Australia: No extraterritorial operation of Australian patents

Managing IP is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Australia: No extraterritorial operation of Australian patents

Australian courts have recently adopted a restrictive reading of the extra territorial operation of Australian patents.

In Load and Move Pty Ltd v Container Rotation Systems Pty Ltd [2016] FCA 843, the plaintiff owned a patent directed to a container rotation system. It sued the defendants, alleging infringement of the patent. The infringement allegation was peculiar. It alleged the defendants had contracted for the foreign manufacture in China of a container rotation system which was to be supplied to Eritrea. Thus the system was never going to enter the Australian territory, even though the supply was being orchestrated from Australia.

The judge refused to grant preliminary discovery and to entertain an infringement finding. As the contract for manufacture and sale was to be performed totally outside the jurisdiction, there was no exploitation of the patent for the purposes of infringement.

The case points to a restrictive reading by the Australian judiciary of the territorial operation of Australian patents. Given the rapid development of internet-type sales channels, this is perhaps unfortunate, as it may allow the effective exploitation of patent rights by Australian entities, provided that exploitation occurs wholly outside the country.

Peter Treloar


Shelston IP

Level 21, 60 Margaret Street

Sydney NSW 2000, Australia

Tel: +61 2 9777 1111

Fax: +61 2 9241 4666

email@shelstonip.com

www.shelstonip.com

more from across site and SHARED ros bottom lb

More from across our site

Siegmund Gutman, who joined Mintz one year ago, explains the firm’s approach to life sciences litigation and what it means for hiring plans
The merger of two IP boutiques could prompt others to follow suit and challenge Australia’s externally funded firms
Law firm leaders say they are eager to make the most out of the market following a 'surprising' survey on in-house interest in IP monetisation
A defeat for AstraZeneca and Open Innovation Network's 20th anniversary were also among the top talking points this week
Nigel Stoate, head of Taylor Wessing's award-winning UK patents team, tells us about his team’s UPC successes and why collaboration is king
Camilla Balleny, who spent a decade at Carpmaels & Ransford, will become the firm’s first head of patent litigation, Managing IP can reveal
Leaders at the newly merged firm Jones Maxwell Smith & Davis reveal their plan to take on bigger firms while attracting more clients and talent
Charles Achkar, who will bring a team of two with him, said he was excited about joining ‘one of the few strong IP boutiques’
Andy Lee, head of IP at Brandsmiths and winner of the Soft IP Practitioner of the Year award, tells us why 2024 was a seminal year and why clients value brave advice
The deal to acquire MIP's parent company is expected to complete by the end of May 2025
Gift this article