Podcast
Questions and Answers
In the context of intellectual property remedies, what distinguishes statutory damages from additional damages under the Copyright Act (CA) in Singapore?
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.
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.
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.
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.
Match the following intellectual property remedies to their corresponding legal basis within Singaporean legislation:
Match the following intellectual property remedies to their corresponding legal basis within Singaporean legislation:
What constitutes the primary legal rationale behind the 'election of remedies' principle in intellectual property law?
What constitutes the primary legal rationale behind the 'election of remedies' principle in intellectual property law?
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.
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.
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.
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.
According to the Trade Marks Act (TMA) Section 22, a registered trademark's registration can be subject to __________.
According to the Trade Marks Act (TMA) Section 22, a registered trademark's registration can be subject to __________.
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?
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?
Which statement accurately describes the application of statutory versus additional damages under Section 307 CA?
Which statement accurately describes the application of statutory versus additional damages under Section 307 CA?
According to s305(3) CA, damages and account of profits are always mutually exclusive.
According to s305(3) CA, damages and account of profits are always mutually exclusive.
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?
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?
According to Section 23 TMA, a registered trademark can be subject to ____________ of TM registration.
According to Section 23 TMA, a registered trademark can be subject to ____________ of TM registration.
Under Singapore law, according to the presentation, what are grounds a defendant use when filing defence and counterclaim?
Under Singapore law, according to the presentation, what are grounds a defendant use when filing defence and counterclaim?
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?
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?
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.
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.
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.
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.
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.
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.
Match the following actions with the relevant section of intellectual property legislation:
Match the following actions with the relevant section of intellectual property legislation:
In the context of intellectual property litigation, what is the MOST precise legal rationale behind the principle of 'election of remedies'?
In the context of intellectual property litigation, what is the MOST precise legal rationale behind the principle of 'election of remedies'?
Under Singapore's Copyright Act, statutory damages and additional damages serve the EXACT same purpose and only differ in the method of calculation.
Under Singapore's Copyright Act, statutory damages and additional damages serve the EXACT same purpose and only differ in the method of calculation.
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?
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?
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 ______.
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 ______.
Match the following legal statutes or cases with their MOST relevant legal principle regarding intellectual property remedies in Singapore:
Match the following legal statutes or cases with their MOST relevant legal principle regarding intellectual property remedies in Singapore:
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?
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?
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.
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.
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'?
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'?
Under the Trade Marks Act (TMA), Section ______ provides the legal foundation for Trade Mark Registration.
Under the Trade Marks Act (TMA), Section ______ provides the legal foundation for Trade Mark Registration.
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?
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?
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.
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.
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?
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?
Pursuant to Section 80 PA, what kind of action is triggered that centres around a patent?
Pursuant to Section 80 PA, what kind of action is triggered that centres around a patent?
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?
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?
Additional damages, being punitive, should translate into an extraordinary profit for the claimant.
Additional damages, being punitive, should translate into an extraordinary profit for the claimant.
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?
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?
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.
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.
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.
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.
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.
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.
Match the categories of remedies available in intellectual property infringement cases with their respective focal points in legal and economic terms:
Match the categories of remedies available in intellectual property infringement cases with their respective focal points in legal and economic terms:
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?
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?
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.
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.
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.
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.
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.
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.
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?
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?
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.
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.
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.
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.
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.
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.
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:
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:
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?
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?
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.
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.
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.
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.
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.
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.
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?
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?
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:
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:
Flashcards
Additional Damages
Additional Damages
Damages awarded beyond compensation, factoring in infringement flagrancy and gains by defendant.
Apportionment of Profits
Apportionment of Profits
When profits stem from multiple activities, only infringing acts' share is considered.
Election of Remedies Principle
Election of Remedies Principle
Prevent claimant from recovering twice for the same infringement.
Statutory Damages Principle
Statutory Damages Principle
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Defence and Counterclaim
Defence and Counterclaim
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Election of Remedies Example
Election of Remedies Example
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Invalidating TM Registration
Invalidating TM Registration
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Patent Revocation
Patent Revocation
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Revocation of TM Registration
Revocation of TM Registration
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Statutory Damages
Statutory Damages
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Account of Profits
Account of Profits
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Election of Remedies
Election of Remedies
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Defence Against Infringement
Defence Against Infringement
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Infringement Flagrancy
Infringement Flagrancy
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Benefit from Infringement
Benefit from Infringement
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Successful Remedy Election
Successful Remedy Election
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Claimants cumulative Remedy
Claimants cumulative Remedy
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Ordinary Damages
Ordinary Damages
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Statutory Damages Availability
Statutory Damages Availability
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Mutual Exclusivity of Remedies
Mutual Exclusivity of Remedies
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Exceptions to Remedy Exclusivity
Exceptions to Remedy Exclusivity
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Trademark/Patent Validity Defence
Trademark/Patent Validity Defence
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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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