Archive: October 17, 2016

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Australian Court Orders Former Customers and Builder to pay Damages to Henley for Copying its House Plan

Australian Court Orders Former Customers and Builder to pay Damages to Henley for Copying its House Plan

A recent decision on copyright infringement in building designs

On 13 October, Justice Beach of the Federal Court of Australia delivered his judgment in the case of Henley Arch v Lucky Homes & Ors, a copyright infringement case in respect of a project home design.

Mr and Mrs Mistrys were customers who, in 2013, went part way through the sales process with Henley Arch (Henley) for it to build them a house in accordance with its “Amalfi” design. The Mistrys paid Henley a deposit and plans were drawn up to build the house on the block that the Mistrys were purchasing. The Mistrys signed a standard Henley document acknowledging that Henley owned copyright in the plans and that the Mistrys were not entitled to use these (other than by building with Henley). While the Mistrys had initially wanted Henley’s “Avenue” façade option, after they learned that this would increase the price by about AUD10,000 they reverted to the standard option for the facade.

The Mistrys did not sign a final contract with Henley and instead approached Lucky Homes with the Henley plan (which featured Henley’s title block and copyright notice). Lucky Homes agreed to build the home for the Mistrys with the “Avenue” façade they preferred for about AUD10,000 less than Henley’s price (that is, Henley’s price for the house with the standard façade). The Mistrys ultimately engaged Lucky Homes, and it engaged a draftsperson to create a plan for the Mistrys’ house from the Henley plan, with a number of minor changes.

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