Wal-Mart Gets $32.5M ‘Backyard Grill’ Trademark Penalty Tossed

A federal appeals court vacated a $32.5 million award for intentional trademark infringement against Wal-Mart Stores Inc.

The U.S. Court of Appeals for the Fourth Circuit ruled April 24 that a trial court had improperly granted summary judgment in favor of retailer Variety Stores Inc., which alleged that Wal-Mart’s “Backyard Grill” brand for grills and related products infringed its trademark “The Backyard” for lawn and garden goods.

The ruling shows that a federal district court must be careful not to resolve questions without a trial in a trademark case when both sides have enough evidence on the question of whether ...