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The high price you could pay for infringing patents

Posted: 21st June 2017   In: Corporate Commercial

The High Court has outlined the legal principles involved when determining how much companies should pay if they infringe a patent when selling their products.

The issue arose in a case involving a company that breached a patent covering the use of aluminium snap-in inserts to fix shelves and brackets to horizontally-slatted wall panels, enabling shops to construct displays of merchandise.

The court ordered that the patent holder was entitled to all the infringer’s profits involving the inserts and 10% of the profits from the panels.

If the infringement had not occurred, the infringer would have incurred the same overheads, and its sales of non-infringing products would have been at the same level as its sales of infringing plus non-infringing products. It was therefore entitled to deduct general overheads from its profits on the infringing business.

The judge outlined the legal principles in determining such cases. These are some of the main points covered:

The court also examined the legal principles determining whether there should be any deduction for the offender’s overheads:

Please contact Sing Li if you would like more information about the issues raised in this article or any aspect of intellectual property and litigation.

 

Posted by: Sing Li
Corporate Commercial
Luton Office