It appears to me that Annexure B bears all the hallmarks of a contract for work (or as English lawyers call it, for
services). Not only were the applicants styled as agents, that in essence is what they were. While they had to
function within stipulated contractual bounds, there is
Page 372 of [2000] 3 All SA 367 (C?)
nothing in Annexure B which entitled the respondent to supervise their daytoday work, or to dictate which
applicant should do what, or generally to control how or when the work should be done. There is nothing in
Annexure B which precluded the applicants from employing others to do some of the work for them, or which
precluded them from engaging secretarial or bookkeeping assistance. The element of control was in truth extremely
limited. The provisions regarding remuneration are most telling and are virtually incompatible with a contract of
service. The guarantee and the obligation, from 1 March 1996, to provide a minimum quantity of wine per month,
point in the same direction. There is no doubt in my mind that the applicants were independent contractors and that
their contract with the respondent was one for work rather than of service.
That being so, it is evident that in terms of section 21(1)(d), copyright remained vested in the first applicant
unless there was an agreement such as is contemplated by section 21(1)(e). This conclusion renders it unnecessary
for me to rule on Mr SholtoDouglas' alternative submission that, on the facts, Annexure F was not produced "in the
course of" the applicants' employment by the first respondent.
M r Vos' further contention was that on the facts of this case there was indeed an agreement such as is
contemplated by section 21(1)(e) whereby copyright in Annexure F assuming it to subsist passed to the
respondent. Counsel pointed out that in the first applicant's earlier agreement with Cogmans, the rights to any
labels developed by him would be his alone. In the present case, however, the agreement (Annexure B) is silent on
this topic. According to the first applicant:
"27.
During the discussions predating the conclusion of the agreement with Respondent, I telefaxed to Mr Simonis
of Respondent a copy of the wine label which had been used on the Cogmans wines but in respect of which I
had deleted with tippex the word 'SONDELA' and the identificatory number used to identify the source of the
wine. At the same time I sent Mr Simonis a telefax which I had received from Coastal Labels for the printing of
the altered label. A copy of the telefax sent to Mr Simonis is annexed hereto, marked 'E'.
28.
The label as altered constitutes an adaptation of the original work. The copyright in the adaptation vests in me.
A copy of this label, which was used on the wine supplied by Respondent, is annexed hereto, marked 'F'.
29.
Although Respondent paid for the printing of the label and placed copies of these labels on bottles distributed
by OosKaap Drank with my consent, Respondent never had my permission to use the labels for any other
purpose."
The applicant further alleges (paragraph 24) that he orally reserved his rights at a meeting of the respondents'
board of directors held on 11 October 1995. This allegation is denied by Mr Simonis, who is the principal deponent
for the respondent (paragraph 10.6). Paragraph 27, quoted above, is admitted by Mr Simonis; paragraph 28 is
denied; with regard to paragraph 29 Mr Simonis states:
"20.1 Ek erken dat die Respondent betaal het vir die blok van die etiket en die drukwerk.
Page 373 of [2000] 3 All SA 367 (C?)
20.2
Ek erken voorts dat die Respondent die etikette op die plastiek bottels geplaas het wat deur die Respondent
versprei is. Toe die ooreenkoms (aanhangsel 'B') gesluit is, was daar geen sprake van OosKaap Drank nie.
Die naam OosKaap Drank het ook nie tydens die direksievergadering van 11 Oktober 1995 ter sprake gekom
nie.
20.3
Buiten die voorafgaande word die inhoud van hierdie paragraaf ontken."
Elsewhere in his affidavit Mr Simonis states that it was an integral term of the proposed agreement that the
respondent would make use of the label; that the label was developed and made available to the respondent as
part of the marketing service which the applicants were to provide; that it was developed for the benefit of the
respondent; and that although the first applicant was not paid a separate fee therefor, the applicants were
remunerated for their marketing services.
The replying affidavit adds nothing save a reiteration that the reason why Annexure B did not refer to the label
was because the label had already been developed prior to the conclusion of the agreement.
In the aforegoing circumstances Mr Vos submitted that it was implicit in the parties' conduct and agreement that
the respondent would have the right to continue using Annexure F after the termination of their agreement and
that any copyright in F would vest in the respondent. Counsel reinforced this argument by pointing to a measure of
delay before the applicants instituted these proceedings.
Although not so recorded in Annexure B, Annexure F was specifically developed for use during the currency of the
agreement; it was expressly agreed that it would be so used; and used it was in fact. There was, however, no
express agreement as to the rights to the label or its use after termination. Either we have two contracts
(Annexure B and the oral label contract) or we have one contract which was partly in writing and partly oral. Either
way the respondent, it seems to me, relies on an implied (tacit) term. Taking the facts at their most favourable to
the respondent, on the PlasconEvans principle, I do not think that the requisite element of necessity is present.
While it would not have been unreasonable for the parties to reach the agreement postulated by Mr Vos, there was
no compelling reason of business efficacy for them to have done so. Furthermore, given the history of the label and
the applicant's business connection, I am very doubtful whether the first applicant would have agreed thereto had