Intellectual Property Law

Seventh Circuit reverses trademark damages award in default judgment because wrong standard applied

By McKee, Voorhees & Sease, P.L.C.

The Seventh Circuit recently reversed the amount of damages in a district court's entry of default judgment in a trademark infringement dispute.  At issue was whether the Plaintiff was entitled to additional relief on the grounds that the district court applied the wrong standard to its claim for an accounting of profits.  The district court found the plaintiff's damage request to be "clearly excessive" and that it could not "be ascertained with reasonable certainty."

The Seventh Circuit reversed, finding that the claim at issue was a request for an equitable accounting of profits.  The proper standard for this type of damages claim placed the burden on the defendant to prove any reduction in damages, and the plaintiff's burden was only to show gross income on goods and services bearing the infringing mark.  Because the district court applied the wrong standard, the court reversed and remanded for a redetermination of the proper award.

More on WMS Gaming Inc. v. WPC Gaming Prods. Ltd. after the jump.

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Full post as published by FileWrapper on September 22, 2008 (boomark / email).