In a recent ruling, the CJEU has interpreted Article 13(1) of the IP Enforcement Directive (2004/48/EC) and confirmed that an IP owner whose rights are infringed may claim compensation not only for material damage resulting from the infringement (typically lost sales) but, in addition, for any moral prejudice suffered. This would include, for example, damage to reputation. The CJEU held that Article 13(1) set out the general rule that a court must order an infringer to pay the IP owner damages ‘appropriate to the actual prejudice suffered by him as a result of the infringement’. The CJEU’s view was that moral prejudice constituted a component of the prejudice actually suffered by the IP owner. Therefore, to ensure the IP owner was compensated in full, he/she must be able to seek compensation for any moral prejudice suffered, in addition to compensation for material damage. This ruling calls into question earlier rulings (particularly in the UK) that have held that damages for moral prejudice are only available in very limited circumstances.