Facton Ltd v Erdogan (No 1)

In the case of Facton Ltd v Erdogan (No 1), the applicants sought relief from the Federal Court of Australia in relation to the respondent's alleged infringement of copyright and trademark rights. The applicants, who own the G-Star trademarks and logos, claimed that the respondent, Ali Erdogan, had been selling counterfeit G-Star branded clothing and accessories from his premises in Auburn and Burwood, New South Wales. The applicants sought injunctive relief, damages, and delivery up of the counterfeit goods and related materials. The primary legal issues before the Court were whether the applicants were entitled to a default judgment and the appropriate quantum of damages to be awarded. The Court found that the applicants were entitled to a default judgment because the respondent had failed to file a defence or comply with court orders. The Court also determined that the applicants were entitled to compensatory damages for lost profits and damage to reputation, as well as additional damages for the infringement of copyright. The Court held that the applicants' exclusive and valuable reputation and goodwill in Australia warranted the award of additional damages, and that the quantum of damages should reflect the seriousness of the infringement and the need to deter future infringements.

In awarding damages, the Court considered the lost profits resulting from the respondent's infringement, as well as the damage to the applicants' reputation. The Court found that the applicants had suffered a loss of profits due to the sale of counterfeit G-Star products, and that the respondent's actions had caused damage to the applicants' reputation. The Court also found that the applicants were entitled to additional damages for the infringement of copyright, as the respondent's actions constituted a serious infringement that warranted a deterrent award. The Court ordered the respondent to pay damages in the sum of $35,662.50 plus interest, and to deliver up all counterfeit G-Star products and related materials in his possession. The Court also ordered the respondent to pay the applicants' costs of $72,184.63, assessed on a gross sum basis, plus interest. The Court made these orders pursuant to the Federal Court Rules 2011 and the Copyright Act 1968 (Cth).