IPL 2: Intellectual Property Remedies

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Questions and Answers

In the context of intellectual property remedies, what distinguishes statutory damages from additional damages under the Copyright Act (CA) in Singapore?

  • Additional damages under section 307 CA consider factors such as the flagrancy of infringement and benefit gained by the defendant, while statutory damages do not. (correct)
  • Statutory damages, governed by section 305(1)(b) CA, require proof of actual loss, in contrast to additional damages.
  • Statutory damages are intended to compensate for flagrancy of infringement, whereas additional damages serve to reimburse actual losses.
  • Additional damages are predetermined amounts set by legislation, unlike statutory damages which are assessed based on the infringer's profits.

Under Singaporean law, a copyright owner who has received statutory damages for infringement is subsequently permitted to claim an account of profits derived by the infringer from the same infringing acts.

False (B)

Explain the principle articulated in PH Hydraulics & Engineering Pte Ltd v Intrepid Offshore Construction Pte Ltd [2012] SGHC 133 concerning the rationale for the introduction of statutory damages.

Statutory damages were introduced to aid a copyright owner when he encountered difficulty in proving actual losses.

Section 305(1)(b) of the Singapore Copyright Act stipulates that damages may include __________ damages, particularly considering the flagrancy of the infringement and the benefit the defendant has gained.

<p>additional</p> Signup and view all the answers

Match the following intellectual property remedies to their corresponding legal basis within Singaporean legislation:

<p>Statutory Damages for Copyright Infringement = Section 308 of the Copyright Act (CA) Account of Profits for Trade Mark Infringement = Section 31(2)(c) of the Trade Marks Act (TMA) Revocation of a Patent = Section 80 of the Patents Act (PA) Additional Damages for Copyright Infringement = Section 305(1)(b) of the Copyright Act (CA)</p> Signup and view all the answers

What constitutes the primary legal rationale behind the 'election of remedies' principle in intellectual property law?

<p>To prevent the claimant from pursuing multiple remedies for the same infringing act, which would result in double recovery. (A)</p> Signup and view all the answers

In Singapore, a court is permitted to simultaneously award a patent proprietor damages for infringement and order an account of the profits derived from the same infringement, given sufficient justification.

<p>False (B)</p> Signup and view all the answers

Briefly outline the approach taken in Main-Line Corporate Holdings Ltd v UOB and Anor [2009] SGHC 232 and explain how it clarifies the application of Section 67(2) of the Patents Act.

<p>The High Court allowed Main-Line to elect an account of profits against UOB and damages against FCC because the causes of action were distinct and UOB and FCC caused different damage. Section 67(2) did not apply because the remedies available to Main-Line were cumulative and not alternative.</p> Signup and view all the answers

According to the Trade Marks Act (TMA) Section 22, a registered trademark's registration can be subject to __________.

<p>revocation</p> Signup and view all the answers

In an infringement action, a defendant files a defence and counterclaim asserting the invalidity of the claimant's registered trademark. Under Singapore's legal framework, what is the procedural outcome if the trademark is subsequently found to be invalid?

<p>The claimant no longer has a basis to pursue the defendant for infringement, as the foundation of their claim (the valid trademark) has been nullified. (A)</p> Signup and view all the answers

Which statement accurately describes the application of statutory versus additional damages under Section 307 CA?

<p>Under Section 307 CA, the factors to determine additional damages include flagrancy of infringement and benefit gained by defendant. (C)</p> Signup and view all the answers

According to s305(3) CA, damages and account of profits are always mutually exclusive.

<p>False (B)</p> Signup and view all the answers

What conditions must be met for a remedy to be considered cumulative rather than alternative in intellectual property disputes, as illustrated in the Main-Line Corporate Holdings Ltd v UOB and Anor case?

<p>The causes of action must be separate and distinct, and the involved parties must have caused different damage.</p> Signup and view all the answers

According to Section 23 TMA, a registered trademark can be subject to ____________ of TM registration.

<p>invalidation</p> Signup and view all the answers

Under Singapore law, according to the presentation, what are grounds a defendant use when filing defence and counterclaim?

