Bei Yu Industrial Co v Nuby (UK) LLP & Anor

Bei Yu Industrial Co v Nuby (UK) LLP & Anor

Nuby is entitled to deduct a fair proportion of its general overheads from profits attributable to infringing sales because, on the balance of probabilities, it would have sold non-infringing products if not the infringing ones. The sales revenue approach is generally the least unrealistic method for apportioning overheads, except for website, telephone/IT, and stationery/office equipment costs, where a per-product approach is fairer. Interest is awarded at the Bank of England base rate only due to lack of evidence justifying a higher rate.

Parties
Claimant: Bei Yu Industrial Co.; First Defendant: Nuby (UK) LLP; Second Defendant: Ms Maria Louise Burnell
Jurisdiction
England and Wales
Judgment Date
22 March 2022
Procedural Posture
Account of Profits Following Intellectual Property Infringement / Judgment After Trial on Account of Profits
Outcome
Claim allowed in part; Nuby to account for profits with deductions and apportionments as determined.
Legal Topics
Registered Design Infringement, Account of Profits, Deduction of Overheads, Apportionment of Expenses, Interest on Judgment Debts
Intellectual Property Commercial Law Registered Design Infringement Account of Profits Deduction of Overheads Apportionment of Expenses Interest on Judgment Debts

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 6 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Bei Yu Industrial Co.

Claimant

Nuby (UK) LLP

First Defendant

Ms Maria Louise Burnell

Second Defendant

Procedural Posture

Account of Profits Following Intellectual Property Infringement / Judgment After Trial on Account of Profits

Legal Issues

  1. 1 Whether Nuby is entitled to deduct general overheads from profits attributable to infringing sales
  2. 2 What method of apportionment of overheads is appropriate
  3. 3 Whether certain categories of expenses (wages, consultancy, bad debt, improper payments) are deductible

Ratio Decidendi

Nuby is entitled to deduct a fair proportion of its general overheads from profits attributable to infringing sales because, on the balance of probabilities, it would have sold non-infringing products if not the infringing ones. The sales revenue approach is generally the least unrealistic method for apportioning overheads, except for website, telephone/IT, and stationery/office equipment costs, where a per-product approach is fairer. Interest is awarded at the Bank of England base rate only due to lack of evidence justifying a higher rate.

Court Disposition

Claim allowed in part; Nuby to account for profits with deductions and apportionments as determined.

Orders

  • Nuby to account for profits from infringing sales, deducting direct costs (as corrected), allowable general overheads apportioned as specified, and with interest at Bank of England base rate.
  • Parties to draw up a form of order reflecting the judgment.