12/09/2025
๐๐ถ๐๐ฐ๐๐๐๐ถ๐ป๐ด ๐ก๐ฒ๐๐๐น๐ฒ ๐ค๐ฅ ๐๐ผ๐ฑ๐ฒ ๐๐ฎ๐๐๐๐ถ๐: ๐๐ฃ ๐๐ฎ๐ โ๏ธ
The Kuala Lumpur High Court held that QR codes, whether static or dynamic, cannot attract intellectual property protection as such. QR codes were invented by Denso Wave in the 1990s and released for public use without patent or copyright protection.
Accordingly, no party can claim exclusive rights over the QR code format itself. Mad Labsโ claim of proprietorship over the QR Code per se was dismissed. However, the Court distinguished between the QR Code as a tool and the supporting infrastructure. Mad Labs had developed and operated the redirection and tracking system underlying the Trial QR Code.
The Court made the following orders:
โข Declaration that QR codes belong to the public domain.
โข Finding that Mad Labs had no proprietary rights in the QR Code itself, but retained rights in the supporting system.
โข Declaration that Nestlรฉ had wrongfully used the Trial QR Code beyond the trial period.
โข Permanent injunction restraining Nestlรฉ from further unauthorised use of the Trial QR Code.
โข Compensation payable by Nestlรฉ to Mad Labs for unauthorised use, with quantum to be determined in separate assessment proceedings.
โข Dismissal of Mad Labsโ claim for RM139 million, dismissal of unjust enrichment claim in the pleaded form, and dismissal of Nestlรฉโs claims for defamation, trade libel, and unlawful interference.
๐๐บ๐ฝ๐น๐ถ๐ฐ๐ฎ๐๐ถ๐ผ๐ป๐ ๐ผ๐ณ ๐๐ต๐ฒ ๐๐๐ฑ๐ด๐บ๐ฒ๐ป๐
1. ๐ฃ๐๐ฏ๐น๐ถ๐ฐ ๐๐ผ๐บ๐ฎ๐ถ๐ป: QR codes, like barcodes, are functional tools that remain in the public domain.
2. ๐ฃ๐ฟ๐ผ๐ฝ๐ฟ๐ถ๐ฒ๐๐ฎ๐ฟ๐ ๐ฆ๐๐๐๐ฒ๐บ๐: Ancillary systems built around generic tools may constitute protectable assets. In this case, Mad Labsโ redirection and analytic infrastructure was proprietary and subject to legal protection.
3. ๐๐ผ๐ป๐๐ฟ๐ฎ๐ฐ๐๐๐ฎ๐น ๐๐น๐ฎ๐ฟ๐ถ๐๐: Trial arrangements must be carefully documented, with clear provisions on duration, post-trial usage, renewal, and cessation. The absence of such clarity exposes parties to disputes.
4. ๐ก๐ฒ๐ด๐น๐ถ๐ด๐ฒ๐ป๐ฐ๐ฒ ๐ฎ๐ป๐ฑ ๐ข๐๐ฒ๐ฟ๐๐ถ๐ด๐ต๐: Companies must ensure proper oversight of packaging and marketing materials to avoid unauthorised use of third-party systems.
5. ๐๐ฎ๐บ๐ฎ๐ด๐ฒ๐: The case shows that exaggerated or speculative claims, such as royalty-by-print calculations, are unlikely to succeed without concrete evidence. Courts will focus instead on actual loss and fair compensation.
๐๐ผ๐ป๐ฐ๐น๐๐๐ถ๐ผ๐ป
The High Court drew a clear distinction between what lies in the public domain and what may be protected as proprietary. While QR codes themselves cannot be owned, the systems enabling their commercial use may attract protection.
The decision underscores the importance of contractual precision in technology collaborations and highlights the limits of intellectual property protection where public-domain tools are involved.
Ref: https://tinyurl.com/4kyn9e2j