Supreme Court Will Hear $40+ Million ‘Dewberry’ Trademark Case

On June 24th, 2024, Reuters reported that the Supreme Court of the United States will hear oral arguments in the $40+ million ‘Dewberry’ trademark infringement case. The Dewberry Group and Dewberry Engineers have been locked in a more than ten-year conflict over branding. Here, our Florida trademark infringement lawyer highlights the key issues at stake in this case.

Understanding the Conflict: ‘Dewberry’ Trademark Dispute 

The “Dewberry” trademark dispute involves two real estate firms—Dewberry Engineers Inc. and Dewberry Group Inc.—that have been embroiled in a long-standing battle over the use of the name. One of the companies is based in Virginia and the other is headquartered in Florida. The lawsuit contends that the Dewberry Group Inc. improperly used the “Dewberry” name and branding in its business operations even though Dewberry Engineers Inc. held a valid trademark.

Procedural Background: Fourth Circuit Awarded $43 Million in Disgorgement 

In the ‘Dewberry’ trademark dispute, the United States District Court for the Eastern District of Virginia initially ruled in favor of the plaintiff (Dewberry Engineers). Notably, the court ordered a massive payment of damages—$43 million in disgorgement of ill-gotten profits—from the defendant to the plaintiff. The ruling was based on the court’s findings that Dewberry Group not only used the Dewberry name in ways that breached their earlier settlement agreement but also engaged in activities that likely confused consumers. On appeal, the Fourth Circuit upheld the decision—finding the lower court properly ordered substantial damages.

 Supreme Court Will Hear Oral Arguments (Scope of Liability for Conduct of Affiliates) 

As reported by Reuters, the Supreme Court of the United States will hear oral arguments in the ‘Dewberry’ trademark dispute. Notably, the nation’s highest court will review a highly technical IP law matter. The central issue prompting the Supreme Court’s review is whether profits from a company’s affiliates—which were not directly named in the trademark infringement lawsuit—can be included in the calculation of disgorgement damages awarded for a trademark violation.

The appeal from the defendant argues that the lower courts both erred by erroneously holding that it was responsible for the actions of its affiliates. The defendant contends that the courts overstepped the traditional legal boundaries that respected corporate separateness. They claim that such a broad interpretation of liability could have wide-ranging implications for corporate structure and accountability. The Supreme Court’s forthcoming deliberations will likely clarify the extent to which a parent company can be held liable for trademark infringement by its affiliates. A decision on the trademark infringement case is expected later in 2024 or in the first half of 2025.

 Speak to Our Boca Raton Trademark Rights Attorney Today

At Perkins Law, our Boca Raton trademark lawyer has the professional experience that you can trust when it matters most. If you have any branding related questions about trademark rights, we are here as your IP law resource. Contact us today for a fully private, no commitment appointment. With an office in Boca Raton, our firm handles trademark disputes all across South Florida, including in Miami, Miami Beach, Hialeah, Fort Lauderdale, Palm Beach Gardens, and Jupiter.