Nike Inc.’s conduct in its legal dispute with Pennsylvania-based Lontex Corp., which accused the sportswear giant of trademark infringement, has been deemed “bad behavior” and “incivility” by Special Master Jane Greenspan. In a recent report and recommendation, Greenspan asserted that Nike’s actions warrant the case being classified as exceptional, and that Lontex Corp. should be awarded attorneys’ fees under the Lanham Act.
According to Greenspan, Nike’s outright refusal to engage in discussions with Lontex or seek a reasonable compromise to avoid trial costs signifies an “improper desire to simply cause increased attorney costs rather than winning on the merits” of the case. The recommendation was made to the US District Court for the Eastern District of Pennsylvania.
This development follows a decision by the Third Circuit in July to send the issue back to the lower court. Attorneys working on IP cases will recognize the implications of this finding, especially within the context of handling negotiations and managing litigation costs.
For more details on the recommendation, you can read the full report on Bloomberg Law.