David Instance has lost its appeal against last years High Court triumph by Denny Bros Printing regarding invalid patents, and could now face costs of up to 500,000.


The decision follows Denny Bros High Court victory, when Instance had claimed that it had infringed patents for different styles of leaflet labels (PrintWeek, 28 April 2000).


Denny Bros counter-claim-ed for an injunction and damages, claiming In-stance had issued threats of patent litigation to Dennys customers. The case is due to be heard later this year.


At the appeal hearing, Instance had applied for leave to appeal to the House of Lords but was refused.


The patents involved in the dispute, which relate to "particular features in terms of the leaflet labels", will be revoked after 21 days.


"The important thing is that we can now carry on producing the labels," said Andrew Denny, managing director of Fix-a-Form International, Dennys licensing company.


But he said that although the result had gone in the companys favour, "at the end of the day, it doesnt pay the bills".


Instance has been ordered to pay an interim sum of 30,000 within 14 days for appeal costs, on top of the 200,000 in interim costs paid on the original case.


Denny said the total costs of the case were still to be decided, which should happen later this year and could see it being "awarded at least as much again".


Fix-a-Form International is still awaiting the award of costs in a US dispute with Instance.


It is pursuing a damages claim after it was judged that an attempt by the Instance Group to buy into the Fix-a-Form network was not possible without the companys consent.
No one from the Instance Group was available for comment as PrintWeek went to press.


Story by Andy Scott