The proprietor of a patented oil and gas technology today won its appeal against a Petronas subsidiary for patent infringement over its use of a mobile offshore production unit (Mopu) commissioned from a third party.
The Court of Appeal overturned a 2023 High Court decision that dismissed Kingtime International Ltd’s lawsuit against Petronas Carigali Sdn Bhd for patent infringement.
Today’s ruling also struck out Petronas Carigali’s suit to invalidate two of Kingtime’s patents.
Justice Faizah Jamaludin said Petronas Carigali was bound by a 2018 High Court decision, which found that Petrofac E&C Sdn Bhd, as the manufacturer of Mopu, had infringed Kingtime’s patents and failed in its attempt to have them invalidated.
Delivering the unanimous decision of the appellate court, Faizah said the 2018 judgment was binding on the parties and their privies.
She said Kingtime had successfully established a sufficient nexus between Petronas Carigali and Petrofac based on the conduct and contract between the two firms for the design, engineering and construction of Mopu used in the Sepat oil field, about 200km off Kuala Terengganu.
A Mopu is a converted offshore oil rig used for oil and gas production.
Faizah also held that Petronas Carigali was not permitted to relitigate issues as to whether the Kingtime’s patents were valid and if the Sepat Mopu infringed them.
“The High Court erred in dismissing Kingtime’s suit against Petronas Carigali and in allowing Petronas Carigali’s action to invalidate the patents, which warrants appellate intervention,” she said.
Justice Lee Swee Seng, now a Federal Court judge, chaired the bench alongside Justice Choo Ka Sing.
The appellate court remitted the case to the High Court for assessment of damages and ordered Petronas Carigali to pay Kingtime RM950,000 in costs.
Petronas Carigali was also directed to refund RM800,000 in costs paid by Kingtime pursuant to the High Court decision in 2023.
Kingtime first sued Petronas Carigali in 2018 for infringing its patents through the use of the Mopu manufactured by Petrofac for the Sepat oil field.
Petronas Carigali subsequently filed a separate suit to invalidate Kingtime’s patents, which the High Court allowed.
In its appeal, Kingtime argued that the 2018 judgment against Petrofac, which held that Petrofac had infringed its patents and failed in its bid to invalidate them, was binding on Petronas Carigali, since Petrofac had been commissioned by Petronas Carigali to build the same Mopu.
Representing Kingtime were lawyers S Sivaneindiren, Nicholas Mark Pereira, Abu Bakar Isa Rahmat, Norhazira Abu Haiyan, Baharudeen Ariff, Siow San San and Tey Zhi Pei.
Petronas Carigali was represented by counsel Cyrus Das, Chew Kherk Ying, Raymond Tan and Mak Ming Jie.
