Argument over copyright in an app facilitating shuttle pick-ups has seen Rohan Marx, owner of Australasian car rental company East Coast Car Rentals, suing former business colleague Dmitry Ruban. The High Court blocked Mr Ruban from commercially exploiting the software until their dispute was sorted out.
Mr Ruban developed the software, known as ‘PickMeUp,’ several years ago during pandemic lockdowns. This work followed discussions with colleague Mr Marx about improving the way customers could be better delivered from airport arrival to East Coast Car’s off-site vehicle depots.
This arrangement saw the two become joint directors and 50/50 shareholders in a newly formed company called Shuttle Solutions Ltd.
It was intended that East Coast Cars would pay a fee to Shuttle Solutions each time a customer used the app. Longer term plans were for Shuttle Solutions to also licence the software to other businesses.
Evidence was given of Mr Ruban getting increasingly frustrated about the lack of progress in finding further customers beyond its contract with East Coast Cars.
Claiming he owned the software since he had written the programme, Mr Ruban gave notice of cutting links with East Coast Cars and promoting new sales through another company he had recently formed.
Software, source and object code are all treated as ‘literary works’ under copyright law.
The general rule is that copyright lies with the author.
If work has been commissioned, the person commissioning the work holds copyright. This requires proof of agreement to pay for the work being done. No formal contract is required.
Justice O’Gorman ruled there was evidence suggesting Mr Ruban’s work was ‘commissioned.’
The scope of the project arose from on-going discussions between Mr Ruban and Mr Marx, with Mr Ruban being ‘paid’ by taking up his fifty per cent shareholding in their joint venture company, Shuttle Solutions Ltd. In addition, Shuttle Solution’s accounts record a debt owed Mr Ruban for work done on ‘research and development.’
Arguably, Mr Ruban’s plans to fly solo with the PickMeUp app amounts to misappropriation of both a company asset and the opportunity for their company to exploit further use, Justice O’Gorman ruled.
Directors can be held liable should they divert a corporate opportunity to their own benefit.
It is no defence that prospects of the company being able to take up the business opportunity are remote, or even non-existent.
Mr Ruban strongly disputes that he was commissioned to write the software.
A decision on ownership of PickMeUp requires a full court hearing.
In the interim, Justice O’Gorman blocked Mr Ruban from commercially exploiting the PickMeUp software and from promoting any rival product derived from PickMeUp.
Marx v. Ruban – High Court (21.03.25)
25.090