While Canadian law generally recognises the principle of separate corporate personality, thus shielding parent companies from liability for their subsidiaries' actions, this treatment is not without exceptions.
The case of Munchkin, Inc. v. Angelcare Canada Inc., 2024 FCA 156, serves as a recent reminder of Canadian courts holding a foreign parent company responsible for its Canadian subsidiary’s patent infringement in Canada. In this case, Munchkin, Inc., a U.S.-based parent company, was found liable for the patent-infringing activities of its Canadian subsidiary, Munchkin Baby Canada, Ltd., even though the parent Munchkin, Inc. operated entirely outside Canada.
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Author: Dr. Sean X. Zhang | Partner
Email: szhang@dalelessmann.com