Counterfeiting: assess the amount of damages
Brandon IP, in association with Brandon Valorisation, now offers the financial valuation of damages resulting from infringement.
Counterfeiting is unfortunately a common practice that any industrial or commercial company may face one day. Counterfeiting is a criminal offense which consists of the fraudulent reproduction or use, wi of a protected work, software, patent, design or model, or trademark, without the consent of its owner.
To sanction the infringement of their rights, the legitimate owner of an intellectual property right has three possibilities: try a negociation in order to reach an amicable solution out of courts, take legal action before the civil courts and, in some cases, initiate criminal proceedings.
It is often difficult to estimate the damages suffered by such violations. The French law No. 2014-315 of March 11, 2014 (French Code of Intellectual Property) states a method to value compensation. However, the subjective nature of the assessment remains a fact.
According to this article, if the parties do not agree on a fixed compensation, the court may decide on the damages taking into account:
- Economic consequences of the infringement
- Moral damages, including the loss of profit and the loss suffered by the holder and/or user of the right
- The profits made by the counterfeiter, including savings on investments of all kinds, equipment and promotion.
The hypothesis of a “flat rate” type of compensation can be imagined as an amicable settlement route, but it is hardly possible when the damage suffered by the right holder is considered to be more important than the transaction planned.
In such case, an accurate assessment of the damages must be carried out. Sometimes these calculations are complex. This is the reason why, in the event of a dispute, it can be useful to be supported by an intellectual property firm such as Brandon IP.
In partnership with Brandon Valorisation, Innovation Consultants, and Rezac Law, Lawyers, we are able to perform the assessment of damages caused by counterfeiting and help you define the best strategy to get a fair compensation.