Imported boat seized at border in copyright case 'nightmare'

An Easy Craft 9m aluminium fishing boat (not the exact boat seized). Stabicraft alleged some models by the Shandong based manufacturer are copied from their designs. Photo / Supplied

Two southern boat companies have locked horns in the High Court over an imported Chinese craft amid disputed allegations the manufacturer ripped off Stabicraft designs.

Customs seized the boat at the border because documents filed by longstanding Kiwi aluminium boat manufacturer Stabicraft requested detention of what it claims are "pirated" copies of its boats.

Boat importer and dealer Sea King, also based in Invercargill, appears to have come out on top for now in the copyright case, also involving the head of Customs.

The managing director of Sea King, a small family-run business, said the saga has been a "nightmare".

He rejected any claim the boat they imported for a client starting a fishing charter business was a copy of a Stabicraft design.

Stabicraft's lawyer would not comment and the boat remains in the hands of Customs pending a decision on whether the company will appeal.

Details of the copyright case have emerged in a judgment delivered last month by Justice Jan-Marie Doogue after a High Court hearing in Christchurch on September 6.

Sea King imported a pontoon boat, called an Easy Craft 9.0 and built in China by Shandong Allsea Boats Co Ltd, for eventual use by an unnamed third party seeking to start a fishing charter on Great Barrier Island.

The 9.3m craft arrived in New Zealand in December last year.

Customs inspected and detained it, finding it appeared to be a pirated copy of a Stabicraft design.

Under New Zealand law, owners of copyright works can lodge a Notice Requesting Detention of Pirated Copies (NRDPCs) to enforce their intellectual property rights.

That mechanism, part of the Copyright Act, is aimed at minimising losses resulting from pirated or copyright goods.

Stabicraft had lodged several NRDPCs with Customs, attaching designs of craft on which it claimed copyright.

Sea King and its managing director Hamish Craig sought a court order to release the detained boat.

A Stabicraft 589 Supercab. Stabicraft is a well-known New Zealand manufacturer of aluminium power boats with a 35-year history and a reputation for stability and being extremely difficult or impossible to sink due to their design. Photo / Supplied

Justice Doogue took issue with a statement of claim served by Stabicraft to the chief executive of Customs, which she said was missing important details.

"The statement of claim, from a common-sense point of view, fell far short of informing the defendants what the case against them was in relation to the detained boat," Justice Doogue said.

"It did not tell them that Stabicraft were asserting, for the purposes of the Act, that the detained boat was a pirated copy."

Justice Doogue found Stabicraft failed to serve Customs with "properly constituted proceedings" under the law, and as a result, the agency was wrongfully detaining the boat.

"The detained boat must be released to Sea King forthwith," her judgment said.

The order was stayed for 10 working days - until Friday - to allow Stabicraft to appeal.

The Herald sought comment from Stabicraft and the company's counsel, intellectual property lawyer Ian Finch.

Tauranga-based Finch would not take calls and said via a secretary he would not be making any comment, including on whether or not Stabicraft would appeal the decision.

Stabicraft did not respond to a request for comment.

Craig said on Monday the boat had still not been released and he did not know whether or not Stabicraft would lodge an appeal.

His company has a sole agency agreement contracting Shandong Allsea boats to build and deliver craft, he said.

It was the first time a vessel he was importing had been seized and Craig said the boats built for him were not Stabicraft imitations.

He said the saga had been stressful for his small, family-owned business, which enlisted the services of Greg Arthur KC.

"It's just been an absolute nightmare."

A Customs spokesman confirmed the vessel continued to be detained.

"This is to give effect to the High Court's decision to stay its order to release the vessel for 10 days to give Stabicraft the opportunity to seek leave to appeal the decision."

Stabicraft founder Paul Adams, who has now stepped back as chief executive, previously hit out at imitators of his company's boats in a video posted online.

"Imitations of our boats are being dumped in markets around the world," Adams said.

Adams was filmed examining a model of one of the imitation Stabicraft he and company staff had tested.

"What we found wasn't just poor quality, but fundamentally, these boats are not safe," he said.

Adams said an independent marine assessor had found the imitation boat ran substantially flatter in the water under power, with very little lift in the bow no matter how the engine was trimmed.

He also said the "clone" boat remained flat while cornering, rather than heeling inwards to reduce the risk of tipping while turning.