Case Law[2022] ZAGPPHC 952South Africa
Hahn & Hahn Inc v Trustco Group International (Pty) Ltd (2010/03199) [2022] ZAGPPHC 952 (5 December 2022)
Headnotes
in Wright Boag & Head Wrightson (Pty) Ltd v Buffalo Brake Bam Company[3] that an expired patent can be revoked. The following was held by the Court:
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Hahn & Hahn Inc v Trustco Group International (Pty) Ltd (2010/03199) [2022] ZAGPPHC 952 (5 December 2022)
Hahn & Hahn Inc v Trustco Group International (Pty) Ltd (2010/03199) [2022] ZAGPPHC 952 (5 December 2022)
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sino date 5 December 2022
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO.: 2010/03199
REPORTABLE:
YES/NO
OF
INTEREST TO OTHER JUDGES: YES/NO
REVISED
5
DECEMBER 2022
In
the matter between:
HAHN
& HAHN INC
Applicant
And
TRUSCO
GROUP INTERNATIONAL (PTY) LTD
Respondent
JUDGMENT
van
der Westhuizen, J
[1]
This application related to the validity of SA Patent 2010/03199,
entitled “
TRANSACTION FACILITATION SYSTEM”
. The
respondent was the registered proprietor (patentee) of the patent.
The applicant applied for the revocation of the patent
premised upon
various grounds of invalidity as provided for in section 61 of the
Patents Act 57 of 1978, (the Act). The respondent
applied for a
conditional counterclaim for an amendment to the patent specification
relating to the deletion of specific claims
thereof.
[2]
The patent lapsed due to non-payment of the prescribed renewal fees.
The lapsing of
the patent, and the consequences thereof formed the
basis of an action for damages between the parties, the present
applicant being
the defendant in that action by the present
respondent. Nothing turns on that action in respect of the present
application. That
was common cause between the parties.
[3]
On the issue of the grounds for revocation of the patent, the
applicant alleged that
the patent was invalid for want of novelty,
lack of inventive step, a method of doing business, material
misrepresentation and
that the patentee was not a person entitled to
apply for the grant of a patent.
[1]
[4]
The procedure for the revocation of a patent is hybrid in nature
between an action
and an application on Notice of Motion. A party
seeking the revocation of a patent is obliged: to apply on the
specified form P20
as prescribed in terms of the Act for the
revocation of the patent; to file a Statement of Particulars; and to
file its evidence
in support by way of affidavit. In opposing an
application for revocation of its patent, the patentee is obliged to
file a Counterstatement,
in the form of a plea, and evidence in
support thereof by way of affidavit.
[5]
In the present instance, the respondent filed a special plea that
related to where
a patent lapsed due to the non-renewal of the
prescribed fees, a lapsed patent cannot be revoked post lapsing
thereof. The respondent
further filed a conditional counterclaim for
an amendment to the patent specification by the deletion of certain
claims in the
patent specification, should the court find that a
lapsed patent can be revoked.
[6]
In its heads of argument the respondent conceded, and correctly so,
that a lapsed
patent can be revoked.
[2]
Consequently, the respondent abandoned its special plea. It required
no further consideration.
[7]
Further in this regard, it was held in
Wright
Boag & Head Wrightson (Pty) Ltd v Buffalo Brake Bam Company
[3]
that an expired patent can be revoked. The following was held by the
Court:
“
A
patent which has expired is nevertheless capable of being revoked,
because revocation dates back to the date of the grant of the
patent,
and therefore revocation can affect claims for infringement or for
royalties.”
[8]
By parity of reason, a lapsed patent suffers the same fate.
[4]
A patent is granted in respect of an invention for a specific period,
i.e. twenty years from the date of grant.
[5]
After the expiry of that date, the patent enters into the public
domain. A patent that has lapsed for non-payment of renewal fees
may
be restored under certain circumstances.
[6]
In the present instance, the respondent has disavowed an intention to
apply for the restoration of the patent. It has clearly made
an
intentional election in that regard. The patent remains lapsed.
Whether a patent has expired or has lapsed, the same fate befalls
it.
It is no longer in effect,
[7]
although some residual rights may entail, such as the revocation
thereof, where the validity of the patent is determined at the
date
of grant thereof.
