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Legal Update 11 of 2025

    Home Legal Updates Legal Update 11 of 2025
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    Legal Update 11 of 2025

    By admin | Legal Updates | 0 comment | 10 June, 2025 | 0
    1. Whether an employer be liable for copyright infringement if the infringement was done by an employee without the employer’s knowledge?
    2. Whether a Judge can rely on his own internet research and decide on a case?

    CASE:

    SIEMENS INDUSTRY SOFTWARE INC V KB ENGINEERING COATINGS SDN BHD [2025] 2 MLRA 657

    BRIEF FACTS:

    • The Plaintiff [“Siemens Industry Software Inc”] claimed that its copyrighted computer program, NX12, had been infringed.

    • The alleged infringement came to light following a letter from Siemens Industry Software Pte Ltd (SISW), which alerted the Defendant, [“KB Engineering”].

    • An internal investigation by KB Engineering revealed that one of its employees had downloaded the software onto a work laptop without the company’s knowledge, allegedly for personal skill development.

    • An on-site review report by an independent license compliance partner of Siemens Industry Software Inc, Proactsys, confirmed the infringement of the software in its report.

    • Siemens Industry Software Inc claims that KB Engineering had infringed its copyright by using unlicensed copies of their software.

    • Siemens Industry Software Inc then sued KB Engineering for copyright infringement.

    • Siemens Industry Software Inc then applied for summary judgment against KB Engineering for copyright infringement. [Summary Judgment is a procedure for party to obtain quick judgment based purely on documents].

    DECISION BY THE HIGH COURT (HC)

    • Firstly, the HC dismissed Siemens Industry Software Inc’s application for summary judgment.

    • The HC held that there were issues that need to be determined at a trial such as possible hacking of KB Engineering’s systems and their lack of knowledge of the employee’s actions.

    • The HC also did their own research on the internet and decided based on the research that Siemens Industry Software Inc was not a property to sue KB Engineering [although this issue was never raised by KB Engineering at the hearing].

    • Dissatisfied with the HC’s decision, Siemens Industry Software Inc appealed to the Court of Appeal.

    DECISION BY THE COURT OF APPEAL (COA)

    • The COA allowed Siemens Industry Software Inc’s appeal and entered summary judgment against KB Engineering.

    • The COA held that the software is a literary work eligible for copyright under the law.

    • Siemens Industry Software Inc successfully established ownership through proper documentation.

    • The copyright infringement was established through the on-site reviews and KB Engineering’s own admission via a letter which admitted that one of their employees downloaded and used an unlicensed copy of the program.

    • The COA states that KB Engineering’s claims of hacking were unsupported and that it was immaterial whether KB Engineering’s had the intention or knowledge of the download or use of the counterfeit program.

    • Finally, The COA was of the view that KB Engineering was vicariously liable as the counterfeit program was found on their employee’s work laptop and during the course of employment.

    • Innocence was not a defence to copyright infringement. It was immaterial whether the defendant had intention or knowledge of the download or use of the counterfeit program.

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