Costs of trademark/copyright infringement

Discussion in 'Legal Issues and Dispute' started by marsh, Jul 17, 2017 at 2:07 PM.

  1. marsh

    marsh Kenya Member

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    I have been wondering what would become of a company that was found to be culpable of such infringements. If the matter ends up in court, what formula is used to calculate the resulting compensation cost? Would it be how much the affected entity has lost or how much the company in breach has made or both? Overall, is the value or worth of the latter also factored in?
     
  2. Saki

    Saki United States Member

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    Marsh, this is an interesting topic and something I never thought of. I'm sure that there are many factors that go into this, and the worth of the company is probably factored in though I am not positive of this.
     
  3. tulip

    tulip Kenya Member

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    When looking at this from the point of view of an out-of-court settlement, two ways of establishing the amount of compensation to be claimed for infringement, arise. Firstly, what is the value of the damage to the owner (inquiry as to damages) and secondly, what profit has been made as a result of the infringement? The latter is normally referred to as an account for profit.
     
  4. marsh

    marsh Kenya Member

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    Saki, indeed it is interesting! I think that the main factor here is probably the amount of profit made out of the breach. The most vital thing here then is what if profits were made yet the company's worth hasn't changed or it's gotten into debt?
     
  5. Saki

    Saki United States Member

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    Marsh, yea trademark and copyright infringements are a nasty thing that I never want to get involved with. Not only is it wrong, but more than likely expensive.