Summary
Damages for infringement of intellectual property rights remain compensatory. A claimant may recover the reasonable royalty that would have been agreed for a licence of the right infringed, assessed by reference to the parties’ actual bargaining positions and the circumstances at the date of infringement. A knowing infringer’s profits are not ordinarily recoverable in addition to damages or an account of profits. “Unfair profits” may justify an additional compensatory award where ordinary damages would not reflect actual prejudice, including loss of promotional benefit. Moral prejudice is confined to unusual cases where economic compensation is absent or materially disproportionate. Claims for additional damages under the Copyright, Designs and Patents Act 1988 must be pleaded in accordance with the applicable practice direction.
Factual background
The claimant was a singer and songwriter whose vocal performance was used in a successful recording released by the defendant. The defendant had infringed her performer’s rights, and the judgment concerned the ensuing inquiry as to damages.
The claimant sought a reasonable royalty, compensation for further economic and non-economic loss, recovery of the defendant’s profits, and additional damages. She also sought amendments concerning PPL royalties and an unpleaded claim for additional damages. The central issues were the valuation of a hypothetical licence and the effect of regulation 3 of the Intellectual Property (Enforcement, etc.) Regulations and article 13 of the Enforcement Directive.
Held
- Amendment and procedural applications. The proposed amendment concerning PPL royalties was refused because any entitlement had to be pursued against PPL. The order striking out the claim for an account of profits and the unpleaded claim for additional damages was maintained. CPR 63PD paragraph 22.1 required the additional-damages claim to be pleaded in the substantive proceedings.
- User-principle damages. The hypothetical negotiation was between the actual parties immediately before release. It concerned only the claimant’s performer’s rights in the recorded vocal, not copyright in the song. The court considered the defendant’s bargaining position, its ability to use a session singer, the claimant’s limited profile at the time, and the commercial value of using her vocal and name. The appropriate net royalty was 12 per cent for the performer’s contribution. As the claimant and the remixer were treated as joint and equal performers, the claimant’s share was 6 per cent. Applying that rate to the accepted royalty base produced £30,000.
- Enforcement Directive. Regulation 3 implements article 13(1). It requires damages appropriate to the actual prejudice caused by knowing infringement, while avoiding punitive recovery. The claimant could not recover both damages and an account of profits. “Unfair profits” do not automatically mean all profits from infringement; they may support an additional compensatory sum where ordinary damages, a reasonable royalty or an account would not adequately reflect actual prejudice. The defendant’s failure to secure equivalent prominence and credit for the claimant caused such prejudice. £5,000 was awarded for that loss.
- Moral prejudice and additional damages. Moral prejudice may include mental distress, injury to feelings and humiliation, but is generally confined to unusual cases in which economic damages are absent or disproportionate. This case did not qualify. The court considered that article 13 had substantially made section 191J(2) redundant, but, alternatively, the pleaded claim would have justified £5,000 without cumulative recovery.
- Result. The total damages awarded were £35,000.
The court’s approach to earlier authorities
Available to signed-in members.
Appellate history
First-instance inquiry as to damages following the liability judgment of HH Judge Birss QC dated 13 February 2013 and the order of 18 March 2013. No appellate decision is stated.
Key cases cited
13 authorities cited.
- Hollister Incorporated Dansac AS v Medik Ostomy Supplies Ltd [2012] EWCA Civ 1419
- SDL Hair Ltd v Next Row Ltd & Ors [2014] EWHC 2084 (IPEC)
- Kohler Mira Ltd v Bristan Group Ltd [2014] EWHC 1931 (IPEC)
- 32Red Plc v WHG (International) Ltd& Ors [2013] EWHC 815 (Ch)
- Force India Formula One Team Ltd v 1 Malaysia Racing Team SDN BHD & Ors [2012] EWHC 616 (Ch)
- Nottinghamshire Healthcare NHS Trust v News Group Newspapers Ltd [2002] EWHC 409 (Ch)
- Redrow Homes Ltd v Betts Brothers plc [1998] RPC 793 (HL)
- Gerber Garment Technology Inc v Lectra Systems Ltd [1997] RPC 443
- Brugger v MedicAid [1996] FSR 362
- Ravenscroft v Herbert and New English Library Limited [1980] RPC 193
- General Tire and Rubber Company v Firestone Tyre and Rubber Company Ltd [1976] RPC 197
- Wrotham Park Estate Co Ltd v Parkside Homes Ltd [1974] 1 WLR 798
- Livingstone v Rawyards Coal Co. (1880) 5 App.Cas. 25
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Cases citing this case
13 later cases · 8 positive · 2 neutral · 3 caution
Most senior citing decisions:
- Andrew Tipping v Mark Smith [2026] EWHC 1855 (IPEC) applied
- Fendi Italia Srl & Ors v Rolo Fashion Limited & Anor [2026] EWHC 1703 (IPEC) explained
- Lidl Great Britain Limited & Anor v Tesco Stores Limited & Anor [2023] EWHC 1517 (Ch) considered
- FBT Productions, LLC v Let Them Eat Vinyl Distribution Ltd [2021] EWHC 932 (IPEC)
- Software Solutions Ltd & Ors v 365 Health and Wellbeing Ltd & Anor [2021] EWHC 237 (IPEC)
- The Kennel Club Ltd v Micro-ID Ltd [2019] EWHC 1639 (IPEC)
- Reformation Publishing Company Ltd v Cruiseco Ltd & Anor [2018] EWHC 2761 (Ch)
- Link Up Mitaka Ltd (t/a Thebigword) v Language Empire Ltd & Anor [2018] EWHC 2633 (IPEC)
- Edwards Lifesciences LLC v Boston Scientific SCIMED, Inc & Ors [2018] EWHC 664 (Pat)
- Phonographic Performance Ltd v Hagan & Ors (t/a Lower Ground Bar and the Brent Tavern) [2016] EWHC 3076 (IPEC)
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