When deciding whether a contractual term is unfair, a Court will likely consider if the term would cause a significant unbalance, if it is not reasonably necessary to protect legitimate interests, or if it would cause detriment. Careful consideration should be given to the inclusion of clauses of this nature in standard form contracts, especially if their operation favours the issuer of the contract. [Read more…]
Legal Articles
Unfair contract terms and the penalty doctrine – ACCC v Employsure Pty Ltd [2020] FCA 1409 (1 October 2020)
New USPTO guidelines on AI assisted inventions
In response to the Biden administrations Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence on 30 October 2023, which outlined policies and principles to promote responsible Artificial Intelligence innovation and competition, the United States Patent and Trademark Office (USPTO) issued inventorship guidance for artificial intelligence (AI) assisted inventions. These guidelines came into effect of 13 February 2024 and apply to all applications and all patents resulting from applications, filed before or after this date. [Read more…]
Asset preservation orders – is there a real risk of dissipation?
An asset preservation order is a class of freezing order made by a Court usually without notice to the respondent or defendant (Exparte) for the purpose of preventing the frustration or inhibition of the Courts processes. The need for an asset preservation order arises when there is danger that a judgment (or prospective judgement) made in favour of the party initiating the proceedings would go wholly or partly unsatisfied because the respondent may dispose of, deal with or diminish the value of its assets. [Read more…]
False and misleading representations by business – sections 29(1)(a)-(n) of the ACL
Where a business strays beyond mere “sales puffery” in promoting its goods or services and “crosses the line” in to the realm of deception, depending on the nature of the statements sections 29(1)(a)-(n) of Schedule 2 to the Competition and Consumer Act 2010 (Cth)(ACL) may be able to be used as a sword to hold the errant business to account. Sections 29(1)(a)-(n) of the ACL contain a wide range of prohibitions relating to representations made about goods or services by businesses as shown below: [Read more…]
Use of the © (copyright) symbol
It is something that is often overlooked however it is considered best practice to add a copyright statement and the little c symbol (Copyright Statement) on any literary or artistic works (Works) that a business publishes and asserts that it owns. Under Australian law, the “material form” of all original Works is automatically protected by copyright, however applying a Copyright Statement acts to put people on notice that the Works are protected by copyright and to provide a contact for anyone seeking permission to use it.[1]
The Digital ID Bill 2023 (Cth)
On 30 November 2023, the Digital ID Bill 2023 (Cth) and the Digital ID (Transitional and Consequential Provisions) Bill 2023 (Digital ID Bills) were introduced in the Australian Senate. Digital IDs are designed to provide individuals with a convenient way to verify their identity when completing certain online transactions and dealing with government and certain businesses. This acts as an alternative to repeatedly providing details or copies of personal and sensitive identification documents with third parties that may be vulnerable to cyber-attacks. [Read more…]
Overview of the illegal phoenixing regime
The Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020 (Cth) (Amending Act) came into force on 18 February 2020 and was designed to prevent illegal phoenixing activity. The Amending Act introduced reforms such as creditor-defeating disposition provisions to combat phoenixing activity. Additional provisions amending the Corporations Act 2001 (Cth) were aimed to encourage accountability by preventing the resignation of directors when there is no replacement director in place. [Read more…]
What is a change of control clause?
In commercial contracts, a change of control clause is one that allows one of the parties to an agreement to terminate or modify its terms if a third party acquires a controlling stake in the other. A change of control clause grants a party certain rights, such a right to accelerate an obligation to pay or the right to terminate the contract for example. This is often sought due to a concern that a competitor may acquire a controlling stake in the company that a business is contracting with. [Read more…]
Biologi’s Bf & Bk serums contain no Vitamin C – Court Orders prove it!
The recent decision of the Federal Court of Australia Native Extracts Pty Ltd v Plant Extracts Pty Ltd [2023] FCA 1265 where final declarations and orders were made against Mr Ross Macdougald (Macdougald), Plant Extracts Pty Ltd ACN 613 551 349 (Plant Extracts) and skincare brand Biologi Pty Ltd ACN 618 697 297 (Biologi) sheds light sheds light on the contents of certain of Biologi’s skincare products.
Despite the finality and legal clarity of the orders (Court Orders) there appears to be some confusion about what they mean. The Court Orders which are final, declared and ordered that various representations (discussed below) made by Macdougald, Plant Extracts and Biologi in relation to their products on their websites, on social media and on various third party websites were false and misleading and amounted to misleading and deceptive conduct. [Read more…]