117]. I have also borne in mind his inheritance, that is, the
fact that before his appointment as Mr Roxburgh's successor, the seeds of what
is the present dispute had already begun to flower thanks to Amikam's basic
decisions coupled with the resource and efforts of Mr Roxburgh. Mr Alberici
thus found himself in charge of a rapidly moving fait accompli. He was
nevertheless made well aware of a good deal of Amikam's strategy with regard
to the B FREE project by the time he took it over – and, as Mr Purvis
observed, he could always have refused to continue with a dishonest course of
action at any time.
- In fact, I must say at the outset that Mr
Alberici's case is largely a plea in mitigation.
- I shall begin by identifying the main elements
of what the pleading calls 'the Deceptive Scheme' [118] in which Mr Alberici is said to have been a participant (see
above). This is the entrée for the both the passing off and trade mark
infringement allegations. The main elements of the Deceptive Scheme are the
following:
(i) The selection of the logo
(ii) The adoption of the packaging so as to be as close as
possible to the Dr Brown's packaging
iii) Numerous letters and e-mails to retailers implying a
changeover from one brand to the other : see for example
G/102
(iv) Similar statements made to retailers at meetings
(v) Presentations to retailers: Mothercare, Boots etc
(vi) The changes to the Baby B website[119]
(vii) The 'adoption' of awards and technical reports belonging
to Dr Brown's bottle
(viii) The B FREE South African
advertising.
Mr Alberici was cross-examined on all these matters and I find
as a fact that he was involved to varying degree in all of these
activities at various times. I also find that at least three other people
were involved in the Deceptive Scheme, the first two having a greater
responsibility for it than Mr Alberici: Amikam as prime mover, Mr Roxburgh
as first agent for the implementation of Amikam's wishes and the B FREE
South African distributor. I also find that this active deception continued
until sometime during November 2004, about a month after Mr Alberici had
taken over complete responsibility for sales and marketing from Mr Roxburgh
– probably finishing at a meeting with Mothercare when the truth had to be
revealed[120] . I also have taken into account Mr Alberici's ongoing
complaint at trial that because (as he saw it) of the deliberate lack of
co-operation from Mothercare and Boots (particularly with documents) and Mr
Roxburgh's reluctance to provide him with real help, he was hampered in
properly presenting his account of the facts.
- In view of the fact that at least some of the
acts mentioned above are now admitted to amount to passing off, I am not
proposing to re-visit the evidence relating to them in this judgement. Some of
them are in fact described in the judgement of Laddie J.
- In relation to the following matters in
particular (taken in no particular order), Mr Alberici offered no adequate
explanation in my view. These (inter alia) are relied on by Mr Purvis to
inculpate Mr Alberici as a joint tortfeasor:
- His cross-examination on the documents in G2 from 121-135. In
particular, Mr Alberici's letter to Mothercare dated 23 September 2004
and signed by him as 'Sales & Marketing Director' [G/121] where he
says :
"Mothercare need to be kept fully informed of all the
initiatives that we are undertaking to complete the rebranding of Dr
Brown's Natural Flow to B.free®. The plan is to commence the changeover
in week commencing 18 October but some alteration may take place before
that date."
- The Mothercare 'shelf barker' generally. His immediate response to a
request for a logo to use on the deceptive Mothercare shelf-barker
[G2/126 and 184] being nothing more than an attempt to demonstrate that
he could respond quickly, was not credible: [T10/1455/5-T10/1456/13]. I
accept however that later in November, the situation with
Mothercare was clarified by Mr Alberici: see X39.
- "A new name and a new design" [G2/184] being a reference to the Mark
II model and a new name for the range rather than the product itself
[T3/369/10-T3/372/21];
- "Change the instruction leaflet. Add the image of the condom,
show the condom being cleaned, point out to mothers that it is
optional" [G3/31] was a reference to the reservoir tube and not the
condom being optional [T11/1504/4-T11/1506/9];
- The Baby B website (dated November 2004) wherein the brand B FREE
was callously inserted in place of references to 'Dr Brown's'. Copy
pages are at G2139-147. The last page invites the reader to contact Mr
Alberici for more information.[121]
- The email to Timi [X/41] said by Mr Alberici to be nothing more than
an attempt by him (allegedly at the request of Amikam) to train Timi to
be more "manager-like" [T/10/1616/20-T10/1418-19]; and
- The email to 'b.free' [X/42] said to be no more than a report on
some training he had been getting from Lazy Grace in relation to other
projects [T10/1419/9-T10/1422/20].
