Encyclopedia of Economic Law Journal

A Comparative Analysis of the Recoverability of Lost Profits in Intellectual Property Disputes under Iranian Law and the Paris Convention

Document Type : Scientific research

Authors

mohammadhosein taghipoor darzi naghibi 1
Reza Zakershoub 2

1 Assistant Professor of private law, Faculty of Law and Political Science, University of Mazandaran, Babolsar, Iran.

2 Master Of Laws (LL.M.) in Private Law, Faculty of Law and Political Science, University of Mazandaran, Babolsar, Iran.

https://doi.org/10.22067/economlaw.2026.94893.1480
Abstract
The legislative authority, through the enactment of the Industrial Property Protection Act, addressed three key considerations: First, Article 150 of the Act repeals the previous Law on Registration of Patents, Industrial Designs, and Trademarks. This represents a clear legislative intent to replace the old framework. Second, Article 72 states that in proven cases of patent infringement, the infringer must compensate all resulting damages, including potential profits that qualify as actual losses. This confirms the compensability of lucrum cessans under Iranian law but only in the context of patent rights. The law does not address the issue of compensating loss of profit in relation to other intellectual property categories such as trademarks or industrial designs. Third, Article 149 provides that a new executive bylaw must be prepared within six months of the law’s enactment. Until then, the bylaw of the repealed law remains applicable unless it conflicts with the new Act. However, as of this writing, the new bylaw has not yet been issued. Article 181 of the old bylaw states that only “actual damages” may be recovered in IP disputes, but it is silent on whether lost profit qualifies as such. This has created theoretical disagreement, opening space for two interpretations. The more convincing view holds that although the legislator is silent about other IP rights, there is no explicit prohibition against the recovery of lucrum cessans. The broader legislative trend illustrated by Article 14 of the Code of Criminal Procedure and Articles 5 and 6 of the Civil Liability Act treats certain and provable loss of profit as compensable. Hence, patent rights should not be treated as an exception among IP rights. Additionally, the principle of non-liability in the absence of legal foundation applies only where there is no legal reasoning at all. Legislative silence does not imply denial of recovery.

Keywords

Comparative analysis
Loss of profits
Paris Convention
Industrial property
Intellectual property
Subjects
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Encyclopedia of Economic Law Journal
Volume 33, Issue 29 - Serial Number 29
September 2026
Pages 61-76

  • Receive Date 16 September 2025
  • Revise Date 17 May 2026
  • Accept Date 25 August 2026

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