Are punitive damages available under the Lanham Act?

The United States The Lanham Act does not include punitive damages as a remedy for infringement of federally registered marks. Section 35(a) of the Act expressly states that damages “shall constitute compensation and not a penalty.” 15 U.S.C. § 1117(a).

What damages are available for trademark infringement?

The Lanham Act provides for three categories of damages that the court may award to a successful trademark infringement Plaintiff: (1) Actual Damages, (2) Disgorgement of the Infringer’s Profits, and (3) Attorney’s Fees and Costs.

Are there statutory damages for trademark infringement?

There are three prerequisites to an award of statutory damages in trademark cases. Courts have a wide range of discretion in setting statutory damages. A court may award $500 to $100,000 per counterfeit mark per type of goods or services. If the infringement is wilful the range ratchets up to $1 million.

What can the plaintiff recover in damages for infringement of his trademark?

A successful plaintiff can typically recover such actual damages by showing that the defendant’s infringement caused actual consumer confusion and that the plaintiff suffered some sort of economic loss (usually by proving lost profits, a loss of goodwill, or remedial advertising costs).

What is the punishment for trademark infringement?

The most common penalty for trademark infringement is an injunction or a cease and desist letter directing the infringer to stop using the trademarked material. It’s also possible for criminal or civil penalties to result from an intentional violation of trademark law, although this is rare.

What is Lanham Act false advertising?

To prevail on a false-advertising claim under the Lanham Act, a plaintiff must satisfy the following elements: (1) a false or misleading statement of fact; that is (2) used in a commercial advertisement or promotion; that (3) deceives or is likely to deceive in a material way; (4) in interstate commerce; and (5) has …

What is treble damages in legal terms?

Treble damages is a term that indicates a statute exists to award a prevailing plaintiff up to three times actual or compensatory damages.

Can I sue for trademark infringement?

A trademark owner who believes its mark is being infringed may file a civil action (i.e., lawsuit) in either state court or federal court for trademark infringement, depending on the circumstances. However, in most cases, trademark owners choose to sue for infringement in federal court.

How much does it cost to sue for trademark infringement?

Trademark infringement lawsuits can cost on average anywhere between $120,000 to $750,000 depending on the complexity of the case. During the pendency of the lawsuit, you are responsible for paying your Attorney’s monthly bills.

What happens if you don’t enforce your trademark?

If you don’t enforce your trademark, you risk losing reputation, business, sales, customers, and more to the infringer. There’s also a concept in trademark law called abandonment. Generally, if you don’t use your mark for three years or more, it’s considered abandoned.

What are the four major Lanham Act violations?

The Act prohibits a number of activities, including trademark infringement, trademark dilution, and false advertising.

How much can you sue someone for false advertising?

For example, in California, the state attorney general can bring a lawsuit to recover civil penalties up to $2,500 for each false advertisement sent to a consumer. The Federal Trade Commission (FTC), a federal agency charged with protecting consumers, can collect civil penalties up to $40,000.

Are there punitive damages under the Lanham Act?

Regardless, damages awarded pursuant to the Lanham Act are compensatory rather than punitive. The text of the Lanham Act provides little guidance on when monetary damages are available, but grants wide discretion to the courts to determine an appropriate remedy.

How does the Lanham Act affect trademark infringement?

The text of the Lanham Act provides little guidance on when monetary damages are available, but grants wide discretion to the courts to determine an appropriate remedy. In practice, trademark infringement lawsuits typical result in injunctive relief to stop the infringement rather than an award of monetary damages.

What do you need to know about the Lanham Act?

Section 43(a) the Lanham Act provides for liability related to unregistered marks. Section 43(a) provides for civil liability for any person who, IN connection with any goods or service uses in commerce any word, term, name, symbol or any combination thereof, or any false designation origin,…

What was the Seventh Circuit’s decision on the Lanham Act?

The Seventh Circuit Court of Appeal issued a decision in late 2008 which addressed the issues of legal standards for damages under the Lanham Act. WMS Gaming, Inc. v. WPC Productions, Ltd. Plaintiff and defendant were both engaged in internet gaming on an international basis.