European Union
Canada
IP Enforcement
14. With regard to cases that involve the infringement of intellectual property, could the Government of Canada provide data on the number of: - law suits that have been filed including their respective outcome and the average length from the filing of a complaint until the final judgement; - injunctions that have been issued (as defined in Article 44 of the TRIPS Agreement) and explain how such injunctions are being enforced; - provisional measures (as defined in Article 50 of the TRIPS Agreement) that have been granted and the average length to obtain such measures (from the request); - suspensions at the border of counterfeit trademark, pirated copyright goods or in relation to goods where other intellectual property rights are infringed; - criminal cases including the sentences that have been applied, whether they have been executed and please also explain what kind of infringement of an intellectual property right would be regarded as a violation of criminal law; - seizures and/or destruction of counterfeit trademark and pirated copyright goods. Furthermore, could the Government of Canada explain and give practical examples: - how the compensation for damages of the infringement of intellectual property rights is calculated (Article 45.1 of the TRIPS Agreement); - what would be regarded as "expenses of the right holder" which have to be reimbursed pursuant to Article 45.2, first half of the first sentence, of the TRIPS Agreement and how they would be calculated; - whether attorney's fees can be reimbursed and how such fees would be calculated; - whether Article 45.2, second sentence, of the TRIPS Agreement has been implemented in Canada and how such "damages" would be calculated?
The information requested in the first six sub-paragraphs of the question would not appear to be required by Article 63 of the TRIPS Agreement, nor is it readily available. As noted in Canada's replies to the Checklist of Issues on Enforcement Canadian courts award damages whenever they determine that a loss can be remedied by an award of money, and the purpose of damages is to put the plaintiff in the position in which it would have been had the loss not occurred. General damages are those which, although being the direct and natural consequences of the act which gave arise to the damage, are incapable of proof with any degree of precision. Special damages however are damages which are easily provable, e.g., out-of-pocket expenses. Punitive or exemplary damages may be awarded where the defendant has behaved with a callous disregard for the plaintiff's rights. Their purpose is to deter others from following such conduct. Subsection 55(2) of the Patent Act allows a patentee, and all persons claiming under him or her, to sue for damages for infringement. Section 15.1 of the Industrial Design Act, and s. 9 of the Integrated Circuit Topography Act, allow damages to be claimed, including for lost profits and punitive damages (and, in the case of topographies, for payment of royalties). However, where the defendant was not aware, and had no reasonable grounds to suspect, that the design or topography was registered, the plaintiff's remedies are restricted to an injunction (Industrial Design Act, s. 17; Integrated Circuit Topography Act, s.10). Section 53.2 of the Trade-marks Act authorizes orders for "the recovery of damages or profits". Subsection 41(1) of the Plant Breeders Rights Act provides that a court may make an order for compensation of an aggrieved person, and subsection 42 (2) gives authority to the court to determine costs. section 34 of the Copyright Act allows a copyright owner to sue for damages. However, section 39 limits the remedy to injunctions where the defendant is not aware of the existence of the copyright in the work. In addition, section 35 allows a copyright owner to sue for lost profits and requires that he or she only provide receipts or revenues derived from the publication, sale or other disposition of the infringing work. Canadian courts award costs as an indemnification of the expenses of litigation, i.e., fees plus disbursements. Hence, the winning party may be entitled to be compensated for the expense of bringing or defending the action. Such awards, however, are in the discretion of the court and are never automatic (Copyright Act, Subsection 34 (2)). Also, rules of court may provide for factors, other than winning or losing, which may be considered. For example, where appropriate, the court may also impose costs against one invoking the aid of its process, i.e., where a proceeding was unnecessary or vexatious). However, attorney's fees are not ordinarily treated as a head of special damages, nor are they normally included in an order for costs. Where ordered, they are restricted to the schedule of costs contained in the rules of court procedure, which is ordinarily based on days in court only. In terms of the second sentence of Article 42.2 of the TRIPS Agreement, as part of Phase II of its major revisions to the Copyright Act, Canada enacted Bill C-32 on 25 April 1997, which includes a provision on pre-established damages. (Please note that this section has not yet been proclaimed in force).