Trademark law is a critical component of intellectual property rights, designed to protect brand identifiers such as logos, names, and symbols that distinguish goods or services. Although registered trademarks offer broader legal advantages, including nationwide protection and presumption of ownership, unregistered trademarks are not without protection.
Case Study: Punitive Damages in Trademark Infringement
The Seventh Circuit recently affirmed a jury award totaling over $1.4milllion in damages in a trademark infringement lawsuit involving an unregistered trademark in Curry v. Revolution Laboratories, LLC, 124 F.4th 441 (7th Cir. 2024). With $900,000 of the damages being punitive alone, the recent ruling underscores the importance of thorough trademark searches, extending beyond registered marks.
In 2005, Charles Curry, Jr. began selling a testosterone-boosting supplement called “Diesel Test”, a name synonymous with his bodybuilding nickname, “Chuck Diesel.” Although Curry did not register the name “Diesel Test”, he spent “hundreds of thousands of dollars advertising Diesel Test online, in weightlifting magazines, and through competition and athlete sponsorships.” A little over a decade later, Revolution Laboratories, began selling its own “Diesel Test”, also a nutritional supplement, after discovering that the name was not trademarked. Despite Curry’s repeated cease-and-desist demands, Revolution continued its sales. Curry eventually brought suit, winning an award of over $1million at trial.
On appeal, Revolution challenged the $900,000 awarded in punitive damages. The Seventh Circuit upheld the award, citing Revolution’s disregard for Curry’s cease-and-desist letters and its continued sales even after Amazon flagged the product as counterfeit. The Court emphasized the financial disparity between Curry and the well-established Revolution, reinforcing the punitive damages as a determent against willful infringement.
Key Takeaways for Businesses
- Always conduct a thorough trademark search before adopting a new mark to avoid conflicts and litigation.
- Consult an intellectual property attorney to guide you through the trademark process. They can help identify potential issues and provide strategies to protect your brand.
- Consider trademark registration for greater protection and legal recourse in case of infringement.
- Respond quickly and professionally if you receive a cease-and-desist notice. Ignoring such notices or continuing infringing conduct, as Revolution did in Curry, can lead to even harsher penalties.
Curry v. Revolution Laboratories offers a valuable lesson on the importance of trademark diligence. The case reinforces that even the smallest errors in trademark research can have costly and long-lasting effects on a business. By taking proactive steps, businesses can safeguard their intellectual property and avoid costly legal challenges.