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BTC3300

Marketing Law

Semester One 2017

Examination Period 

Faculty of Business and Economics

Department of Business Law and Taxation

Question 1

Augustus is employed by Chanel as a quality control officer.  He is responsible for ensuring that all Chanel’s perfumes conform to the standards set by Chanel. He travels the world testing samples of the products sold to customers to ensure the perfumes are not being diluted or tampered with.

Whist he is employed he develops an idea to research a fragrance.   He studies making perfumes with a leading perfumer Charlotte Le Nez.  This is done in his own time and it leads to his development of a formulae, for a new perfume that smells of the sea, and fresh lemons.

He has kept the formulae secret except for some blind market testing with focus groups to gauge the response to the new scent. He wants to leave Chanel to mass produce his “Zest for Life” scent.

Boadicea, another Chanel employee chemist, whilst searching In Augustus’s office for the latest monthly report needed urgently for a meeting, found a copy of the formulae on his desk.  She realises how valuable it is and without Augustus knowing photocopies the formula and approaches a competing perfume manufacturer Door Pty Ltd.

Augustus subsequently finds a copy of Boadicea’s email to Dior discussing the new formulae on the central work photocopier when he picked up his own printing.

Explain to Augustus how he can legally prevent Boadicea and Door disclosing and using the formulae? (20 marks) 

Question 2

Augustus is now considering the form of packaging for his “Zest for Life” perfume. He instructs Shaniqua to design a striking bottle to stand out against the existing perfume bottles.

Shaniqua develops the design in picture 1.

Augustus has heard about design registration and asks you could he register this bottle as a design under the Designs Act 2003 (Cth).  Explain to him whether his commissioned design is registerable as a design.

(10 marks)

Question 3

After discussing the issue of design registration you tell Augustus that there is an alternative form of protection he should consider in that he could consider obtaining a registered trade mark in his bottle as a shape or aspect of packaging.  

You have found the existing registrations in a search of IPAustralia:

Explain to Augustus what he needs to establish to obtain a registration of his bottle as a trade mark under the Trade Marks Act 1995 (Cth). (20 marks)

Question 4

(a) Augustus, is now manufacturing his perfume under the name Zest for life. He has developed the following advertising campaign and he wants you to explain whether he has any potential legal problems under ss29-36 of the Australian Competition and Consumer Act 2010 (Cth) before he releases these advertisements. (Do not answer on basis of s18 ACL.) In particular he asks your advice about the following:

a. He wants to say: “Zest for life the scent that lasts for ever!  Will not wash off due to our essential oil base.”  In fact the perfume lasts around four hours, as the base is an aldehydic alcohol base not an essential oil base. (3 marks)

b. “8 out of 10 Chanel perfume wearers changed to Zest for life after trying it.” In fact this survey is only of 100 perfume wearers. Whilst seventy of this sample said they would change to the new scent, only 30 of the 70 used Chanel and said they would change. (3 marks)

c. The perfume is made in the south of France from the formulae of alcohol and essential oils and only bottled in in Australia. He wants to say it is “Made in Australia”. (4 marks)

(Total 10 marks)

Part 2 not a topic examined in 2020

 (10 marks) 

(Question 4 = 20 marks)