The appellants, who operated an adult video store, were charged with knowingly selling obscene material without lawful justification or excuse.
The videos had been approved by the Ontario Film Review Board.
The Supreme Court of Canada held that the mens rea for the offence requires the Crown to prove the retailer knew of the specific acts that make the material obscene in law, not just that it involved the exploitation of sex.
The Court also held that while film board approval does not negate mens rea or provide a lawful justification, it may be relevant to wilful blindness or officially induced error of law.
The appeal was allowed and an acquittal entered.