Case Law[2024] ZAGPPHC 615South Africa
Emisha Software (Pty) Ltd v Servsol Software Solutions CC and Others (2023/069011) [2024] ZAGPPHC 615 (6 June 2024)
High Court of South Africa (Gauteng Division, Pretoria)
6 June 2024
Headnotes
Summary: Interdict - copyright infringement of the IGS computer program. Urgency of the application. Requirements - clear right, potential suffered and no prospects for alternative remedy. Copyright Act- protects ownership of the author – originality of the work and not the developer of the program. Urgency - matter before the ordinary motion court and no satisfaction of the requirements. Settled law on jurisdiction - Supreme Court Act 10 of 2013- not to refuse cases properly brought before the courts.
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: North Gauteng High Court, Pretoria
South Africa: North Gauteng High Court, Pretoria
You are here:
SAFLII
>>
Databases
>>
South Africa: North Gauteng High Court, Pretoria
>>
2024
>>
[2024] ZAGPPHC 615
|
Noteup
|
LawCite
sino index
## Emisha Software (Pty) Ltd v Servsol Software Solutions CC and Others (2023/069011) [2024] ZAGPPHC 615 (6 June 2024)
Emisha Software (Pty) Ltd v Servsol Software Solutions CC and Others (2023/069011) [2024] ZAGPPHC 615 (6 June 2024)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAGPPHC/Data/2024_615.html
sino date 6 June 2024
FLYNOTES:
INTELLECTUAL
– Copyright –
Computer
program
–
Applicant
having paid respondent to do coding for program – Discovered
that new clients loaded without its consent –
Alleging
infringement of copyright in program – Respondent has not
satisfied requirements of co-ownership – Originality
of
program attributable to applicant as its first author –
Overall function of program was done and decided at instruction
of
applicant – Interdict granted – Relief relating to
audit of respondent’s systems not justified –
Copyright Act 98 of 1978
.
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
CASE NO: 2023/069011
(1) REPORTABLE: YES
(2) OF INTEREST TO
OTHER JUDGES: YES
DATE: 06 June 2024
SIGNATURE:
In the matter between:
EMISHA SOFTWARE
(PTY) LTD
Applicant
And
SERVSOL SOFTWARE
SOLUTIONS CC
First Respondent
IMALISOFT (PTY)
LTD
Second
Respondent
INTUITIVE (PTY)
LTD
Third
Respondent
INVESTA FINANCIAL
SERVICES (PTY) LTD
Fourth Respondent
Delivery:
This judgment is
issued by the Judge whose name appears herein and is submitted
electronically to the parties /legal representatives
by email. It is
also uploaded on CaseLines and its date of delivery is deemed 06 June
2024
.
Summary:
Interdict - copyright infringement of
the IGS computer program. Urgency of the application. Requirements -
clear right, potential
suffered and no prospects for alternative
remedy.
Copyright Act- protects
ownership of the author –
originality of the work and not the developer of the program. Urgency
- matter before the ordinary
motion court and no satisfaction of the
requirements. Settled law on jurisdiction - Supreme Court Act 10 of
2013- not to refuse
cases properly brought before the courts.
JUDGMENT
NTLAMA-MAKHANYA AJ
[1]
This is an application for an interdict, alternatively an interim
relief regarding the infringement
of a copyright of the computer
program; Insurance Guard System (IGS), which the applicant alleges,
it has exclusive ownership.
The applicant sought an order for the
delivery of the IGS program; an order for an enquiry on the damages
suffered or reasonable
royalty to which it is entitled because of the
unlawful infringement of the copyright and an order that an expert be
appointed
to conduct an audit on the respondent’s system that
it no longer stored or transferred program to other devices.
[2]
The respondent vehemently denied that the applicant has exclusive
ownership of the IGS program
and the application itself is based on a
lie and is disputed by the facts herein because the respondent is the
co-owner of the
said program.
[3]
In general, the substance of this application is designed to what the
applicant perceives to be
an infringement of its IGS computer program
and sought the delivery of the original and copies of the program in
the possession
or control of the respondents to the applicant as a
legitimate and lawful copyright owner.
[4]
The crux of the dispute and the legal question to be answered in this
matter is about the determination
of the basic principles relating to
the exclusive right of copyright entitlement as envisaged in the
Copyright Act 198 of 1978
(Copyright Act) and its balance with the
alleged opposing claim for co-ownership of the IGS program.
[5]
It is also imperative that this Court situates the determination with
the background to the cause
of the dispute to examine the principle
of ‘ownership’ and its linkage to ‘originality’
in copyright infringement
allegations. For ease of reference, I will
address this matter by referring to the first respondent as inclusive
of the second
to the fourth respondent.
