This article posted on our partner site Mondaq.com 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 or scrutiny of a licensee's business accounts.