Kevin Andrews (Menzies, Liberal Party) Share this | Link to this | Hansard source

I wish tonight to draw the attention of the House to a modern David-versus-Goliath struggle within corporate Australia. It's an example of poor behaviour by an Australian company, Wesfarmers, and their subsidiary company, Kmart. The issues I'm referring to point to a substantial gap in our intellectual property laws or a failure to protect a deserving Australian small business from large corporate predation or a cultural and leadership deficiency in corporate Australia.

The essential facts are these: Magic Words International and its founder, Marcella Reiter, developed a world-leading literacy resource for Australian children. It is used throughout Australia and, indeed, throughout the world. The product is known as Magic Words. It is innovative and clever. It is distinctive and unique. It's bright and colourful, in an easy format, with an enjoyable presentation and learning genius. Magic Words is about engaging and motivating children to have fun whilst learning to read. It is a successful Australian business and business product selling into our homes and schools. Magic Words is a key component in teaching and assessing outcomes in our schools.

So guess what has happened? In January 2020, on the shelves of Kmart in Australia and New Zealand, there appeared an almost identical product, with the same titles, same colours, same words, same statistical significance and same design, all apparently lifted from Magic Words. Indeed, the trademark expression 'Magic Words' registered to Marcella Reiter was used in the promotion of the Kmart product. As I said, Kmart is a subsidiary of Wesfarmers. So you can imagine the surprise of the creator and author when the Kmart product was brought to Ms Reiter's attention. She immediately approached Kmart. Guess what happened? Kmart and Wesfarmers went legal—'Nothing to see here. Be on your way.' What next? There were protracted legal letters and meetings with evidence and substantiation, but all without any resolution. The matter was escalated to the Wesfarmers chair, Mr Michael Chaney AO. Guess what happened? Kmart and Wesfarmers went legal—'Nothing to see here. Be on your way.' Ms Reiter's member of parliament—the honourable member for Isaacs, Mark Dreyfus QC—wrote to Mr Chaney requesting Kmart and Wesfarmers engage with Ms Reiter. Guess what happened? 'Nothing to see here. Be on your way.'

Small Australian businesses like Ms Reiter's need to be protected and promoted. We have here an example of no such protection and possible victims of frankly outrageous conduct from an Australian corporate. There is a question mark over the corporate leadership of companies like this that essentially rip off small businesses in Australia. Accordingly, I urge all honourable members to look to and sustain people like Marcella Reiter, who are working hard in small businesses around Australia for the benefit of themselves but also, in her case, for children, for families and for communities. I urge honourable members to hold to account large corporates that hide behind obfuscating, frustrating and elongating tactics of their lawyers, not once but repeatedly. I urge honourable members to promote a corporate culture of honesty, decency and accountability.

Small businesses are the backbone of the Australian economy. In examples like this, where people have used their ingenuity to create a product, go out there and market it, working from the kitchen table and the garage at home where product is stored for distribution throughout a country, to have that ripped off by Kmart, in this instance, is so disappointing compared to what should be happening. Then to have the corporate response of, 'Call in the lawyers and deny everything,' is simply appalling.