Marconi challenges court decision

Johannesburg, 27 Mar 2007

Marconi Communications will challenge a ruling that it is guilty of infringing copyright and will file a notice to appeal today.

Earlier this month, the Witwatersrand High Court found fixed-line operator Telkom and telecommunications company Marconi guilty of infringing copyright. The court said the companies would also have to cover the costs of the legal feud with software and hardware company Technical Information Systems (TIS).

TIS asked the court to intervene after it discovered Marconi had changed its internally-developed software and Telkom was supplying it online.

Indirect involvement

However, Ericsson, which acquired parts of Marconi Corporation's telecoms business on 23 January, says the company will serve a notice to appeal. Its senior counsel is preparing an explanatory memorandum on the judgment, which it anticipates should be finalised early this week.

Following Ericsson's completion of its international acquisition of parts of Marconi Corporation's telecoms business, the company acquired 74.99% of Marconi Communications SA, with the remaining 25.01% held by local black empowerment company, African Renaissance Holdings.

Telkom, cited in the judgement as the second respondent, says it is only indirectly involved in the matter. "The infringement is between Marconi and TIS," says group executive for corporate communications Lulu Letlape. As a result, Telkom says, any decision on whether to appeal is not in its hands.

Damages claim

TIS director Tim Hammerich says he is not surprised at the appeal and the company will defend the judgement as far as possible. So far, he says, the company's legal fees stand at R1.5 million.

He says the company is looking at a damages claim against both companies, although it is still quantifying the extent.

Letlape says any possible claim for damages "will be dealt with on the basis of whether the claim is against Telkom or Marconi".

Judge A Gildenhuys, in his ruling, ordered Telkom and Marconi to stop infringing copyright, and to not reverse-engineer, or directly or indirectly distribute the software. He also ordered costs in TIS's favour.

[Additional reporting by Damaria Senne]