Award of statutory damages for trademark counterfeiting precludes attorneys' fee award

In a pure statutory interpretation opinion, the Ninth Circuit concluded that a plaintiff's election of statutory damages in lieu of actual damages for trademark counterfeiting under 15 U.S.C. 1117(c) precludes that party from also recovering an award of attorneys' fees under 15 U.S.C. 1117(b).  Not a positive result for the plaintiff, K and N Engineering, Inc., which had been awarded $100,000 in attorneys' fees by the trial court.  The Ninth Circuit's opinion in K and N Engineering, Inc. v. Bulat, No. 06-55393, can be found here.

The Power of Pictures Sways the Seventh Circuit

Apparently, for the Seventh Circuit, a picture is indeed worth a thousand words--at least in the absence of any evidence contradicting that picture.

Top Tobacco--the plaintiff in this trademark case--started off with a difficult position, claiming that it had exclusive rights to the common word "top" in the cigarette tobacco market.  Top Tobacco, which uses the mark TOP above a drawing of a spinning top, sought to stop North Atlantic from using the phrase "Fresh-Top Canister" on its cigarette tobacco cans.

The district court granted summary judgment for North Atlantic and the Seventh Circuit affirmed concluding that "[o]ne glance" at the pictures of the canisters "side by side" was "enough to decide the appeal."  Based on these pictures, the Seventh Circuit concluded that it was "next to impossible" to believe that even the most careless consumer would confuse the products.  And although the Court acknowledged that "next to impossible" was not "absolutely impossible," the pictures were all the Court had because Top Tobacco did not conduct a survey or produce any affidavits from consumers or merchants demonstrating confusion.

To see the pictures that decided the appeal and read the Seventh Circuit's opinion in Top Tobacco, L.P. v. North Atlantic Operating Co., No. 07-1244, see here.

Update on Farting Fred

UPDATE After recovering a judgment of more than $575,000 on its copyright and trademark claims, Tekky Toys, the manufacturer of the no doubt charming farting doll "Pull My Finger Fred", successfully petitioned the Seventh Circuit for an award of attorneys' fees on appeal of that judgment.  Although the Seventh Circuit did find one portion of the fee request excessive (specifically, the claim that it took counsel 33.25 hours at $450 an hour to prepare the fee petition, which consisted of a six-page argument, three-page affidavit and computer-generated billing statements), it still awarded Tekky more than $70,000 in attorneys' fees.  The Seventh Circuit's attorneys' fee opinion in JCW Investments, Inc. v. Novelty, Inc., Case No. 05-2498, can be found here.

For the earlier discussion of the battle between Pull My Finger Fred and Fartman, see here.
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