Lifestyle Equities C.V. & Anor v Ahmed & Anor

Lifestyle Equities C.V. & Anor v Ahmed & Anor

Accessories (directors) found jointly and severally liable for trade mark infringement are only liable to account for profits they personally derived from the infringement, not the profits made by the principal company. Directors' liability as accessories arises from their personal involvement in the infringing acts, not merely from their status as directors or acting within their authority. An account of profits is an equitable remedy available at the court's discretion and is not limited to cases of bad faith or unconscionability. Loans outstanding and subject to repayment are not profits; a fair apportionment of salary attributable to infringing activity may be ordered as profit, net...

Parties
Appellant/respondent: Lifestyle Equities C.V.; Appellant/respondent: Lifestyle Licensing B.V.; Respondent/appellant: Mr Kashif Ahmed; Respondent/appellant: Ms Bushra Ahmed
Jurisdiction
England and Wales
Judgment Date
07 May 2021
Procedural Posture
Civil Appeal / Appeal From High Court Judgment After Second Trial
Outcome
Lifestyle's appeal dismissed; Ahmeds' appeal allowed in part (loan not profit; salary net of tax); all other grounds dismissed.
Legal Topics
Trade Mark Infringement, Passing Off, Accessory Liability, Account of Profits, Directors' Liability, Remedies for IP Infringement
Intellectual Property Equity Company Law Trade Mark Infringement Passing Off Accessory Liability Account of Profits Directors' Liability +1 more

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Parties

Lifestyle Equities C.V.

Appellant/respondent

Lifestyle Licensing B.V.

Appellant/respondent

Mr Kashif Ahmed

Respondent/appellant

Ms Bushra Ahmed

Respondent/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment After Second Trial

Legal Issues

  1. 1 Whether accessories (directors) are liable for the whole profits made by the principal company or only for profits they personally made
  2. 2 Whether directors are jointly and severally liable as accessories for trade mark infringement by their company
  3. 3 Whether an account of profits should be ordered against the directors

Ratio Decidendi

Accessories (directors) found jointly and severally liable for trade mark infringement are only liable to account for profits they personally derived from the infringement, not the profits made by the principal company. Directors' liability as accessories arises from their personal involvement in the infringing acts, not merely from their status as directors or acting within their authority. An account of profits is an equitable remedy available at the court's discretion and is not limited to cases of bad faith or unconscionability. Loans outstanding and subject to repayment are not profits; a fair apportionment of salary attributable to infringing activity may be ordered as profit, net...

Court Disposition

Lifestyle's appeal dismissed; Ahmeds' appeal allowed in part (loan not profit; salary net of tax); all other grounds dismissed.

Orders

  • Lifestyle's appeal dismissed
  • Ahmeds' appeal allowed on the loan issue (loan not profit)