Google's Speculative And Excessive $1.5M Security For Costs Request Dismissed

Paid Search Engine Tools, a corporation normally resident outside Canada, is the owner of Canadian Patent No. 2,415,167 entitled "Paid Search Engine Bid Management". In January 2018, PSET sued Google, alleging that Google's profitable AdWords product infringes the 167 Patent. Prior to filing a Statement of Defence, Google brought a motion, pursuant to Rules 416 and 418, seeking have PSET post $1.5 million in security for costs for all stages leading to trial.

Security in Stages

Prothonotary Aylen refused to order security for the entire action, holding that any such order would be speculative based on the insufficient evidence adduced by Google on its motion. Instead, Prothonotary Aylen held that she would fix security for costs up to the end of discoveries, without prejudice to Google seeking additional security, based on proper evidence, should the circumstances require.