Justices Nix Award of Affiliate Profits in Trademark Case (1)

The US Supreme Court tossed out a federal appeals court decision that forced an Atlanta-based real estate developer to give up $43 million in profits earned by affiliated companies for trademark infringement.

In a unanimous decision Wednesday, the court said the US Court of Appeals for the Fourth Circuit wrongly ignored corporate separateness by awarding “defendant’s profits” from affiliated companies not named in the lawsuit. The justices rejected the reasoning that the award reflected the “economic reality” that defendant Dewberry Group and the affiliates are all owned by John Dewberry, with affiliates booking tens of millions in profits as the ...