Lifestyle Equities CV and another v Ahmed and another

Lifestyle Equities CV and another v Ahmed and another

Directors are not strictly liable as accessories for a company's trade mark infringement unless they have knowledge (or turn a blind eye) to the facts making the acts infringing. Accessory liability in tort, including for strict liability torts, requires knowledge of the essential facts. The only profits for which an accessory can be ordered to account are profits they personally made, not those made by the company. The Ahmeds were not found to have the requisite knowledge and did not personally make profits from the infringement; thus, the orders against them were wrongly made.

Parties
Appellant/respondent: Lifestyle Equities CV and another; Respondent/appellant: Ahmed and another
Jurisdiction
England and Wales
Judgment Date
15 May 2024
Procedural Posture
Civil Appeal (intellectual Property) / Supreme Court Judgment
Outcome
Appeal by Ahmeds allowed; appeal by Lifestyle dismissed.
Legal Topics
Trade Mark Infringement, Accessory Liability, Account of Profits, Directors' Liability, Common Design, Remedies for IP Infringement
Intellectual Property Company Law Tort Law Trade Mark Infringement Accessory Liability Account of Profits Directors' Liability Common Design +1 more

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Parties

Lifestyle Equities CV and another

Appellant/respondent

Ahmed and another

Respondent/appellant

Procedural Posture

Civil Appeal (intellectual Property) / Supreme Court Judgment

Legal Issues

  1. 1 Are directors of a company strictly liable as accessories for the company's tort of trade mark infringement?
  2. 2 Does accessory liability for strict liability torts require knowledge or intent?
  3. 3 Should directors be ordered to account for profits made by the company or only their own profits?

Ratio Decidendi

Directors are not strictly liable as accessories for a company's trade mark infringement unless they have knowledge (or turn a blind eye) to the facts making the acts infringing. Accessory liability in tort, including for strict liability torts, requires knowledge of the essential facts. The only profits for which an accessory can be ordered to account are profits they personally made, not those made by the company. The Ahmeds were not found to have the requisite knowledge and did not personally make profits from the infringement; thus, the orders against them were wrongly made.

Court Disposition

Appeal by Ahmeds allowed; appeal by Lifestyle dismissed.

Orders

  • Orders for an account of profits against the Ahmeds set aside.
  • No liability for the Ahmeds as accessories for trade mark infringement.