How will the IP Enforcement Directive affect damages for IP infringement? asks Robert Renfree
Few intellectual property (IP) cases proceed to a damages assessment. Usually the court will only order a damages inquiry after liability is established at trial. A damages inquiry is a substantial exercise, requiring expert accounting evidence. IP rights holders are often more interested in stopping the infringing act by obtaining a rapid injunction than in spending time and money trying to establish what their damages entitlement is, particularly where the infringer has limited finances.
Ultraframe (UK) Ltd v Eurocell Building Plastics Ltd [2006] EWHC 1344 (Pat), [2006] All ER (D) 68 (Jun) demonstrates the principles applied when damages are assessed. Ultraframe manufacture conservatories. They developed a conservatory called Ultralite. Ultralite enabled Ultraframe’s share of the low pitch conservatory market to grow from 5% to 80%. In 2002 Eurocell launched a competing product, Pinnacle. Ultraframe issued proceedings alleging that Pinnacle had infringed Ultraframe’s patent and unregistered design rights for Ultralite. After an appeal to the Court of Appeal, it was established that Eurocell had infringed. In 2005 the court granted Ultraframe
