This was an appeal of the Federal Court's decision granting an interlocutory injunction to prevent the Appellants from among other things, advertising for sale, distributing and selling preloaded setup boxes that are adapted to provide users with unauthorized access to the Respondents' programs (2016 FC 612; our summary here).
The Appellants focused their argument on the second prong of the tripartite test for an interlocutory injunction. The Appellants submitted that the Court had misconstrued the criterion for irreparable harm since there was no clear and non-speculative evidence on which the Court could conclude that the Respondents would lose actual or prospective clients as a result of the Appellants' activities. They also argued that there was no evidence that they were unlikely to have the financial resources required to compensate the respondents' losses should they succeed on the merits.
The Court of Appeal dismissed the appeal, finding that it was open to the Federal Court to conclude as it did.