Well Lead Medical Co Limited v CJ Medical Limited
[2024] EWHC 951 (IPEC)
I-Smart Developments Limited v Currentbody.com Limited
15 November 2024
[2024] EWHC 2889 (IPEC)
High Court
Two companies fought over who owned the rights to a face mask and neck bib. A judge said there was enough evidence of a broken agreement to proceed to a full trial, instead of immediately dismissing the case.
Key Facts
- •I-Smart Developments Limited (ISD) and I-Smart Marketing SVCS Ltd (ISM) trade in phototherapeutic devices (face mask and neck bib with LEDs).
- •In 2017, ISM and Kaiyan (a Chinese company) entered into a non-disclosure agreement (NDA).
- •Kaiyan provided designs for the products, which were manufactured by Kaiyan and distributed by I-Smart Companies and Currentbody.
- •ISD obtained UK registered designs (RD 816 and RD 966) and claims UK unregistered design rights (UKUDRs).
- •Disputes arose, leading to ISD claiming against Currentbody (IP-2023-000039) and Kaiyan claiming against I-Smart Parties (IP-2023-000132).
- •Currentbody counterclaimed alleging breach of NDA by I-Smart, and Kaiyan similarly claimed breach of NDA.
Legal Principles
Summary judgment principles: Realistic prospect of success, not a mini-trial, consider reasonably available evidence.
Easyair Ltd v Opal Telecom Ltd [2009] EWHC 339 (Ch)
CPR 24.5 procedural requirements for summary judgment applications: Application notice must identify points of law and documents; evidence must be filed and served within specific timeframes.
CPR Part 24.5
Contractual interpretation: Objective approach, consider the contract as a whole and the factual matrix.
Sara & Hossein Asset Holdings Ltd v Blacks Outdoor Retail Ltd [2023] UKSC 2
Contracts (Rights of Third Parties) Act 1999: Third party can enforce contractual term if expressly provided or if the term purports to confer a benefit and the parties intended it to be enforceable by the third party; third party must be expressly identified.
Contracts (Rights of Third Parties) Act 1999, s.1
Outcomes
Applications for strike out and summary judgment dismissed.
Both Currentbody's and Kaiyan's claims based on alleged breach of the NDA have a realistic prospect of success. The potential time saving at trial by dismissing the claims is outweighed by the need for a full trial to resolve the factual and legal issues.
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