Citation: Nova Chemicals Corp. v. Dow Chemical Co., 2022 SCC 43

Judgment Rendered: November 18, 2022

Facts: In this case Nova had infringed the patent of Dow. In calculating “accounting of profits” that Nova made in violation of patent, Nova calculated the cost of main ingredient in the product manufactured in infringement of patent at the market cost. Dow argued that it should be calculated at the actual cost to Nova. In addition Dow asked for the springboard profits.

Springboard Profits: In the case of infringement of patent, the competitor enters the market before the expiry of patent period which allows the competitor an advantage of gaining the market share ahead of time. This causes the patentee a loss in sales during the patent post-expiry period which is called as springboard damages to the patentee and springboard profits to the infringer of patent.

The Supreme Court of Canada, dismissing the appeal, upheld the Federal Court of Appeal decision that the cost of main ingredient should be calculated at the actual cost to Nova and also held that Dow is entitled to Springboard profits.

Disclaimer: This is my understanding of this case law and is for general information purpose only. It does not constitute legal or other professional advice or an opinion of any kind.