[9]
As recorded earlier, the patent related to a
Transaction
Facilitation System
and accordingly the field of invention was a
transaction facilitation system that was implemented over a mobile
communications
network. The abstract of the complete specification of
the patent summarised the invention of the patent and reads as
follows:
“
The
invention provides a system for facilitating the initiation and/or
conclusion of an insurance contract, said system including
a mobile
tele
communications
network, a mobile telecommunications handset operable on the network,
and a server having a point-of-presence on
the network, said server
including a CPU, data storage means, input, and outputs, wherein
software is provided on the server which
is operable on the server to
initiate an insurance contract in response to data received by the
server from the handset over the
network from a user, wherein when
the user purchases airtime for using the mobile telecommunications
network, a message is sent
to the user’s mobile
telecommunications handset, in which message an offer is made to the
user to provide insurance to the
user without further charge
conditionally on the user responding to the offer by transmitting a
message to the server over the
telecommunications network from the
mobile telecommunication handset either accepting or rejecting the
offer, which message is
processed by the server in accordance with
the predetermined rules set in the software. This invention extends
to a server and
a method of using the system and the server.”
[10]
It was stated in the patent specification that the inventors
recognised that a need existed for
the facilitation of sales
transactions, especially for financial services over a wireless
communication network, as most economically
active people have mobile
telephone handsets.
[11]
In the body of the complete specification three aspects of the
invention were identified. The
first provided a system for
facilitating the initiation and/or conclusion of an insurance
contract. A second aspect of the invention
provided a server for
facilitating the initiation and/or conclusion of an insurance
contract. The third aspect of the invention
provided for a method of
initiating and/or concluding an insurance contract. Those aspects
translated into three independent claims,
together with various
dependent claims respectively. The independent claims were claim 1,
claim 6 and claim 8. Claim 1, with its
dependent claims, related to
the system. Claim 6, with its dependent claims, related to the server
and Claim 8, with its dependent
claims, related to the proposed
method. Claim 15 of the specification is a so-called omnibus claim.
Nothing turns on that claim.
[12]
In the complete specification the terms “
without further
charge”
, “
at no additional cost”
and “
no
further costs to the user”
were used interchangeably. The
clear indication in the patent specification, and the intention of
the patentee, was that the user
would only have to pay in the event
of accepting the offer for insurance, namely, was the amount for the
purchasing of the airtime.
[13]
It was common cause between the parties that the integers of claim 1
of the complete specification
were:
(a)
a system for
facilitating the initiation and/or conclusion of an insurance
contract, said system including:
(b)
a mobile
telecommunications network;
(c)
a mobile
telecommunications handset operable on the network; and
(d)
a server
having a point-of-presence on the mobile telecommunications network,
said server including:
(e)
a CPU;
(f)
data storage
means;
(g)
inputs and
outputs;
(h)
wherein
software is provided on the server which is operable on the server to
initiate an insurance contract in response to data
received by the
server from the handset over the network from a user;
(i)
wherein when
the user purchases airtime for using the mobile telecommunications
network, a message is sent to the user’s mobile
telecommunications handset
(j)
in which
message an offer is made to the user to provide insurance without
further charge;
(k)
conditionally
on the user responding to the offer by transmitting a message to the
server over the mobile telecommunications network
form the mobile
telecommunications handset either accepting or rejection the offer;
(l)
which
responding message is processed by the server in accordance with
predetermined rules set in the software.
[14]
The integers of claim 6 were similar, if not identical, to that of
claim 1. The only distinction
was the substitution of the word
“system” with the word “server” in claim 1,
thereby moving the focus from
a system to the server claimed in claim
1.
[15]
Independent claim 8 related to the focus on the method of initiating
and/or concluding an insurance
contract, over a mobile communications
network, selling insurance to a user at no additional cost to a
mobile telecommunications
handset user, the offer requiring a
response from the user to signify an intention to accept the offer,
contacting the user in
response to a response received from the user
and collecting predetermined types of information required to
underwrite the insurance
policy.
[16]
On a purposive reading of claim 8 it clearly claimed a method of
doing business, which is not
patentable in terms of the provisions of
section 25 of the Act.
[8]
This
the respondent conceded by filing a conditional counterclaim as
recorded earlier. After conceding that a lapsed patent could
be
revoked, the respondent submitted that the conditionality of the
counterclaim for amendment of the claims of the patent specification
became unconditional and resulted in a permissible application for
amendment by deleting invalid claims. There was no opposition
to the
application for amendment.
