Federal Court of Appeal Awards $8,787 in Costs for Patent Infringement Appeal Involving Ontario Dairy Cooling System

The Federal Court of Appeal recently concluded proceedings in a patent infringement dispute involving Fromfroid S.A., a French manufacturer of air-conditioning and refrigeration equipment for the agri-food sector, and Ontario-based companies Skotidakis and Frimasco Inc. The appeal court dismissed Skotidakis’s challenge to a Federal Court ruling that found willful infringement of Fromfroid’s patent for a rapid cooling ventilation system designed for food products.

Fromfroid held a patent protecting its innovative cooling system, which expired on July 30, 2018. Prior to the expiry, Fromfroid, through its Canadian agent Geosaf Inc., engaged with Skotidakis starting in 2014 to explore the acquisition of the cooling technology. Geosaf loaned a cooling cell to Skotidakis for a six-week trial and later proposed constructing 24 cooling cells, but Skotidakis did not accept any proposals during negotiations.

On October 26, 2018, a Geosaf representative discovered 24 cooling cells at Skotidakis’s facilities that closely resembled Fromfroid’s patented system. Skotidakis claimed these cells were built by Frimasco within three months after the patent expired. Fromfroid contested this, alleging the cells were constructed before the patent’s expiry date, constituting infringement.

The Federal Court ruled on July 6, 2023, that Skotidakis and Frimasco had willfully infringed the patent by building the cooling cells prior to the patent’s expiration. The court further found that the defendants engaged in highly reprehensible conduct by attempting to mislead the court regarding the manufacturing timeline of the cooling cells.

As a result, the Federal Court awarded Fromfroid compensatory damages of $149,270, reflecting the net profit Fromfroid would have earned had Skotidakis accepted the final proposal. Additionally, punitive damages were awarded: $200,000 against Skotidakis and $50,000 against Frimasco. These awards included interest.

Following the trial judgment, on August 31, 2023, the Federal Court granted Fromfroid trial costs amounting to $127,000. Skotidakis appealed both the substantive ruling and the costs award.

Despite Fromfroid’s counsel sending a settlement offer to Skotidakis on January 18, 2024, the appeal proceeded. On August 25, 2025, the Federal Court of Appeal issued its decision in 1048547 Ontario Inc. v. Fromfroid S.A., 2025 FCA 151, dismissing Skotidakis’s appeal with costs. The appeal court found no overriding or palpable error in the Federal Court’s factual findings, inferences, or punitive damages assessment.

On September 18, 2025, Fromfroid filed a bill of costs under section 406(1) of the Federal Courts Rules, SOR/98-106, seeking assessment of its appeal costs. Both parties agreed that the assessment should follow column III of the table to Tariff B under rule 407 but disputed the appropriate level of costs within that range.

On June 1, 2026, in 1048547 Ontario Inc. v. Fromfroid S.A., 2026 FCA 108, the Federal Court of Appeal assessed Fromfroid’s bill of costs and issued an assessment certificate. The court allowed a total of $8,787.35, inclusive of taxes, based on 45 units of assessable services valued at $8,100.

This assessment reflects the court’s detailed consideration of the services rendered during the appeal phase and represents a modest recovery relative to the overall damages awarded at trial. The decision underscores the court’s commitment to proportionate cost awards in patent litigation appeals, even in cases involving willful infringement and punitive damages.

The case highlights the risks of infringing active patents and the potential for significant damages and costs, including punitive awards, when courts find deliberate misconduct. It also illustrates the procedural pathways for cost recovery following appeals in Federal Court patent disputes.