Artificial Solutions Germany GmbH v Creative Virtual Ltd & Anor

Artificial did not validly terminate the Distribution Agreement because it refused to accept performance under the contract, thereby triggering creditor delay and the tu quoque principle. Creative's offers to pay were sufficient, and Artificial's denial of the contract and insistence on payment under a temporary agreement precluded valid termination for non-payment.

Parties: Claimant: Artificial Solutions Germany GmbH; First Defendant: Creative Virtual Limited; Second Defendant: Christopher Ezekiel
Jurisdiction: England and Wales
Judgment Date: 02 April 2008
Procedural Posture: Civil / Judgment
Outcome: Claim dismissed
Legal Topics: Copyright Infringement, Distribution Agreements, Termination of Contract, German Law, Licensing

Contract Law Intellectual Property Law Copyright Infringement Distribution Agreements Termination of Contract German Law Licensing

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Parties

Artificial Solutions Germany GmbH

Claimant

Creative Virtual Limited

First Defendant

Christopher Ezekiel

Second Defendant

Procedural Posture

Civil / Judgment

Legal Issues

1 Whether Artificial validly terminated the Distribution Agreement for non-payment
2 Whether Creative was licensed to reproduce the Lingubot software
3 Whether Artificial's refusal to accept payment constituted creditor delay under German law

Ratio Decidendi

Court Disposition

Claim dismissed