At the end of his final judgment order, Judge Seeger stated:
The Court declines the request to award profits because Plaintiff offered evidence of revenue, not profits. Revenue and profits are not the same thing. The Court declines the invitation to assume that all of the revenue equals profits.
And while it’s true that revenue and profits are not the same thing, the Lanham Act specifically provides that “[i]n assessing profits the plaintiff shall be required to prove defendant’s sales only; defendant must prove all elements of cost or deduction claimed.” 15 U.S.C. § 1117. And the Seventh Circuit has previously interpreted that part of § 1117 to mean exactly what it says. See WMS Gaming Inc. v. WPC Prods. Ltd., 542 F.3d 601, 609 (7th Cir. 2008), as amended (Sept. 16, 2008) (“WMS has provided evidence of the profits that PartyGaming earned from its U.S. sales. In the absence of evidence from PartyGaming showing that deductions are warranted, WMS is entitled to the revenues supported by its evidence.”).
Dyson filed an uncontested appeal and the Seventh Circuit reversed. That part wasn’t particularly notable, given the statutory language and precedent in WMS Gaming.
What is interesting is that the Seventh Circuit seemed to go out of its way to note that “[t]he Lanham Act does give district courts the ability to modify an award of profits if the court deems the modification just” and expressly stated that “[o]n remand, if the district court wishes to award more or less than these profits, it retains the discretion to do so, as long as it makes a finding based on the facts of the case.”
Big #ScheduleA news:
Last year, Dyson won an uncontested appeal on a Lanham Act remedies issue. That decision, Dyson v. David 7, made number nine on my wrap-up of the most important Schedule A developments of 2025: blog.ericgoldman.org/archives/202...