Beloit Canada Ltd. v. Valmet Oy
A-246-94
Hugessen J.A.
12/5/95
21 pp.
Appeal from Trial Division decision regarding accounting of profits resulting from patent infringement with respect to "press section" of paper-making machines-Defendant selling four paper-making machines embodying infringing press section -- Trial Judge denying plaintiffs profits realized on sales of non-infringing portions of paper machines -- Plaintiffs' argument press section "driving force" of sale of entire paper machines constituting question of fact: Trial Judge not erring in rejecting argument -- Absence of direct comment regarding profits on spare parts and auxiliary equipment not amounting to oversight as refusal implicit in finding plaintiffs entitled only to profits realized from sale of patent infringing press sections -- Whether or not profits arising from after-sale provision of parts and services resulting from infringement constituting question of fact: Trial Judge not erring in making adverse finding -- Trial Judge erring in refusing to award profits resulting from Finnish government export financing programs regarding sale of press section as program constituting indirect profit flowing from sale of infringing press section -- No merit to defendant's argument program benefits should be excluded on basis benefits flowing to it from third parties rather than from customers -- Application of different rates and dates in calculation of interest with respect to positive working capital and other pre-judgment interest unsupported and constituting error -- Award of interest on account of profits matter of right rather than discretion: deemed profits made by infringer should bear some reasonable relationship to actual commercial value of money to him -- Trial Judge's choice of statutory rate of 5% interest clearly improper as not realistic to think defendant would have used illegally realized profits over 14 years in question at such low rate -- Where repatriation of funds received by foreign defendant and for which it must account, deemed profit will be earned in foreign country and not in Canada, thus award of interest should be at rate somewhat above foreign prime rate -- Compound interest award not punitive but rather simply commercial reality and to be regarded as "the rule": only award of simple interest requiring explanation.