Quantum: Double G Communications Limited -v- News Group International Limited [2011] EWHC 961

Double G Communications Limited (“Double G”) are an adult leisure games company and the claimant brought an action against New Group International Limited (“NG”) for wrongful termination of a licence. The subject matter of the licence was a board game which would utilise NG’s “Page 3” brands. Notification of the intended termination was received by Double G before it went to market. The claim was disposed of by way of summary judgment, the hearing on 14 April 2011 was to deal with the question of an assessment of damages.
The court found that:

There was a submission made by Double G that it was hampered in its sale efforts up to the date of termination by NG’s failure to “engage with its marketing obligations”. However, there was no evidence before the judge to allow a decision to be made.

The methodology of the experts in assessing damages was questioned. The court opined that future loss should be assessed on available sales figures for “middle ranking” board games.

The court found that the assessment would be based on the three year agreement where at the start of that period there would be a benign surge of sales which would eventually slow down before prices were lowered. Double G’s estimated sales figures were estimated as at 6,500 units at £24.99 per unit (year 1); 3,500 units at £19.99 per unit (year 2) and 2,500 at £14.99 per unit (year 3).

It is important when reviewing a claim for damages which includes future loss that perspective market conditions be taken into account, as was the case in the above claim.

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