[17]
An amendment to a complete patent specification that was granted, is
retrospective to the date
of the priority of a patent, i.e. the date
at which the validity of the patent is to be decided. The intention
being that a patentee
is entitled to amend out of alleged invalidity.
[9]
An amendment to a complete
patent specification could thus be sought after the expiry of the
patent, or by parity of reasoning,
the lapse of a patent due to
non-payment of the renewal fees.
[10]
[18]
As recorded earlier, the amendment application sought the deletion of
claims 8 to 11, 14 and
15 of the complete patent specification and
the consequential renumbering of the remaining claims. The respondent
conceded that
the patent was subject to revocation due to the
inclusion of the method claim as described in claims 8 to 11, 14 and
15 and hence
the application for amendment.
[19]
The amendment, when granted, would remove the alleged invalidity of
the patent on the ground
of offending against the provisions of
section 25(1)(e) of the Act. Thus, when the amendment is granted,
there would be no claim
relating to a method for doing business in
the complete patent specification. Hence, it is submitted on behalf
of the respondent
that it would result in the patent being valid, and
in that regard the respondent sought a declaration of validity in
terms of
the provisions of section 74 of the Act. That submission
would only be correct, should the other grounds of alleged invalidity
relied upon by the applicant, be dismissed.
[20]
It is common cause that the respondent has complied with the
requirements for the grant of the
said amendment. Consequently, in
the normal course of events, the respondent would be entitled - to
the amendment if that was the
only ground for revocation.
[21]
In that regard, the further grounds for revocation relied upon by the
applicant requires consideration.
In undertaking that consideration,
the court is firstly obliged to construe the patent, and in
particular the claims thereof.
[11]
In this regard, the scope of the independent claims have been set out
above. There were no particular definitions or language usage
that
require particular consideration and determination. The normal
meaning of the words and language used would apply.
[22]
In its application for revocation, the applicant firstly relied upon
the ground of invalidity
relating to the provisions of section
61(1)(c) of the Act, namely lack of novelty. In that regard, the
applicant premised its attack
on the novelty of the patent with
reference to a prior patent specification that held a prior priority
date than that of the patent
in suit. It is common cause that the
patent in suit held a priority date of 8 October 2007. The
International Filing date thereof
was 26 November 2007.
[23]
The prior art particularly relied upon by the applicant was a patent
specification filed under
the Patent Cooperation Treaty and was
entitled, “
AN ELECTRONIC PAYMENT SYSTEM FOR PROVIDING
REGULAR PAYMENT SERVICES FOR PRE-PAID MOBILE PHONES”
(the prior art)
.
It had an International Publication Number WO
2005/1244611 and was published on 29 December 2005. It was afforded a
priority date
of 18 June 2004. The abstract of that document reads as
follows:
“
The
invention relates to a mobile telecommunication network and
specifically a network adapted to provide a pattern identifier and
risk analysis system and methodology to enable users of mobile
devices within the network to avail of regular payment services
such
as insurance for their devices. A preferred embodiment of providing a
pre-paid subscriber with the facility to avail of insurance
is
provided”
.
[24]
The prior art document clearly fell within the field of the present
invention, as recorded earlier.
As the said prior art has an earlier
priority date than that of the patent in suit, it thus qualified as
relevant prior art and
was hence comparable with the present
invention.
[25]
It is trite law that the object of novelty of an invention relates to
the claims of the patent
in suit and not to the description of the
invention in the body of the specification.
[12]
The scope of the invention is to be found in the claims of the
complete specification. Thus, in determining whether a claim is
novel, the particular claim is to be construed into its relevant
essential integers. That determination has been done above and
was
common cause between the parties.
[26]
When considering whether or not a printed publication, such as the
prior art relied upon, anticipated
an invention of a later patent
that printed publication has to be construed to determine the import
thereof.
[13]
The two documents
are then compared. The comparison is undertaken to determine whether
the prior printed publication describes
the invention of the claims
of the patent in suit.
[14]
What is to be determined in the comparison, is whether the prior
printed publication describes, i.e. set forth in words or recite
the
characteristics of the invention claimed in the claims of the patent
in suit. In that regard, whether at least the essential
integers of
the claim of the patent in suit were described or disclosed in such a
way that the same, or substantially the same,
process is identifiable
or perceptible.
