March 2025 FZLZ Minute

USA –U.S. Supreme Court: Successful trademark infringement plaintiff cannot recover profits from a non-party affiliate of the defendant.

Dewberry Group, Inc. v. Dewberry Engineers Inc., No. 23-900, February 26, 2025.

Dewberry Engineers owns a registration for DEWBERRY for real estate services. It sued Dewberry Group, which also used DEWBERRY for real estate services. The trial court found Dewberry Group liable for willful trademark infringement and awarded the plaintiff profits not only of Dewberry Group but also of the Group's corporate affiliates, even though they were not named as defendants. Dewberry Group had no profits, but its operating affiliates had substantial profits. The district court treated Dewberry Group and its affiliates "as a single corporate entity" in calculating a profits award, and the Fourth Circuit affirmed. A unanimous Supreme Court reversed and remanded for "a new award proceeding." Justice Kagan's opinion relies on settled law that