The U.S. Supreme Court has unanimously overturned a nearly $43 million trademark infringement award against an Atlanta-based real estate developer, Dewberry Engineers, in a case concerning the recovery of profits from affiliated companies. The ruling, which addressed the application of Section 35 of the Lanham Act, emphasized that trademark plaintiffs cannot recover profits from a defendant's affiliates unless those affiliates are also named in the lawsuit. The court's decision came after a lower court had awarded damages that included profits from numerous nonparty affiliates. Justice Elena Kagan authored the opinion, which clarified the limits of equitable remedies in trademark disputes while leaving some questions about corporate separateness and broader trademark law unresolved. The ruling may influence how plaintiffs approach future trademark cases, particularly regarding the inclusion of multiple defendants when profit recovery is in question.
The USPTO has rescinded the 2022 memorandum regarding discretionary denials in post-grant proceedings where there is parallel District Court litigation. Find out what practitioners can expect in this legal alert. https://t.co/sZjLl0RCX2 #FishRichardson #PTAB
Supreme Court Vacates Trademark Infringement Disgorgement Award for Failure to Observe Separateness of Corporate Affiliates https://t.co/zYhQu7PXRC | by @wilmerhale
Client Alert: US Supreme Court Rules Trademark Plaintiffs Cannot Recover Profits from Defendants’ Affiliates, Overturns $43M Award in Dewberry Trademark Case https://t.co/cKkQMskjfW