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Court awards Microsoft Canada $700,000 in piracy case

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The Federal Court of Canada has recently awarded Microsoft Canada Co. the highest statutory damages in an intellectual property case in the country.

The court’s decision directing Inter-Plus Inc., a Montreal-based software reseller, to pay Microsoft a total of $500,000 in statutory damages and $200,000 in punitive damages was called "ground breaking" by software industry insiders.

"This is the only case in Canada where the maximum amount of statutory dollars was awarded in an intellectual property case," said Marek Nitoslawski, national chair, technology and intellectual property practice group, and a partner at Fasken Martineau DeMoulin LLP, in Montreal.

"In the past," Nitoslawski said, "Canadian courts were criticized for being soft on piracy. In this case the court really came down hard on Inter-Plus."

"This sends a positive message to the software vendor community that our (intellectual property) laws are being upheld," said John Payes, partner, Nakisa Inc, a Montreal-based maker of human resources management software.

"We are happy to see the court award the highest possible amount," added Payes who is also president of the International Association of Microsoft Certified Partners (IAMCP).

The decision stems from a lawsuit filed by Microsoft against Inter-Plus in August of 2000. Microsoft accused the Montreal-based firm of possessing and selling counterfeit CD-ROMs of Microsoft products.

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The matter went to trial in Montreal on October 31, 2006. On January 16, a judgment by Federal Court Justice Sean Harrington found Inter-Plus and its principal, Carmelo Carrelli, liable for the maximum amount of statutory damages under the Canadian Copyright Act. "I am satisfied that the defendants' conduct was outrageous," Justice Harrington wrote in his judgment. "Carmelo Cerrelli is the kingpin, and Inter-Plus is the name of the game."

Aside from the $200,000 in punitive damages, Inter-Plus was ordered to pay Microsoft the maximum amount of $20,000 per work infringed, totaling $500,000 for the 25 copyrights in question.