The relevant principles governing the discount of overheads
7. In the Second Account Judgment, guided by the Court of Appeal I set out the principles of law relating to how the court should deal with the defendant’s overhead costs. Those principles have not been challenged by either party: “(1) Costs that were associated solely with the defendant’s acts of infringement are to be distinguished from general overheads which supported both the infringing business and the defendant’s other, noninfringing, businesses. (2)The defendant is entitled to deduct the former costs from gross relevant profits. (3)A proportion of the infringer’s general overheads may be deducted from gross relevant profits unless (a)the overheads would have been incurred anyway even if the infringement had not occurred, and (b)the sale of infringing products would not have been replaced by the sale of non-infringing products. (4)The evidential burden rests on the defendant to support a claim that costs specific to the infringement and/or a proportion of general overheads are to be deducted from profits due to the claimant.”
- Introduction
- The relevant principles governing the discount of overheads
- Outstanding issues
- Wages and salaries
- NICs and hired and recharged labour
- Directors’ NICs
- Dividends to directors other than Mr and Mrs Lloyd
- Net profit/loss on the infringing business
- Costs excluding the appeal
- Costs of the Appeal
- Permission to appeal