The US Supreme Court’s recent decision to review a $43 million trademark infringement award—and the Fourth Circuit’s interpretation of “principles of equity”—carries implications far beyond intellectual property law.
Dewberry Group Inc., owned by Atlanta real estate developer John Dewberry, convinced the justices earlier this week to review the award. Tying the amount to the profits of Dewberry Group affiliates violates the “bedrock principle” of treating different corporations as separate entities, the company’s petition said.
The lower courts held the Lanham Act language allowing for disgorgement of profits “subject to the principles of equity” justified the award to Dewberry Engineers.
This examination of what constitutes “principles of equity” under the Lanham Act could affect various statutes with similar language, thus potentially influencing awards and remedies in numerous legal areas beyond trademark law. The Supreme Court’s interpretation in this matter could set a precedent that impacts corporate litigation strategy and the conceptual boundaries of equitable remedies in federal jurisprudence.
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