The Federal Court has found that Graphix Labels Pty Ltd infringed copyright in artwork supplied by its customer, Futuretronics.com.au Pty Ltd.

Graphix was contracted by Futuretronics to reproduce the artwork on covers or “skins” for mobile phones, iPods, handheld games and electronic game controllers that it was manufacturing for Futuretronics.

At a later date, Graphix decided that it would start manufacturing its own "skins", using artworks supplied to it from other sources. However, a brochure it produced to promote its products included the artworks supplied by Futuretronics, for illustrative purposes only.

In addition to infringement of copyright, the Court found that by supplying brochures and spare copies of skins bearing copies of the artwork to its customers and potential customers, Graphix breached an implied licence term that it would only use the artwork for purposes authorised by Futuretronics.

A claim for breach of copyright in respect of the manufacturing materials was abandoned. Claims for breach of the Trade Practices Act by Graphix and for breach of fiduciary duty against an employee of Futuretronics were unsuccessful.

Futuretronics.com.au Pty Limited v Graphix Labels Pty Ltd [2007] FCA 1621

(29 October 2007)