A man from Lemvig has been sentenced to three months’ suspended imprisonment and has had DKK 150,000 confiscated, along with a number of copies of Danish design classics, for importing, offering and selling the replicas via Facebook.
In addition, the court considered and awarded compensation of DKK 120,000 to the aggrieved design companies, which filed claims for damages as part of the criminal proceedings – a rare step in cases of this nature.
The case, which was heard as a confession case before Retten i Holstebro, concerned the sale of copies of well-known Danish design classics via Facebook Marketplace and local Facebook groups. The sales took place without the consent of the rights holders, who hold the exclusive rights to produce and market the products.
Among the illegal copies were products such as Ægget by Arne Jacobsen and Skalstolen by Hans J. Wegner.
The court found that the convicted man had repeatedly acted in violation of the Danish Copyright Act and the Danish Trademarks Act by offering and selling replica products from well-known Danish designers. The case was based on a number of advertisements and sales that took place over several months.
Compensation claim handled during the criminal proceedings
The court chose to consider the claim for damages directly as part of the criminal case, which has been met with great satisfaction by both the Rights Alliance and the affected design companies. The decision is unusual, as in this type of case the issue of compensation is normally separated and referred to a separate civil lawsuit.
One of the aggrieved companies in the case is Carl Hansen & Søn, which, among other designs, produces Skalstolen by Hans J. Wegner.
CEO of Carl Hansen & Søn, Knud Erik Hansen, views the outcome of the case positively:
We are, of course, satisfied with the outcome, and it is positive that RettighedsAlliancen has pursued this compensation claim, which concerns products from several manufacturers. In addition, it is good to see what NSK has contributed, which also demonstrates the scale of the counterfeit goods sold in this particular case.
Another of the aggrieved companies in the case is Fritz Hansen, which also expressed satisfaction with the outcome of the case:
When design is copied, it affects the companies that invest time, expertise and resources in developing and producing original design. It is therefore crucial that cases involving design infringement also lead to tangible consequences, thereby setting a clear boundary for what is acceptable. We are therefore very pleased with the outcome of the case,” says Group General Counsel at Fritz Hansen, Sarah Emilie Ginsborg Ibenfeldt.
When compensation claims are separated into civil proceedings, it often means that the aggrieved companies must initiate an additional lawsuit to recover their losses resulting from intellectual property infringements. This is typically both time-consuming and costly, and involves considerable uncertainty.
By addressing the issue of compensation as part of the criminal proceedings, the aggrieved parties avoid another round of litigation. At the same time, the judgment sets a precedent that may serve as guidance in future cases concerning compensation for design infringements – both in criminal cases and in the assessment of damages in civil proceedings.
Director of RettighedsAlliancen, Maria Fredenslund, sees the ruling as a clear step forward:
It is very positive that the court in this case chose to address the issue of compensation directly as part of the criminal proceedings. This saves the judicial system, the convicted individual and the rights holders unnecessary use of resources and sends an important signal that compensation is a real possibility. All too often, we see compensation claims being separated and referred to civil proceedings, which in practice makes it difficult for rights holders to obtain genuine financial compensation. This case shows that it can be done, and it provides an important benchmark for future cases.
Compensation claims can contribute to a more consistent and fair legal practice
According to the Rights Alliance, compensation claims are essential to ensuring a more equitable legal practice in cases involving design infringement. They help ensure that rights holders not only receive recognition that an infringement has taken place, but also obtain financial compensation for the harm caused by copying.
At the same time, studies conducted by the Rights Alliance indicate that compensation levels in design cases are often low and unpredictable, and do not reflect the actual damage suffered. In practice, this may discourage designers and companies from enforcing their rights before the courts.
The ruling is therefore seen as an important step towards a more equitable compensation practice in cases concerning design infringement.