Talaris (Sweden) AB v Network Controls International Ltd [2008] EWHC 2930 (TCC) (20 November 2008)

Talaris (Sweden) AB v Network Controls International Ltd [2008] EWHC 2930 (TCC) (20 November 2008)

There is a serious issue to be tried regarding NCI's marketing of software with NCR and failure to display Talaris' logo, both arguably breaching the Exclusive Distributor Agreement. Damages would not be an adequate remedy for either party, but Talaris is in a slightly stronger position due to the difficulty in quantifying losses and NCI's limited assets. The balance of convenience favours granting a limited interim injunction, pending a speedy trial.

Citation
[2008] EWHC 2930 (TCC)
Parties
Claimant: Talaris (Sweden) AB; Defendant: Network Controls International Limited
Jurisdiction
England and Wales
Judgment Date
20 November 2008
Procedural Posture
Interim Injunction Application / Return Date Hearing Following Ex Parte Injunction
Outcome
Interim injunction granted in part
Legal Topics
Interim Injunctions, Exclusive Distribution Agreements, Breach of Contract, Intellectual Property, Software Licensing
Contract Law Commercial Law Interim Injunctions Exclusive Distribution Agreements Breach of Contract Intellectual Property Software Licensing

Case Brief

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Parties

Talaris (Sweden) AB

Claimant

Network Controls International Limited

Defendant

Procedural Posture

Interim Injunction Application / Return Date Hearing Following Ex Parte Injunction

Legal Issues

  1. 1 Whether NCI breached the Exclusive Distributor Agreement by marketing software with NCR during the agreement term
  2. 2 Whether NCI was required to provide new software versions to Talaris
  3. 3 Whether NCI was obliged to display Talaris' logo on software at public demonstrations

Ratio Decidendi

There is a serious issue to be tried regarding NCI's marketing of software with NCR and failure to display Talaris' logo, both arguably breaching the Exclusive Distributor Agreement. Damages would not be an adequate remedy for either party, but Talaris is in a slightly stronger position due to the difficulty in quantifying losses and NCI's limited assets. The balance of convenience favours granting a limited interim injunction, pending a speedy trial.

Court Disposition

Interim injunction granted in part

Orders

  • Interim injunction limited to prohibiting NCI from marketing the software in breach of the EDA (paragraph 5(4)) and from producing software without Talaris' logo at the relevant event (paragraph 5(6)), to remain in force until trial.
  • Other prohibitions in the original order (distribution, sales, customer contact) are discharged.