At first, many people jumped to the conclusion that this upcoming U.S. Supreme Court case threatens corporate separateness by putting corporate affiliates, who were not part of the lawsuit, at risk of having to pay the judgment. But, if you look at the facts of this case, it seems more likely that the Supreme Court will limit its decision to the reach of the Lanham Act. Here, the corporate affiliates at issue also used the infringing trademark in their name, and the allegation was that the affiliates were formed to take advantage of that trademarked name.
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The U.S. Supreme Court will review whether a real estate development company's corporate affiliates should be responsible for a $46.6 million trademark infringement judgment — even though they were not defendants — in a case attorneys said Monday could have ramifications beyond the Lanham Act.
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