In the case of Airphysio Pty Ltd v Harbour Capital Asset Management Pty Ltd [2024] QCA 173, the Queensland Court of Appeal reviewed a dispute involving intellectual property rights connected to a lung physiotherapy device. The appellants, Airphysio Pty Ltd and its associated companies, had agreed under a Royalty Deed to notify Harbour Capital Asset Management (HCAM) of any intended transaction affecting the business exploiting the intellectual property or the rights to manufacture and distribute the device. HCAM claimed that Airphysio and its entities breached this agreement by entering into new license agreements without providing the required notices, thereby reducing royalty payments due on sales. The Court dismissed the appeal filed by Airphysio and allowed HCAM's cross-appeal, ruling that Airphysio was indeed obligated to give proper notices as per the Royalty Deed before executing the new agreements. Consequently, the court found in favour of HCAM, highlighting the appellants' failure to adhere to contract terms meant to safeguard HCAM's royalty interests.
Full text: https://www.sclqld.org.au/caselaw/148929