Federal Court Considers Effect Of Exception For Utilitarian Features Of Article In Copyright Infringement Claim

On October 2, 2026, the Federal Court of Canada (the Court) released its public decision in GE Renewable Energy Canada Inc. v Canmec Industrial Inc. et al., 2026 FC 1145, dismissing most of the copyright infringement claim brought by GE Renewable Energy Canada Inc. (GEREC) against Canmec Industrial Inc. et al. (Canmec).

The dispute arose from the refurbishment of a hydroelectric power plant in Québec owned by Rio Tinto Alcan Inc. (Rio Tinto). GEREC won the bid to refurbish the first two power units, while Canmec was later selected to refurbish the remaining 10. During its work on the first two units, GEREC approached Canmec as a potential subcontractor and shared 33 manufacturing drawings relating to butterfly valves, winches and embedded components (the GEREC Drawings). During the bidding process for the remaining units, GEREC learned that Canmec had removed the GE and Rio Tinto logos from four of the GEREC Drawings and used them to obtain quotations from potential subcontractors. GEREC then commenced this copyright infringement action, and Canmec brought a third-party claim against Rio Tinto.

The Court first found that copyright subsisted in the GEREC Drawings and that GEREC owned this copyright. However, the Court found that section 64.1 of the Copyright Act, which creates an exception to copyright infringement for the purely utilitarian features of a useful article, applied in this case. As the Court explained, section 64.1 exists to prevent authors from obtaining copyright protection for articles that should instead be protected by a patent. As the features of the GEREC Drawings were dictated solely by a utilitarian function, and GEREC did not hold a patent for the underlying designs, the Court found that Canmec’s use of the GEREC Drawings to manufacture the butterfly valves and their embedded components did not infringe GEREC’s copyright.

The Court extended this finding of non-infringement to the 3D SolidWorks model and 3D CAD files of Canmec’s manufactured butterfly valves and embedded components, finding that the definition of “useful article” encompasses both physical articles and computerized or digital models.

By contrast, the Court found that Canmec had infringed GEREC’s copyright by sending the four altered GEREC Drawings to suppliers to obtain quotations. The Court awarded $60,000 in damages ($15,000 per drawing), granted a permanent injunction, and ordered the delivery up or destruction of all copies of the GEREC Drawings in Canmec’s possession. The Court also dismissed Canmec’s third-party claim for indemnification against Rio Tinto.

Summary By: Claire Bettio