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2025 MarsdenLR 1497

HIGH COURT MALAYA KUALA LUMPUR
NEHEMIAH REINFORCED SOIL SDN BHD – Appellant
Versus
RSEG SDN BHD & ANOR – Respondent
[Civil Suit No: WA-22IP-38-09/2022]



Petitioner Advocates:Liow Si Khoon,Jennifer Lai Sui Ting,Jonathan Lee Xing Sheng ,Respondent Advocate: Jennifer Chandran,Nur Amalina Suhainy

The court ruled that patent infringement requires proof that the alleged product falls within the patent claims, emphasizing the necessity of independent expert testimony in such cases.

Headnote:(A) Patents Act 1983 - Sections 35(1), 36, and 58 - Copyright Act 1987 - Section 36(1) - Breach of contract - Plaintiff alleges infringement of Malaysian Patent No: MY-138580-A and copyright infringement against both Defendants, and breach of contract against the 2nd Defendant - The 1st Defendant's product, RSEG WALL, was found to infringe Claims 1, 2, 3, 7, 10, 11, 12, 13, 14, and 20 of Patent 580 - The 2nd Defendant's involvement as a shareholder did not constitute infringement as he did not perform any infringing acts - Plaintiff's copyright claim against the 2nd Defendant was dismissed due to lack of particulars - The breach of contract claim against the 2nd Defendant was dismissed as the relevant clause was void under Section 28 of the Contracts Act 1950. (Paras 103-106)

(B) Patent Infringement - Plaintiff must prove infringement by showing that the alleged infringing product falls within the scope of the patent claims - The role of expert testimony is crucial in determining whether patent claims are infringed, and the independence of experts is paramount. (Paras 62-64, 78)

Facts of the case:
The Plaintiff claimed infringement of its patent and copyright against two Defendants, with the 1st Defendant allegedly producing a product that infringes the patent, and the 2nd Defendant being accused of breaching a confidentiality agreement. (Paras 1-4, 95-96)

Findings of Court:
The court found that the 1st Defendant's product infringed the Plaintiff's patent, while the claims against the 2nd Defendant for copyright infringement and breach of contract were dismissed. (Paras 103-106)

Issues: Whether the 1st Defendant's product infringes the Plaintiff's patent, whether the 2nd Defendant can be held liable for patent infringement, and whether the breach of contract claim against the 2nd Defendant is valid. (Paras 10-20, 95-100)

Ratio Decidendi: The court emphasized that to establish patent infringement, the Plaintiff must demonstrate that the product in question falls within the patent claims, and that the independence of expert witnesses is essential for a fair assessment of patent claims. (Paras 62-64, 78)

Result: The Plaintiff's claim against the 1st Defendant for infringement of Patent 580 is allowed; claims against the 2nd Defendant are dismissed.

JUDGMENT

Azlan Sulaiman J:

Introduction

[1] This action involves claims by Plaintiff against both Defendants for infringement of its Malaysian Patent No: MY-138580-A ("Patent 580") and for copyright infringement, and against the 2nd Defendant alone for breach of contract.

The Parties

[2] The Plaintiff is principally engaged in the business of designing, installing, building and constructing retaining walls.

[3] The 1st Defendant was incorporated on 5 November 2020 and its nature of business is "Construction of buildings N.E.C; specialized design activities N.E.C.; wholesale of a variety of goods without any particular specialization N. E. C."

[4] The 2nd Defendant had previously been employed by the Plaintiff and its associated companies, from October 2005 to December 2018. On 12 October 2005, he joined the Plaintiff as a Senior Geotechnical Engineer, and on 1 April 2005 he was promoted to General Manager of Nehemiah Prestress Sdn Bhd and then Nehemiah Toowong Bridgetech Sdn Bhd, eventually resigning from the latter on 11 December 2008.

Patent 580

[5] Patent 580 is a product patent with a filing date of 1 June 2005, which means that by s 35(1) of the Patents Act 1983 ("Patents Act") it has a duration that expires soon on 30 May 2025.

[6] Patent 580 is entitled "Improvements to Structural Connecting Means Used In Earth Retaining Wall Structure", and has 20 claims

[7] Claims 1, 7 and 20 of Patent 580 are independent claims They define the broadest scope of the monopoly that Patent 580 seeks, and are each an amalgamation of the dependent claims associated with it.

[8] The other 17 Claims are dependent claims in that they define a narrower scope of the monopoly sought. This is because they include all of the features of one or more and other claims and state the additional features claimed.

[9] It is the claims of a patent which define its monopoly. In Kirin-Amgen v. Hoechst [2005] 1 All ER 677, Lord Hoffmann quoted with approval the definition of claim by Lord Russell of Killowen in Electric & Musical Industries v. Lissen Ltd [1938] 4 All ER 224:

"The function of the claims is to define clearly and with precision the monopoly claimed, so that others may know the exact boundaries of the area within which they will be trespassers. Their primary object is to limit, and not to extend, the monopoly. What is not claimed is disclaimed. The claims must undoubtedly be read as part of the entire document, and not as a separate document. Nevertheless, the forbidden field must be found in the language of the claims, and not elsewhere."

"The need to set clear limits upon the monopoly is not only, as Lord Russell emphasized, the interests of others who need to know the area 'within which they will be trespassers' but also in the interests of the patentee, who needs to be able to make it clear that he lays no claim to prior art or insufficiently enabled products or processes which would invalidate the patent."

Patent Infringement

[10] The Plaintiff alleges that Patent 580 is being infringed by a product known as "RSEG WALL". Of Patent 580's twenty claims, it alleges that RSEG WALL infringes Claims 1, 2, 3, 7, 10, 11, 12, 13, 14 and 20.

[11] Section 36 of the Patents Act provides:

"(1) Subject and without prejudice to the other provisions of this Part, the owner of a patent shall have the following exclusive rights in relation to the patent:

(a) to exploit the patented invention;

(b) to assign or transmit the patent;

(c) to conclude licence contracts; and

(d) to deal with the patent as the subject of a security interest.

(2) No person shall do any of the acts referred to in subsection (1) without the consent of the owner of the patent.

(3) For the purpose of this Part, "exploitation" of a patented invention means any of the following acts in relation to a patent:

(a) when the patent has been granted in respect of a product:

(i) making, importing, offering for sale, selling or using the product;

(ii) stocking such product for the purpose of offering for sale, selling o

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