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Dewberry Engineers Inc.","href":"https:\/\/api.oyez.org\/cases\/2024\/23-900","view_count":0,"docket_number":"23-900","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"Dewberry Group, Inc.","second_party":"Dewberry Engineers Inc.","timeline":[{"event":"Granted","dates":[1719205200],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/55481"},{"event":"Argued","dates":[1733896800],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/55548"},{"event":"Decided","dates":[1740549600],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/55619"}],"lower_court":{"ID":9,"name":"United States Court of Appeals for the Fourth Circuit","href":"https:\/\/api.oyez.org\/taxonomy\/term\/9"},"facts_of_the_case":"\u003Cp\u003EDewberry Engineers and Dewberry Group are two businesses in the real estate development industry that both use the \u201cDewberry\u201d name. In 2006, they confronted each other over their competing brands, leading to a lawsuit that was settled in 2007 with a confidential settlement agreement (CSA). The CSA allowed Dewberry Engineers to use its registered marks freely while strictly limiting Dewberry Group\u2019s use of \u201cDewberry.\u201d It prohibited Dewberry Group from challenging Dewberry Engineers\u2019 federal trademark registrations and required Dewberry Group to abandon pending applications for the \u201cDewberry Capital\u201d mark.\u003C\/p\u003E\n\u003Cp\u003EIn 2017, Dewberry Group decided to rebrand, changing its name from \u201cDewberry Capital\u201d to \u0022Dewberry Group\u201d and adopting several subbrands. Despite the CSA, Dewberry Group applied to register new \u201cDewberry\u201d marks with the U.S. Patent and Trademark Office (USPTO) for real estate-related services. The USPTO rejected these applications due to likelihood of confusion with Dewberry Engineers\u2019 marks. Dewberry Engineers sent cease-and-desist letters to Dewberry Group, claiming trademark infringement and breach of the CSA. Dewberry Group refused to abandon its applications, arguing that the CSA allowed its use of \u201cDewberry\u201d marks other than \u201cDewberry Capital\u201d for non-architectural services.\u003C\/p\u003E\n\u003Cp\u003EThe district court ruled in favor of Dewberry Engineers and ordered Dewberry Group to pay almost $43 million in disgorged profits for infringing on Dewberry Engineers\u2019 trademark. The district court also enjoined Dewberry Group from further violating its agreement with Dewberry Engineers and required Dewberry Group to pay Dewberry Engineers\u2019 attorney fees. The U.S. Court of Appeals for the Fourth Circuit affirmed.\u003C\/p\u003E\n","question":"\u003Cp\u003EDoes an award of the \u201cdefendant\u0027s profits\u201d under the Lanham Act allow a court to require the defendant to disgorge profits earned by legally separate, non-party corporate affiliates?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003EThe Lanham Act limits recovery of profits in trademark infringement cases to those earned by the named defendant, not its separately incorporated affiliates. Justice Elena Kagan authored the unanimous opinion of the Court.\u003C\/p\u003E\n\u003Cp\u003EThe text of the Lanham Act authorizes recovery of the \u201cdefendant\u2019s profits,\u201d which refers only to profits of parties named in the lawsuit. This interpretation aligns with fundamental corporate law principles that treat separately incorporated organizations as distinct legal entities with separate rights and obligations, even when they share common ownership. While exceptions exist through corporate veil-piercing doctrines, Dewberry Engineers never pursued this legal pathway. Courts may not, as the lower courts here did, disregard corporate separateness and treat a party and its non-party affiliates as \u201ca single corporate entity\u201d when calculating the profit award.\u003C\/p\u003E\n\u003Cp\u003EJustice Sonia Sotomayor authored a concurring opinion.\u003C\/p\u003E\n","advocates":[{"advocate":{"ID":42821,"name":"Thomas G. Hungar","href":"https:\/\/api.oyez.org\/people\/thomas_g_hungar","view_count":0,"last_name":"Hungar","roles":null,"thumbnail":null,"length_of_service":0,"identifier":"thomas_g_hungar"},"advocate_description":"for the Petitioner","href":"https:\/\/api.oyez.org\/case_advocate\/case_advocate\/23656"},{"advocate":{"ID":63733,"name":"Nicholas S. 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