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Punitive damages equal to double the licensing fee
date: 2019-05-28

Editor's note: A collective management organization of copyright related to audio and video works in Poland, will OTK Take to court, The lawsuit alleges that the latter illegally transmitted television programs to a Polish city via cable networks. The plaintiffs are seeking damages of double the normal licensing fee for the show. What will the court decide? Look down together.

[background]

A collective management organization of copyright related to audio and video works in Poland, will OTK Take to court, The lawsuit alleges that the latter illegally transmitted television programs to a Polish city via cable networks. The plaintiffs are seeking damages of double the normal licensing fee for the show. During the trial, Poland's Supreme Court decided to appeal to the European Court of Justice (Court of Justice) Make a ruling, If the infringement damages are equal to or greater than double the normal royalty, Comply with or not "Directive of the European Parliament and of the Council on the enforcement of intellectual property rights (The first 2004/48/EC No) " (Hereinafter referred to as "European Union regulation 2004/48/EC Number instruction" ) On the introduction of punitive damages provisions?

[conclusion]

The European Court of Justice first noted, "European Union regulation 2004/48/EC Number instruction" Is designed to ensure effective enforcement of intellectual property laws, That is, relevant measures formulated by member states, Procedures and compensation should be effective, Reasonable and alarming. The ruling went on to state that, "European Union regulation 2004/48/EC Number instruction" There are only minimum standards for protecting intellectual property rights, Member states are not prohibited from setting higher protection standards. secondly, The European Court of Justice recognized, as "European Union regulation 2004/48/EC Number instruction" preamble 26 Written in a paragraph, The aim of the law is not to create an obligation of punitive damages. but, The ruling went on to explain, The directive does not make it compulsory for Member States to designate so-called "punitive" Compensation system, It does not mean that member states are prohibited from developing relevant systems. In addition, The ruling also emphasized the determination of total damages based on reasonable royalties, There is no need to prove a causal relationship between the copyright infringement and the damage suffered. In addition to the above analysis, In its conclusion, the European Court of Justice asked the trial court to take note, If the amount of damages based on the double reasonable license fee far exceeds the actual loss of the right holder, Is to "European Union regulation 2004/48/EC Number instruction" prohibited.

[comment]

recently, There is a growing debate about whether the function of the compensation system for intellectual property damages is to punish or to correct. now, "European Union regulation 2004/48/EC Number instruction" Make it clear that it does not support the doctrine of punishment and compensation. In any case, The court's ruling paves the way for a decisive turn in the European system. Whereas the legal basis for the ruling in this case is a law designed to expand enforcement of intellectual property rights, Directive specification with effect and in all areas of intellectual property, So the ruling will affect copyright, Trademark right, Patent right and design right, etc. Although the ruling did not rule out punitive damages, But identify, Excessive claims for damages are abuses of rights.

compile: Liu Dan, The source of Aisabri Legal Counsel: Esabaril (ELZABURU) Intellectual property cover image source: Bing Pictures