Electric Chain Co. of Canada Ltd. v. Art Metal Works Inc. Et al.

Electric Chain Co. of Canada Ltd. v. Art Metal Works Inc. Et al.

Only the patentee (Art Metal Works Inc.) had a cause of action under the pleadings; the Canadian company was only an implied licensee and not the patentee or legal representative and therefore could not be made a party after the May 31, 1932 judgment; parent company could not recover damages measured by the subsidiary's profits absent evidence that dividends or share value were affected; nevertheless the patentee was entitled to substantial damages for infringement, fixed on these facts at $750.

Citation
[1933] SCR 581
Parties
Defendant/appellant: Electric Chain Co. of Canada Ltd.; Plaintiff/respondent: Art Metal Works Inc.; Plaintiff/respondent (co Plaintiff): Dominion Art Metal Works Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
28 June 1933
Procedural Posture
Patent Infringement / Appeal to Supreme Court of Canada From Exchequer Court of Canada (judgment on Damages and Joinder)
Outcome
Judgment of the Exchequer Court (Feb 6, 1933) and Registrar's report (Aug 15, 1932) vacated and set aside; substituted judgment entered for Art Metal Works Inc. for limited damages.
Legal Topics
Infringement, Standing to Sue, Exclusive Licence Vs Assignment, Measure of Damages, Joinder of Parties, Corporate Veil/separate Personality
Source Language
English
Intellectual Property Patent Law Company Law Civil Procedure Infringement Standing to Sue Exclusive Licence Vs Assignment Measure of Damages +2 more

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Parties

Electric Chain Co. of Canada Ltd.

Defendant/appellant

Art Metal Works Inc.

Plaintiff/respondent

Dominion Art Metal Works Limited

Plaintiff/respondent (co Plaintiff)

Procedural Posture

Patent Infringement / Appeal to Supreme Court of Canada From Exchequer Court of Canada (judgment on Damages and Joinder)

Legal Issues

  1. 1 Whether the Canadian subsidiary could be joined as a plaintiff after the May 31, 1932 judgment
  2. 2 Whether an exclusive licencee (Dominion) had standing to sue in its own name or to recover damages
  3. 3 Whether the foreign patentee (Art Metal Works Inc.) could recover damages based on the subsidiary's profits or as owner of the subsidiary's shares/dividends

Ratio Decidendi

Only the patentee (Art Metal Works Inc.) had a cause of action under the pleadings; the Canadian company was only an implied licensee and not the patentee or legal representative and therefore could not be made a party after the May 31, 1932 judgment; parent company could not recover damages measured by the subsidiary's profits absent evidence that dividends or share value were affected; nevertheless the patentee was entitled to substantial damages for infringement, fixed on these facts at $750.

Court Disposition

Judgment of the Exchequer Court (Feb 6, 1933) and Registrar's report (Aug 15, 1932) vacated and set aside; substituted judgment entered for Art Metal Works Inc. for limited damages.

Orders

  • Registrar's report dated 15 August 1932 set aside
  • Judgment of Exchequer Court dated 6 February 1933 set aside