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Published online by Cambridge University Press: 24 January 2025
The common law relating to the tort of passing off is the traditional means by which conduct threatening business reputation may be halted. During the past five years, the Federal Court of Australia has been called upon on many occasions to apply s 52 Trade Practices Act 1974 (Cth) to prevent such conduct. As yet, there has been no clear judicial statement as to the interrelationship and overlap between the two causes of action.
This Article discusses the scope of the two causes of action in the context of an allegation of actual or threatened erosion of goodwill. The types of cases in which such allegation is usually made is then examined and suggestions given as to which cause of action should be relied on.
1 See generally Heydon, J D, '“The Future of the Economic Torts” (1975) 12 UWALRev 1Google Scholar.
2 (1978) 140 CLR 216.
3 Ibid 226 per Stephen J; McWilliam's Wines Pty Ltd v McDonald's System of Australia Pty Ltd (1980) 33 ALR 394, 405 per Northrop J; Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 42 ALR 1, 22-23 per Brennan J; Taco Company of Australia Inc v Taco Bell Pty Ltd (1982) 42 ALR 177, 186 per Franki J.
4 (1982) 42 ALR 177.
5 Ibid 197.
6 Cornish, WR, “The Passing-Off Action in English Common Law” [1982] Industrial Property 186Google Scholar.
7 Erven Warnink Besloten Vennootschap v J Townsend & Sons (Hull) Ltd [1979] 3 WLR 68.
8 Ibid 74-75.
9 Ibid 75.
10 Alan L Limbury, Trade Practices, Passing Off and Unfair Competition (a paper presented at “A Twilight Seminar” held at Monash University, 16 April 1980) 13-20; WR Cornish supra n 6, 192-193; JD Heydon, supra n 1, 20-22; Gummow, WM C, “Carrying on Passing Off” (1974) 7 Syd L Rev 224, 229-230Google Scholar.
11 A G Spalding & Bros v A W Gamage Ltd (1915) 32 RPC 273.
12 J Bollinger v Costa Brava Wine Co Ltd [1960] 1 Ch 262 (Spanish Champagne case); Vine Products Ltd v Mackenzie & Company Ltd [1969] RPC 1 (British Sherry case); John Walker & Sons Ltd v Douglas McGibbon & Company Ltd [1972] SLT 128 (Scotch Whisky case).
13 Erven Warnink Besloten Vennootschap v J Townsend & Sons (Hull) Ltd [1979] 3 WLR 68.
14 Henderson v Radio Corporation Pty Ltd [1960] SR (NSW) 576.
15 (1980) 32 ALR 387.
16 Ibid 393.
17 Cornish, supra n 6, 187 (footnotes omitted).
18 Cadbury Schweppes Pty Ltd v Pub Squash Co Pty Ltd (1980) 32 ALR 387 396.
19 See generally Cornish, supra n 6, 189.
20 [1977] RPC 275 discussed in a case note in (1976) 50 ALI 96.
21 [1960] SR (NSW) 576.
22 [1981] 1 NSWLR 196.
23 [1972] RPC 838.
24 Ibid.
25 [1977] RPC 275.
26 Alain Bernardin et Compagnie v Pavilion Properties Ltd [1967] RPC 581.
27 Ibid 588 (italics added).
28 [1977] 1 WLR 1155, discussed in a case note in (1978) 52 AU 99.
29 [1981] 1 NSWLR 196, 205.
30 [1977] 1 WLR 1155.
31 Burberrys v JC Cording & Co Ld (1909) 26 RPC 693, 701 per Parker J.
32 S 4(2) of the Act.
33 As in Brock v Terrace Times Pty Ltd (1982) 40 ALR 97 and Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 42 ALR 1.
34 McWilliam's Wines Pty Ltd v McDonald's System of Australia Pty Ltd (1980) 33 ALR 394. See generally Huntington, M J R and Limbury, A L, “Some Observations and Recent Developments in Trade Practices” (1981) 55 AU 472, 472-484Google Scholar.
35 Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 42 ALR 1, 6 per Gibbs CJ, 15 per Mason J, 27-28 per Brennan J.
36 Taco Company of Australia Inc v Taco Bell Pty Ltd (1982) 42 ALR 177, 202 per Deane and Fitzgerald JJ.
37 Cornish, W R, “Unfair Competition? A Progress Report” (1972-1973) 12 The Journal of the Society of Public Teachers of Law 126, 138Google Scholar.
38 Re Ku-ring-gai Co-Operative Building Society (No 12) Ltd (1978) 36 FLR 134, 167.
39 Parkdcle Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 42 ALR 1, 6 per Gibbs CJ.
40 Ibid (italics added).
41 Ibid 5.
42 Annand & Thompson Pty Ltd v Trade Practices Commission (1979) 25 ALR 91, 102 per Franki J.
43 (1980) 33 ALR 394.
44 [1982] ATPR 43,799.
45 Taco Company of Australia Inc v Taco Bell Pty Ltd (1982) 42 ALR 177.
46 (1982) 42 ALR 136.
47 A similar fact situation was considered in Rolls-Royce Motors Ltd v DIA (Engineering) Pty Ltd (1981) 50 FLR 340.
48 Similar fact situations arose in Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 42 ALR 1 and Brock v Terrace Times Pty Ltd (1982) 40 ALR 97.
49 (1981) 51 FLR 73.
50 Taco Company of Australia Inc v Taco Bell Pty Ltd (1982) 42 ALR 177.
51 (1982) 42 ALR 136.
52 [1960) SR (NSW) 576.
53 Russell, Peter, '“The Commercial Exploitation of Real Names” [1979] New Law Journal 791Google Scholar.
54 Commissioners of Inland Revenue v Muller Co's Margarine Ltd [1901] AC 217, 223-224.
55 [1962] RPC 265.
56 See generally Kodilinye, Gilbert, “Passing Off and the Use of Personal Names” (1975) 26 Northern Ireland Legal Quarterly 177Google Scholar.
57 (1980) 53 FLR 385.
58 Ibid 392.
59 [1977} RPC 99.
60 [1977] RPC 275.
61 lbid.
62 Korn, AH, “Character Merchandising” [1981] Journal of Business Law 432, 434Google Scholar.
63 Tavener Rutledge Ltd v Trexapalm Ltd [1977] RPC 275, 280-281 per Walton J.
64 Comite lnterprofessionel du Vin de Champagne v NL Burton Pty Ltd (1981) 38 ALR664.
65 See also Hornsby Building Information Centre Pty Ltd v Sydney Building Information Centre Ltd (1978) 140 CLR 216.
66 Galitsky, Serge, “Beyond Consumer Protection-Section 52 of the Trade Practices Act: Implication of Some Recent Cases” [1979] Australian Business L Rev 265, 269-270Google Scholar.
67 Cf Philip Morris Inc and Philip Morris Ltd v Adam P Brown Male Fashions Pty Ltd (1981) 55 ALJR 120 and Fitzgerald, G E, “Private Remedies under the Trade Practices Act Jurisdiction” (1981) 11 Qld Law Society Journal 229Google Scholar.
68 Taco Company of Australia Inc v Taco Bell Pty Ltd (1982) 42 ALR 177, 205-206 per Deane and Fitzgerald JJ.