Background:
The applicant’s
case
[6]
The parties, with no service level agreement between them, but a
mutual relationship of over 14
years that turned sour were in an
informal agreement for the development of the computer program:
Insurance Guard System (IGS program)
wherein the first respondent was
paid for the professional services rendered upon the applicant’s
instructions in the development
and management of the said program
for a fee of R6 million rand over a seven (7) year period. As argued
before this Court, the
IGS program is a software program that is
exclusively owned by the applicant which hosts insurance products and
serves as a ‘Credit
Guard’ for the consolidated credit
life insurance products that is made available to debt counsellors
for their clients.
It was designed to conduct business in the field
of debt counselling for the purpose of the National Credit Act 34 of
2005 (NCA).
The IGS program calculates insurance quotes, manages, and
issues policies, manages bulk policy replacements, and allocates and
manages premiums on behalf of the insurer in accordance with the
regulatory requirements. The system hosts all client’s data
and
is integrated with the Intuitive Front End (IFE) system used by debt
counsellors. Ultimately, it is a set of instructions fixed
or stored
in a way, when used, (in)directly in a computer, directs its
operation to bring about a result. It accordingly constitutes
a
computer program as defined in the Copyright Act 198 of 1978
(Copyright Act). As presented before this Court, the IGS program
was
first released towards the end of the year 2016 and the developer,
(First Respondent) does not own the copyright but rather
the
applicant who has exclusive rights to reproduce; adapt and broadcast
it. The applicant has since discovered the new activity
and clients
being loaded in the IGS program without its consent. The applicant
has also discovered that it lost access to the IGS
program in June
2023 whilst still paying the first respondent approximately R60 000
per month.
[7]
The applicant acknowledged that the gist of the application is
copyright ownership and whether
the first respondent or Visagie
is/are joint owners thereof. It is also disputed whether if it is
found that the first respondent
or Visagie are not co-owners that
there has been an infringement of the IGS copyright program.
[8]
The applicant pleaded for the urgency of the matter in that the:
(i)
value of software in the insurance
industry is short lived;
(ii)
the applicant is in a process of
negotiating a large transaction with Hollard Insurance and is unable
to provide the needed critical
documents;
(iii)
the applicant has already lost
clients to the respondent;
and
(iv)
the applicant will be unable to quantify the damages should the
unlawful conduct persists.
[9]
In essence, the applicant counter-argued that the urgency is not
self-created by outlining time
frame and sequence of events from 19
June 2023 until the serving of this application on 14 July 2023. The
said time frame was meant
to indicate the loss of access to the IGS
program with implications for the Hollard Insurance deal falling
through due to the non-provision
of the required documentation.
[10] It
was the applicant’s case for an interdict on an urgent basis
against the respondents for the copyright
infringement of the IGS
program and that it not be removed from accessing the various
platforms; JIRA; IFE; IGS Program; iPDA;
Slack including their
history and for an audit be conducted of the respondent’s
systems to ensure the IGS program is no longer
stored on any platform
or cloud or anywhere where it may be accessible to the respondents
and for any respondent opposing this
application to pay the costs of
this application to include the costs consequent to the employment of
two counsels jointly and
severally.
The respondent’s
case
[11]
The respondents denied the exclusive ownership of the applicant’s
IGS program as non-existent.
The first respondents refute the
application as based on a lie in that there are various factors that
support its contention that
the applicant has not provided a cogent
reason why the matter was not presented before the ordinary course of
action and not as
an urgent motion action. The quest for an interdict
is in effect final and the
Plascon Evans Rule
ought to apply
in settling the dispute which cannot be successful. The first
respondent is not the owner but the co-owner of the
copyright in the
IGS program and is paid on a regular basis by the applicant. There
has been no copyright infringement and does
not use the IGS program
let alone the second to fourth respondents and the program has since
become dormant.
[12]
The respondent has filed for condonation of the supplementary
affidavit to refute some of the allegations
that were made by the
applicant in its founding affidavit regarding the alleged new
discovered activities, which the respondent
alleged, it did not
respond in its main affidavit due to an oversight and picked it up on
the applicant’s replying affidavit.
As stipulated in the
answering affidavit, the jurisdiction is not of concern to the second
-third respondents in that they do not
utilize the IGS system and
have never infringed any of the applicant’s copyright. The
first respondent resides in the Western
Cape and the second to third
respondent were solely joined for this Court’s jurisdiction
without which, the applicant would
not have the basis to lodge this
matter before this Court without the established jurisdiction.
