‘Wings’ Surf Shop Pact Can’t Be Axed Despite Lies, 2nd Cir. Says

A Florida surf shop company can’t nix a 13-year-old $3.5 million “Wings” trademark settlement rooted in fraud on the trademark office because it could have discovered the deception at the time, the Second Circuit said Thursday.

A lower court didn’t abuse its discretion in dismissing Marco Destin Inc.'s fraud claim against L&L Wings in a bid to undo the 2011 agreement, the US Court of Appeals for the Second Circuit said. The settlement followed a liability summary judgment based on L&L Wings Inc.'s beach-apparel trademark registration—one L&L acquired despite having previously licensed the mark from another company with superior rights. ...