BAILII is celebrating 24 years of free online access to the law! Would you consider making a contribution?
No donation is too small. If every visitor before 31 December gives just £5, it will have a significant impact on BAILII's ability to continue providing free access to the law.
Thank you very much for your support!
[Home] [Databases] [World Law] [Multidatabase Search] [Help] [Feedback] | ||
England and Wales Court of Appeal (Civil Division) Decisions |
||
You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Specsavers International Healthcare Ltd & Ors v Asda Stores Ltd [2012] EWCA Civ 494 (26 April 2012) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2012/494.html Cite as: [2012] FSR 20, [2012] EWCA Civ 494 |
[New search] [Printable RTF version] [Help]
ON APPEAL FROM THE HIGH COURT OF JUSTICE
CHANCERY DIVISION (INTELLECTUAL PROPERTY)
The Hon Mr Justice Mann
Strand, London, WC2A 2LL |
||
B e f o r e :
LADY JUSTICE BLACK
and
LORD JUSTICE KITCHIN
____________________
Specsavers International Healthcare Ltd Specsavers BV Specsavers Optical Group Ltd Specsavers Optical Superstores Ltd |
Appellants/ Claimants |
|
- and - |
||
Asda Stores Ltd |
Respondent/Defendant |
____________________
WordWave International Limited
A Merrill Communications Company
165 Fleet Street, London EC4A 2DY
Tel No: 020 7404 1400, Fax No: 020 7404 1424
Official Shorthand Writers to the Court)
Appellants/Claimants
Iain Purvis QC and Helyn Mensah (instructed by Pinsent Masons LLP)
for the Respondent/Defendant
Original hearing dates: 11/12/13 October 2011
____________________
Crown Copyright ©
Lord Justice Kitchin:
i) the precise wording of the injunction;ii) permission to appeal;
iii) costs.
We shall address them in turn.
The injunction
"The Defendant is restrained (whether acting by its directors, officers, servants or agents or any of them) from infringing the following Community Trade Marks or any of them:
(i) CTM 1321298
(ii) CTM 3418928
(iii) CTM 449256
(iv) CTM 1321348
(v) CTM 5608385
whether by use of the straplines 'Be a real spec saver at Asda', 'Spec savings at Asda' or the logo comprising two adjacent ellipses or otherwise howsoever. Nothing in the foregoing shall prevent the Defendant from making any reference to SPECSAVERS in lawful comparative advertising in accordance with EC Directive 2006/114/EC concerning misleading and comparative advertising."
"In intellectual property cases a plaintiff is concerned not only to stop exact repetition of the defendant's current activity which can be described with particularity, but to prevent fresh invasions of his rights in ways which cannot be foreseen or described exactly. The ingenuity of those who infringe copyright and trade marks and engage in passing off is boundless, and plaintiffs cannot be adequately protected by orders which are cabined or confined. That is the reason for the standard forms of injunctions in such cases, with their inevitable references to "otherwise infringing," "substantial part," "to like effect," "colourable imitation," and "otherwise passing off". Where a defendant, faced with such an order, acts honestly and reasonably, this will mitigate and even excuse a breach of the order; but if a breach is proved, it will be for him to mitigate or justify it, and his excuse may need to be thoroughly probed if the circumstances are suspicious."
"19. The judge seemed to believe that injunctions which restrained infringement of a patent were broad injunctions: but they equate to the statutory right given; a right which has been held to have been validly granted and infringed. The injunction granted by the judge would allow the defendant to do other acts even though they may infringe. The defendant in those circumstances would be better off in that a change from that which is described and shown in the process description would allow him to continue in business without having to seek guidance from the court before adopting the change. The advantage to the defendant of only having the injunction cover a particular article or process is clear. If he makes a change he will not be in breach and it will be up to the patentee to bring another action. However, the disadvantage to the patentee is equally clear. To obtain an injunction he has to establish his monopoly and that it has been infringed, and the judge must conclude that further infringement is apprehended. From his point of view, it is the infringer who should seek guidance from the court if he wishes to sail close to the wind. In the normal course of events that would be reasonable.
20. The usual form of injunction which protects the right established by the patentee, with its ambit construed by the court, does in general provide a fair solution. However, each case must be determined on its own facts and the discretion exercised accordingly.
21. In the present case, nothing has been brought to my attention which would suggest that anything other than the usual form of injunction would be appropriate. The injunction suggested by the judge was in my view inappropriate."