Therefore, this Court does not
have jurisdiction but the Western Cape
High Court.
[13]
The respondent also rejected that the application is urgent and
claimed self-created urgency by the applicant.
It substantiated its
reasons by unearthing the basic principles regarding urgency which
require the applicant to show cause of
the potential not receiving
substantial redress in the ordinary hearing in due course. The
further contention was that the applicant
did not invoke the
provisions of Rule 41 before launching this application which could
have enabled the resolve of the matter in
an amicable way including
the provision of the assistance that could have been required. The
loss of clients, the Hollard deal
and the calculation of damages
suffered, and their continuation did not justify the urgency of this
application as it was self-created.
Analysis of the
submissions
[14]
This analysis starts with the difficulty associated with copyright
infringement of computer programs complaints
such as in this matter
because of the technicality involved in the application of the basic
principles that enable the determination
of the rationality of the
alleged claim. I am motivated by Harms ADP of the Supreme Court of
Appeal in
King v South African Weather Services
(716/07)
[2008] ZASCA para 5 that ‘
in enforcing any copyright claim
it is necessary to have regard to the relevant statutory requirements
necessary to establish a
copyright claim in the name of a particular
claimant, and to determine whether or not copyright infringement had
taken place
’. Of particular importance, which is of direct
application in this matter, was Harms ADP’s further contention
that:
Copyright
is a creature of statute and has to be found within the four corners
of a statute, in particular the
Copyright Act 98 of 1978
. Certain
defined works (
of
which computer programs are one
)
are eligible for copyright under the Act. This assumes, however, that
the work concerned is ‘original’ (s 2(1)) and
has been
reduced to a material form (s 2(2)). In addition, copyright must have
been conferred by virtue of nationality, domicile
or residence or as
a result of first publication (s 3 and 4). It is accordingly of the
utmost importance for a copyright claimant
at the outset to identify
the work or works which are said to have been infringed by the
defendant. … Copyright infringement
is (subject to an
irrelevant exception) actionable ‘at the suit of the owner of
the copyright’ (s 24(1)). It is only
actionable at the suit of
the author if the author is also the owner. … The word
‘author’ has a technical meaning;
and the author is not
necessarily the person who first makes or creates a work. It depends
on the nature of the work. In the case
of a computer program, the
author is ‘the person who exercised control over the making of
the computer program’ (s
1 s v ‘author’). …
The author of a work that attracts copyright is usually the first
owner of the copyright
(s 21(1)(a)) but that need not necessarily be
the case. An exception, which applies to computer programs amongst
others, concerns
the case of a work ‘made in the course of the
author’s employment by another person under a contract of
service’:
… ‘Using’ a copyright work does
not amount to copyright infringement. Primary infringement consists
in the performance
of an act, in the Republic, which the owner has
the exclusive rights to do or to authorize without the latter’s
consent (s
23(1)). … The exclusive rights of the owner depend
on the nature of work. In the case of computer programs the important
rights are those of reproduction, adaptation and rental, (paras 6-10
and all footnotes omitted).
[15] In
addressing the problems associated with computer programming, the
Copyright Act as
adapted by Act 125 of 1992 defines a computer
program to include:
(
1)(d)(i)
a version of the program in a programming language, code or notation
different
from that of the program; or
(ii)
a fixation of the program in or on a medium different from the medium
of fixation of the program.
This definition is also
linked to the definition of the ‘author’ of the program
as
(i) ‘the person who exercised control over the making of
the computer program
’. It is critical to acknowledge the
distinction on the development of the computer program which may be
based on an idea
that is pitched by, as in this case, the applicant
as opposed to the developer (respondent) who designed the said
program and not
necessarily becoming the owner. In this instance,
this may relate to a workplace environment where a person is employed
to perform
the associated task as per the scope of his or her
employment and cannot claim ownership of the program on resignation
or leaving
his or her original work. In this regard, the applicant is
a private company that was initially incorporated as an entity to
develop
software and computer program solutions for insurance brokers
which would enable them to host their products. On the other hand,
the first respondent is a close corporation that is a software
development company. It is in this context, of the pitching of an
idea and for the other party execute it on behalf of the ‘pitcher’
that is critical for this Court to determine the
substance of
ownership within the framework of the
Copyright Act.
>
[16] In
the present matter, as stipulated in the Notice of Motion, the
applicant applies for an interdict that
is meant to restrain the
respondent from infringing its exclusive copyright ownership of the
IGS program whilst the respondent
claims to be the co-owner of the
said program. This matter also contains disputed facts about the gist
and content of the alleged
copyright claim.