<p>All of the above (D)</p> Signup and view all the answers

In the context of statutory damages determinations, if an act of copyright infringement involved the deliberate concealment of infringing activities and a lack of remorse from the defendant, how might a Singaporean court interpret these factors?

<p>As aggravating factors, potentially leading to a higher statutory damages award, reflecting the egregious nature of the infringement and the need for deterrence. (C)</p> Signup and view all the answers

If a copyright owner places anti-piracy stickers onto infringing products as part of a strategy to deceive the public, this conduct would mitigate against an award of additional damages by a Singapore court.

<p>False (B)</p> Signup and view all the answers

Explain how the apportionment of profits, under Section 305(1)(c) Copyright Act (CA) or Section 31(2)(c) Trade Marks Act (TMA) and Patents Act (PA) Section 67(1)(d), can serve to mitigate the monetary relief awarded to a plaintiff in intellectual property litigation.

<p>Apportionment allows the court to separate profits derived directly from the infringing acts from those generated by other, non-infringing aspects of the defendant's business operations. Only the profits demonstrably attributable to the infringement are subject to disgorgement, thus reducing the defendant's overall liability.</p> Signup and view all the answers

Under the Patents Act (PA), a key consideration when determining whether to grant an account of profits is the need to reflect a(n) __________ of profits only to the extent the profits are generated by a chain of activities and the infringing acts occupy only a part of this chain.

<p>apportionment</p> Signup and view all the answers

Match the following actions with the relevant section of intellectual property legislation:

<p>Revocation of TM Registration = Section 22 TMA Invalidation of TM Registration = Section 23 TMA Revocation of a Patent = Section 80 PA</p> Signup and view all the answers

In the context of intellectual property litigation, what is the MOST precise legal rationale behind the principle of 'election of remedies'?

<p>To preclude a claimant from recovering cumulatively for the same infringing act, thereby avoiding unjust enrichment through duplicative compensation. (D)</p> Signup and view all the answers

Under Singapore's Copyright Act, statutory damages and additional damages serve the EXACT same purpose and only differ in the method of calculation.

<p>False (B)</p> Signup and view all the answers

In a hypothetical scenario where a claimant has the option of either seeking damages or an account of profits under the Patents Act (PA), what critical factor MUST the court consider before deciding NOT to award both remedies for the same act of infringement, as stipulated by Section 67(2) PA?

<p>Whether the damages and profits arise from the same act of infringement.</p> Signup and view all the answers

In the context of statutory damages under the Copyright Act, the case of PH Hydraulics & Engineering Pte Ltd v Intrepid Offshore Construction Pte Ltd [2012] SGHC 133, underscores that statutory damages aim to assist a copyright owner struggling to prove ______.

<p>actual losses</p> Signup and view all the answers

Match the following legal statutes or cases with their MOST relevant legal principle regarding intellectual property remedies in Singapore:

<p>Section 307 CA = Deals with the distinction between statutory and additional damages, indicating when each is appropriate. Section 67(2) PA = Prohibits a court from awarding both damages and an account of profits for the same act of patent infringement. Section 31(5)-(6) TMA = Outlines the conditions and considerations for awarding statutory damages in trade mark infringement cases. <em>New Line Productions Inc v Aglow Video Pte Ltd</em> = Relates to deplorable conduct on the part of defendants such as infringing products advertised as original.</p> Signup and view all the answers

What jurisprudential rationale BEST explains why Singapore's intellectual property laws permit, in exceptional cases under s305(3) CA and s31(3) TMA, a plaintiff to recover both damages and an account of profits?

<p>To ensure complete compensation when the defendant's infringing conduct is particularly egregious and has resulted in both direct harm and unjust enrichment. (D)</p> Signup and view all the answers

Regardless of the specific intellectual property right infringed (patent, trademark, or copyright), the factors considered when assessing statutory damages are invariably identical across all Singaporean legislation.

<p>False (B)</p> Signup and view all the answers

In the context of intellectual property litigation, what specific action MUST a defendant take to challenge the validity of a registered trademark or patent, thereby 'putting validity into issue'?

