The Supreme Court's unanimous decision in Dewberry Group, Inc. v. Dewberry Engineers Inc. vacated a $43 million trademark infringement award, stating that only profits directly attributable to the defendant can be considered under the Lanham Act. Justice Kagan's ruling reinforces corporate law principles but may pose challenges for trademark enforcement as it allows for more complex corporate arrangements to limit liability. This decision could prompt legislative reviews of trademark remedies in modern corporate practices, reflecting a tension between legal formalism and practical enforcement.
In the Dewberry case, the Supreme Court held that when awarding 'defendant's profits' under the Lanham Act, courts can only include those profits attributable to the defendant itself.
The decision raises concerns about enforcing trademark rights as establishing multiple corporate entities becomes increasingly easier, inviting clever structuring that follows legal letters but undermines their purpose.
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