[17] In
the Replying Affidavit, the applicant endorsed the main contention of
this application in that ‘
its purpose is to interdict the
respondents from infringing the copyright in a computer program, of
which the applicant is the copyright
proprietor. The applicant also
seeks the delivery of the original computer programs and all thereof
in the possession or control
of the respondents
’.
[18] In
addressing this matter, the foundation for a successful interdict
based on copyright infringement is the
establishment of:
(i)
a clear right to the alleged
copyright infringement;
(ii)
whether the conduct of the
respondent constitutes the copyright infringement as claimed;
and
(iii)
having no other alternative remedy to satisfy the claim
,
(Mokoena AJ in
Claasen
v TEC Novation Solution (Pty) Limited
(2017/40521)
[2018] ZAGPPHC para 7).
[19] As
Harms ADP noted above that the point of departure in copyright
infringement claims is to locate the foundations
of protection in the
statute,
Copyright Act. Such
location will be of direct link to the
satisfaction of the claims for interdictory relief regarding the
dispute in question. In
this matter, the core content of the dispute
is first linked to the nature of copyright in computer programs which
entails the
exclusive right to do or authorise the doing of the
following acts in the Republic as provided in 11B which entails:
(a)
reproducing the computer program in any manner or form;
(b)
publishing the computer program if it was hitherto unpublished;
(c)
performing the computer program in public;
(d)
broadcasting the computer program;
(e)
causing the computer program to be transmitted in a diffusion
service, unless such service transmits
a lawful broadcast, including
the computer program, and is operated by the original broadcaster;
(f)
making an adaptation of the computer program.
[20]
The applicant, in the Founding Affidavit acknowledged that it was not
the company that writes company coding
but exercised the control over
the making of the computer program that makes up the IGS program.
Thus, it utilised the services
of the first respondent to do the
actual coding on its behalf and the said work was always done at the
instructions and control
of the applicant. The overall function of
the IGS program was done and decided at the instruction of the
applicant. As reinforced
in the Heads of Arguments, the claim of
copyright subsistence follows the:
(i)
originality of the work produced;
(ii)
recorded as such and
(iii)
the author was a South African citizen at the time the work was made.
[21] It
is acknowledged that the principle of ‘originality’ is
not defined in the
Copyright Act, but
the protection of any work is
guaranteed irrespective of any form, which in this instance, the
protection of the IGS program. The
nature of the elements of the
copyright is of direct link to the elements that characterise the
originality of the work produced.
This brings to question the
contention herein about the exclusive ownership or co-ownership of
the IGS program as a concept of
‘originality’ through the
lens of the
Copyright Act. Simply
put; is the applicant eligible as a
sole owner of the IGS program as envisaged in
section 2(1)
of the
Copyright Act or
the first respondent the co-owner of the said
program?
[22] In
this case, the question raised about ownership is protected in
section 21
of the
Copyright Act which
reads as follows:
(1)(a)
Subject to the provisions of this section, the ownership of any
copyright conferred by
section 3
or
4
on any work shall vest in the
author or, in the case of a work of joint authorship, in the
coauthors of the work
.
[23]
The first respondent admits that it is not the owner and does not
have any right in the IGS program and is
paid on a regular basis due
to the co-ownership status and the applicant was never denied any
access to the various platforms for
the program use. Since this case
was founded on an informal agreement without detailing what would be
the terms of the co-ownership,
the specific responsibilities of each
of the parties
are left to dry in the air
in that there is no
determination and framework for the sharing of roles regarding the
adaptation; broadcast and marketing of the
IGS program. These basic
principles relating to the core content of copyright relationship
could not have been left as ‘
mere
’ informal roles
of each party due to the nature of the needed responsibility to
exercise caution in protecting infringement
claims as evidenced by
this matter.
[24]
The first respondent alleges that it is not in use of the IGS program
and the second to fourth respondents
are not in possession of the
program and the applicant has never made any request for access to
the various platforms that it sought
access and relief from. This
means that the first respondent appears to be the ‘
eagle
’
that understands the functionality of the IGS program as its
developer and ‘
waters down
’ the relief sought by
the applicant that could have been resolved by a ‘
mere
asking
’ approach without burdening this Court with this
matter.
