SkyPath Trust set to demand $1.6m NZTA payment after 'unauthorised' use of designs

Thursday, 11 April 2019

SkyPath Trust is accusing the New Zealand Transport Agency of unauthorised use of its intellectual property, with the trust's project director set to demand payment of a $1.6 million fee.

An April 4 letter from SkyPath Trust's Bevan Woodward to NZTA chairman Michael Stiassny showed the trust plans to send an invoice for $1.64m, unless the Crown agency provided evidence disputing its use of the trust's designs for a proposed pathway across Auckland Harbour Bridge.

The letter, obtained by Stuff, represents the latest twist in an ongoing dispute between the trust and NZTA. The relationship has continued to sour since the Government announced it would fund SkyPath, a pathway for cyclists and pedestrians across the bridge.

SkyPath Trust project director Bevan Woodward says NZTA has engaged in unauthorised use the trust's intellectual property.

The row centres on design rights – the trust, which ran the project until it was taken over by NZTA, previously said the agency had gone quiet amid discussions to buy the trust's intellectual property and design work for its concept.

**READ MORE:

A recent design of one of the viewing decks on the proposed SkyPath, which is at the centre of a dispute between the project's proponents and NZTA.

* Auckland SkyPath may be delayed until 2022, likely sinking America's Cup hopes

* NZTA launches investigation into Auckland SkyPath proposal amid escalating row

* Row over design rights for Auckland's SkyPath

* Skypath backers float user pays despite Government's toll-free suggestion

* War of words erupts over Auckland's controversial and unprecedented SkyPath plan**

NZTA chairman Michael Stiassny has launched an investigation into a dispute surrounding Auckland's SkyPath.

In a subsequent statement, NZTA said it needed to do more work before deciding on the right design to take forward.

NZTA board chairman Michael Stiassny eventually announced an independent investigation after the SkyPath Trust disputed Stiassny's earlier claims the trust had not allowed NZTA to access or assess the necessary documentation.

Now Stuff has been provided with a copy of Woodward's reply to Stiassny. In it he stated there was 'no dispute' NZTA had engaged in unauthorised use the trust's intellectual property.

The unauthorised use included a review commissioned by NZTA of the SkyPath design in late-2018.

It also entailed NZTA's business case work, which, since July 2018, had used SkyPath's consented design as a reference point while looking at changes to the path's width and construction materials.

'Compensation on commercial terms is therefore necessary,' Woodward wrote.

'It is neither feasible nor appropriate to seek to take the essence of the design and discard or replace parts, and thereby expect to pay less for the intellectual property.'

The trust simply wanted to complete cost recovery for its work, as well as the work of 11 consultants it engaged.

'Since February 2018, SkyPath Trust has advised NZTA that the fee to acquire the use of the SkyPath design's intellectual property is $1.64m,' Woodward wrote.

'Had NZTA sought to use the trust's intellectual property legally, this is the fee it would have been required to pay to the trust.

'Rather than acquire the legal right to use SkyPath Trust's intellectual property, however, NZTA has sought to benefit from the unauthorised use of the Trust's intellectual property.'

The unauthorised use needed to be settled, Woodward added.

'We do not believe that there is any genuine dispute between the Trust and NZTA as to these facts,' he said.

'It is therefore appropriate for SkyPath Trust and its consultants to now seek payment of $1.64 million (including GST) for NZTA's use of their intellectual property.

'If you consider that there remain any points of genuine dispute between the Trust and NZTA then I invite you to set out those points for the Trust's consideration by way of return letter to me within ten working days.'

Last week, Stuff revealed SkyPath could be delayed until 2022, likely sinking hopes it would be ready in time for the 2021 America's Cup, which is being held in Auckland.