<p>File a defence and counterclaim for revocation or invalidation.</p> Signup and view all the answers

Under the Trade Marks Act (TMA), Section ______ provides the legal foundation for Trade Mark Registration.

<p>31</p> Signup and view all the answers

In the precedent-setting case Main-Line Corporate Holdings Ltd v UOB and Anor [2009] SGHC 232, what critical distinction did the High Court draw that allowed Main-Line to elect both an account of profits from UOB and damages from FCC, despite the general prohibition against double recovery?

<p>The patent infringement actions stemmed from separate and distinct causes, with FCC's infringement pre- dating UOB's involvement, thereby justifying distinct remedies. (C)</p> Signup and view all the answers

In Singapore, if a defendant successfully argues the invalidity or revocation of a trademark or patent, the claimant automatically retains the right to pursue infringement actions for damages incurred prior to the declaration of invalidity or revocation.

<p>False (B)</p> Signup and view all the answers

In circumstances where profits are generated by a chain of activities, and acts of infringement only occupy a part of this chain, what is MOST important principle guiding the assessment of an account of profits?

<p>Apportionment of profits.</p> Signup and view all the answers

Pursuant to Section 80 PA, what kind of action is triggered that centres around a patent?

<p>Revocation</p> Signup and view all the answers

Consider a hypothetical scenario where a defendant is found to have infringed a plaintiff's copyright by manufacturing and selling counterfeit goods. The plaintiff seeks additional damages under Section 305(1)(b) of the Copyright Act. Which of the following factors would the court MOST likely consider as indicative of 'deplorable conduct' by the defendant?

<p>The defendant actively advertised the infringing products with anti-piracy stickers to deceive the public and create a perception of legitimacy. (D)</p> Signup and view all the answers

Additional damages, being punitive, should translate into an extraordinary profit for the claimant.

<p>False (B)</p> Signup and view all the answers

In a complex intellectual property infringement litigation where the claimant has demonstrably suffered reputational harm and market share dilution, but struggles to provide granular financial data directly correlating these losses to the infringing activities, which remedy would a seasoned IP strategist most likely advocate for initial pursuit, considering both evidentiary burdens and potential punitive outcomes?

<p>Statutory Damages, leveraging the inherent flexibility to compensate for intangible harms and circumvent the stringent proof of actual loss. (A)</p> Signup and view all the answers

Under prevailing jurisprudence in jurisdictions adhering to common law traditions, the award of additional damages in copyright infringement cases is solely contingent upon demonstrating a compensatory principle exceeding the demonstrable financial harm suffered by the rights holder, thereby precluding considerations of punitive or deterrent objectives.

<p>False (B)</p> Signup and view all the answers

Articulate a nuanced exposition of the methodological complexities inherent in calculating 'accounts of profits' within intellectual property infringement scenarios, explicitly addressing the apportionment challenges when the defendant's revenue stream is derived from a confluence of both infringing and legitimately derived activities. Detail the evidentiary standards typically expected by courts in such determinations.

<p>Calculating accounts of profits necessitates a rigorous forensic analysis to isolate the profits directly attributable to the infringing acts. When revenue stems from mixed sources, apportionment becomes critical. Courts expect claimants to present robust evidence, often through expert accounting testimony, demonstrating a causal link between the infringement and specific profit components, and a defensible methodology for segregating infringing from non-infringing gains. This may involve detailed cost breakdowns, market analysis, and potentially hypothetical 'but-for' scenarios to establish the incremental profit derived from the IP violation.</p> Signup and view all the answers

In the realm of ordinary damages for intellectual property infringement, the paramount legal principle dictates that the claimant is fundamentally ___________ for the demonstrable pecuniary detriment directly consequent to the infringing conduct.

