Argo Ltd gives SB Designs Ltd an exclusive licence to reproduce Argo's
device mark (the "Intellectual Property") on T-Shirts (the "Licensed
Goods") in Great Britain (the "Territory"). The express terms of the licence
read as follows:
3.1 The Licensor hearby grants the Licensee an exclusive licence to use
the Intellectual Property by the manufacture and sale of the Licensed
Goods in the Territory and to use the Intellectual Property in the
advertising and promotional material for the Licensed Goods.
3.2 The Licensee shall not make use of the Intellectual Property except as
authorised by clause 3.1
What can Argo do if SB Designs reproduces the device mark on bed
linen? Choose TWO of the following:
SB Designs has reproduced Argo's device mark without
permission on the bed linen and so has infringed the trade mark. This
would give Argo a number of remedies, including, interim and 昀椀nal
injunctions, damages/account of profits, erasure, delivery up and
destruction. Since clause 3.2 prevents SB Designs from reproducing the
device mark on anything other than T-Shirts (being the "Licensed Goods"),
SB Designs is also in breach of contract. This would entitle Argo to
terminate the agreement and claim damages. The remedies for both
types of claim are broadly similar, but claiming breach of contract avoids
Argo having to prove all the elements of infringement (TMA 1994
s10(3)). In practice, however, Argo would plead both types of claim as
alternatives.
SB Designs has reproduced Argo's device mark without
permission on the bed linen and so has infringed the trade mark. This
would give Argo a number of remedies, including, interim and 昀椀nal
injunctions, damages/account of profits, erasure, delivery up and
destruction. Since clause 3.2 prevents SB Designs from reproducing the
device mark on anything other than T-Shirts (being the "Licensed Goods"),
SB Designs is also in breach of contract. This would entitle Argo to
terminate the agreement and claim damages. The remedies for both
types of claim are broadly similar, but claiming breach of contract avoids
Argo having to prove all the elements of infringement (TMA 1994
s10(3)). In practice, however, Argo would plead both types of claim as
alternatives.
SB Designs has reproduced Argo's device mark without
permission on the bed linen and so has infringed the trade mark. This
would give Argo a number of remedies, including, interim and 昀椀nal
injunctions, damages/account of profits, erasure, delivery up and
destruction. Since clause 3.2 prevents SB Designs from reproducing the
device mark on anything other than T-Shirts (being the "Licensed Goods"),
SB Designs is also in breach of contract. This would entitle Argo to
terminate the agreement and claim damages. The remedies for both
types of claim are broadly similar, but claiming breach of contract avoids
Argo having to prove all the elements of infringement (TMA 1994
s10(3)). In practice, however, Argo would plead both types of claim as
alternatives.