Lumos Skincare Ltd v Sweet Squared Ltd & Ors [2015] EWHC 1313 (IPEC) (19 May 2015)

Lumos Skincare Ltd v Sweet Squared Ltd & Ors [2015] EWHC 1313 (IPEC) (19 May 2015)

The Defendants are jointly and severally liable to account for profits derived from UK sales of LUMOS products under the passing off tort, with only UK sales included, and only direct costs and specific advertising/freight expenses deductible, not general overheads or trade show/catalogue costs.

Citation
[2015] EWHC 1313 (IPEC)
Parties
Claimant: Lumos Skincare Limited; First Defendant: Sweet Squared Limited; Second Defendant: Famous Names LLC; Third Defendant: Sweet Squared (UK) LLP
Jurisdiction
England and Wales
Judgment Date
19 May 2015
Procedural Posture
Passing Off Action (account of Profits) / Post Trial, Account of Profits Hearing
Outcome
Account of profits ordered against all Defendants, jointly and severally liable.
Legal Topics
Passing Off, Account of Profits, Joint Liability, Goodwill, Deduction of Costs, Territoriality of Torts
Intellectual Property Tort Passing Off Account of Profits Joint Liability Goodwill Deduction of Costs Territoriality of Torts

Case Brief

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Parties

Lumos Skincare Limited

Claimant

Sweet Squared Limited

First Defendant

Famous Names LLC

Second Defendant

Sweet Squared (UK) LLP

Third Defendant

Procedural Posture

Passing Off Action (account of Profits) / Post Trial, Account of Profits Hearing

Legal Issues

  1. 1 Whether the Second Defendant is liable to account for profits from supply to UK distributors under joint liability for passing off
  2. 2 Calculation of total revenue derived by Defendants from UK sales of LUMOS products
  3. 3 Determination of allowable deductions for costs, overheads, and expenses in account of profits

Ratio Decidendi

The Defendants are jointly and severally liable to account for profits derived from UK sales of LUMOS products under the passing off tort, with only UK sales included, and only direct costs and specific advertising/freight expenses deductible, not general overheads or trade show/catalogue costs.

Court Disposition

Account of profits ordered against all Defendants, jointly and severally liable.

Orders

  • First and Third Defendants to pay £24,461.48 to Claimant.
  • Second Defendant to pay £17,842.66 to Claimant.