Equisafety Ltd v Battle, Hayward And Bower Ltd [2023] EWHC 1821 (IPEC) (21 July 2023)

Equisafety Ltd v Battle, Hayward And Bower Ltd [2023] EWHC 1821 (IPEC) (21 July 2023)

The court held that the appropriate sum to be accounted for is the net profit from all sales of infringing goods during the Packaging Period, after deduction of 14% overheads, and that 60% of the resulting net profit is properly attributable to the infringement. The court found that the use of the Mercury mark was a significant factor in driving sales, and that sales after the rebrand but with infringing packaging should be included. Interest is awarded at 2.5% above base rate, compounded annually.

Citation
[2023] EWHC 1821 (IPEC)
Parties
Claimant: Equisafety Limited; First Defendant: Battle, Hayward and Bower Limited; Second Defendant: Richard Michael Dewey
Jurisdiction
England and Wales
Judgment Date
21 July 2023
Procedural Posture
Account of Profits Following Trade Mark Infringement and Passing Off / Judgment After Trial of Account of Profits
Outcome
Judgment for the Claimant against the First Defendant for an account of profits.
Legal Topics
Trade Mark Infringement, Passing Off, Account of Profits, Apportionment of Profits, Overheads Deduction, Interest on Profits
Intellectual Property Law Trade Mark Infringement Passing Off Account of Profits Apportionment of Profits Overheads Deduction Interest on Profits

Case Brief

Summary, issues, holding and outcome

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Parties

Equisafety Limited

Claimant

Battle, Hayward and Bower Limited

First Defendant

Richard Michael Dewey

Second Defendant

Procedural Posture

Account of Profits Following Trade Mark Infringement and Passing Off / Judgment After Trial of Account of Profits

Legal Issues

  1. 1 Whether the profits made by the First Defendant from the sale of infringing goods should be accounted for to the Claimant
  2. 2 Whether all or only part of the profits are attributable to the infringement
  3. 3 Whether overheads should be deducted from gross profits

Ratio Decidendi

The court held that the appropriate sum to be accounted for is the net profit from all sales of infringing goods during the Packaging Period, after deduction of 14% overheads, and that 60% of the resulting net profit is properly attributable to the infringement. The court found that the use of the Mercury mark was a significant factor in driving sales, and that sales after the rebrand but with infringing packaging should be included. Interest is awarded at 2.5% above base rate, compounded annually.

Court Disposition

Judgment for the Claimant against the First Defendant for an account of profits.

Orders

  • First Defendant to pay the Claimant £12,568 as profits attributable to infringement and passing off, plus interest at 2.5% above base rate, compounded annually from the date of the relevant profits to judgment.