Copyright Infringement Overseas Can Give Rise To Compensation In Canada

In a recent decision, Layette Minimôme Inc. v. Jarrar 2013 QCCS 6084, the Superior Court of Quebec ("the Court") awarded damages to a Canadian company whose goods were being copied, on the grounds that the infringing party did not respect its obligation of good faith under the Civil Code of Quebec ("CCQ"). However the Court did not award any remedies for copyright infringement under the Copyright Act ("the Act") because the violation took place overseas.

The plaintiff, Layette Minimôme Inc., designs and sells clothing for children. The defendants, Canadian Fashion Designs Inc. and its representative M. Jarrar, acted as a broker between Layette and Babyshop, a clothing chain with stores across the Middle East. Under the agreement between Babyshop and Layette, Babyshop selected items from Layette's collection and a pre-approved manufacturer in China copied the clothes which were sold under a Babyshop brand. Babyshop paid Layette the cost of manufacturing plus 25