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R. v Medicines Control Agency ex parte Smith & Nephew, intervener Primecrown Ltd [1999] RPC 705

Case Summary  |  25 March 1999


EC Medicines Directive - Licence suspended by interim injunction - Assessment of damages under the cross-undertaking. A claim for damages under a cross undertaking in damages given in return for interim relief which restrained the holder of a parallel import licence from importing and selling a pharmaceutical product pending a ruling from the European Court. The decision of the ECJ (see here) had the consequence that the licence in issue had been validly granted. The Court held that the licence holding company, in whose favour the cross undertaking had been given, could not recover in respect of trading profits lost by an associated company which wouldhave traded under the licence, but could recover reasonable royalty in respect of the exploitation of the licence which would have taken place if the interim relief had not been granted.