Group builder Summit Building Services sued for breach of copyright when a customer handed on Summit plans to another builder for construction of a Pokeno home.
The Baxters held discussions with Summit Building Services Ltd starting late 2012 over building designs for their retirement home at Kilbryde Crescent in Pokeno, north Waikato. Over the following months, Summit prepared and refined six sets of house plans. The High Court was told the Baxters never in fact signed up to have Summit complete the build, handing on the plans to another builder. The replacement builder was told the Baxters had ‘paid’ for the plans and were free to pass them on. These plans were clearly marked with a Summit logo together with statements identifying Summit as copyright holder.
Summit sued the Baxters, claiming damages for loss of profit on the building contract and damages for breach of copyright. No damages were awarded for loss of profit; no contract to build was ever signed with Summit.
Summit held copyright in the plans, Justice Davison ruled. Industrial design drawings can amount to a Copyright Act ‘artistic work.’ Damages for breach of copyright were calculated as if a licence fee was notionally charged for use of the drawings. This fee was assessed at $5500; duplicating the same dollar amount the Baxters had paid Summit under a ‘preconsent agreement’ for the preliminary design work. Summit unsuccessfully claimed it was entitled to ten per cent of the total construction cost as an appropriate notional licence fee.
Summit Building Services Ltd v. Baxter – High Court (12.02.20)
20.030