Product Liability Risk In Licensing Trademarks With Technology

A Connecticut Superior Court judge has upheld a jury verdict that once again demonstrates the product liability risks faced by trademark licensors, particularly those who license technology as well as their marks. In Hannibal Saldibar v. A.O. Smith Corp, the court upheld a $2.4 million judgment against the Tile Council of North America, which had licensed its trademarks and patented technology for dry-set mortar to tile manufacturers, in favor of the estate of Saldibar, a plaintiff who had allegedly developed mesothelioma as a result of asbestos exposure. The case is currently on appeal. As we had reported in our post on the Massachusetts case of Lou and others v. Otis Elevator Company here, a licensor that participates in the design, manufacture or distribution of products may sometimes be liable for defects in those products under the “apparent manufacturer” doctrine.