Plain-English summary
Court limits Lanham Act “defendant’s profits” to profits of the defendant itself
The Court held that under the Lanham Act a damages award for the “defendant’s profits” may reach only profits attributable to the defendant named in the suit, not separate corporate affiliates. The unanimous decision (vacated and remanded) narrows disgorgement remedies in trademark cases.
Why this matters
This ruling restricts the reach of disgorgement remedies in trademark litigation. Plaintiffs who win trademark claims can no longer automatically collect profits made by related but legally separate companies, which affects the practical value of Lanham Act claims and how parties structure corporate groups and litigation strategy.
Who may feel it
- Trademark plaintiffs seeking disgorgement under the Lanham Act
- Defendants in trademark suits that are part of corporate groups
- Corporate affiliates and parent/subsidiary companies
- Intellectual property litigators and in-house counsel
Key questions
- Can a Lanham Act award of “the defendant’s profits” include the separate profits of nonparty corporate affiliates?