Sony Communications International AB v SSH Communications Security Corporation

Sony Communications International AB v SSH Communications Security Corporation

The court found good reason to depart from the budget for the expert reports and trial phases due to the complexity and development of the case, but not for trial preparation. Apportionment of costs between validity and infringement was adjusted where the original budgeted split was clearly wrong. Sony was not entitled to recover PlayStation 4 PPD costs as the parties had agreed to deduct all infringement costs at a general level. The total recoverable costs were set at £876,347.28, with interest to be paid at 1% above base rate from the date of payment, subject to agreement or court determination of the interest amount.

Parties
Claimant: Sony Communications International AB; Defendant / Part 20 Claimant: SSH Communications Security Corporation; Part 20 Defendant: Sony Mobile Communications AB; Part 20 Defendant: Sony Computer Entertainment Europe Limited; Part 20 Defendant: Sony Europe Limited; Part 20 Defendant: Sony Network Entertainment Europe Limited
Jurisdiction
England and Wales
Judgment Date
24 November 2016
Procedural Posture
Patent Revocation and Infringement (costs Determination) / Post Trial Costs Assessment
Outcome
Sony awarded costs in the sum of £876,347.28, subject to deductions and apportionments as determined.
Legal Topics
Patent Revocation, Patent Infringement, Costs Management, Summary Assessment of Costs
Intellectual Property Civil Procedure Patent Revocation Patent Infringement Costs Management Summary Assessment of Costs

Case Brief

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Parties

Sony Communications International AB

Claimant

SSH Communications Security Corporation

Defendant / Part 20 Claimant

Sony Mobile Communications AB

Part 20 Defendant

Sony Computer Entertainment Europe Limited

Part 20 Defendant

Sony Europe Limited

Part 20 Defendant

Sony Network Entertainment Europe Limited

Part 20 Defendant

Procedural Posture

Patent Revocation and Infringement (costs Determination) / Post Trial Costs Assessment

Legal Issues

  1. 1 Whether there is good reason to depart from the approved/agreed costs budget for certain phases
  2. 2 How to apportion costs between validity and infringement issues
  3. 3 Whether Sony can recover costs for the PlayStation 4 PPD after SSH discontinued that part of the counterclaim

Ratio Decidendi

The court found good reason to depart from the budget for the expert reports and trial phases due to the complexity and development of the case, but not for trial preparation. Apportionment of costs between validity and infringement was adjusted where the original budgeted split was clearly wrong. Sony was not entitled to recover PlayStation 4 PPD costs as the parties had agreed to deduct all infringement costs at a general level. The total recoverable costs were set at £876,347.28, with interest to be paid at 1% above base rate from the date of payment, subject to agreement or court determination of the interest amount.

Court Disposition

Sony awarded costs in the sum of £876,347.28, subject to deductions and apportionments as determined.

Orders

  • SSH to pay Sony £876,347.28 in respect of costs of the action and counterclaim.
  • Interest to be paid at 1% above base rate on payments made by Sony prior to the date of the order, from the date of such payment, with time to pay not running until interest is agreed or determined by the court.