[25]
Thus, this Court is of the view that the first respondent has not
satisfied the requirements of co-ownership
in that there is no legal
basis upon which co-ownership could be claimed. As expressed by
Ngcobo J in
Affordable Medicines Trust v Minister of Health
[2005] ZACC 3
;
2005
(6) BCLR 529
para 108 that ‘
the law must indicate with
reasonable certainty to those who are bound by it what is required of
them so that they may regulate
their conduct accordingly’,
(footnotes omitted). In this case, it is not for this Court to be
placed in a position to assume what could have been what type
of a
relationship that could have regulated the alleged co-ownership or
the ownership itself regarding the IGS program. It is not
for this
Court to determine this matter based on a technicality but on an
informed basis that could have stated with certainty
the intention of
the parties in the regulation of their joint ownership of the IGS
program. Particularly with the disputed facts
in this matter that
placed this Court in an insurmountable position. The first
respondent’s deponent filed
Annexure RJH5
as a proof of
co-ownership which is an invoice that is indicative of the services
to be paid for by the applicant. An invoice (Annexure
RJH5) is not a
formal agreement that determines the roles and responsibilities of
each party to the relationship. I also find it
striking that the
first respondent would be paid an amount of R50 000 a month plus VAT
and 3% of premiums administered through
the program due to its
co-ownership of the IGS program whilst the basis of joint ownerships
is the sharing of responsibilities
regarding the joint entity, in
this instance, the IGS program.
[26]
This case is grounded on the intersectionality of the principle of
‘originality’ and ‘ownership’.
If there was
no original conception of the idea for a computer program, the second
leg of ownership could not have followed. The
applicant’s
deponent states that ‘
it was the applicant’s team that
used the skill and knowledge and was subject to the control and his
management as an employee
of the applicant
’. This Court is
not to further repeat the applicant’s contention which was not
disputed by the first respondent that
the IGS program was done on the
instructions of the applicant. In addition, the first respondent
highlighted that the applicant
was not competent to administer the
IGS program and could have just provided the needed information if it
was asked by the applicant.
The first respondent, as a developer of
the program does not have the claim to the originality’ of the
IGS program which
infuses the principles of co-ownership if it could
have simply provided the needed information. As a co-owner, carrying
the interests
of the co-ownership agreement, the first respondent was
required to further the interests of the venture and use his or her
skills
in protecting their program against interference. I am finding
it difficult that the first respondent could relegate the sensitivity
of administering a computer program to what I have already referred
to as a ‘
ask me approach
’. Considering the
sensitivity that is required of this Court to develop a body of
jurisprudence that may have the potential
to enrich the copyright
laws of the Republic, the ‘
ask me approach
’ has no
legal basis.
[27] It
is my considered view that the first respondent has not satisfied
this Court about his co-ownership of
the IGS program. The originality
of the program is attributable to the applicant as its first author.
The conduct of the first
respondent, by his own admission, and
ability to access the IGS program and other various platforms is
indicative of what appears
to be reflective of dominance over the
program use by virtue of having developed it. If the first respondent
can boldly state that
it can easily access and such access to be made
available to the applicant on request, leaves this Court with doubt
about the quality
of the future protection of the IGS program. It
raises a question whether it could not be made available by the first
respondent
to other parties without the applicant’s consent if
it can simply provide the information if asked. It is evident that
the
first respondent is advocating for a ‘
brotherhood
’
approach in a matter that has the potential to place this Court in a
precarious position on the exercise of its discretion
regarding the
legitimacy of the co-ownership claim.
[28]
The first respondent dismisses this application as entirely based on
a ‘lie’ with no substance
of the ‘truth’. As
expressed in
Claassen
, para 15 in that the ‘
evidence
presented must prove that the work that requires protection was made
by an eligible person, which means the author of the
IGS program,
that entails the ‘originality’ to enable the court to
determine with certain the nature of the needed
protection
specifically whether the author is a ‘qualified person’
and the work is original
’. In this instance, the applicant
as envisaged in
section 24
of the
Copyright Act being
the owner of
the IGS program by conceptualizing the idea of the IGS program,
section 26(12)(a)
requires the proof of:
(i)
the subsistence of the copyright
in that work; or
(ii)
the title of any person in respect of such copyright, whether by way
of ownership or licence,
may be adduced by way of affidavit, and the
mere production of such affidavit in such proceedings shall be prima
facie proof of
the relevant facts.
This is the fact and in
law that is not disputed by the first respondent that the applicant
is the originator of the IGS program
for its debt counselling
business in compliance with the
National Credit Act 34 of 2005
. The
first respondent’s attestation to co-ownership validates the
contention herein that the applicant originated the production
of the
IGS program. This brings to the fore the requisites of
section 23(1)
which protect copyright infringements which states that ‘
copyright
shall be infringed by any person, not being the owner of the
copyright, who, without the licence of such owner, does or
causes any
other person to do, in the Republic, any act which the owner has the
exclusive right to do or to authorise
’. This Court is not
to refrain from raising a concern over the potential of copyright
infringement if the party can boldly,
with an affirmation of his
skills and attributes, at the mere asking, could easily provide the
information. This Court is of the
considered view and not to misplace
the glaring infringement with a lack of certainty for the future
protection of the IGS program,
if the first respondent could easily
make the information available, not to find the co-ownership claim
lacking substance that
ought to be rejected and reinforce the
applicant’s copyright infringement claim.
