Chappell and Co Ltd v Nestle Co Ltd: HL 18 Jun 1959

The defendants sought to rely on section 8 in defence to a claim for copyright infringement. They had manufactured and sold recordings of a work whose copyright was owned by the plaintiffs.They had given notice but had been told that the distribution as a sales promotion for chocolate was not retail sale within the section.
Held: It was a retail sale: ‘It is a sale to a consuming member of the public, and I know of no other factor which distinguishes a retail sale from other sales. ‘ The issue as whether the price was an ‘ordinary retal selling price’ and whether it is contended that . . the sale ‘ bears no resemblance at all to the transaction to which . . the section is pointing ‘, or that the three wrappers form part of the selling price and are incapable of valuation. Nor is there any need to take what, with respect, I think is a somewhat artificial view of a simple transaction. What can be easier than for a manufacturer to limit his sales to those members of the public who fufil the qualification of being this or doing that? It may be assumed that the manufacturer’s motive is his own advantage. It is possible that he achieves his object. But that does not mean that the sale is not a retail sale to which the section applies or that the ordinary retail selling price is not the price at which the record is ordinarily sold, in this case 1s. 6d.’

Judges:

Viscount Simonds, Lord Reid, Lord Tucker, Lord Keith of Avonholm, Lord Somervell of Harrow

Citations:

[1959] UKHL 1, [1960] AC 87

Links:

Bailii

Statutes:

Copyright Act 1956 8

Jurisdiction:

England and Wales

Intellectual Property, Consumer

Updated: 09 July 2022; Ref: scu.248534