Injunctions Not Always A Slam Dunk In Trademark Litigation

A recent decision out of federal court in Illinois illustrates how trademark owners, even with a relatively promising case for trademark infringement, should not presume that courts will automatically grant short-term injunctive relief to prevent the alleged infringer from continuing to use the mark during the course of the litigation. The matter also shows once again how spending some time on the details of the business terms in a trademark license up front could have paid off later to avoid a particularly dangerous situation for the trademark owner.

In the Illinois case, a trademark owner had licensed its mark for food products to another company. After a few years, the relationship deteriorated, and the registered owner of the mark purported to terminate the license. The licensee resisted, and eventually claimed that the trademark owner had failed to properly maintain its rights in the mark and had effectively abandoned the mark, allowing the licensee to pick up