Frac Shack Inc. v. AFD Petroleum Ltd, 2017 FC 274

Justice Manson - 2017-03-13

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In 2017 FC 104, the Court directed the Defendant (“AFD”) to pay to the Plaintiffs (“Frac Shack”) (1) the gross profits made by AFD, from September 24, 2014 to December 13, 2014, from the rental of the AFD Frac Trailer, not including the profits associated with fuel sales (at para 313); and (2) reasonable compensation for use of the AFD Frac Trailer prior to September 24, 2014, the issue date of the ‘567 Patent. ... The plain language interpretation of the wording of paragraph 307 of the Judgment and Reasons is that the “declining rate” method and the “sum of the digits” method are the same. Given that “declining rate” is not a method of depreciation, it is reasonable to infer that, in directing the Parties to use the “declining rate” method, the Court meant that the mathematical formula for the “sum of the digits” method would be used to arrive at a gross profits amount based upon an eight year economic life. Therefore, I find that it is appropriate to calculate AFD’s gross profits according to the “sum of the digits” method, using an eight year economic life, which results in an amount of $221,786.

Decision relates to:



Canadian Intellectual Property