{"id":2647,"date":"2020-05-14T18:17:22","date_gmt":"2020-05-14T18:17:22","guid":{"rendered":"https:\/\/hemming.com\/?p=2647"},"modified":"2020-07-21T17:01:50","modified_gmt":"2020-07-21T17:01:50","slug":"supreme-court-settles-circuit-split-finding-willfulness-not-an-absolute-requirement-for-disgorgement-of-profits-under-15-u-s-c-%c2%a71125a","status":"publish","type":"post","link":"https:\/\/hemming.com\/supreme-court-settles-circuit-split-finding-willfulness-not-an-absolute-requirement-for-disgorgement-of-profits-under-15-u-s-c-%c2%a71125a\/","title":{"rendered":"Romag Fasteners, Inc.\u00a0v.\u00a0Fossil, Inc.: Supreme Court settles circuit split, finding willfulness not an absolute requirement for disgorgement of profits under 15 U.S.C. \u00a71125(a)"},"content":{"rendered":"

On April 23, 2020, the Supreme Court of the United States released its decision in Romag Fasteners, Inc. v. Fossil Group, Inc., fka Fossil, Inc., et. al. <\/em>In a unanimous decision, the court vacated and remanded the decision of the Court of Appeals for the Federal Circuit, stating in the majority opinion written by Justice Gorsuch, \u201cA plaintiff in a trademark infringement suit is not required to show that a defendant willfully infringed the plaintiff\u2019s trademark as a pre-condition to a profits award.\u201d The court noted that the Lanham Act \u201cmakes a showing of willfulness a precondition to a profits award in a suit under \u00a71125(c) for trademark dilution, but \u00a71125(a) has never required such a showing. Reading words into a statute should be avoided, especially when they are included elsewhere in the very same statute. That absence seems all the more telling here, where the Act speaks often, expressly, and with considerable care about mental states.\u201d<\/p>\n

In a concurring opinion, Justice Alito stated that the \u201crelevant authorities, particularly pre-Lanham Act case law, show that willfulness is a highly important consideration in awarding profits under \u00a71117(a), but not an absolute precondition.\u201d As mentioned above, and more fully discussed in Justice Gorsuch\u2019s opinion, it should be noted that the decision does not affect any willfulness requirement in trademark dilution cases brought under the Lanham Act, 15 U.S.C. \u00a71125(c).<\/p>\n

Background and Case Summary<\/strong><\/p>\n

In 2002, Romag Fasteners, a manufacturer of magnetic fasteners for wallets and purses, entered into an agreement with Fossil Group, a leather goods and handbag manufacturer, for Fossil to use Romag\u2019s fasteners and trademark in the manufacture and sale of Fossil\u2019s leather goods. In 2010, Romag discovered that Fossil\u2019s factories in China were using counterfeit Romag fasteners, with Romag subsequently filing suit against Fossil and certain Fossil retailers for trademark infringement under the Lanham Act (specifically 15 U.S.C. \u00a71125(a)).<\/p>\n

Romag sought an award of $6.8 million of Fossil\u2019s profits for trademark infringement. At trial in the District of Connecticut, the jury found Fossil liable for patent and trademark infringement, and ruled for Romag to be awarded $6.8 million of Fossil\u2019s profits. However, the jury also determined that Romag was not entitled to Fossil\u2019s profits because Fossil\u2019s infringement not willful, which resulted in the trial court denial of Fossil\u2019s profits, noting the Lanham Act requirement of proof of willfulness for an award of the infringer\u2019s profits; the ruling was affirmed on appeal to the Court of Appeals for the Federal Circuit, citing Second Circuit precedent.<\/p>\n

After taking up the case at the Supreme Court, Justice Gorsuch noted that not all circuits agree with the Second Circuit precedent, and with its ruling the Supreme Court has resolved the dissonance. The decision found support from the American Bar Association, the International Trademark Associations, the American Intellectual Property Law Association, and the Intellectual Property Law Association of Chicago, all of whom argued in their amicus briefs that the court should rule that proof of willfulness not be required to recover an infringer\u2019s profits.<\/p>\n

While this decision clarifies that willfulness is no longer required to obtain an infringer\u2019s profits as a monetary remedy, it leaves to judicial discretion the consideration of other factors in evaluating whether this measure is to be available.<\/p>\n

 <\/p>\n

Hemming Morse Expertise<\/strong><\/p>\n

Hemming Morse experts frequently analyze infringers’ profits as a remedy in trademark infringement matters. In that context, while the trademark owner has the burden to adduce revenues gained as a result of the infringement, the burden then shifts to the accused infringer to prove offsets to that revenue, such as costs (to arrive at profits, with the question of which costs are to be deducted varying by circuit) and apportionment (to arrive at the portion of the profits that are to be ascribed to the infringing activity, as compared to other contributing factors).\u00a0 In some instances, an infringer’s profits might also be seen in a reduction in costs, even without additional revenues.<\/p>\n

Our experts have recently\u00a0analyzed and provided expert testimony on infringers’ profits relating to\u00a0unauthorized use of trademarks in the sale of trading cards,\u00a0popcorn, mattresses, and\u00a0banking services.<\/p>\n","protected":false},"excerpt":{"rendered":"

On April 23, 2020, the Supreme Court of the United States released its decision in Romag Fasteners, Inc. v. Fossil Group, Inc., fka Fossil, Inc., et. al. In a unanimous decision, the court vacated and remanded the decision of the Court of Appeals for the Federal Circuit, stating in the majority opinion written by Justice […]<\/p>\n","protected":false},"author":2,"featured_media":2261,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[9],"tags":[],"acf":[],"yoast_head":"\nRomag Fasteners, Inc.\u00a0v.\u00a0Fossil, Inc.: Supreme Court settles circuit split, finding willfulness not an absolute requirement for disgorgement of profits under 15 U.S.C. \u00a71125(a) - Hemming Morse, LLC<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/hemming.com\/supreme-court-settles-circuit-split-finding-willfulness-not-an-absolute-requirement-for-disgorgement-of-profits-under-15-u-s-c-\u00a71125a\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Romag Fasteners, Inc.\u00a0v.\u00a0Fossil, Inc.: Supreme Court settles circuit split, finding willfulness not an absolute requirement for disgorgement of profits under 15 U.S.C. \u00a71125(a) - Hemming Morse, LLC\" \/>\n<meta property=\"og:description\" content=\"On April 23, 2020, the Supreme Court of the United States released its decision in Romag Fasteners, Inc. v. 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Fossil Group, Inc., fka Fossil, Inc., et. al. 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