[29]
The applicant’s sought relief for an audit of the first
respondent’s system to ensure the IGS
program is not stored
anywhere in its system is also more of a poaching on the business and
or economic interests of the first
respondent. The first respondent
may not interfere with the functioning of the IGS program relating to
the economic activity of
the applicant. The first respondent, as the
developer of the software, with the acquired skills, has a potential
to undermine the
furthering of the business interests which could
have huge implications for other business entities. However, no
business entity
or individual has a monopoly not just on the computer
program but any program that is meant to ensure a healthy competitive
business.
I am not satisfied that this relief is justified. This is
the case with the damages and of importance is interdicting the first
respondent not to unlawfully access and use the program without
authority and consent of the applicant if they so wish to re-build
their relationship. An interdict is the immediate stoppage of any
interference which meant that an audit would be a fruitless exercise
because even if the IGS program is stored elsewhere, the first
respondent will not be able to use it. Such use will be a compromise
of the Constitution and the entire judicial system regarding the
delivery of just and equitable orders. The applicant’s sought
relief for an audit and determination of damages is not justified and
dismissed.
Urgency and
jurisdiction
[30]
The applicant applied for the matter to be considered urgently due to
the short-lived status of computer
programs within the insurance
industry and the fact there was an insurance deal from Hollard
(
Annexure: FA23
) deal that it was likely to lose due to
the failure not to provide the necessary documentation, having lost
clients and would be
unable to quantify the damages if the unlawful
conduct persists. On the other hand, the first respondent dismissed
the quest for
‘urgency’ in that it was self-created which
goes back to what I have referred to as the ‘ask me approach’.
[31]
The first respondent relied on Rule 41 as a response to the
applicant’s anxiety over the copyright
infringement in that it
could have just ‘
asked
’. The substance of Rule 41
entails the engagement in mediation efforts before litigation which
can easily resolve the dispute
in question. Spilg J in
Kalagadi
Manganese (Pty) Ltd v Industrial Development Corporation of South
Africa Ltd
[2021] ZAGPJHC para 24 gave substance to mediation in
that it is:
(a)
a voluntary non-binding
non-prescriptive dispute resolution process;
(b)
the terms of the process to be
adopted are those agreed upon by the parties;
(c)
the mediation facilitates the
process to enable the parties to themselves find a solution and makes
no decision on the merits nor
imposes a settlement on them;
and
(d)
the process is confidential.
The Judge went on to
state that in para 30:
(a)
Mediation is encouraged as a form
of alternative dispute resolution. The only sanction for a failed
mediation is the possibility
of an adverse costs order;
(b)
Mediation is entirely voluntary
and if the parties, or only two of them, are so minded they are at
liberty to agree on such terms
of mediation as they wish;
(c)
an unwilling party cannot be
compelled to mediate. The furthest a court can go is to direct a
litigant “to consider”
mediation;
(d)
Even if some of the parties agree
to mediate other parties in the same litigation are not obliged to
fall in line. They must simply
wait out the period while litigation
is stayed;
(e)
Thirty days is a reasonable
time to expect a mediated result failing which the parties must go
back to litigation, unless the court
extends the time on “good
cause” - which is likely to occur where the parties, or court,
believe that given more time
mediation may prove successful;
and
(f)
Save in limited
circumstances which may be provided under law, a court cannot be
informed of any of the mediation proceedings prior
to the final
outcome of litigation. Even if settlement has been reached it is
unnecessary for the court to be informed of the terms
(although
exceptions are conceivable). It is only if a part of the case is
unresolved through mediation that the court is to be
informed of the
issues which have been resolved- but this is really a matter of case
management or housekeeping so that the court
will proceed to
determine only the outstanding issues. I believe that on their own
the highlighted portions of the Rule reveal
as much.
[32] In
this case, it was clear that the application of Rule41A which could
have enabled an amicable resolution
of the dispute through mediation
could not have succeeded. I am of the view that the setting of the
scene for mediation being founded
on a formal communication in a
letter dated 21 July 2023, which I find to be carrying a clear
intention to negotiate in good faith
for mediation, was a fit for
purpose approach. However, the applicant refused to engage through
this process and of particular
concern to me was the first
respondent’s Voice Note of a WhatsApp message (16.2 of the
Replying Affidavit), which the first
respondent finds justifiable, as
not a credible framework for the amicable resolution of the dispute.