<p>compensated</p> Signup and view all the answers

Match the categories of remedies available in intellectual property infringement cases with their respective focal points in legal and economic terms:

<p>Damages = Quantifiable financial losses directly suffered by the claimant due to infringement. Statutory Damages = Circumstances where precise quantification of actual loss is unduly burdensome or infeasible. Additional Damages = Punitive or exemplary objectives, addressing egregious infringer conduct beyond compensatory aims. Accounts of Profits = Disgorgement of the infringer's net financial gains illicitly derived from the infringement.</p> Signup and view all the answers

Within the established framework of the Copyright Act and Trademarks Act, regarding the pursuit of remedies for intellectual property infringement pertaining to a singular, indivisible act of infringement, which of the following dyads of remedies is generally precluded due to the doctrine of mutual exclusivity designed to prevent unjust enrichment?

<p>Simultaneous claims for Statutory Damages and Accounts of Profits arising from the same infringing act. (B)</p> Signup and view all the answers

Section 67, Subsection 2 of the Patents Act, embodies an absolute and inviolable prohibition against a claimant ever obtaining both damages and an account of profits, irrespective of the nuanced factual matrix or the multiplicity of infringing acts or defendants involved in a patent infringement scenario.

<p>False (B)</p> Signup and view all the answers

Elaborate on the fundamental 'rationale for election' principle underpinning the requirement for claimants to choose between disparate remedies—such as damages, statutory damages, and accounts of profits—in cases of intellectual property infringement. Articulate the policy objectives advanced by this doctrine within the broader framework of IP law.

<p>The rationale for election is primarily to prevent double recovery and unjust enrichment of the claimant. Allowing concurrent pursuit of mutually exclusive remedies for the same infringement would overcompensate the claimant beyond their actual loss or the infringer's gain. This principle aims to strike a balance, ensuring fair compensation or disgorgement of illicit profits without unduly penalizing the infringer or creating a windfall for the claimant. It promotes proportionality and equity within the remedies framework of IP law.</p> Signup and view all the answers

Should a defendant successfully challenge the substratum of an intellectual property right, securing a judicial decree of __________ or __________ of a registered trademark or patent, the claimant's infringement action predicated upon said right will typically be rendered unsustainable ab initio.

<p>invalidation, revocation</p> Signup and view all the answers

When a judicial authority undertakes the assessment of statutory damages in an intellectual property rights infringement case, which of the ensuing factors would be deemed LEAST pertinent to the determination of the quantum of damages awarded, assuming all other factors are held constant?

<p>The claimant's expenditure on legal representation and associated litigation costs incurred in pursuing the infringement action. (D)</p> Signup and view all the answers

In jurisdictions adhering to established common law principles, ordinary damages awarded in intellectual property infringement litigation are inherently imbued with a punitive dimension, functioning not only to indemnify the claimant but also to actively deter future infringing behavior by similarly situated actors in the market.

<p>False (B)</p> Signup and view all the answers

Critically analyze the strategic rationale underpinning a defendant's deployment of a 'validity challenge' to the claimant's intellectual property right (trademark or patent) as a defensive maneuver within the context of an infringement lawsuit. Detail the potential ramifications for both parties contingent upon the success or failure of such a challenge.

<p>A validity challenge aims to dismantle the very foundation of the claimant's infringement case. Success in invalidating or revoking the IP right eliminates the legal basis for the infringement claim, causing the claimant to lose. For the defendant, it's a high-stakes but potentially case-dispositive strategy. Failure of the challenge strengthens the presumption of the IP right's validity, potentially aggravating the infringement finding and influencing remedy calculations against the defendant. It shifts the focus from mere infringement to the foundational legitimacy of the asserted IP right.</p> Signup and view all the answers

Additional damages, as conceptualized within specific intellectual property statutes, are characterized by a diminished emphasis on direct compensation and a heightened focus on the ___________ facet of the infringer's actions, particularly in instances of egregious or willful infringement.

<p>punitive</p> Signup and view all the answers

Correlate each category of remedy in intellectual property infringement with the primary legislative instrument or legal framework under which it is most prominently featured or originally conceived:

<p>Damages = General principles of intellectual property law applicable across various statutes. Statutory Damages = Emanate from specific statutes like the Copyright Act and Trademarks Act, tailored to evidentiary challenges. Additional Damages = Specifically codified within Section 307 of the Copyright Act, addressing punitive considerations. Accounts of Profits = Foundational principle in equity and codified across IP statutes, focusing on unjust enrichment.</p> Signup and view all the answers

In the procedural complexities of calculating 'accounts of profits', when an infringer's financial gains are interwoven with both infringing and legitimate commercial activities, what judicially sanctioned methodology is typically employed to equitably apportion profits and ensure that only those directly attributable to the infringement are subject to disgorgement?

