This article posted on our partner site highlights the major issues in an important patent infringement case relating to the disgorgement of profits in Canada. The Federal Court of Canada found in favour of DOW Chemicals in a case of patent infringement. This article outlines the court’s approach to accounting for profits, including granular financial points such as the date of currency conversions, while determining the judgment account (quantum of amounts owed or potentially owed). This is relevant for businesses that, if found to be infringing, will need to pay a portion of their profits to a patent holder (possibly even a competitor). When drafting a license agreement, it is typical for a licensor to seek audit rights so reviewing a case regarding a disgorgement of profits can provide insight on the potential for the audit/scrutiny of a licensee’s business accounts.


This article is provided for informational purposes only and does not create a lawyer-client relationship with the reader. The reader should also note that the laws may change from time to time, and this article may not provide up-to-date information.  It is not legal advice and should not be regarded as such. Any reliance on the information is solely at the reader’s own risk.  You will need to initially log in to in order to access their learning posts