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Generative AI
Artificial intelligence (AI) raises many intellectual property (IP) issues.
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Canada | Publication | June 12, 2020
The court noted the undertaking is required to address the fact that an injunction can cause the responding party to suffer a loss as a result of being prevented from doing something it was entitled to do.
The court acknowledged there was some variation in the case law regarding when an undertaking as to damages should to be enforced: in some cases, courts held that a defendant should be compensated if the plaintiff failed to establish a meritorious claim; and in others, courts held that the undertaking was enforceable only if the injunction was wrongly obtained or the claim was dismissed on the merits.
In two sets of reasons, the Court of Appeal unanimously allowed the plaintiff’s appeal and declined to enforce the undertaking as to damages.
Undertakings as to damages are required to offset the fact that interlocutory injunctions are powerful tools that can inflict considerable economic harm. When deciding to seek injunctive relief, the moving party must carefully consider its potential exposure. The Ralph’s Auto Supply decision reminds defendants seeking to recover on the undertaking to move promptly and obtain either a finding that the injunction was obtained improperly or the claim failed on its merits.
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Artificial intelligence (AI) raises many intellectual property (IP) issues.
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We are delighted to announce that Al Hounsell, Director of Strategic Innovation & Legal Design based in our Toronto office, has been named 'Innovative Leader of the Year' at the International Legal Technology Association (ILTA) Awards.
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