- The fact that before he took over from Mr Roxburgh he was copied in
on Mr Roxburgh's overtly dishonest emails: see for example G2/119 'Dr
Brown's Natural Flow to B Free-Brand -name change-18 October 2004'. This
e-mail contains the sentence 'Unless notified separately, all orders
received for Dr Brown's natural flow products will be substituted by the
B Free® equivalent item'.
- In my judgment, Mr Alberici was deeply involved
in the Deceptive Scheme both before and after Mr Roxburgh's departure. I am
not convinced by his explanations and his presently contrite demeanour will
not help him. As one of Amikam's two marketing arms (and later, his sales and
marketing director) Mr Alberici must have been aware of all the major elements
of the Deceptive Scheme. In my judgment, he is jointly liable with Action
Trading and with B Free in passing off - and in trade mark infringement.
Conclusions
Patent infringement: The patent infringement action
fails. The Patent will have to be amended to delete claims 1-7 (and any
matter which is redundant in the light of such amendment).
Copyright infringement. The B FREE logo is a substantial
copy of the Claimants' logo (the 'Sign' as pleaded). It has been infringed
by the UK corporate defendants. It has also been infringed by Amikam as
joint tortfeasor with the UK corporate defendants. It has also been
infringed by TTY as importers of the bottles and packaging bearing the logo
and by Tamir Tirosh as joint tortfeasor with TTY. It has not however been
infringed by either Dvora or by Mr Alberici.
Passing off and trade mark infringement. Trade mark
infringement and passing off has been established against the UK corporate
defendants. Amikam is again a joint tortfeasor in relation to these causes
of action with the UK corporate defendants, as is Mr Alberici. The action
against TTY and Tamir Tirosh also succeeds on the basis of joint
tortfeasance
Having regard to the complex structure of these proceedings, to
the mixed nature of my findings, to the undertakings offered, to the
settlements which have occurred and to the fact that concessions were made
towards the end of the case by the Claimants, some care will no doubt be
required when it comes to drafting an appropriate order.
I will hear counsel on such order and on the question of costs
in due course.
ANNEX A
<
Note 1 Trial bundles will be referred to by
binder number, tab and where appropriate by page number or paragraph number
e.g. B2/2/18 or B2/2/§18. Transcripts will be referred to by day and page
number e.g. D3/187 [Back]
Note 2 Usually abbreviated to ‘Dr
Brown’s’. [Back]
Note 3 Rhodes I,
C/1/2-3 [Back]
Note 4 From among the numerous testimonials
in I/104 [Back]
Note 5 Save for the
USA. [Back]
Note 6 A draft letter corrected in both
Hebrew and English by Amikam was in fact found towards the end of the
trial [Back]
Note 7 All have the same registered office
and all were referred to by Laddie J in his judgment on the interlocutory
application as ‘Mr Berkovitch’s £2 companies’. I also refer to these companies
as the ‘UK corporate defendants’, D10 being an Israeli
company. [Back]
Note 8 Yasmin asserts that she was always a
director “in name only” [D/11/90]. [Back]
Note 9 D/7/65 [Back]
Note 10 D8/1041-1046. See the next
paragraph [Back]
Note
11 D8/985. [Back]
Note 12 And (as it emerged in evidence) a
sub-dispute with Mr Berkovitch involving allegations of unpaid commission with
which I am not concerned. [Back]
Note 13 The witness statements are at D/14
and 15. [Back]
Note
14 D/7/63 [Back]
Note 15 Mr Mark Rycroft, of whom mention
has been made, was at all material times director of this
company. [Back]
Note 16 See the archived web-site pages at,
for example, I/46-53. [Back]
Note 17 See for example
H/11 [Back]
Note 18 Hence the name (and later the
registered trade mark) ‘B FREE’ for the defendants’ bottles in
issue. [Back]
Note
19 D/7/3-6 [Back]
Note 20 June
2004 [Back]
Note 21 See Witness Statement of Rhodes
[C/1/§ 36]. [Back]
Note 22 See D/7/§§
7-8. [Back]
Note
23 G2/225 [Back]
Note 24 A/28 [Back]
Note 25 The order is at A 26. The issue of
delay was raised by the defendants at the hearing before Laddie J – to no
avail. During the course of the present hearing it was again raised after it
emerged that the Claimants knew of the existence of the allegedly infringing
bottles even earlier than the date in issue before Laddie J. I was informed
that the point was conceded by Mr Purvis after the conclusion of the hearing.
