With most of its $14.5 million Treaty settlement lost in failed business
ventures, Ngati Tama is back in court arguing over intellectual property rights
attached to its unsuccessful investment in the MyVirtualHome system.
Taranaki
iwi Ngati Tama received $14.5 million cash from its 2001 Treaty
settlement. With little more than 1000
members, it is one of the smallest iwi.
One of its failed investments was a nine per cent investment of one
million Australian dollars in MyVirtualHome International Ltd. The company proposed using computer aided
design for house building. Its most
valuable asset was intellectual property.
The company has been wound up insolvent.
The High Court was told MyVirtualHome assets were sold by a secured
creditor to a company called KGB Ltd in a deal which included only $9000 in
cash. Ngati Tama disputes the sale. KGB is associated with David Phillips. He was a consultant to MyVirtualHome. He is director of MyVirtualHome’s largest
shareholder.
Mr Phillips
now alleges Ngati Tama is illegally using MyVirtualHome intellectual
property. A ‘cease and desist’ notice
was issued. Ngati Tama in turn alleges
KGB purchased the intellectual property at an undervalue. It wants an investigation into the sale. MyVirtualHome liquidators did investigate,
describing the sale as ‘ill-considered and ill-conceived’. They decided to take no further action.
Back in
court, Ngati Tama alleges Mr Phillip’s ‘cease and desist’ letter breaches an
earlier out of court settlement in which all parties agreed no one would make
any further claims against the other.
Justice Courtney ruled ownership of the company’s intellectual property
was never in dispute. The sale to KGB was
binding. While there is a dispute about
the terms of the deal, no steps have been taken to challenge it. There was no breach of the out of court
settlement when Mr Phillips sought to enforce his property rights, she ruled.
Ngati Tama Custodian Trustee Ltd v. Phillips – High Court (2.03.18)
18.047