Blizzard Entertainment SAS & Anor v Bossland GmbH & Ors

Blizzard Entertainment SAS & Anor v Bossland GmbH & Ors

Only costs solely and wholly associated with Bossland’s actionable and admitted activities in the United Kingdom are deductible as direct costs from the profits for which Bossland is accountable. Other costs, including overheads that support worldwide activities, are not deductible unless increased by the UK activities or would have been incurred in respect of non-actionable business. Affiliate costs are deductible proportionately to UK sales. Tax is deductible on an estimated basis reflecting the relationship between actual tax paid and notional tax, and interest is awarded at 1.4% per annum simple interest.

Parties
Claimant: Blizzard Entertainment SAS; Claimant: Blizzard Entertainment Inc.; Defendant: Bossland GmbH; Defendant: Zwetan Letschew; Defendant: Patrick Kirk
Jurisdiction
England and Wales
Judgment Date
04 July 2019
Procedural Posture
Account of Profits Following Copyright Infringement and Inducement of Breach of Contract / Judgment on Account of Profits
Outcome
Account of profits taken; deductions allowed only for direct transactional fees, proportionate affiliate costs, and estimated tax; interest awarded at 1.4% simple per annum.
Legal Topics
Copyright Infringement, Inducement of Breach of Contract, Account of Profits, Deduction of Costs, Overheads in IP Cases
Intellectual Property Contract Law Copyright Infringement Inducement of Breach of Contract Account of Profits Deduction of Costs Overheads in IP Cases

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Parties

Blizzard Entertainment SAS

Claimant

Blizzard Entertainment Inc.

Claimant

Bossland GmbH

Defendant

Zwetan Letschew

Defendant

Patrick Kirk

Defendant

Procedural Posture

Account of Profits Following Copyright Infringement and Inducement of Breach of Contract / Judgment on Account of Profits

Legal Issues

  1. 1 What profits must Bossland, Mr Kirk, and Mr Letschew account for to Blizzard as a result of admitted copyright infringement and inducement of breach of contract?
  2. 2 What costs are deductible from those profits?
  3. 3 How should tax and interest be treated in the account of profits?

Ratio Decidendi

Only costs solely and wholly associated with Bossland’s actionable and admitted activities in the United Kingdom are deductible as direct costs from the profits for which Bossland is accountable. Other costs, including overheads that support worldwide activities, are not deductible unless increased by the UK activities or would have been incurred in respect of non-actionable business. Affiliate costs are deductible proportionately to UK sales. Tax is deductible on an estimated basis reflecting the relationship between actual tax paid and notional tax, and interest is awarded at 1.4% per annum simple interest.

Court Disposition

Account of profits taken; deductions allowed only for direct transactional fees, proportionate affiliate costs, and estimated tax; interest awarded at 1.4% simple per annum.

Orders

  • Bossland, Mr Kirk, and Mr Letschew to account to Blizzard for profits from UK sales of relevant software, less direct transactional fees (€30,943), proportionate affiliate costs (3.6% of global affiliate costs for relevant software), and estimated tax as calculated per judgment.
  • Interest at 1.4% per annum simple on each year’s accountable profits as they accrued.