Deeproot Green Infrastructure, LLC v. Greenblue Urban North America Inc.

Deeproot Green Infrastructure, LLC v. Greenblue Urban North America Inc.

GreenBlue failed to establish, on the evidence, a sufficient causal connection between claimed overhead deductions (which were presented on a North American aggregated basis and included US expenses) and the infringements in Canada; accordingly overhead deductions for 2017–2020 are disallowed, resulting in an...

Source-derived case information.

Citation
2026 FC 125
Parties
Plaintiffs/defendants by Counterclaim: Deeproot Green Infrastructure, LLC; Plaintiffs/defendants by Counterclaim: Deeproot Canada Corp.; Defendant/plaintiff by Counterclaim: GreenBlue Urban North America Inc.
Court
Federal Court
Jurisdiction
Canada
Judgment Date
31 March 2026
Procedural Posture
Patent Infringement (accounting of Profits/royalty) / Supplementary Judgment on Remitted Issue From Federal Court of Appeal (assessment of Appropriateness and Quantum of Accounting of Profits)
Outcome
Accounting of profits awarded to Plaintiffs; interest and costs awarded.
Legal Topics
Accounting of Profits, Causation for Overhead Deductions, Reasonable Royalty, Pre Judgment Interest, Costs Assessment
Source Language
english
Intellectual Property Patent Law Equitable Remedies Civil Procedure Commercial Law Accounting of Profits Causation for Overhead Deductions Reasonable Royalty +2 more

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Parties

Deeproot Green Infrastructure, LLC

Plaintiffs/defendants by Counterclaim

Deeproot Canada Corp.

Plaintiffs/defendants by Counterclaim

GreenBlue Urban North America Inc.

Defendant/plaintiff by Counterclaim

Procedural Posture

Patent Infringement (accounting of Profits/royalty) / Supplementary Judgment on Remitted Issue From Federal Court of Appeal (assessment of Appropriateness and Quantum of Accounting of Profits)

Legal Issues

  1. 1 Whether an accounting of profits is an appropriate remedy on the remitted issue
  2. 2 Whether GreenBlue established a causal link between claimed overhead expenses and the infringing Canadian sales to permit deductions
  3. 3 Whether the court may estimate overhead deductions in absence of reliable evidence or expert quantification

Ratio Decidendi

GreenBlue failed to establish, on the evidence, a sufficient causal connection between claimed overhead deductions (which were presented on a North American aggregated basis and included US expenses) and the infringements in Canada; accordingly overhead deductions for 2017–2020 are disallowed, resulting in an accounting of profits awarded to DeepRoot of $593,362.21 (less the prior $136,000 royalty payment), plus pre-judgment compounded interest from May 23, 2018 at the average prime lending rate plus 1%, and costs on the remitted issue per mid-range Column 2 of Tariff B.

Court Disposition

Accounting of profits awarded to Plaintiffs; interest and costs awarded.

Orders

  • Plaintiffs awarded an accounting of profits in the amount of $593,362.21 less the $136,000.00 royalty payment previously made
  • Plaintiffs entitled to pre-judgment interest from May 23, 2018 to the date of judgment, compounded annually using the average prime lending rate plus 1%; interest on the royalty payment to be credited against the new total award