

It is no surprise that the proliferation of generative AI has led to a plethora of lawsuits. In Canada, a number of lawsuits have been filed against AI companies on many grounds. Many issues are currently being litigated including relating to ownership of intellectual property, moral rights, scraping, privacy, product liability, deepfake liability, and professional
The Federal Court of Appeal overturned a trial court finding that a patent was invalid for overbreadth. In its reasons, the FCA appeared to limit the extent of extrinsic evidence (i.e. inventor and expert testimony) relevant to the overbreadth inquiry. Instead, the FCA focused on the invention made or contemplated as disclosed in the patent specification.
The FCA overturned a lower court decision that declared sharing of passwords by Parks Canada was fair dealing that did not constitute circumvention of TPMs. The scope of fair dealing and whether password sharing and paywalls constitute TPMs are now re-opened as live legal questions.
The Federal Court of Canada in Eaton v Teva Canada Ltd et al, 2026 FC 239 refused to certify a proposed class action claiming over $5 billion against more than 80 generic pharmaceutical companies for an alleged conspiracy to fix generic drug prices and allocate in the market in violation of the Competition Act.
The Federal Court has clarified when parties can file new evidence on appeal from TMOB decisions under the amended Trademarks Act. Leave will depend on factors such as relevance, materiality, delay, and prejudice. The Court departed from the stricter Palmer test, noting that statutory appeals from administrative tribunals are more flexible, though whether evidence could have been before the TMOB remains important. Applicants should no longer assume that new evidence is automatically permitted on appeal.
Watch for these three developments in AI law in 2026: (1) the ongoing OpenAI v. Canadian Media Companies lawsuit which could set a precedent for AI copyright ownership; (2) the DABUS appeal, which could answer whether GenAI can be an “inventor” of a patent, and (3) the Suryast copyright registration battle, which could set out whether AI art can be copyrighted.
