Main-Line v UOB & FCC: Patent Infringement, Dynamic Currency Conversion, Account of Profits

Main-Line Corporate Holdings Ltd sued United Overseas Bank Ltd (UOB) and First Currency Choice Pte Ltd (FCC) in the High Court of Singapore for patent infringement related to dynamic currency conversion for card payment systems. The High Court, presided over by Senior Assistant Registrar Yeong Zee Kin, ordered an account of profits against UOB, specifying the scope of accountable profits, and struck out Main-Line's claim for damages against FCC for infringing use outside Singapore. The court also addressed issues related to aggravated or exemplary damages.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Account of profits ordered against United Overseas Bank Limited; claim for damages against First Currency Choice Pte Ltd for infringing use outside Singapore struck out.

1.3 Case Type

Intellectual Property

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Patent infringement case concerning dynamic currency conversion. Court ordered account of profits against UOB and struck out claim for damages against FCC.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
United Overseas Bank LtdDefendantCorporationAccount of profits orderedLost
Main-Line Corporate Holdings LtdPlaintiffCorporationAccount of profits ordered against United Overseas Bank LimitedPartial
First Currency Choice Pte LtdDefendant, Third PartyCorporationClaim for damages struck outWon

3. Judges

Judge NameTitleDelivered Judgment
Yeong Zee KinSenior Assistant RegistrarYes

4. Counsels

Counsel NameOrganization
Kannan RameshM/s Tan Kok Quan Partnership
Cheryl KohM/s Tan Kok Quan Partnership
Wong Siew HongInfinitus Law Corporation
Oh Pin-PingM/s ATMD Bird & Bird LLP
Koh Chia LingM/s ATMD Bird & Bird LLP

4. Facts

  1. Main-Line is the registered proprietor of Singapore Patent No 86037.
  2. The patent covers dynamic currency conversion for card payment systems.
  3. UOB provided a similar system to merchants in its credit card network.
  4. UOB obtained its system from FCC.
  5. FCC was in the business of providing similar dynamic currency conversion payment services.
  6. UOB earned commissions from the operation of the FCC System.
  7. Main-Line sought an account of profits from UOB and damages from FCC.

5. Formal Citations

  1. Main-Line Corporate Holdings Ltd v United Overseas Bank Ltd and another (First Currency Choice Pte Ltd, third party), Suit No 806 of 2004, Summons No 3805 & 3876 of 2010 and 978 & 1232 of 2011, [2011] SGHC 268
  2. Main-Line Corporate Holdings Ltd v United Overseas Bank Ltd and another (First Currency Choice Pte Ltd, third party), , [2007] 1 SLR(R) 1021
  3. Main-Line Corporate Holdings Ltd v United Overseas Bank Ltd and another (First Currency Choice Pte Ltd, third party), , [2006] SGHC 233
  4. First Currency Choice Pte Ltd v Main-Line Corporate Holdings Ltd and another appeal, , [2008] 1 SLR(R) 335
  5. First Currency Choice Pte Ltd v Main-Line Corporate Holdings Ltd and another appeal, , [2007] SGCA 50
  6. Main-Line Corporate Holdings Ltd v United Overseas Bank Ltd and Another, , [2008] SGHC 55
  7. Main-Line Corporate Holdings Ltd v United Overseas Bank Ltd and another (First Currency Choice Pte Ltd, third party), , [2010] 1 SLR 189
  8. Main-Line Corporate Holdings Ltd v United Overseas Bank Ltd and another (First Currency Choice Pte Ltd, third party), , [2009] SGHC 232
  9. Main-Line Corporate Holdings Ltd v United Overseas Bank Ltd and Another, , [2009] SGHC 212
  10. Main-Line Corporate Holdings Ltd v United Overseas Bank Ltd, , [2010] 2 SLR 986
  11. Main-Line Corporate Holdings Ltd v United Overseas Bank Ltd, , [2010] SGCA 9
  12. Celanese International Corp v BP Chemicals Ltd, , [1999] RPC 203
  13. Friss & Anor v Casetech Trading Pte Ltd & Ors, , [2000] 2 SLR(R) 511
  14. Catnic Components Ltd v Hill & Smith Ltd (No 2), , [1983] FSR 512

6. Timeline

DateEvent
Case commenced
Trial on liability before Tay Yong Kwang J
FCC’s application to strike out certain paragraphs of Main-Line’s statement of case against FCC
UOB’s application to strike out certain paragraphs of Main-Line’s statement of case against UOB
Main-Line’s application for further and better particulars on certain paragraphs of FCC’s statement of defence
Main-Line’s application for further and better particulars on certain paragraphs of UOB’s statement of defence
Judgment reserved

