Account of profits — can labour costs be deducted?

CCH report on Tenderwatch Pty Ltd v Reed Business Information Pty Ltd (2008) regarding a manual to be used in conjunction with its training seminars. According to CCH, the court noted that there is authority for the proposition that where a person makes a profit by the use or sale of some thing, and the whole thing came into existence by reason of a wrongful use of another’s person’s copyright etc, the infringer must account for all the profits which he has made (as per Windeyer J in Colbeam Palmer Ltd v Stock Affiliates Pty Ltd (1968) 122 CLR 25).

Justice Heerey noted that as a matter of ordinary business practice the “profit” the second respondent made for conducting the seminar was the amount he received from the first respondent less his actual outlay. If the time spent was truly worth $17,500, he presumably would have charged the first respondent this amount.

Account of profits — can labour costs be deducted?