Since 2002 Muzz Buzz has franchised drive-through coffee outlets in Australia and it expanded into New Zealand in August 2011. Jitta Buzz established a drive-through coffee kiosk business in Auckland in late 2010.
In the High Court (Muzz Buzz Franchising Pty Ltd v JB Holdings (2010) Limited (High Court, Toogood J)), Muzz Buzz succeeded against Jitta Buzz in proceedings for infringement of copyright and registered trade marks, passing off and misleading and deceptive conduct under the Fair Trading Act 1986. A permanent injunction was awarded against Jitta Buzz (although there was no award of damages against Jitta Buzz as no evidence of financial loss was presented).
The case is particularly noteworthy as, in relation to the passing off and Fair Trading Act claims, Justice Toogood considered that New Zealand and Australia may be regarded as one market for the purposes of enforcing intellectual property rights. He considered that Muzz Buzz had established the requisite goodwill to succeed - despite the fact that Jitta Buzz established their kiosks in Auckland before the first Muzz Buzz outlet was set up in New Zealand. The case demonstrates that given the single economic market between New Zealand and Australia and the constant travel between them, it may take very little to establish that goodwill or awareness in one country should translate into protectable rights in the other.