Dewberry Group, Inc. v. Dewberry Engineers Inc.

Case revolves around a trademark infringement dispute between two real estate companies, Dewberry Group and Dewberry Engineers. Here's a breakdown of the case:

Case Details :

• Case Number : 23-900

• Court : Supreme Court of the United States

• Decision Date : February 26, 2025

• Key Issue : Whether a court can award profits from a defendant's affiliates in a trademark infringement case under the Lanham Act

Dewberry Engineers, a commercial real estate development company, owns a registered trademark for "Dewberry". Dewberry Group, another real estate company, was found to have infringed on this trademark. The dispute dates back to 2006, with tensions resurfacing in 2017 when Dewberry Group rebranded and introduced sub-brands like Dewberry Living and Studio Dewberry .

The Supreme Court unanimously ruled that :

"Defendant's profits" are limited to the named defendant :

The court held that only the profits of the named defendant, Dewberry Group, can be awarded, not those of its affiliates.

Corporate separateness :

The court emphasized the importance of respecting corporate formalities and separate identities of affiliated companies.

No veil-piercing :

The court noted that Dewberry Engineers did not attempt to pierce the corporate veil, which would have allowed the court to consider the affiliates' profits .

IMPLICATIONS:

Strengthened corporate structuring :

The ruling supports strategic corporate structuring to minimize exposure to profits awards in intellectual property cases.

Limitations on discovery :

The decision limits the scope of discovery to the named defendant, shielding affiliates from fishing expeditions.

Plaintiffs' options :

Plaintiffs may still seek higher profits awards by suing multiple defendants, invoking the "just-sum" provision, or challenging the defendant's accounting methods .