Battle Over Trademark Profit Awards to Play Out at Supreme Court

A company that makes watch fasteners will try to persuade the U.S. Supreme Court to revive a $6.7 million jury award against Fossil Inc., arguing that negligence is enough to award profits in trademark infringement cases.

The justices’ decision in the case, brought by Romag Fasteners Inc., will impact trademark owners’ ability to secure substantial awards when not suing a direct competitor. That could influence litigation decisions, such as when to sue or whether to settle, because proving damages or intent can be difficult, trademark attorneys say.

Six circuits don’t require a showing of willfulness to award profits to noncompetitors, ...