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3. (b) That's right. Defamation requires that the defamatory material (in this case a statement) be published in the sense of being communicated to at least one person. But this means a person other than the plaintiff.

If the statement by B was made to A while they were alone, then that is not sufficient publication for defamation.

Fairfax Media Publications Pty Ltd v Voller [2021] HCA 27.