7. Legal Issues

  1. Patent Infringement
    • Outcome: UOB was found to have infringed Main-Line’s software patent when it used the dynamic currency conversion system provided by FCC and offered FCC’s system to the merchants in its credit card network.
    • Category: Substantive
    • Sub-Issues:
      • Use of infringing system
      • Offer of infringing system
    • Related Cases:
      • [2007] 1 SLR(R) 1021
      • [2008] 1 SLR(R) 335
  2. Account of Profits
    • Outcome: Court ordered an account of profits against UOB, specifying the scope of accountable profits.
    • Category: Remedial
    • Sub-Issues:
      • Calculation of profits
      • Deduction of costs
      • Apportionment of profits
    • Related Cases:
      • [1999] RPC 203
      • [2000] 2 SLR(R) 511
      • 116 ALR 385
  3. Damages for Infringement
    • Outcome: Court struck out Main-Line's claim for damages against FCC for infringing use outside Singapore but did not strike out the claim for aggravated or exemplary damages.
    • Category: Remedial
    • Sub-Issues:
      • Infringing use outside jurisdiction
      • Aggravated damages
      • Exemplary damages
    • Related Cases:
      • [1983] FSR 512

8. Remedies Sought

  1. Account of Profits
  2. Damages
  3. Aggravated Damages
  4. Exemplary Damages

9. Cause of Actions

  • Patent Infringement

10. Practice Areas

  • Intellectual Property Litigation
  • Patent Infringement

11. Industries

  • Banking
  • Finance
  • Technology

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Main-Line Corporate Holdings Ltd v United Overseas Bank Ltd and another (First Currency Choice Pte Ltd, third party)High CourtYes[2007] 1 SLR(R) 1021SingaporeDecision of Tay Yong Kwang J after the trial on liability, where the defendants’ challenge to the validity of the Main-Line’s software patent failed.
First Currency Choice Pte Ltd v Main-Line Corporate Holdings Ltd and another appealCourt of AppealYes[2008] 1 SLR(R) 335SingaporeCourt of Appeal upheld Tay J’s decision on liability.
Main-Line Corporate Holdings Ltd v United Overseas Bank Ltd and AnotherHigh CourtYes[2008] SGHC 55SingaporeMain-Line sought discovery of documents from the defendants in order to make its election of remedies.
Main-Line Corporate Holdings Ltd v United Overseas Bank Ltd and another (First Currency Choice Pte Ltd, third party)High CourtYes[2010] 1 SLR 189SingaporeBelinda Ang J held that the remedies which Main-Line was entitled to were cumulative as each of the defendants were liable for different acts of infringement.
Main-Line Corporate Holdings Ltd v United Overseas Bank Ltd and AnotherHigh CourtYes[2009] SGHC 212SingaporeOrder for interim payment into court was set aside on appeal.
Main-Line Corporate Holdings Ltd v United Overseas Bank LtdCourt of AppealYes[2010] 2 SLR 986SingaporeInterim payment of $1.9 million was ordered to be paid to Main-Line.
Celanese International Corp v BP Chemicals LtdN/AYes[1999] RPC 203N/ACited for the principle that the maximum payment which can be ordered is the total profit made by the defendant and for apportionment of profits.
Friss & Anor v Casetech Trading Pte Ltd & OrsN/AYes[2000] 2 SLR(R) 511SingaporeCited for the principle that an order for an account of profits will not be made where it appears that no profits have been made.
Dart Industries Inc v Decor Corp Pty Ltd and AnotherN/AYes116 ALR 385N/ACited for the principle of disgorgement of benefits and deduction of costs and expenses.
Catnic Components Ltd v Hill & Smith Ltd (No 2)N/AYes[1983] FSR 512N/ACited regarding exemplary damages in patent actions.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Dynamic Currency Conversion
  • Software Patent
  • Account of Profits
  • Patent Infringement
  • Merchant Discount Rate
  • Interchange Reimbursement Rate
  • Uplift
  • Converted Transaction
  • Unconverted Transaction

15.2 Keywords

  • Patent Infringement
  • Dynamic Currency Conversion
  • Account of Profits
  • Singapore
  • UOB
  • FCC
  • Main-Line

17. Areas of Law

Area NameRelevance Score
Patents90
Dynamic Currency Conversion80
Software Patent70
Commercial Disputes60
Contract Law50
Civil Procedure40
Corporate Litigation30

16. Subjects

  • Patent Litigation
  • Banking
  • Financial Services
  • Intellectual Property