Federal Court: Wild Turkey marks are insufficient security for costs, not “readily realisable assets
Austin, Nichols & Co Inc v Lodestar Anstalt  FCA 1228
On 23 October the Federal Court made an Order for Security for payment of costs against Austin, Nichols & Co Inc (“Austin Nichols”), which is ordinarily resident outside the jurisdiction.
Austin Nichols attempted to defend the Application for Security for Costs by relying upon a valuable portfolio of several Australian trade mark registrations for WILD TURKEY in relation to whiskey products. However, it was held by the Court that such assets did not constitute readily realisable assets.
The Judge commented that while a receiver may eventually be able to sell the trade marks, the course of doing so might well be fraught with considerable difficulty and delay. On this basis, an Order for Security for Costs was made.