Artificial Solutions Germany GmbH v Creative Virtual Ltd & Anor [2008] EWHC 593 (Ch) (02 April 2008)

Artificial Solutions Germany GmbH v Creative Virtual Ltd & Anor [2008] EWHC 593 (Ch) (02 April 2008)

Assuming the Distribution Agreement was transferred to Artificial, the court found that Artificial was entitled to terminate the agreement for non-payment of fees by Creative, and that the purported defences under German law (creditor delay, tu quoque, unperformed contract) did not prevent valid termination. Creative's acts were not licensed after termination.

Citation
[2008] EWHC 593 (Ch)
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
Copyright Infringement and Contract Dispute / Judgment on Preliminary Issues Regarding Termination of Distribution Agreement
Outcome
Judgment for the Claimant on the preliminary issue of termination; Distribution Agreement validly terminated.
Legal Topics
Copyright Infringement, Software Licensing, Distribution Agreements, Termination for Breach, Novation, Choice of Law
Intellectual Property Contract Law Private International Law Copyright Infringement Software Licensing Distribution Agreements Termination for Breach Novation +1 more

Case Brief

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Parties

Artificial Solutions Germany GmbH

Claimant

Creative Virtual Limited

First Defendant

Christopher Ezekiel

Second Defendant

Procedural Posture

Copyright Infringement and Contract Dispute / Judgment on Preliminary Issues Regarding Termination of Distribution Agreement

Legal Issues

  1. 1 Whether the Distribution Agreement was transferred to Artificial under the Asset Purchase Agreement
  2. 2 Whether Artificial validly terminated the Distribution Agreement for non-payment under German law
  3. 3 Whether Creative's acts were licensed under the Distribution Agreement

Ratio Decidendi

Assuming the Distribution Agreement was transferred to Artificial, the court found that Artificial was entitled to terminate the agreement for non-payment of fees by Creative, and that the purported defences under German law (creditor delay, tu quoque, unperformed contract) did not prevent valid termination. Creative's acts were not licensed after termination.

Court Disposition

Judgment for the Claimant on the preliminary issue of termination; Distribution Agreement validly terminated.

Orders

  • Declaration that the Distribution Agreement was validly terminated by Artificial for non-payment.
  • Costs reserved.