Copying has become a sad reality for many designers, according to the Danish Rights Alliance, which mapped the economic consequences of copying, reviewed relevant case law and discussed solutions to the problem at a seminar for the design industry in November. The event was supported by UBVA (The Association for Visual Arts, Denmark).
Coinciding with the event was the release of a major study of case law in design copying cases. The results were surprising, in that many rights-holders don’t bother to assert their rights because the chances for success are low, and the processes are confusing.
Futhermore, infringers are likely to profit because damages paid upon conviction (which is not assured) were often lower than the amount that the infringer made in earnings.
Summarizing the results of the study:
- The remuneration and damages awarded are unpredictable and too low. This means that the preventive effect is lacking and design right holders lose the incentive to bring legal action.
- In 38% of cases, it is worthwhile to copy someone else’s design, even if you are sentenced to pay financial compensation (Civil cases concerning infringement of a physical design in Danish courts, 2004-).
- At least 3 out of 10 design rights holders have been subjected to design infringement.
- 7 out of 10 designers who have experienced their designs being infringed choose not to file a lawsuit, primarily because it is confusing.
- The loss experienced by the individual infringed design right holder was found (approximately) to range between DKK 381,000 (~US$53.5K) and DKK 3,640,000 (~US$511K).
- The socio-economic loss is estimated at DKK 1.9 – 2.4 billion (US$ 266M – $337M) over a 5-year period, of which the state loses a total of approximately DKK 478 million (US$67M) in VAT revenue.
These conclusions have led the Rights Alliance to advocate for changes in legislation. It is a major problem that creative individuals and companies within the design industry do not have a real opportunity to protect their rights, and in many cases it can be profitable to infringe on other people’s designs.” said Rights Alliance Director Maria Fredenslund.
“Therefore, we urgently need improved legislation and initiatives that increase fairness in litigation and make it more attractive to seek redress for design infringements. Our design seminar marked the first step in this direction, and we look forward to working closely with both the design and legal industries on this effort,” said Director Fredenslund.
Futher reading
Unpredictable and unfair verdicts deter designers from sueing when they are copied. Article. December 16, 2024. Danish Rights Alliance (Rettighedsalliancen)
Why it matters
The cited data and studies were obtained and conducted at the request of the Danish Rights Alliance, as part of a larger effort to uncover gaps in legislation and case law regarding infringement of intellectual property rights.
