IPEC Quantifies Damages in Fendi Counterfeit Dispute

The Intellectual Property Enterprise Court has handed down judgment in a damages inquiry following a default judgment against Rolo Fashion Limited and another defendant for selling counterfeit Fendi goods. After establishing liability for trade mark infringement, the court assessed quantum using evidence of the defendants' income and average selling prices to calculate lost profits of £200,000 for sales displaced by the infringement. It applied the user principle to award a minimum reasonable royalty of £13,000 for the remaining infringing sales. Claims for reputational loss and an additional award under Regulation 3 were rejected. Total damages were fixed at £213,000. The decision illustrates how courts can rely on reasonable assumptions and available financial data to quantify harm in trade mark cases even where precise records are limited.

Small businesses should maintain clear records of sales and marketing spend to support or defend against damages claims in infringement actions.