Federal Court Awards $78,000 in Damages for Copyright Infringement of STEM Educational Guides Using LEGO Kits

Canada’s Federal Court has awarded damages totaling $78,000 to a STEM director for copyright infringement involving educational quick reference guides created for LEGO education kits. The case, Rayman v. Red Crayon Inc., 2026 FC 951, arose from a consulting agreement between the plaintiff, a clinical associate at the London Health Sciences Centre’s cardiac surgery division, and the defendant, a for-profit after-school supplementary education franchise.

Under the consulting agreement executed on May 21, 2021, the plaintiff was appointed as STEM director to develop the defendant’s STEM program. Independently, he created six quick reference guides designed to help franchisees and tutors effectively use LEGO education kits as part of the program.

The relationship between the parties deteriorated in November 2023 when the defendant ceased paying the plaintiff’s invoices and stopped responding to his communications. Despite this, the defendant continued to use the copyrighted guides without authorization.

On October 15, 2025, the plaintiff filed a statement of claim alleging copyright infringement of the six works he developed under the consulting agreement. The defendant failed to file a defence, prompting the plaintiff to seek default judgment.

An initial motion for default judgment was dismissed on April 22, 2026, due to evidentiary deficiencies. The motion judge found that the plaintiff had not complied with the service requirements under rule 130(1)(a)(ii) of the Federal Courts Rules, SOR/98-106, and had provided insufficient evidence to demonstrate how the defendant accessed and infringed the works.

The court allowed the plaintiff to refile the motion with improved evidence. Upon renewal, the Federal Court found that the plaintiff had addressed the evidentiary gaps, clarifying and correcting the record regarding the infringement.

The court confirmed the defendant was in default for failing to respond within the time prescribed by rule 204 of the Federal Courts Rules. Consequently, the plaintiff was entitled to default judgment.

The court declared that the plaintiff owned the copyright in the six quick reference guides. It ruled that the defendant infringed the plaintiff’s copyright under section 27(1) of the Copyright Act, 1985.

Importantly, the court held that the consulting agreement did not grant the defendant any licence or assignment to use the works. The defendant’s right to use the guides was conditional on payment for services rendered, which ceased in November 2023.

As a remedy, the court issued a permanent injunction restraining the defendant from further copyright infringement. It also awarded statutory damages totaling $78,000, calculated at $13,000 per infringed work pursuant to section 38.1 of the Copyright Act.

This decision underscores the importance of clear contractual terms regarding intellectual property rights and the consequences of unauthorized use after termination of payment obligations. It also highlights the Federal Court’s willingness to grant default judgments when defendants fail to respond to infringement claims and the necessity for plaintiffs to meet procedural and evidentiary standards in such motions.