In the case of Dewberry Group, Inc. v. Dewberry Engineers Inc., the U.S. Supreme Court highlighted the necessity of maintaining corporate separateness in calculating damages linked to trademark infringement. The court vacated a significant $43 million profit disgorgement award, emphasizing that plaintiffs must correctly identify and sue the appropriate corporate entities to ensure enforceability of judgments. The ruling raises questions about corporate liability under the Lanham Act, particularly regarding the limits of profit recovery when only one entity is named in a suit.
[After Dewberry,] failing to identify and sue the right entities at the start of litigation could leave plaintiffs with a legally sound judgment that is practically unenforceable.
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