<p>A 'differential profit' assessment, comparing the defendant's profitability with and without the infringing activity, often requiring sophisticated economic modeling. (B)</p> Signup and view all the answers

A claimant in intellectual property litigation possesses unfettered and absolute discretion to unilaterally elect the most financially advantageous remedy from the spectrum of available options—including damages, statutory damages, and accounts of profits—under all prevailing intellectual property statutes, irrespective of contextual limitations or statutory constraints.

<p>False (B)</p> Signup and view all the answers

Under what highly circumscribed and 'exceptional circumstances' might a claimant plausibly succeed in obtaining a cumulative award encompassing both 'damages' (compensatory) and 'accounts of profits' (disgorgement) in an intellectual property infringement action, notwithstanding the general doctrine of mutual exclusivity? Provide jurisprudential or statutory examples to illustrate your response.

<p>Exceptional circumstances often arise when infringements are distinct or involve different defendants. For instance, if a claimant suffers trademark infringement and patent infringement concurrently but distinctly, or if infringements are committed by separate parties acting independently, courts may allow both damages and accounts of profits to address the entirety of harm and unjust enrichment across different causes of action or against different wrongdoers. Case law examples illustrate scenarios where infringements are not considered 'the same' in respect of different rights or actors, thus circumventing mutual exclusivity for a holistic remedy.</p> Signup and view all the answers

Section _________ of the Copyright Act 1968 (or equivalent legislation in relevant jurisdictions) specifically engenders the statutory basis for the adjudication and award of 'Additional Damages' in copyright infringement proceedings, distinct from both ordinary and statutory damages.

<p>307</p> Signup and view all the answers

When undertaking the financial calculus of 'accounts of profits' to be disgorged by an infringer, which category of the defendant's incurred expenditures is typically deemed deductible from their gross receipts to arrive at the net profit figure subject to remittance to the claimant?

<p>Exclusively 'direct costs' demonstrably and unequivocally attributable to the production and sale of the infringing goods or services, with stringent evidentiary requirements. (C)</p> Signup and view all the answers

Match each category of remedy available in intellectual property infringement cases with the primary beneficiary or locus of focus in terms of legal and economic redress:

<p>Damages = Primarily focused on redressing the claimant's actual financial detriment and restoring their economic position. Statutory Damages = Intended to benefit claimants particularly when evidentiary hurdles impede precise proof of quantifiable losses. Additional Damages = Aimed at broader societal benefit through deterrence and penalizing egregious infringer conduct. Accounts of Profits = Focused on neutralizing the infringer's unjust enrichment by extracting illicitly gained financial benefits.</p> Signup and view all the answers

Flashcards

Additional Damages

Damages awarded beyond compensation, factoring in infringement flagrancy and gains by defendant.

Apportionment of Profits

When profits stem from multiple activities, only infringing acts' share is considered.

Election of Remedies Principle

Prevent claimant from recovering twice for the same infringement.

Statutory Damages Principle

Damages aiding copyright owners in proving losses, based on commercial nature of acts.

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Defence and Counterclaim

Defendant claims IP is invalid in response to infringement action.

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Election of Remedies Example

If a claimant sues UOB and FCC, they can seek profits from UOB and damages from FCC, where remedies are cumulative.

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Invalidating TM Registration

Trademark invalidation claim under section 23 TMA

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Patent Revocation

Patent revocation claim under section 80 PA.

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Revocation of TM Registration

Trademark revocation claim under section 22 TMA

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Statutory Damages

Damages set by law, aiding copyright owners when proving actual losses is difficult, considering factors under Section 308 CA and Section 31(5)-(6) TMA.

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Account of Profits

If profits arise from multiple activities, only the infringing acts' profits are considered.

