Directors Personally Liable for Copyright and Design Infringements
Two comparatively recent decisions in the Federal Court make it clear that directors of companies can be held personally liable for the torts, copyright infringements and registered design infringements of their companies.
In Pioneer Electronics Australia Pty Ltd v Lee [2000] FCA 1926 (22 December 2000) Justice Sundberg held that the director of a company which had been importing Japanese DVD players without the authority of their manufacturer was personally liable for the copyright infringements and tortious passing off of the company.
In Oakley Inc v Oslu Import and Export Pty Ltd [2001] FCA 385 (10 April 2001) Justice Finn held that a director of a company was liable for his company’s infringement of the registered design in imported sunglasses.
In both cases the director was the guiding force behind a small company. The Court held in each case that the director had "procured or directed" the company to commit the relevant offences.
These cases serve as a timely reminder to directors of companies that the courts are willing in an increasing number of situations to look behind the corporate veil and attach liability directly to a company director.