Air Canada v. AIS Infonetics Inc.

Air Canada v. AIS Infonetics Inc.

The court applied the higher likelihood-of-success / strong prima facie standard appropriate for Mareva-like security and found AIS failed that test (and would have failed the lower arguable-case test). Air Canada’s uncontroverted expert evidence showed the kiosks do not perform essential claim elements (they do not dispense or sell tickets and require prior reservation/payment; flight data stored in reservation system not kiosk memory). AIS also failed to establish irreparable harm or inability to collect damages. Motion dismissed with costs.

Citation
2009 FC 668
Parties
Plaintiff/defendant by Counterclaim: Air Canada; Defendant/plaintiff by Counterclaim: AIS Infonetics Inc.
Court
Federal Court
Jurisdiction
Canada
Judgment Date
26 June 2009
Procedural Posture
Patent Infringement; Declaratory Relief / Interlocutory Motion for Security for Damages (pre Trial)
Outcome
Motion dismissed with costs.
Legal Topics
Infringement, Validity, Security for Damages, Mareva Type Relief, Serious Issue Test, Irreparable Harm, Costs
Source Language
English
Intellectual Property Patent Law Civil Procedure Injunctions Bankruptcy Law Infringement Validity Security for Damages +4 more

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Parties

Air Canada

Plaintiff/defendant by Counterclaim

AIS Infonetics Inc.

Defendant/plaintiff by Counterclaim

Procedural Posture

Patent Infringement; Declaratory Relief / Interlocutory Motion for Security for Damages (pre Trial)

Legal Issues

  1. 1 Proper test for establishing a serious issue for security for damages (arguable case v. strong prima facie likelihood of success)
  2. 2 Whether Air Canada’s AC/CUSS self-service kiosks infringe Canadian Patent No. 2,035,767
  3. 3 Whether AIS would suffer irreparable harm because Air Canada cannot pay damages

Ratio Decidendi

The court applied the higher likelihood-of-success / strong prima facie standard appropriate for Mareva-like security and found AIS failed that test (and would have failed the lower arguable-case test). Air Canada’s uncontroverted expert evidence showed the kiosks do not perform essential claim elements (they do not dispense or sell tickets and require prior reservation/payment; flight data stored in reservation system not kiosk memory). AIS also failed to establish irreparable harm or inability to collect damages. Motion dismissed with costs.

Court Disposition

Motion dismissed with costs.

Orders

  • Motion dismissed with costs fixed at the upper level of the units set out in Column IV of the Tariff in the Federal Courts Rules.