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Election of Remedies

Claimant generally cannot recover twice for the same infringement.

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Defence Against Infringement

Defendant counters infringement claim by asserting the IP (TM or Patent) is invalid or should be revoked (non-use).

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Infringement Flagrancy

Infringement was blatant, acts hidden, no regret and raised unsupportable defenses, deter future infringements with unfair advantages.

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Benefit from Infringement

Defendant gained advantage or benefit from the infringement

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Successful Remedy Election

When two parties, UOB and FCC, are involved in infringement, you can pursue profits from UOB and damages from FCC

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Claimants cumulative Remedy

UOB is separately to liable for patent infringement, so remedies available to Main-Line were cumulative and not alternative. Section 67(2) PA does not apply.

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Ordinary Damages

Covers claimant's actual losses due to infringement.

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Statutory Damages Availability

Available under the Trademarks Act and Copyright Act, considered when assessing actual losses is difficult to prove.

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Mutual Exclusivity of Remedies

A claimant must generally choose between damages, accounts of profits, or statutory damages.

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Exceptions to Remedy Exclusivity

In some situations a claimant can obtain both, such as damages and account of profits.

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Trademark/Patent Validity Defence

The defendant asserts that the claimant's trademark or patent should not be registered.

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Study Notes

Intellectual Property Remedies Overview

  • Remedies in intellectual property infringement cases can include damages, statutory damages, additional damages, and accounts of profits.
  • Defendants can challenge the validity of the trademark or patent as a defense in infringement cases.
  • Invalidation or revocation of the trademark or patent can result in the claimant losing the case.

Damages

  • Ordinary damages compensate the claimant for the loss suffered.
  • Scenario: A local bakery discovers a rival is unfairly using its logo to attract customers; the bakery may seek damages based on lost sales and harm to the bakery's reputation.
  • Damages compensate the claimant for their actual losses.

Statutory Damages

  • Copyright Act (CA) section 305, Trade Marks Act (TMA) section 31, and Patents Act (PA) sections 67, 75, and 76 outline the remedies available for IP infringement.
  • Section 31(5)-(6) of the TMA and section 308 of the CA are relevant.
  • Factors for determining statutory damages differ across the Copyright Act, Trade Marks Act, and Patents Act.
  • Section 307 of the CA distinguishes between statutory and additional damages.
  • Statutory damages are introduced to aid a copyright owner having difficulty proving actual losses.
  • Section 119(5) of old CA applied in determining statutory damages.
  • Statutory damages help a claimant when it is difficult to prove actual losses.

Scenario Illustrating Statutory Damages

  • PH Hydraulics & Engineering Pte Ltd v Intrepid Offshore Construction Pte Ltd is an important case.
  • Consider a situation where a small software company discovers that a competitor has blatantly copied significant portions of its code.
  • Proving the exact financial loss is difficult due to the complexities of market valuation and potential sales lost.
  • The court may award statutory damages to compensate the software company, as proving actual losses is difficult.

Factors Considered in Granting Statutory Damages

  • Consider nature and purpose if infringing acts were commercial and shows how defendants geared themselves up as potential competitors.
  • Infringement was flagrant.
  • Defendants attempted to conceal their copying such as altering names, and flipping profiles in infringing drawings.
  • Lack of remorse displayed by the defendant.
  • Defendants saved time and money by not making the drawings.
  • Defendant’s conduct during proceedings was unsatisfactory.
  • Need to deter future infringements.
  • For instance, if an artist finds that a company has been using their work without permission and has been altering images, this may be deemed unsatisfactory conduct.

Additional Damages

  • Additional damages are included in Section 305(1)(b) of the CA.
  • Section 307 CA highlights flagrancy of infringement, and benefit gained by defendant.
  • Additional damages have a punitive element and are less focused on compensation.
  • Punitive in nature, additional damages are designed to deter infringement but should not result in disproportionate enrichment of the claimant.
  • Deplorable conduct should be considered like advertising infringing products as original or placing anti-piracy stickers to deceive.
  • New Line Productions Inc and another v Aglow Video Pte Ltd and others applied similar factors in s119(4) of old CA.
  • Additional damages have less to do with the compensatory principle and more to do with the punitive element.

