where applicants alleged various breaches of the Copyright Act 1968 (Cth) by the first and second respondents in connection with the construction of townhouses
whether applicants had established risk of dissipation
Quick Take
1An account of profits for copyright infringement is a personal remedy; the proceeds of sale of allegedly infringing works are not the 'subject matter' of the proceeding for the purposes of r 14.11 of the Federal Court Rules 2011, and the applicant must therefore satisfy the ordinary dissipation requirement under r 7.35(4).
2On the facts, demonstrated solvency of the respondents (combined net assets of approximately $46.5 million), unencumbered lots, intercompany arrangements consistent with ordinary business operations, and a director's stated intention to maintain substantial reserves negated any inference of a real or substantial risk of dissipation.
3An undertaking as to damages supported only by mortgaged development land of uncertain and diminishing value, without a bank guarantee or payment into court, may be found insufficient to support a freezing order, weighing against the balance of convenience.
