Anan Kasei Co Limited & Anor v Neo Chemicals & Oxides (Europe) Limited & Ors

Anan Kasei Co Limited & Anor v Neo Chemicals & Oxides (Europe) Limited & Ors

Damages for patent infringement may include losses arising outside the UK if those losses are both factually and legally caused by infringing acts within the UK. Legal causation requires the infringing acts to be a proximate cause of the losses, not merely a factual cause or opportunity. The judge was entitled to find that the infringing acts were not a proximate cause of the overseas sales, and thus Rhodia's appeal was dismissed. There is no duty nexus limitation in patent infringement cases beyond legal causation. Proportionality and barriers to legitimate trade do not preclude recovery of such damages if legally caused by infringement.

Parties
Claimant/appellant: Anan Kasei Co. Limited; Claimant/appellant: Rhodia Operations SAS; Defendant/respondent: Neo Chemicals & Oxides (Europe) Limited; Defendant/respondent: Neo Performance Materials Inc; Defendant/respondent: Neo Cayman Holdings Limited
Jurisdiction
England and Wales
Judgment Date
17 January 2023
Procedural Posture
Civil Appeal / Appeal From High Court Judgment on Damages Inquiry for Patent Infringement
Outcome
Appeal dismissed
Legal Topics
Patent Infringement, Damages, Legal Causation, Territoriality, Remoteness, Proportionality, Exclusive Licence
Intellectual Property Tort Patent Infringement Damages Legal Causation Territoriality Remoteness Proportionality +1 more

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Parties

Anan Kasei Co. Limited

Claimant/appellant

Rhodia Operations SAS

Claimant/appellant

Neo Chemicals & Oxides (Europe) Limited

Defendant/respondent

Neo Performance Materials Inc

Defendant/respondent

Neo Cayman Holdings Limited

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment on Damages Inquiry for Patent Infringement

Legal Issues

  1. 1 Whether damages for patent infringement can include losses arising outside the UK caused by infringing acts within the UK
  2. 2 Whether the losses claimed were legally as well as factually caused by the infringing acts
  3. 3 Whether damages claimed are disproportionate or create barriers to legitimate trade under Article 3(2) of the Enforcement Directive

Ratio Decidendi

Damages for patent infringement may include losses arising outside the UK if those losses are both factually and legally caused by infringing acts within the UK. Legal causation requires the infringing acts to be a proximate cause of the losses, not merely a factual cause or opportunity. The judge was entitled to find that the infringing acts were not a proximate cause of the overseas sales, and thus Rhodia's appeal was dismissed. There is no duty nexus limitation in patent infringement cases beyond legal causation. Proportionality and barriers to legitimate trade do not preclude recovery of such damages if legally caused by infringement.

Court Disposition

Appeal dismissed

Orders

  • No change to High Court judgment; damages limited as previously determined
  • Neo's applications to adduce new evidence and for disclosure refused