PUTRAJAYA – Petronas Carigali Sdn. Bhd.’s attempt to overturn a ruling that it infringed two patents owned by Kingtime International Ltd. has come to an end after the Federal Court dismissed the company’s application for leave to appeal.
The decision effectively upholds the Court of Appeal’s judgment, which found Petronas Carigali liable for infringing two patents relating to a Mobile Offshore Production Unit (MOPU) used at the Sepat Oil Field. The ruling also clears the way for the High Court to determine the amount of damages payable to Kingtime.
A three-member Federal Court bench comprising Justice Rhodzariah Bujang, Justice Nazlan Ghazali and Justice Azimah Omar held that the legal questions raised by Petronas Carigali did not satisfy the requirements under Section 96 of the Courts of Judicature Act 1964.
The court ruled that the issues presented did not involve novel questions of law or matters of public importance warranting the intervention of the Federal Court. As a result, Petronas Carigali’s proposed appeal will not proceed to a hearing on its merits.
In addition, the Federal Court ordered Petronas Carigali to pay RM50,000 in costs to Kingtime International Ltd.
Court of Appeal’s Patent Infringement Findings Stand
The Federal Court’s decision reinforces the Court of Appeal’s judgment delivered in September last year, which overturned the High Court’s decision and held that Petronas Carigali had infringed two patents owned by Kingtime.
The Court of Appeal also set aside Petronas Carigali’s successful counterclaim in the High Court, which had declared the two patents invalid.
In its judgment, the appellate court ruled that Petronas Carigali could not avoid liability because it had a clear contractual relationship with Petrofac E&C Sdn. Bhd., the contractor responsible for the design, engineering, construction and supply of the MOPU.
Justice Faizah Jamaludin held that there was a sufficient nexus between Petronas Carigali and Petrofac arising from the contractual arrangements governing the design, engineering and construction of the MOPU deployed at the Sepat Oil Field, located approximately 200 kilometres off Kuala Terengganu.
The court further held that Petronas Carigali could not reopen issues that had already been conclusively determined, including whether the Sepat MOPU infringed Kingtime’s patents.
Case Moves to Damages Assessment
Following the Federal Court’s ruling, the matter will now return to the High Court for the assessment of damages payable by Petronas Carigali to Kingtime.
Petronas Carigali has also been ordered to reimburse RM800,000 in legal costs previously paid by Kingtime pursuant to the High Court judgment that has since been overturned.
Kingtime commenced the patent infringement action against Petronas Carigali in 2018. Although the High Court initially ruled in favour of Petronas Carigali, that decision was subsequently overturned in its entirety by the Court of Appeal. The appellate court’s ruling now remains final after the Federal Court declined to grant leave to appeal.
The Federal Court’s decision brings Petronas Carigali’s challenge to an end, leaving the Court of Appeal’s finding that the company infringed two patents owned by Kingtime International Ltd. in full force, with only the assessment of damages remaining to be determined.
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