I also find it difficult
to negotiate a huge and sensitive claim in
copyright relationships through a voice note, particularly with
parties that are at
‘
legal loggerheads
’ regarding
the niche application of the law in copyright infringement. The 21
July 2023 letter, I still find as a justifiable
form that could have
served to attain the resolution of the dispute harmoniously. However,
Spilg J in para 31 stated that ‘
If a party is not obliged to
mediate then it is difficult to appreciate how under the rule a party
who submits to mediation is obliged
to undertake mediation in a
particular way. The only sanction in terms of Rule 41A is if the
party has abused mediation to delay
the litigation
’.
Herein, the matter is distinct in that the applicant was not
persuaded to mediate due to the concerns raised about his
views
regarding the urgency of the matter. This puts this Court in a
position of being unable to determine how the process could
have
unfolded.
[33] In
this case, I am not to further exhaust the quest for Rule 41A in that
the matter is before this Court
for determination and I am also not
satisfied that the applicant has met the requirements for urgency.
The requirements for urgency
are similarly situated as those for
interdictory relief and I also need not repeat them herein. Thus,
this Court acknowledges that
urgency is of direct substance to the
enforcement of the principles and content of the right to access
justice as envisaged in
section 34 of the Constitution 1996 which
states that ‘
everyone has the right to have any dispute that
can be resolved by the application of law decided in a fair public
hearing before
a court or, where appropriate, another independent and
impartial tribunal or forum
’. Similarly in
Standard Bank
of SA Limited v Thobejane; Standardad Bank v Gqirhana
,
[2021] (6)
SA 403
(SCA) Sutherland AJ para 49 held that ‘
care must be
taken not to impose on s 34 work that it is not designed to perform.
Its role is that of a grundnorm and does not implicate
the peculiar
organisation of a litigation system in which respect for this value
must exist. The guarantee is solely that there
must be a forum with
competence to address any and every dispute about a legal right and
it must be presided over by persons who
can render a fair process
’.
[34]
Since the present matter was enrolled and removed from the urgent
roll on 22 August by mutual agreement between
the parties and set
down for hearing for 29 August 2023 until the final notice on 06
September for the sit down for the hearing
on 06 November 2023 which
was finally held on 10 November 2023 due to the request from the
Counsels, gives substance to the
Thobejane
contention that of
importance is a forum with competence to determine the dispute.
Further, the timeline is indicative of an ordinary
course of events
which showed lack of urgency and the applicant has not shown any
irreparable harm to be suffered as the matter
was only heard on 10
November in the normal motion court roll. The re-enrolling and
re-filing of this matter for hearing again
on 10 November 2023, I am
also persuaded to echo the sentiments expressed by Opperman J in
Mantsopa Local Municipality v Inzalo Management Enterprise Systems
(Pty) Ltd and Others
Case No 3832/2023 paras 11-12. In that case
Opperman J held that ‘
this case is a reminder that the rules
of courts may not be utilised to play litigatory games that delay
justice and cause costs
and procedural misery. Litigation must be
proper and timeous and may not cause trials or hearings to become
chaos. Courts may also
not be held hostage by the reliance on section
34 of the Constitution. Litigation and access to courts are
constitutional rights
that may not be trampled and ridiculed; it must
be conducted with the utmost decorum and respect for the rule of law
… careless
litigation cannot be cured by an urgent application
especially if the prejudice to the other party and administration of
justice
is clear. The law is well known’.
Makaula J in
Molosi v Phahlo Royal Family
(CA 07/2021) [2022] ZAECMHC 10
para 13 held ‘
that the court has to exercise the discretion
to determine the urgency of matter with reference to rule 6(12)(a)
that, in urgent
applications, the court or a judge
“
may
dispense with the forms and service provided for in the rules and may
dispose of such matter at such time and place and in such
a manner
and in accordance with such procedure (which shall as far as
practicable be in terms of these rules) as it seems meet”.
In this case, the foundations of urgency should not be based on
contracts that a party is likely to conclude or loose but ensuring
the determination of the clear right to a harm likely to be suffered
with no prospects for any other alternative remedy. It is
not for
this Court to be overburdened by the economic interests of the party
but the quality of the protection that is accorded
by the legal
framework in resolving each matter. The matter of urgency in this
case is therefore dismissed.