Permission to appeal
Costs
i) Whether all costs should be reserved pending the outcome of an application by Asda for permission to appeal to the Supreme Court and, if permission is granted, determination of that appeal.ii) If we are not minded to reserve costs, the appropriate order to make in respect of (a) the costs of the appeal and (b) the costs at first instance.
iii) Whether it is appropriate to order an amount to be paid on account of costs before assessment and, if so, what that amount should be.
Should costs be reserved?
"No offer is made in respect of CTM 589 or the sign comprising two side by side ellipses as referred to at paragraph 11 of the Particulars of Claim [the Asda logo]".
General principles
"Costs of Patent proceedings and the CPR
24. In respect of all intellectual property matters the general rule is that the CPR and associated practice directions apply, unless a rule in Part 63 or its practice direction provides otherwise (CPR 63.2). There is no such rule. So, subject to the two statutory provisions discussed above, the general rules apply as much to patent actions as to any other action.
25. It follows that all the factors and matters set forth in CPR 44.3 apply to how the court should exercise its discretion as to costs. Prior to the CPR a party who was successful overall was not normally deprived of its costs of an issue it took unsuccessfully unless it has done so unreasonably, see Re Elgindata (No. 2) [1992] 1 WLR 1207. But since the CPR a more issue-by-issue approach is appropriate, see Summit Property v Pitmans [2001] EWCA Civ 2020, applied in a patent action, Stena v Irish Ferries [2003] EWCA Civ 214. Even before the CPR an issue-by-issue approach was, as an exception to the Elgindata approach, applied in patent actions because of the "large number of issues and the very extensive costs that can be incurred" per Aldous LJ in Rediffusion v Link-Miles [1993] FSR 369 at 410.
26. An issue-by-issue approach is therefore one that should be applied so far as it reasonably can. On the other hand such an approach is not the be-all and end-all. Whether or not "it was reasonable for a party to raise, pursue or contest a particular allegation" remains a relevant factor to be taken into account as part of the conduct of the parties (see CPR 44 rule (4)(a) and (5)(b)).
The impossibility of great precision
27. Before turning to this particular case I should say something about this. Although an issue-by-issue approach is likely to produce a "fairer" answer and is likely to make parties consider carefully before advancing or disputing a particular issue, it should not be thought that it is capable of achieving a "precise" answer. The estimation of costs, like that of valuation of property, is more of an art than a science. True it is that one can measure certain things (such as pages of witness statements or transcript devoted to a particular issue) but they can only be indicia to be taken into account. It would be dangerous to rely upon them as absolutes. Indeed brevity of a document, or a cross-examination, may be the result of great care: was it Hazlitt who apologised for the length of a letter, excusing himself on the grounds that he had not enough time to compose it?
28. It follows that there is no "precise" figure of costs which, in theory with perfect measurement tools, one could reach. The best that can be achieved is an estimate which is necessarily going to be somewhat crude."
"The correct approach is to ask oneself three questions. First of all, who has won; secondly has the party that has won lost on an issue which is suitably circumscribed to deprive that party of the costs of that issue and, thirdly, is the case a suitably exceptional one to justify making a costs order on that issue against the party who has won overall."
Costs of the appeal
"The Defendant undertakes not to use any of "the phrases" 'SPEC SAVER', 'SPEC SAVERS', 'SPEC SAVING', 'SPEC SAVINGS' 'SPEC SAVE' or 'SPEC SAVES' in its advertising or promotional materials for its optical goods or services …"
But the letter also contained the following important sentence to which we have already referred:
"No offer is made in respect of CTM 589 or the sign comprising two side by side ellipses as referred to at paragraph 11 of the Particulars of Claim [the Asda logo]".
Costs at first instance
Payment on account
Conclusion
i) We shall grant an injunction in terms proposed by Specsavers.ii) Asda is to pay Specsavers 40% of its costs of the appeal and 50% of its costs at first instance to be assessed on the standard basis if not agreed. We do not understand there to be any dispute that sums payable are to include interest from the date of their payment by Specsavers.
iii) Asda is to pay Specsavers £74,910 and £218,925 as a payment on account of the costs to be paid in respect of the appeal and first instance proceedings respectively, that is to say a total sum of £293,835. It is to be paid within 28 days.
iv) The costs of the parties attributable to the referred issues are reserved until judgment upon them or further order in the meantime.