Court highlighted the need for specificity and clarity in pleadings, especially in copyright cases
The Federal Court has decided on GE Renewable Energy Canada Inc's (GEREC) motion to amend its Amended Statement of Claim in a complex copyright infringement case against Canmec Industrial Inc, with Rio Tinto Alcan Inc also involved as a third party.
In GE Renewable Energy Canada Inc. v. Canmec Industrial Inc., 2024 FC 187, GEREC sought to expand the scope of its claim significantly, aiming to redefine the "GEREC Designs" from 33 manufacturing drawings to include up to 2,400 additional works potentially. Additionally, GEREC aimed to assert that Canmec's manufacturing of specific equipment, namely butterfly valves, constituted an infringement of its copyrights.
However, the court has granted only a partial victory to GEREC, allowing amendments related to equipment manufacturing while denying the proposed expansion of the "GEREC Designs." The court reasoned that the proposed expansion lacked the specificity, making it unsustainable as a pleading. The court applied the Federal Courts Rules, which advocate for amendments that elucidate the real controversies without causing injustice or unnecessary delay to the other parties involved.
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This copyright infringement action stemmed from a 2016 agreement between GEREC and Rio Tinto to refurbish two hydroelectric power units at the Isle-Maligne Plant in Alma, Québec. GEREC considered Canmec a potential subcontractor and shared 33 manufacturing drawings related to the project. However, Canmec was not selected, and GEREC completed the refurbishment in 2018. The dispute arose when Rio Tinto selected Canmec for a subsequent project at the same plant, leading GEREC to allege copyright infringement based on Canmec's successful bid and subsequent actions.
The Federal Court's decision is anchored in legal principles that prioritize clarifying the real issues while ensuring fairness and justice for all parties. By denying the amendments related to the expansive redefinition of "GEREC Designs," the court highlighted the importance of specificity and clarity in pleadings, especially in copyright infringement cases.
The ruling also emphasized the careful balance the court must strike between allowing necessary amendments and preventing undue prejudice or delay. While GEREC has been granted leave to reapply for amendments concerning the "GEREC Designs," this opportunity comes with a caution to adhere more closely to the requirements of a sustainable pleading.