[15]
Essence,
and not form, is what is considered.
[16]
[27]
On a comparison of the two documents, and reading the claims of the
patent in suit and the alleged
prior art purposively, the said prior
art described or disclosed, in essence, or substantially, all the
integers of claim 1 of
the patent in suit. This was borne out by the
evidence of Mr Bruynse in his discussion of what was disclosed in the
prior published
document. The respondent, through Mr Swindon’s,
evidence, only took issue with integers (j) and (l) of claim 1 of the
patent
and denied that the prior publication described, or disclosed,
those integers. By limiting the dispute in such a way, it was
apparent
that the respondent conceded that the balance of the
integers of claim 1, namely (a), (b), (c), (d), (e), (f), (g), (h),
(i) and
(k) were present in the published prior art document.
[28]
Integer (j) read as follows:
“
in
which message an offer is made to the user to provide insurance to
the user without further charge.”.
The
prior art described or disclosed the following:
“
The
user request a top up of the account in the form of a data request to
the network, which is received at the network (Step 200).
The data
request may be of the form of a short message to a specific number
within the network or of another form, as will be appreciated
by
those skilled in the art, and therefore requires no hardware
modification to the mobile device – see example of graphic
interface in Figure 2A.
…
the
user may then in certain embodiments of the invention be queried by
the network whether they wish to use a portion of this top-up
to
continue their insurance (Step 210). Such query may include a display
on the screen of their mobile device (Figure 2A)”
…
If
as a result of the query of Step 205 it is ascertained that the user
is not a previous subscriber to the system then the user
is queried
as to whether they wish to avail of insurance from this moment on
(Step 220).
…
Once
the correct tariff level for both new and already subscribed users is
determined (Step 215/235) then the value of the specific
top up
request is evaluated and either a fixed amount or a % value of that
top-up request or a combination of fixed amount and
% value of that
top-up request is associated with a contribution towards the
insurance (Step 240).
…
The
top-up request is decremented by that determined fixed or % (Step
254), the remaining portion of the top-up request is credited
to
their top up account in the normal manner (Step 250) and the user is
informed that they are now covered by insurance (Step 255).”
[29]
On a purposive reading of the afore-quoted passages from the prior
published document, it clearly
illustrated that no additional, or
further charge, was to be paid by the subscriber. That description
provided that a portion of
the top-up amount was utilised for the
insurance subscription. Consequently, no additional or further charge
was to be paid.
[30]
The respondent submitted that a “decrement” in the top-up
amount constituted a “further
charge.” The user or
subscriber was required to pay a “further” charge in
respect of the insurance tariff, albeit
as part of the top-up amount.
A decrement in the top-up value for airtime does not translate into a
“further charge”
or “additional charge” or
“additional costs”. It is akin to an apportionment of the
top-up amount between
airtime and insurance. The subscriber of the
prior published document was not required to “pay more”.
Whether there
is a decrement in the top-up amount is neither here nor
there. No further costs are involved. Clearly, in the context of “no
further charge or additional costs” the user or subscriber was
not required to “pay more”. The complete specification
of
the patent in suit read in its context does not provide for “free
insurance”. To read that into the complete specification
or the
claims of the patent in suit is impermissible. Neither does the
respondent advocate for such interpretation. The respondent
conceded
that the patent in suit did not state that no charge for the
insurance was to be paid. It further conceded that there
must be the
payment for a premium for the product of insurance and that the
skilled addressee would know that. It was further conceded
by the
respondent that where airtime is purchased for an initial charge, and
insurance was offered at “no further charge”,
and were
the pre-paid subscriber to pay the premium, that premium must of
necessity be deducted from the initial charge. In the
patent in suit,
as recorded earlier, the terms “
without further charge”
,
“
at no additional cost”
and “
no further
costs to the user”
were used interchangeably. It clearly
meant, in the context as a whole, that no other amount in addition to
the top-up amount was
to be paid.
[31]
Integer (l) of claim 1 of the patent reads as follows:
“
which
responding message is processed by the server in accordance with
predetermined rules set in the software.”
Integer
(l) of claim 1 of the patent in suit followed closely on what integer
(k) provided, and which reads:
“
conditionally
on the user responding to the offer by transmitting a message to the
server over the mobile telecommunications network
from the mobile
telecommunications handset either accepting or rejection the offer”
[32]
The acceptance, or rejection of the offer was processed in accordance
with predetermined rules
set in the software of integer (h) of claim
1, where software was provided on the server to initiate an insurance
contract. This
aspect was referenced in the body of the complete
patent specification when the complete patent specification is read
in its entire
context.
