WHEN CAN TRADEMARK INFRINGERS BE FORCED TO FORFEIT THEIR ILL-BEGOTTEN PROFITS?

By: Omid Khalifeh

In 2010, Romag Fasteners, a company that produces and sells magnetic snaps, fasteners and closures, brought suit in the United States District Court for the District of Connecticut against Fossil Inc., as well as Macy’s, alleging patent and trademark infringement. According to the lawsuit, Fossil had been a licensee of Romag’s patent-protected magnetic closures but had switched to an unapproved supplier, which Romag alleges sold counterfeit Romag magnetic snaps. Thus, certain Fossil handbags sold in the United States were found to contain said counterfeit snaps. In this manner, not only did Fossil run afoul of Romag’s patents for the metal components, Fossil was also accused of violating Romag’s trademarks because the knock-off parts bore the “ROMAG” mark. Moreover, due to the existence of the agreement between the two parties in connection with which Fossil agreed to use Romag closures for its profits, Romag contends that Fossil knowingly adopted and used the Romag mark without its consent.

Trademark infringement involves the unauthorized use of a trademark on or in connection with goods and/or services in a manner that is likely to cause consumers to be confused, deceived, or mistaken as to the source of the goods and/or services. When trademark infringement is found to be willful, the infringer is required to forfeit any profits realized from sale under the infringing mark.

Read more >> https://www.omnilegalgroup.com/blog/when-can-trademark-infringers-be-forced-to-forfeit-their-ill-begotten-profits/