[Ip-health] Greece: Court sets royalty rate for patent damages

James Love james.love at keionline.org
Wed Jul 14 18:00:48 PDT 2010


* The case involved an infringement action filed on behalf of Merck & Co
against a Greek generics company, regarding Merck's Prinivil product
(lisinopril).

* The court based its calculation of damages on a circular from the
Ministry of Finance which set limits to the export of Greek currency,
providing that the amount of royalties payable for pharmaceutical
products in 1994 from Greek companies to foreign companies should range
between 2% and 7.5%


http://www.managingip.com/Article/2477765/Court-sets-royalty-rate-for-patent-damages.html

Managing Intellectual Property
Greece: Court sets royalty rate for patent damages
01 May 2010

In a recent judgment from the Athens Full Bench Court of First Instance,
Commercial Law Division, the court awarded 69,400 euros as patent
infringement damages based on a royalty of 7.5%. The actual amount due
is almost triple in view of interest due, dating back to the time the
action was filed. By the same decision 6,000 euros was awarded as
non-pecuniary damages.

The case involved an infringement action filed on behalf of Merck & Co
against a Greek generics company, regarding Merck's Prinivil product
(lisinopril).

Merck & Co brought the suit against a Greek generics company claiming
infringement of its patents related to a process for the production of
lisinorpril. The Greek company objected to the validity of the patents
and claimed to have been using a different process for its lisinopril
products which was not infringing and was patented by a Spanish generic
API producer. The court, after examining the reports of several experts
from both parties, rejected the defendant's claims and found that their
generic products were infringing the claimant's patents.

The court based its calculation of damages on a circular from the
Ministry of Finance which set limits to the export of Greek currency,
providing that the amount of royalties payable for pharmaceutical
products in 1994 from Greek companies to foreign companies should range
between 2% and 7.5% and set the royalties to 7.5%. Furthermore the court
found that Merck & Co had suffered non-pecuniary loss by the illegal
conduct of the defendant and awarded further damages. Legal fees were
also awarded to Merck & Co.

While one may argue that this way of calculating royalties is arbitrary,
the decision, which is immediately enforceable in part, is important for
Greek legal practice because it provides at least one clear basis for
calculating damages in patent infringement cases, resolving an issue
which can be very difficult and on which the case law is rather poor.

Patrinos & Kilimiris acted for Merck & Co in this matter


-- 
James Love, Director, Knowledge Ecology International
http://www.keionline.org | http://www.twitter.com/jamie_love
Wk: +1.202.332.2670 | US Mobile +1.202.361.3040 | Geneva Mobile +41.76.413.6584





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