[17]
[33]
Furthermore, the said “pre-determined rules” of integer
(l) of claim 1 of the patent
in suit is a concept with a broad scope.
In the present invention, the issue of the amount to be ascribed to
the insurance offered,
if accepted, was not explicitly disclosed. It
was conceded by the respondent that there would be some amount
required for payment
of the insurance. In the present patent, the
issue of the tariff would by necessity be determined by the “rules
set in the
software.” In the published prior art document the
tariff is likewise determined by the system as recorded earlier. In
my
view, on a purposive reading of the patent specification, it is
immaterial whether there is a decrement or not; all that is required
is that no additional costs, i.e. another amount over and above the
top-up amount, were to be incurred by the subscriber or user.
[34]
It follows that the prior art disclosed the invention of claim 1 of
the patent in suit. Accordingly
claim 1 was anticipated by the prior
art document and claim 1 of the patent in suit was not novel. It was
accordingly invalid for
lack of novelty.
[35]
The only distinction between independent claim 1 and independent
claim 6 of the patent in suit,
was that claim 1 related to a
particular system whereas claim 6 related to the server in such
system. The respondent, through Mr
Swindon, submitted that insofar as
claim 6 was concerned, the published prior art document did not
disclose integers (j) and (l)
of claim 1, which were repeated in
claim 6. I have already dealt with those integers earlier.
Consequently, claim 6 was anticipated
by the disclosure in the prior
art.
[36]
As recorded earlier, claims 8 to 11, 14 and 15 were conceded by the
respondent to be invalid
due to the fact that the claim related to a
business method and were to be deleted in terms of the counterclaim
for amendment.
Those claims do not require further consideration.
[37]
It follows that the patent was invalid for want of novelty and stood
to be revoked.
[38]
The second ground upon which the patent was alleged to be invalid,
related to alleged lack of
inventive step, i.e. obviousness. It is
trite that the ground of lack of inventive step only becomes relevant
should the attack
on novelty fail.
[39]
In the present instance, I have found the patent to be invalid for
want of novelty and thus the
issue of obviousness does not require
further consideration. However, should I be wrong on the issue of
want of novelty, the issue
of obviousness requires consideration.
[40]
Section 25(1) of the Act requires that a patentable invention must be
one which involves an inventive
step which is capable of being used
or applied in trade or industry or agriculture. In that regard, the
inventive step must not
be obvious to a person skilled in the
particular art.
[18]
The prior
art comprises all matter, whether a product, a process, information
about either, or anything else, which has been made
available to the
public (whether in the Republic or anywhere else) by written or oral
description, by use or in any other way.
[19]
[41]
In
Ensign-Bickford
(South Africa) (Pty) Ltd et al v AECI Explosives & Chemicals
Ltd
[20]
four steps were proposed when determining the issue of lack of
inventive step. These are:
(i)
What is the
inventive step said to be involved in the patent in suit;
(ii)
What was, at
the priority date the state of the art relevant to that step;
(iii)
In what
respect does the step go beyond, or differ from, that state of the
art;
(iv)
Having regard
to such development or difference, would the taking of the step be
obvious to the skilled man.
[42]
It is to be noted that the respondent did not apply for the amendment
of claims 1 and 6 or any
of the dependent claims. The respondent
merely assumed those claims to be novel and valid.
[43]
The applicant relied on the evidence of Mr Bruynse relating to the
issue of lack of inventive
step.