Scenario Illustrating Additional Damages

  • A company knowingly uses counterfeit components in its products, falsely claiming compliance with safety standards.
  • Consider also the placement of fake authenticity stickers.
  • The court may award additional damages due to the flagrant disregard for intellectual property rights, and the potential harm to consumers.

Account of Profits

  • Copyright Act (CA): section 305(1)(c)
  • Trade Marks Act (TMA): section 31(2)(c)
  • Patents Act (PA): section 67(1)(d)
  • Involves determining the actual profit the infringer derived from the infringement.
  • Accounts of profits look at the defendant's profits from the infringement rather than the claimant's losses.
  • One looks at what the defendant profited from the infringement.
  • Profit reduction can be achieved by deducting costs/expenses.
  • In calculation of profits, the defendant's costs would be deducted from its receipts.
  • Profits can be apportioned if the infringing acts are part of a broader chain of activities.
  • If a chain of activities generated the profits, one would have to apportion the profit attributed to infringing acts and the profit due to non -infringing acts
  • The claimant should only get the former.
  • Bosch Corp v Wiedson International (S) Pte Ltd addresses account of profits.

Scenario Illustrating Account of Profits

  • A company reverse-engineers a competitor's patented technology and incorporates it into its own product line, resulting in increased sales but also attracting patent infringement lawsuits
  • The court may order an account of profits, which requires the infringing company to surrender profits made due to infringement.
  • The exercise involves reducing the profits by only including the infringing aspects of the product supply chain.

Election of Remedies

  • The general principle aims to prevent double recovery.
  • Different IP rights have provisions for different remedies, and there may be mutual exclusivity between certain remedies.
  • The rationale for election between alternative remedies is to prevent double recovery.
  • For copyright and trade marks law, damages, account of profits, and statutory damages are mutually exclusive under s305(2) CA and s 31(4) TMA.
  • Under the Copyright Act and Trademarks Act, damages, account of profits and statutory damages are mutually exclusive.
  • Exception applies allowing both damages and account of profits under s305(3) CA and s31(3) TMA.
  • In patent law, Section 67(2) of the PA prevents the court from awarding both damages and an account of profits for the same act of infringement.
  • Under Section 67.2 of the Patents Act, damages and an account of profits are mutually exclusive in respect of the same infringement.

Illustrative scenario: Main-Line Corporate Holdings Ltd v UOB and Anor

  • The claimant claimed different remedies, namely damages and an account of profits, against different defendants.
  • Main-Line successfully sued UOB and FCC for patent infringement related to a Dynamic Currency Conversion system.
  • At first glance, this seems to go against Section 67.2.
  • Main-Line elected for an account of profits from UOB and damages from FCC.
  • The High Court allowed this election, determining causes of action were distinct, one stemming from FCC's actions prior to UOB's involvement.
  • The High Court observed that the causes of action against the defendants were separate and distinct.
  • The defendants were thus separately liable for patent infringement.
  • UOB and FCC were liable separately and caused different damages, so remedies were cumulative.
  • The claimant's election of both damages and an account of profits was not in respect of the same infringement.
  • Section 67 -2 therefore did not apply and the claimant could get its different elected remedies against the different defendants.

Defence and Counterclaim when Validity is at Issue

  • The claimant initiates an infringement action, alleging infringement of a registered trademark or patent by the defendant.
  • The defendant responds by filing a defence and counterclaim.
  • The defendant alleges the registered trademark is invalid or should be revoked for non-use, or that the patent is invalid.
  • The defendant's case is that the claimant's trademark or pattern should not be on the register at all.
  • The defendant files a defense encounter claim to say why.
  • If the trademark or patent is found invalid or is revoked, the claimant loses the legal basis to pursue the infringement claim against the defendant.

Grounds for Invalidation/Revocation

  • Revocation of Trade Mark Registration: section 22 TMA.
  • Invalidation of Trade Mark Registration: section 23 TMA.
  • Revocation of a Patent: section 80 PA.

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