Australia: No extraterritorial operation of Australian patents

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

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

By accepting a relatively small sample of infringing content to grant worldwide relief, a UK court has adopted a pragmatic approach that could reduce the time and expense involved in huge enforcement actions
This year’s IP STARS Americas rankings reveal that firms are expanding their capabilities, particularly in trade secrets and life sciences
Law firms’ expanding IP capabilities are driving broader industry recognition across a wider range of practice areas
As specialist boutiques challenge traditional firm models, major disputes involving Disney, Ericsson, Siemens and Dolby highlight the firms winning work before the UPC
The firm has added two leading damages specialists as it expands beyond technical analysis and deepens its role in the economics of IP litigation
Josh Seidenfeld, partner at DLA Piper, outlines the emerging legal trends that drive the future of life sciences innovation and how stakeholders can prepare for the future
South Korea's One Law Partners is combining with boutique firm Minwho Law Group to leverage global expansion of K-content and build a broader offering spanning IP, tech and regulatory advisory work
Russell Kennedy's Gina Tresidder on juggling matters, delivering hard truths, and why IP ownership is rarely as simple as people think
Attorney Oran Friar and trainee attorney Harry Cunliffe at Reddie & Grose, share that patent filings for clinical LLMs are surging, but success in the UK and Europe hinges on demonstrating technical innovation
Implementers can use the UK courts to seek FRAND terms for patent pool licences
Gift this article