[21]
Similarly, the respondent relied on the evidence of Mr Swindon in
this regard. Mr Bruynse discussed the claims that were dependent
upon
claim 1 and identified the alleged inventive step in those claims. He
then considered the cited prior art, and opined as to
the disclosures
therein with reference to the alleged inventive step. The prior art
that the applicant’s expert relied upon
were:
(a)
WO 2005/124611
(the prior art cited under the issue of lack of novelty, prior art
1);
(b)
US
2003/0093302, published 15 May 2003 (prior art 2);
(c)
US
2006/0271411, published 30 November (prior art 3)
[44]
The respondent, the patentee of the patent in suit, proposed, though
the evidence of Mr Swindon,
what the alleged inventive step of the
patent in suit was. In that regard, when considering Mr Swindon’s
evidence purposively,
the alleged inventive step related to what
appeared in integers (j) and (l) of claim 1, namely the integers
claimed not to have
been disclosed in the prior art cited in respect
of lack of novelty. Mr Swindon did not in his evidence consider the
impact of
the cited prior art when read together. The respondent, on
the issue of lack of inventive step argued the issue in its heads of
argument by attacking Mr Bruynse and alleged that he did not consider
the inventiveness of claims 1 and 6, but merely the dependent
claims
2 and 7 which are respectively dependent on claim 1 and 6. There is
no merit in that attack. Mr Bruynse opined that integers
(j) and (l)
of claim 1, and by parity of reason claim 6, were disclosed in the
prior art (prior art 1). It follows that the invention
in claims 1
and 6 involved no inventive step over what was disclosed in that
cited prior art. Insofar as claims 2 and 7 were concerned,
he opined
that those claims that were narrower in scope than their respective
independent claims, were clearly disclosed in prior
art 1, 2 and 3
when read together in any combination thereof. On a careful
consideration of the evidence of Mr Bruynse in respect
of the
disclosures in prior art 1 read with prior art 2, and prior art 1
read with prior art 3, it is clear that the invention
of the patent
in suit involved no inventive step over the cited prior art.
Furthermore, in my view, the respondent’s obtuse
reading of the
term “without further charge” in integer (j) of claim 1
of the patent to indicate an inventive step
over the cited prior art,
was gainsaid by the aforementioned concession that a premium must be
paid for the insurance and that
the premium would of necessity be
deducted from the top-up amount.
[45]
It is further clear that the alleged inventive step of the patent in
suit was no real inventive
step. Both the present invention and the
disclosure in prior art 1 did not require the subscriber to pay an
amount in addition
to the payment of the amount for the top-up
amount. This is borne out from what is discussed above in respect of
the alleged further
charge due to the decrement to the top-up amount
relating to the purchasing of airtime. Both inventions had the same
aim, no payment
of an amount over and above the top-up amount.
[46]
It follows that the present invention of the patent in suit did not
go beyond or differ materially
from what was disclosed in the cited
prior art. The present patent invention accordingly lacked an
inventive step and the patent
in suit stood to be revoked on that
ground.
[47]
The third ground of alleged invalidity of the patent relied upon by
the applicant related to
a material misrepresentation.
[22]
That ground was raised due to the respondent not recording all the
alleged inventors of the invention of the patent in suit on
the
prescribed declaration. The respondent only recorded two of the three
alleged inventors.
[48]
The respondent only recorded Messrs Quinton van Rooyen and Johannes
Jones on the prescribe form
P3. The respondent omitted to record Mr
Swindon, its expert, who was clearly a co-inventor.
[49]
In the supporting statement contained in form P3, the respondent
stated that the inventors were
those recorded in the statement and
that it had the rights to apply by virtue of an assignment from the
inventors for the grant
of the patent. The applicant alleged that
that statement was false in that Mr Swindon was not named as an
inventor. Furthermore,
the respondent did not state that Mr Swindon
assigned his rights to the respondent. Neither of the foregoing were
explained by
the respondent in evidence, albeit that the persons who
had the required knowledge of the omission were available to tender
evidence
in that regard. The applicant further alleged that the said
omission was intentional and material.
[50]
In
E
I Du Pont De Nemours and Company v SA Nylon Spinners (Pty) Ltd
[23]
it was held that the omission of the name of an inventor in the
prescribed manner did not translate into a material misrepresentation
as intended in terms of the provisions of section 61(1)(g) of the
Act.
[51]
The applicant relied on a fourth ground of invalidity of the patent
in suit, namely that the
respondent was not a person in terms of
section 27(1) of the Act to apply for the grant of a patent.
[24]
In argument on behalf of the applicant, this ground of alleged
invalidity was not persisted with. The applicant nevertheless
persisted
with the aforesaid alleged material misrepresentation.
[52]
The grounds of material misrepresentation
[25]
and that of non-compliance with the provisions of section 27(1) of
the Act
[26]
were conjoined by
the applicant in its evidence relating thereto. The one depending on
the other. Where the applicant did not persist
with the ground of
invalidity for want of compliance with section 27(1), and in view of
the finding in
E
I Du Pont de Nemours, supra,
neither of these grounds in the present context, jointly or
separately, constituted grounds for revocation of the patent in suit.
