Exeltis Baltics Secures Interim Win in Intellectual Property Dispute

COBALT represented Exeltis Baltics in an intellectual property dispute concerning the launch of a generic medicinal product in Estonia that had been blocked for years by an interim injunction sought by the seller of the original medicine. The dispute reached the Supreme Court, which confirmed that where a claim is secured by an interim measure to protect an intellectual property right and that right is later annulled, the applicant for the interim measure is liable for the damage caused irrespective of fault. The Supreme Court clarified that the dispute will continue in the Court of Appeal, which will determine the amount of damage suffered, including lost profits. The Court emphasised that delay in launching a medicinal product at the planned time can produce damages amounting to millions and that its decision provides long‑awaited clarity for both originator and generic medicine sellers: damage caused by excluding another market participant through an interim injunction applied to protect an IP right that is later annulled must be compensated regardless of the applicant’s fault. The Supreme Court also clarified whether, and to what extent, damage caused by interim measures must be compensated to a third party who is not a party to the proceedings. In such cases the special provision does not impose liability of the applicant to the third party; instead, liability for the damage must be assessed under the general rules of tort law. The judgment provides essential guidance on determining the amount of lost profits. The Supreme Court explained how the burden of proof is allocated between the parties, identified which costs must be deducted from compensation and confirmed that lost profit may be determined on the basis of a company’s average profit margin. COBALT represented Exeltis Baltics with a team composed by: Managing Associate Kadri Michelson and Senior Associate Anna‑Riin Brett.

Exeltis Baltics Secures Interim Win in Intellectual Property Dispute

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