Mr Hughes has recently expressed the intention of seeking to re-open the
matter after delivery of this judgment. [Back]
Note 26 ‘Overarching’ conspiracy as Mr
Purvis called it. [Back]
Note 27 Entitlement to this date was
challenged in the Particulars of Invalidity and it was conceded that the
Patent was entitled only to its second priority date, 19 January 1996. Nothing
turns on the point. [Back]
Note 28 Hereafter ‘PA
’77’. [Back]
Note 29 See The Intellectual Property
(Enforcement etc) Regulations 2006, schedule 2. [Back]
Note 30 A/10 [Back]
Note 31 Col 3, ll
54-55 [Back]
Note 32 Col 4, ll
3-7 [Back]
Note 33 Col 4, ll.
19-20 [Back]
Note 34 See Tollman, §§
45-46 [Back]
Note 35 See the asymmetric NUK teats of
Exhibit 14. [Back]
Note 36 For clarity I have omitted repeated
part references. [Back]
Note 37 Per Jacob LJ in Technip France SA’s
Patent [2004] RPC 919 at 927. [Back]
Note 38 See below, particularly in relation
to the two prior art citations. [Back]
Note 39 Already considered: see § 56
above. [Back]
Note 40 Col 4, ll
12-16. [Back]
Note 41 see § 31
above. [Back]
Note 42 Henceforth referred to as ‘the
patented bottle’. [Back]
Note 43 See Fig
16supra. [Back]
Note
44 D7/882 [Back]
Note 45 See for example Tollman §72(6) and
Samson D 7/888-889 [Back]
Note 46 Cross-examination on this put its
date as approximately June or July 2004. See
D11/878 [Back]
Note 47 There was an initial sub-dispute as
to the propriety of some of the Notices of Experiments. I reviewed what was
involved and rapidly formed the view that argument and submission on this
aspect of the case would be a waste of time and money. I would add that the
Claimants (and Mr Tollman) had had adequate notice of all the experiments and
made no suggestion of needing to do further experiments in reply. I therefore
treated all the notices as having been properly served etc and in addition,
permitted Mr Samson to perform his ‘informal’ experiment with a baby bottle in
the witness box. There was no further objection regarding this course of
action from either party. [Back]
Note 48 But not their expert, Mr
Tollman. [Back]
Note 49 X/1 [Back]
Note 50 Court Exhibit 14B for example shows
the six results in which an internal negative pressure arose during
testing. [Back]
Note 51 PCT WO 2005/089060. This is to be
found at G2/257. [Back]
Note 52 X/1 is dated 17 August
2004. [Back]
Note 53 see G2/206
[Back]
Note 54 Samson I
F/1/§74 [Back]
Note 55 See
F/1/20 [Back]
Note 56 See footnote
41 [Back]
Note 57 The repeat of Mr Samson’s informal
experiment is the subject of a separate un-numbered
transcript. [Back]
Note 58 F/1/§
81. [Back]
Note 59 E/§
23. [Back]
Note 60 See also Terrell 15th Edn 7.14 –
7.16 [Back]
Note 61 I record at this juncture that
after some initial skirmishing on the point, the experts agreed that this was
so. [Back]
Note 62 See for example Tollman E/§
49. [Back]
Note 63 Tollman §
47 [Back]
Note 64 Confirmed by Samson III,
F/3,§3 [Back]
Note 65 Again, this was a matter in which
after initial disagreement, the experts seemed
agreed. [Back]
Note 66 Which are not relied on in this
case. This is not the same thing as prejudice in a particular field (often
called ‘mindset’) which may legitimately form part of the factual evidence
falling within common general knowledge. This was part of the
claimants’ case here . [Back]
Note
67 D7/925 [Back]
Note 68 E/§50 [Back]
Note