[53]
I have a discretion whether or not to grant the amendment to the
complete specification of the
patent in suit.
[27]
It is trite that it would be wrong in principle to grant an amendment
of a document if the document, as amended, would be invalid.
[28]
[54]
In view of my findings of want of novelty and lack of inventive step,
the complete patent specification
would remain invalid whether the
amendment for the deletion of invalid claims 8 to 11, 14 and 15 of
the patent was granted. Accordingly,
the amendment stood to be
refused.
[55]
The respondent requested a certification of validity in terms of the
provisions of section 74
of the Act on a finding of validity. I have
already found that the patent in suit was invalid. Accordingly, the
respondent was
not entitled to such certification of validity.
I
grant the following order:
1.
Patent No.
2010/03199, entitled Transaction Facilitation System, is revoked;
2.
The respondent
is to pay the costs, such costs to include the costs consequent upon
the employ of two counsel.
3.
The amendment
to Patent No. 2010/03199, entitled Transaction Facilitation System,
is refused;
4.
The
certification of validity of Patent No. 2010/03199 in terms of
section 74
of the
Patents Act is
refused.
C J
VAN DER WESTHUIZEN
JUDGE
OF THE HIGH COURT
Heard
on:
22
November 2022
On
behalf of Applicant:
R
Michau SC
Ms
M Du Plessis
Instructed
by:
Spoor
&
Fisher
On
behalf of Respondent: K
Iles
Instructed
by:
Adams
&
Adams
Judgment
delivered:
05
December 2022
[1]
Section 61 of the Act
[2]
See
Section 61(1) of the Act which provides that any person may at any
time apply in the prescribed form for the revocation of
a patent.
[3]
1965 BP 222 at 223D-E
[4]
Usher v
Nordhoff & Co (Pty) Ltd
[1972] RPC 636
at 638, lines 15-20. This matter related to where a
patent had lapsed due to non-payment of renewal fees (at 637, lines
21-38)
[5]
Section 46 of the Act
[6]
Section
47 of the Act
[7]
Section 45 of the Act
[8]
Section 25(2)(e) of the Act
[9]
See
Ciba-Geigy
AG v EI du Pont de Nemours and Co
1993 BP 493 (A) at 505F
[10]
Audiosport
International (Pty) Ltd v The Registrar of Patents et al
2010 BIP 86
[11]
Gentiruco
A.G. v Firestone S.A. (Pty) Ltd
1972(1) SA 589 AD at 613F-H;
Monsanto
Co v MDB Animal Health (Pty) Ltd (Formerly MD Biologics CC)
2001(2) SA 887 (SCA) at 891J-892G
[12]
Gentiruco,
supra,
at 646C
[13]
Sierzputowski
v Anglo American Corporation of South Africa
1972 BP 346 at 354C-G
[14]
Netlon
SA Ltd et al v Pacnet (Pty) Ltd
1977 BP 87 (A): see also
Gentiruco
supra,
at 139A-E
[15]
Gentiruco,
supra,
at
646D-647A
[16]
Veasey
v Denver Rock Drill and Machinery Co. Ltd.
1930 AD 243
at 282
[17]
Monsanto
Co, supra,
at 891E-J;
Aktiebolaget
Hässle supra,
at 160C-G
.
The patent complete specification is read in its entirety when the
scope of the claims are determined. What is contained in the
claims
of the patent may be affected by what is disclosed in the body of
the complete specification.
[18]
Section 25(10) of the Act
[19]
Section 25(6) of the Act
[20]
1998 BIP 271 (SCA)
[21]
Schlumberger
Logelco Inc. v Coflexip SA
2003(1) SA 16 SCA
[22]
[22]
Section 61(1)(g) of the Act
[23]
1987 BP 282 at 286F-289C
[24]
Section 61(1)(a) of the Act
[25]
Section 61(1)(g) of the Act
[26]
Section 61(1)(a) of the Act
[27]
Water
Renovation(Pty) Ltd v Gold Fields of SA Ltd
BP 493 (A);
Bayer
Pharma AG v Pharma Dynamics (Pty) Ltd
2014 BIP 87 (SCA)
[28]
James S
Robbins and Associates Inc. v Dresser Industries Inc.
1975 BP 409 (A)
sino noindex
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