Damages caluculation
(Conclusion)
No dispute for infringement. (Design right owner won.)
The infringer’s profit should be calculated on the basis of the actual sales amount even if the infringer sells at less than cost, unless the infringer’s sales are substantially deemed as the disposal of the infringing products.
In order to obtain more damages, a design right holder can assert damages under Article 39 Paragraph 1.
Japanese Design Act, Article 39 (Presumption of Amount of Damage, etc.)
(1) Where a holder of design right or an exclusive licensee claims against an infringer compensation for damages sustained as a result of the intentional or negligent infringement of the design right or exclusive license, and the infringer assigned articles that composed the act of infringement, the amount of damages sustained by the holder of such design right or the exclusive licensee may be presumed to be the amount of profit per each unit of article which would have been sold by the holder of the design right or the exclusive licensee if there had been no such act of infringement, multiplied by the quantity (hereinafter referred to in this paragraph as the “assigned quantity” of articles) assigned by the infringer, the maximum of which shall be the amount attainable by the holder of the design right or the exclusive licensee in light of the capability of the holder of the design right or the exclusive licensee to work such articles; provided, however, that if any circumstances exist under which the holder of the design right or the exclusive licensee would have been unable to sell the assigned quantity in whole or in part, the amount calculated as the number of articles not able to be sold due to such circumstances shall be deducted.
(2) Where a holder of design right or an exclusive licensee claims against an infringer compensation for damages sustained as a result of the intentional or negligent infringement of the design right or exclusive license, and the infringer earned profits from the act of infringement, the amount of profits earned by the infringer shall be presumed to be the amount of damages sustained by the holder of the design right or exclusive licensee.
(3) A holder of a design right or an exclusive licensee may claim against an infringer compensation for damages sustained as a result of the intentional or negligent infringement of the design right or exclusive license, by regarding the amount the holder of the design right or exclusive licensee would have been entitled to receive for the working of the registered design or design similar thereto as the amount of damages sustained.
<Writer: Hideki Takaishi (Attorney-at-law licensed in Japan and California)>
https://www.ip.courts.go.jp/app/files/hanrei_en/728/002728.pdf