Sealegs competitor Tectrax files High Court action

Sealegs looks to be heading back to court after rival company Tectrax alleged it had breached the Fair Trading Act. Photo / File

Sealegs, fresh from a successful legal defence of its copyright, looks to be heading back to court after rival company Tectrax alleged it had breached the Fair Trading Act.

The privately-owned Tectrax has filed papers in the High Court against NZX-listed Future Mobility Solutions and its wholly-owned unit, Sealegs International, alleging interference with business relations and "misleading" and "deceptive" conduct in trade in breach of the Act dating back to late 2017.

Both companies make amphibious kits for small boats.

"Tectrax has independently developed an amphibious system over many years; from a clean sheet," Tectrax sales and marketing manager Fraser Brown said in a statement.
"We're not boat builders and we're not trying to be," he said.

After a number of years in development, Tectrax is moving into commercial production of its electrically driven hub motor system, the company said.

The product did not impact on deck space and was designed to work with recreational, commercial and rescue applications.

The system can be installed on trailerable boats under 2500kg, through to 4000kg, offering a "plug and play" kitset system, it said.

Brown said finding marine partners willing to commence or continue work with Tectrax had been increasingly difficult.

Tectrax alleged in its court proceedings that Future Mobility Solutions and/or Sealegs have attempted to exert influence over at least one boat builder that had chosen to adopt the new technology.

The company said it started developing its innovative all-wheel-drive electric amphibious system in 2013 and successfully patented its design in 2014.

In a separate and unconnected action, the High Court found in July that former Sealegs employees had breached copyright over the design and manufacture of amphibious kits for boats.

The court granted Sealegs a permanent injunction against the defendants - Orion Marine, Darren Leybourne, Smuggler Marine Limited, Yun Zhang and David Pringle - and determined that costs and damages were also due. Orion is appealing.

Asked to comment on the latest legal action, a spokesman for Sealegs said: "Sealegs will not hesitate to vigorously defend its rights in court."

Sealegs founder Maurice Bryham built and tested initial versions of his designs over a period of years starting from 2000.

For the year to March, NZX-listed FMS reported turnover of $30.3m, an increase of $12.6m or 71 per cent over the previous year.