Artifical Solutions Germany GmbH v Creative Virtual Ltd & Anor

Artifical Solutions Germany GmbH v Creative Virtual Ltd & Anor

There are serious triable issues regarding the claimant's entitlement to terminate the Distribution Agreement and the application of German law doctrines. The balance of convenience does not favour granting an interim injunction, as it would cause certain and irreparable harm to the defendants, outweighing the claimant's risk of loss. The appropriate course is to continue the interim regime of payments into a joint account and reporting, and to direct a speedy trial of preliminary issues rather than grant a stay or an injunction.

Parties
Claimant: Artificial Solutions Germany GmbH; First Defendant: Creative Virtual Limited; Second Defendant: Mr Ezekiel
Jurisdiction
England and Wales
Judgment Date
12 October 2007
Procedural Posture
Copyright Infringement Action / Interim Applications for Injunction and Stay Pending Related Foreign Proceedings
Outcome
Interim injunction refused; stay not granted; speedy trial of preliminary issues ordered; interim regime continued.
Legal Topics
Copyright in Software, Interim Injunctions, Stay of Proceedings, Foreign Law (german Law), Distribution Agreements
Intellectual Property Contract Law Private International Law Copyright in Software Interim Injunctions Stay of Proceedings Foreign Law (german Law) Distribution Agreements

Case Brief

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Parties

Artificial Solutions Germany GmbH

Claimant

Creative Virtual Limited

First Defendant

Mr Ezekiel

Second Defendant

Procedural Posture

Copyright Infringement Action / Interim Applications for Injunction and Stay Pending Related Foreign Proceedings

Legal Issues

  1. 1 Whether interim injunction should be granted restraining alleged copyright infringement
  2. 2 Whether proceedings should be stayed pending related action in Hamburg under Article 28 of the Judgments Regulation
  3. 3 Whether the claimant is bound by the Distribution Agreement

Ratio Decidendi

There are serious triable issues regarding the claimant's entitlement to terminate the Distribution Agreement and the application of German law doctrines. The balance of convenience does not favour granting an interim injunction, as it would cause certain and irreparable harm to the defendants, outweighing the claimant's risk of loss. The appropriate course is to continue the interim regime of payments into a joint account and reporting, and to direct a speedy trial of preliminary issues rather than grant a stay or an injunction.

Court Disposition

Interim injunction refused; stay not granted; speedy trial of preliminary issues ordered; interim regime continued.

Orders

  • No interim injunction granted against the defendants.
  • No stay of proceedings granted pending Hamburg action.