Monitoring IP: Damages - Compensatory and Punitive - Infringement of Patents
The Federal Court in Canada has handed down a ruling in the patent infringement case of Fromfroid SA v. 1048547 Ontario Inc., also known as Skotidakis, and Frimasco Inc. The case revolves around a rapid cooling ventilation system for food products, a patent owned by Fromfroid SA. The court found that the cells built by Frimasco at Skotidakis's Ontario facility infringed this patent. Fromfroid accused the defendants of infringing its patent with the dairy product-cooling cells. The court noted that Fromfroid sent a demand letter to Skotidakis less than three months after the defendants' work allegedly came to an end in 2018, suggesting that Frimasco should have retained proof of its expenditures. Despite Fromfroid having no direct evidence on the pivotal issue - the date on which the cells were built - it presented circumstantial evidence that supported a presumption of fact that the cells were built before July 2018, when the patent expired. The court awarded both compensatory and punitive damages against Skotidakis and Frimasco. The compensatory damages were calculated based on the profit Fromfroid would have made had Skotidakis purchased its system. The court awarded $149,270 in compensatory damages and $200,000 in punitive damages against Skotidakis and $50,000 in punitive damages against Frimasco. The punitive damages were intended to deter similar conduct. The court found Skotidakis's conduct to be highly reprehensible, including attempting to conceal infringement, deliberate actions to obtain patented technology at low cost, and prolonged conduct over three years. It's important to note that the court's decision was based on civil law evidentiary principles, but similar rules regarding presumptions of fact also exist in the common law provinces. The court also noted that Skotidakis is a large company with annual sales of approximately $200 million. Despite this, the court's ruling serves as a reminder that patent infringement carries significant consequences. The search results do not provide information about the lawyer or law firm representing 1048547 Ontario Inc. in the case, nor the province where the law firm is located. This case, case number 2023 FC 925, underscores the importance of patent protection and the consequences of infringement in the Canadian market.
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