The applicants sought an injunction to enforce a restrictive covenant in a settlement agreement arising from earlier patent litigation.
They alleged the respondent breached the covenant by inducing others in Canada to manufacture and sell the patented products outside Canada.
The court held the covenant unambiguously prohibited making, constructing, using, or selling the products in Canada, or inducing others to do those acts in Canada.
It rejected the broader interpretation that would prohibit inducing others in Canada to deal with the products anywhere in the world.
Finding no evidence that the products were made, used, or sold in Canada, the court concluded the respondent did not breach the agreement.