[35]
Another contentious issue was the jurisdiction of this matter
regarding the joiner of the first respondent
who is the main subject
of the dispute with principal place of business in Cape Town. The
second to fourth respondent as being
brought in for convenience so
that the applicant could have access to the first respondent.
Broadly, the first respondent dismissed
that this Court has
jurisdiction over this matter in that it is the Western Cape Division
that has jurisdictional competence to
resolve this dispute and no
other. I am again persuaded by Harms ADP on his ‘
statute
creature approach
’ in that section 21(2) of the Superior
Court Act 10 of 2013 lays the framework for the joiner of the parties
in other jurisdictions
and provides that ‘
a Division also
has jurisdiction over any person residing or being outside its area
of jurisdiction who is joined as a party to
any cause in relation to
which such court has jurisdiction or who in terms of a third party
notice, becomes a party to such a cause,
if the said person resides
or is within the area of jurisdiction of any other Division
. This
provision eliminates any potential for ‘
forum shopping
’
and the associated risks which could comprise the quality of the
protection accorded in section 34 of the Constitution as
noted above.
As expressed in
Thobejane
para 25 -31
…
litigation
begins by a plaintiff initiating a claim. Axiomatically, it must be
the plaintiff who chooses a court of competent jurisdiction
in just
the same way that a game of cricket must begin by a ball being
bowled. The batsman cannot begin. This elementary fact is
recognised
as a rule of common law, founded, as it is, on common sense. …
, our law does not recognise the doctrine of forum
non conveniens,
and our courts are not entitled to decline to hear cases properly
brought before them in the exercise of their
jurisdiction’.
It is in this context
that the question of the lack of jurisdiction is found to be without
merit as the applicant brought this case
properly and in a correct
forum that serves as the ‘
cornerstone of legal certainty in
the interpretation and application of the law
’ with the
sole purpose of advancing the prescripts of the new dispensation,
(Adams J in
Dynamic Sisters Trading (Pty) Limited v Nedbank
Limited
(018473/2023) [2023] ZAGPPHC 709, para 18). This ground
for the rejection of the application as lacking jurisdiction is
dismissed.
[36]
This application was based on the alleged copyright infringement of
the IGS program. Its substance was the
infringement of the copyright
regarding the exclusive ownership of the IGS program. The outright
rejection of the claim as based
on a lie is without merit. The first
respondent, claiming co-ownership of the IGS program is also without
substance. Of interests,
being the developer and co-owner with no
legal responsibilities regarding the role in the joint venture, the
IGS program, the first
respondent cannot claim the right that he is
not deserving of protection by this Court. The computer program, as a
niche area of
the law, its information regarding its adaptation and
broadcast could not be made available at the ‘
tip of the
finger
’ by mere asking which leaves certainty about its
future protection.
[37]
Accordingly, I make the following order:
[37.1] The
application for an interdict is granted.
[37.2] The costs of
this application are granted on a party and party scale.
N NTLAMA-MAKHANYA
ACTING JUDGE, HIGH
COURT
GAUTENG, PRETORIA
Date Heard: 10
November 2023
Date Delivered:06 June
2024
Appearances
:
Applicant
:
Van
Heerden Troskie Inc
3
Bauhinia Street
Centurion
0046
Respondents
:
Du
Plessis Mundt Attorneys
47
Dawn Crescent
Stellenbosch
sino noindex
make_database footer start
Similar Cases
Servsol Software Solutions CC and Others v Emisha Software (Pty) Ltd (Leave to Appeal) (2023/069011) [2024] ZAGPPHC 950 (18 September 2024)
[2024] ZAGPPHC 950High Court of South Africa (Gauteng Division, Pretoria)98% similar
Computaasist (Pty) Ltd and Others v Coetzee and Others (2024-138494) [2025] ZAGPPHC 126 (6 February 2025)
[2025] ZAGPPHC 126High Court of South Africa (Gauteng Division, Pretoria)98% similar
Disaware (Pty) Ltd t/a Waterkloof Spar v Academic and Professional Staff Associate (41665/2021) [2024] ZAGPPHC 889 (13 September 2024)
[2024] ZAGPPHC 889High Court of South Africa (Gauteng Division, Pretoria)98% similar
South African Legal Practice Council v Ramdin (26408/2021) [2024] ZAGPPHC 633 (25 June 2024)
[2024] ZAGPPHC 633High Court of South Africa (Gauteng Division, Pretoria)98% similar
South African Legal Practice Council v Segaole (2977/2021) [2024] ZAGPPHC 1239 (28 November 2024)
[2024] ZAGPPHC 1239High Court of South Africa (Gauteng Division, Pretoria)98% similar