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The Cost of Being A Counterfeiter

28-06-2018

TLG’s client (The Builder) has been awarded compensation for moral and physical damages from a company (The Infringer) that was infringing on their IP Rights.

Background

TLG’s client is a reputable European company know internationally for the building materials they manufacture. The dispute arose when TLG filed a complaint on behalf of our client, The Builder, against a local company. The Infringer was found to be dealing in counterfeit building materials bearing The Builders name.

As a result of the complaint filed, the DEDD raided The Infringer and seized all counterfeit goods. These goods were later destroyed, and proof of this destruction together with a report were sent to The Builder.   

 

A Civil Matter

TLG was then requested by The Builder to institute a civil action in order to get compensation for the physical and moral damages that have negatively affected their business. The first claim was for physical damages The Builder has had to incur expenses to prove that The Infringer was indeed counterfeiting their products. The expenses included DEDD fees, lawyer fees and other expenses.

The second amount claimed by The Builder was for moral damages that were caused because of The Infringers illegal actions. These are damages to The Builders brand and reputation.

In its judgement the Court of First Instance obliged The Infringer to pay the defendant compensation for material damages as claimed. However, the claim for moral damages was dismissed.

TLG’s IP Litigation team went on to appeal this judgement from the Court of First Instance and filed an appeal to assure the right of the client on the moral damages and requested the amount claimed be awarded in full. The litigation team was successful in persuading the Courts that there indeed were moral damages suffered by The Builder, which have caused a negative effect on their trade, brand and reputation.

The Builder was awarded both physical damages and moral damages.

This action should serve as a deterrent to any counterfeiters that there is a price to pay for illegal actions. TLG remains resolute in its effort to protect brands. For all legal services contact The Legal Group on inquiries@tlg.ae