Sealegs International holds no copyright in use of retractable wheel assemblies in its amphibious boats, ruled the Court of Appeal, leaving Orion brand free to compete with its own product.
In 2018, a High Court injunction blocked former Sealegs’ employees from producing and marketing a rival product. This injunction was lifted by the Court of Appeal.
Sealegs holds registered patents protecting its claimed original mechanisms for retractable wheel assemblies. It chose not to sue competitor Orion in patent law, suing instead in copyright law. Copyright blocks reproduction of ‘artistic works.’ The trial judge ruled Sealegs product was unique. Orion appealed; there is nothing new about boats having retractable legs and Sealegs retractable leg assembly is purely functional, it said. A leg must be affixed to a hull, have a pivot, an axle and a wheel. Allowing Sealegs copyright in its product created a monopoly over what is purely a collection of functional components, Orion said.
Visual similarity arising from functional similarity does not create copyright, the Court of Appeal ruled. Claims to operational originality are for patent law, not copyright law.
Zhang v. Sealegs International Ltd – Court of Appeal (27.08.19)
19.155