Gibson’s ‘Pyrrhic’ Verdict Leaves Guitar-Shape IP Status Unclear

A jury verdict that found willful counterfeiting of Gibson Brands Inc.'s guitar designs—yet awarded virtually no damages—has both sides claiming victory and attorneys raising eyebrows.

The jury said May 27 that Armadillo Distribution Enterprises Inc. knocked off Gibson’s Flying V, Explorer, and SG guitar designs with its Dean-branded guitars. But while rejecting Armadillo’s claims that the shapes were generic, the jury also found Gibson waited too long to sue and ultimately awarded just $4,000 of the $7 million sought by Gibson.

The seemingly counterintuitive outcome provides a reminder of the importance of timely enforcement of rights—and the unpredictability of juries. ...