Case Study: Economic Damages and Profit Apportionment in Trademark Litigation

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In a recent case, the plaintiff was asserting claims of trademark infringement and unfair competition under the Lanham Act section 43(a), and unfair competition and unjust enrichment under state common law. The plaintiff was thus seeking damages in three forms: lost profits, disgorgement of the defendant’s profits, and loss in business value resulting from the alleged infringement. In this case study we examine the main points of contention in the damages expert witness reports, based on our actual rebuttal report. Proper calculation of attributable profits and apportionment are the key in successfully reducing the plaintiff’s $50 million damages claim to a more realistic number below $750,000.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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