Vestergaard Frandsen A/S & Ors v Bestnet Europe Ltd & Ors

Vestergaard Frandsen A/S & Ors v Bestnet Europe Ltd & Ors

It would be wrong to strike out the claim for damages or royalty on derived products at the pleading stage, as the extent of benefit from confidential information and the proper measure of damages can only be determined after the facts are established. Both direct and derived products may benefit from misuse, and the law does not require limiting damages to head start only at this stage.

Parties
Claimant/respondent: Vestergaard Frandsen A/S (now called MVF 3 Aps); Claimant/respondent: Vestergaard Frandsen SA; Claimant/respondent: Disease Control Textile SA; Defendant/appellant: Bestnet Europe Limited; Defendant/appellant: 3T Europe Limited; Defendant/appellant: Intection Limited; Defendant/appellant: Intelligent Insect Control Limited; Defendant/appellant: Torben Holm Larsen
Jurisdiction
England and Wales
Judgment Date
25 April 2013
Procedural Posture
Civil Appeal / Appeal From High Court Decision on Application to Strike Out Parts of Amended Points of Claim in an Enquiry as to Damages for Breach of Confidence
Outcome
Appeal dismissed
Legal Topics
Breach of Confidence, Damages Assessment, Injunctions, Derived Products, Head Start Damages, Lost Profits, Reasonable Royalty
Intellectual Property Equity and Trusts Civil Procedure Breach of Confidence Damages Assessment Injunctions Derived Products Head Start Damages +2 more

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Parties

Vestergaard Frandsen A/S (now called MVF 3 Aps)

Claimant/respondent

Vestergaard Frandsen SA

Claimant/respondent

Disease Control Textile SA

Claimant/respondent

Bestnet Europe Limited

Defendant/appellant

3T Europe Limited

Defendant/appellant

Intection Limited

Defendant/appellant

Intelligent Insect Control Limited

Defendant/appellant

Torben Holm Larsen

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Decision on Application to Strike Out Parts of Amended Points of Claim in an Enquiry as to Damages for Breach of Confidence

Legal Issues

  1. 1 Whether damages for breach of confidence can be claimed for products derived from misuse of confidential information, not just those directly made using it
  2. 2 Whether the claim for damages for lost profits or royalty on sales of derived products should be struck out at the pleading stage
  3. 3 Whether the proper measure of damages includes head start damages or is limited to direct misuse

Ratio Decidendi

It would be wrong to strike out the claim for damages or royalty on derived products at the pleading stage, as the extent of benefit from confidential information and the proper measure of damages can only be determined after the facts are established. Both direct and derived products may benefit from misuse, and the law does not require limiting damages to head start only at this stage.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed; the relevant paragraphs of the Points of Claim are not struck out.