GRACE SILVER MARKETING LTD AND ANOTHER v. HAIXIN YU GAR (H.K.) LTD AND ANOTHER

GRACE SILVER MARKETING LTD AND ANOTHER v. HAIXIN YU GAR (H.K.) LTD AND ANOTHER

GSC was the authorised master licensee and had validly authorised GSM to grant the sub‑licence; the sub‑licence was a written contract validly entered into by GSM with Haixin Yu Gar; the option to renew the master licence existed and was validly exercised by GSC; the deed created an original indemnity obligation on...

Source-derived case information.

Citation
GRACE SILVER MARKETING LTD AND ANOTHER v. HAIXIN YU GAR (H.K.) LTD AND ANOTHER
Parties
1st Plaintiff: Grace Silver Marketing Limited; 2nd Plaintiff: Grace Silver Company Limited; 1st Defendant: Haixin Yu Gar (H.K.) Limited; 2nd Defendant: Or Yi Tung
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 May 2011
Case Number
HCA2833/2006
Procedural Posture
Commercial Contract and Intellectual Property Dispute (trademark Licence/sub‑licence) / Judgment on Liability and Damages (court of First Instance)
Outcome
Judgment for plaintiffs Grace Silver Marketing Limited and Grace Silver Company Limited against Haixin Yu Gar (H.K.) Limited and Or Yi Tung; counterclaim dismissed.
Legal Topics
Sub‑licence, Trademark Licence, Authority of Agent, Option to Renew, Personal Guarantee/deed of Indemnity, Termination of Contract, Measure of Damages
Source Language
en
Contract Intellectual Property Agency Guarantee/indemnity Remedies Sub‑licence Trademark Licence Authority of Agent +4 more

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 3 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Grace Silver Marketing Limited

1st Plaintiff

Grace Silver Company Limited

2nd Plaintiff

Haixin Yu Gar (H.K.) Limited

1st Defendant

Or Yi Tung

2nd Defendant

Procedural Posture

Commercial Contract and Intellectual Property Dispute (trademark Licence/sub‑licence) / Judgment on Liability and Damages (court of First Instance)

Legal Issues

  1. 1 Whether GSC had authority to permit GSM to sub‑licence the trademark (agency/disclosed principal)
  2. 2 Whether an irrevocable option to renew the master licence existed and was validly exercised
  3. 3 When the letter of appointment was made and whether GSM was GSC's authorised agent

Ratio Decidendi

GSC was the authorised master licensee and had validly authorised GSM to grant the sub‑licence; the sub‑licence was a written contract validly entered into by GSM with Haixin Yu Gar; the option to renew the master licence existed and was validly exercised by GSC; the deed created an original indemnity obligation on Or such that she is jointly and severally liable; accordingly plaintiffs (GSM and GSC) recover unpaid royalties and foreseeable consequential losses; defendants' counterclaim for rescission fails.

Court Disposition

Judgment for plaintiffs Grace Silver Marketing Limited and Grace Silver Company Limited against Haixin Yu Gar (H.K.) Limited and Or Yi Tung; counterclaim dismissed.

Orders

  • Judgment for US$125,000 (outstanding royalties) against Haixin Yu Gar and Or, jointly and severally.
  • Judgment for US$275,000 (consequential loss for premature termination) against Haixin Yu Gar and Or, jointly and severally.