Dexion Europe Limited v Universal Storage Systems (Proprietary) Limited

Dexion Europe Limited owned copyright in four technical drawings relating to its Speedlock racking system. Universal Storage Systems had previously manufactured the Speedlock system under a sub-licence from Dexion’s licensee, Brazier. After termination of the sub-licence in 1993 and failing to obtain a direct licence from Dexion, Universal decided to manufacture a new racking system (Unirack) that was compatible and interchangeable with Speedlock. Universal obtained legal advice, returned Dexion’s drawings and tooling, commissioned new tooling, and relied on reverse engineering of existing products. Dexion alleged that Universal infringed its copyright by copying the technical drawings directly or indirectly, and alternatively that Universal breached contractual obligations arising from the licence and sub-licence arrangements.

The appeal was dismissed with costs.

The case is a leading South African authority on copyright infringement in technical drawings, clarifying the distinction between direct and indirect copying, the evidentiary requirements for establishing causal connection, and the scope of lawful reverse engineering under section 15(3A)(a) of the Copyright Act. It also illustrates limits on enforcing contractual restraints through sub-licensing arrangements.