69 D7/933 [Back]
Note 70 See Samson 1 §37 and Samson 3 §§
2-4 [Back]
Note 71 D 7/925. See also Samson III F/3 §§
2-4. [Back]
Note 72 Tollman Report, E/§
30 [Back]
Note 73 Samson III,
F3/3/§4 [Back]
Note 74 § 52. That is not Offman’s stated
intention either: See Col3 ll 6-10 [Back]
Note 75 See
§60. [Back]
Note 76 The makeshift use of soft drinks
bottles to nurse sock lambs with milk is well known and continues to my
knowledge to day . [Back]
Note 77 D7/820-821 and D6/737
[Back]
Note
78 D6/732. [Back]
Note 79 See Tollman E/§§ 76 and 79 and
Samson I F/1/§ 35 [Back]
Note 80 Samson I
F/1/41 [Back]
Note 81 Swedish
‘välling’. [Back]
Note 82 See §104. I am supported by the
experts’ evidence. See inter alia Tollman E/1/§23 and Samson
D7/878 [Back]
Note 83 Drawing on G3/117 itself based on
adapting a schematic drawing in Andersson [Back]
Note 84 No doubt in order to differentiate
it from the B FREE trademarks simpliciter.
[Back]
Note 85 The reproductions of the logos in
this judgment are not in colour. The issues canvassed hereafter really require
these logos to be viewed in colour. See Annex
A. [Back]
Note 86 CDPA ’88, s
17 [Back]
Note 87 CDPA ’88, ss. 22,
23 [Back]
Note 88 Though it may not be apparent from
copies of this judgment the same shade of ‘turquoise green’ is used in both
logos. See Annex
A. [Back]
Note
89 D8/1031 [Back]
Note 90 The logo recently created for the
London Olympic Games coming to mind in this
context. [Back]
Note
91 D8/1017-1038 [Back]
Note 92 See
D8/1055 [Back]
Note 93 Springsteen v Flute International
[1999] FSR 180 (not cited) [Back]
Note 94 § 13 [Back]
Note 95 A/25 [Back]
Note 96 A/26 [Back]
Note 97 § 13 [Back]
Note
98 A/2/§14 [Back]
Note 99 Mr Alberici for example, was paid
by commission. [Back]
Note 100 See the evidence of Mr Tirosh, D
8/1044-1045 [Back]
Note 101 Because they antedated the events
of present interest. See Mr Herzog’s cross examination D 4/498. Mr Herzog was
HandiCraft’s US attorney. [Back]
Note
102 D9/1269-1270 [Back]
Note
103 D8/981 [Back]
Note 104 See for example, Tirosh III,
§6 [Back]
Note
105 D8/987 [Back]
Note 106 Save again as to patent
infringement. [Back]
Note 107 Though a broader allegation
involving Dvora, B Free and Action Trading is made in relation to the
‘knowledge’ to be imputed to TTY: see A/2/31
(c). [Back]
Note 108 Dvora was of course working for
Action Trading (in the same premises as B Free) selling the Dr Brown’s
bottles. [Back]
Note 109 An allegation of patent
infringement apart. [Back]
Note
110 D9/1131-1132. [Back]
Note 111 D9/1128. She agreed that this was
a salary: D/91129 [Back]
Note 112 She has in fact never paid
personal tax in the UK, it emerged. See the letter to the court dated 24/5/07,
two days after this evidence was given, from a UK accountant, Mr I Goldin –who
was at one time a shareholder in SA :X/44. [Back]
Note
113 D9/1149 [Back]
Note 114 Timi said that ‘TTY’ is the first
letters of the forenames of Amikam’s three children : D
8/1084 [Back]
Note 115 With
references. [Back]
Note
116 D8/1000 [Back]
Note 117 His written submissions were
lengthy and well researched. [Back]
Note 118 A/2/§15..
[Back]
Note 119 All contained Bundle I. For a
good example, compare I/65 with I/140 [Back]
Note 120 In the light of Mothercare being
informed of the true position by Mr Mark Rycroft of Lindam: see fn
15 [Back]
Note 121 See the cross-examination on this
at D10/1432-1437. [Back]