Australia: No extraterritorial operation of Australian patents

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Australia: No extraterritorial operation of Australian patents

Australian courts have recently adopted a restrictive reading of the extra territorial operation of Australian patents.

In Load and Move Pty Ltd v Container Rotation Systems Pty Ltd [2016] FCA 843, the plaintiff owned a patent directed to a container rotation system. It sued the defendants, alleging infringement of the patent. The infringement allegation was peculiar. It alleged the defendants had contracted for the foreign manufacture in China of a container rotation system which was to be supplied to Eritrea. Thus the system was never going to enter the Australian territory, even though the supply was being orchestrated from Australia.

The judge refused to grant preliminary discovery and to entertain an infringement finding. As the contract for manufacture and sale was to be performed totally outside the jurisdiction, there was no exploitation of the patent for the purposes of infringement.

The case points to a restrictive reading by the Australian judiciary of the territorial operation of Australian patents. Given the rapid development of internet-type sales channels, this is perhaps unfortunate, as it may allow the effective exploitation of patent rights by Australian entities, provided that exploitation occurs wholly outside the country.

Peter Treloar


Shelston IP

Level 21, 60 Margaret Street

Sydney NSW 2000, Australia

Tel: +61 2 9777 1111

Fax: +61 2 9241 4666

email@shelstonip.com

www.shelstonip.com

more from across site and SHARED ros bottom lb

More from across our site

Data centres are being built across the US, prompting patent disputes, but Texas’s thriving tech industry and patent-ready courts make the state particularly ‘ripe’ for litigation
Carpmaels & Ransford is set to bolster its UK attorney team with the appointment of Simmons & Simmons’s head of IP in the UK
Updates on Nokia’s licensing strides and a surge in patent activity around battery recycling in Australia were also among the top talking points
To mark International Day Against Child Labour, Matteo Amerio at Corsearch says the people inside businesses who can identify counterfeiting risks must be given the tools and authority to act
With genuine equity at IP firms becoming rarer, securing partnership is harder than ever, but increased transparency is also making climbing the ladder more predictable
Yossi Sivan explains how Israeli judgment is a pro-brand owner departure from the norm and why it sends a strong message that corporate structures are not always a shield
Halim Shehadeh, group CEO of IP firm CWB, says that in the rush to discuss what AI can do, IP firms are overlooking the more important question of whether they are ready
Caitlin Heard, who formally joined the firm from CMS last month, says she is excited by the ‘energy’ of the London office
Ranjna Mehta-Dutt, who moved to Chadha & Chadha after 25 years at Remfry & Sagar, says the firm plans to expand its life sciences practice through targeted recruitment and dedicated teams for bigger clients
The initial contempt of court claim targeted Stobbs and the firm’s client for allegedly interfering with the administration of justice
Gift this article