Additional compensation in the event of IP damages (Case C?99/15)

As decided by the most recent case-law of the Court of Justice, an IP owner whose rights are infringed may claim compensation not only for material damage resulting from the infringement (such as lost sales) but also for any moral prejudice suffered. This would include, for example, damage to reputation. In particular, the CJEU held that Article 13(1) of the IP Enforcement Directive (2004/48/EC) set out the general rule that a court must order an infringer to pay the IP owner damages ‘appropriate to the actual prejudice suffered by him as a result of the infringement’. The CJEU’s view was that moral prejudice constituted a component of the prejudice actually suffered by the IP owner. Therefore, to ensure the IP owner was compensated in full, he/she must be able to seek compensation for any moral prejudice suffered, in addition to compensation for material damage.