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ARTICLE · 20 JUNE 2016

Damage Suffered Is The Upper Limit For Compensation For IP Right Infringement

The AG is of the opinion that an infringer surcharge may only be considered to add to the amount of the reasonable compensation.

European UnionIntellectual Property
Verena Bertram
Verena Bertram

On February 4, 2016, the CJEU's Advocate General Henrik Saugmandsgaard handed down his opinion on the question of whether an infringer's surcharge should be considered when calculating the damage for infringement of IP rights when applying the calculation method of the reasonable royalty.

In summary, the AG is of the opinion that an infringer surcharge may only be considered to add to the amount of the reasonable compensation. However this must be capped by the amount of the actual damage suffered by the IP right holder. The damage that the right holder actually suffered might not be exceeded.

The factual background of the case relates to Art. 94(1) of Council Regulation (EC) No 2100/94 of 27 July 1994 on Community plant variety rights, but as the methods for calculating damages are the same for all cases of IP right infringement, it can be generalised to all other types of IP rights.

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