Canadian Copyright & Chocolate Bars

Excess Copyright:

The Supreme Court of Canada today granted leave to appeal in the very important case of Kraft v. Euro Excellence - in which Kraft had succeeded below in using s. 27(2)(e) of the Canadian Copyright Act to block the parallel importation of legitimate Toblerone chocolate bars contained in packaging for which Kraft was the exclusive Canadian licensee of certain copyrighted elements - unless the defendant covered up the offending elements with a sticker, which was done in this case. The defendant also had to pay substantial damages. One can easily imagine the ruling below being used in future cases to effectively stop parallel importation altogether of an enormous variety of consumer goods - on the basis of copyright in some artwork on a package. If this were to happen, it would be very bad news for competition and free trade.

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