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2010 MarsdenLR 2123

HIGH COURT KUALA LUMPUR
KENDEK INDUSTRY SDN BHD – Appellant
Versus
ECOTHERM (TFT) SDN BHD – Respondent
[Suit No: D-22(Ip)-1487-2005]



Utility innovations must comply with statutory clarity, conciseness, and enabling requirements to be enforceable, as established by the court in finding the utility innovation invalid due to vagueness.

Headnote:(A) Patent Act 1983 - Sections 17, 17A, 56, and 57 - Utility innovation - Claim for infringement of utility innovation - Validity challenged on grounds of lack of novelty and compliance with regulations - The court established that the Plaintiff's claim lacked clarity, precision, and enabling description, and did not meet statutory requirements. (Paras 1, 134, 139, 145)

(B) Invalidation of Utility Innovation - Requirement of compliance with statutory provisions - The Defendant successfully demonstrated that the claim was not sufficiently clear or concise, leading to the conclusion that it could not be understood or performed by a skilled person, resulting in invalidation. (Paras 145, 154, 164)

(C) Burden of Proof - The onus of proving the innovation's validity lies on the Defendant, but the grant of the utility innovation does not preclude judicial review of its validity. (Paras 129, 135)

Facts of the case:
The Plaintiff contended that its utility innovation for a roller used in the dipped latex industry was infringed by the Defendant, who counterclaimed that the UI was invalid due to non-compliance with statutory requirements and lack of clarity.

Findings of Court:
The Defendant's counterclaim was allowed, declaring the utility innovation invalid and unenforceable, and the Plaintiff's claim was dismissed.

Issues: Whether the Plaintiff's utility innovation met the necessary requirements of clarity and conciseness under the Patent Act and its Regulations, and the validity of the Defendant's claims regarding the unsuitability of the UI.

Ratio Decidendi: The court found that the Plaintiff's claim did not satisfy the clarity, precision, and enabling requirements specified in the Patent Act and Regulations, rendering the utility innovation unenforceable.

Result: The utility innovation was declared invalid, and the Plaintiff's claim was dismissed.

JUDGMENT

This action is in respect of a "utility innovation" under the Patent Act 1983 (the Act) . A utility innovation is not a patent.

A utility innovation is an exclusive right granted for a 'minor' invention that falls short of the inventive step and novelty bars required for patent protection. It is at times described as utility models, petty patents or by some other name. A utility innovation is protected for an initial period of 10 years, which may be extended for another two 5- year term. All in all, it provides a total protection for a total of 20 years.

The subject matter of the utility innovation in the present suit relates to a roller, which is a moveable part in the dipped latex industry to produce dipped latex products such as condoms, balloons, gloves and finger cots.

According to Kendek Industry Sdn Bhd (the Plaintiff), the utility innovation discloses a composition for a movable part in the said industry using plastics and fibre-glass as a mixture.

The Plaintiff claims that Ecotheram Sdn Bhd (the Defendant) had infringed its utility innovation No MY 107629 A for "Material Composition of Paris for Use in Dipped Latex Products Industry" (the UI).

For ease of reference, I reproduce below the Plaintiff's rollers for which, according to the Plaintiff, the UI protects under the Act.

The Plaintiff contends that the Grey EC Roller manufactured by the Defendant had infringed the UI in question.

On the other hand, the Defendant counter claims that the UI granted is not a validly granted utility innovation in that it did not meet the requirements of either the Act or the Patents Regulations 1986 (the Regulations).

At this point, it is convenient to make a short summary of the rival contentions of the parties.

The Plaintiff's case

The Plaintiff is the owner of certificate of the UI. The filing date of the application of the UI is 17.9.1993. It was validly granted on 15. 5.1996. The certificate is still valid and subsisting. The validity of the certificate was challenged in the High COURT (Kuala Lumpur) in Suit No. D5-22-788-1996 and the COURT after a full trial held on 29.6.1999 that the certificate to be valid.

The UI was innovated by Lai Chee Fong (PW1), from the Plaintiff Company, to solve the problems caused by rollers used before 17.9.1993 in the manufacturing of dipped latex products industry. Before 1993, rollers were made of cast iron, rubber or mild steel. The rollers ran on the metallic tracks in the production line. The metal-to-metal contact created problems; there were contamination and noise pollution. The metal-to-metal abrasion resulted in the metal particles falling down into the latex tank below causing pinholes in the dipped latex products produced. All the manufacturers of dipped latex products faced this problem. No one in the industry except for PW1 decided to embark on a research and development exercise to resolve this problem. He thought of various alternatives and considered whether the use of other materials to replace the metallic rollers was a viable solution. He considered the properties of each material and assessed which material could last for long period under high temperature and resist wear and tear. He was on the lookout for a material that did not result in fine particles dropping into the latex tank causing pinholes.

PW1 started to conduct intensive research in early 1990 in his office and in one injection-moulding factory. His research was tested out under confidential disclosure agreement with the factory. Three (3) years after he initiated his research activities, PW1 found a workable range of composition, which could be used, for the rollers and other movable parts in the dipped latex industry.

Having expended close to RM 80,000 for the research and development of his innovation, PW1 immediately sought a patent lawyer and filed an application for the UI for at the Malaysian Intellectual Property Office (MyIPO).

There is no evidence that rollers in the dipped latex industry were made of polyme

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