In a trademark expungement proceeding, the Federal Court granted the successful party lump sum costs equal to 15% of its legal fees and expenses. The Court agreed that calculating costs according to the Tariff in the Federal Courts Rules was inadequate. Lump sum costs are typically awarded in the range of 25% to 50% but in awarding less than 25%, the Court noted the: (i) successful party did not file sufficient information for the Court to understand the full nature of the legal work performed; and (ii) case was not as complex as some other intellectual property cases (but agreed the issue was a novel one in light of recent statutory amendments). In awarding 15% lump sum costs, the Court noted the losing party failed to participate in the proceeding (thereby increasing some costs) and the successful party had made a good faith settlement offer in advance of trial. The Court’s objective was to ensure the costs award provided compensation, promoted settlement, and deterred abusive behavior.
