Disgorgement

Definition

Disgorgement is a legal remedy that requires a party who has unlawfully obtained benefits to return or repay those benefits. In the context of trademark law, it is a form of monetary relief that can be awarded to the trademark owner to prevent the infringer from profiting from their wrongful conduct.

5 Must Know Facts For Your Next Test

1. Disgorgement is a form of equitable relief, meaning it is designed to prevent the infringer from benefiting from their wrongful conduct rather than to compensate the trademark owner for their losses.
2. The primary purpose of disgorgement in trademark law is to deprive the infringer of any profits they have made as a result of the infringement, rather than to punish the infringer.
3. Disgorgement is typically awarded in addition to other forms of monetary relief, such as actual damages or statutory damages, to provide a more complete remedy to the trademark owner.
4. The calculation of disgorgement damages can be complex, as it requires the court to determine the infringer's profits that are attributable to the unlawful use of the trademark.
5. Disgorgement is a discretionary remedy, meaning that the court has the authority to award it based on the specific circumstances of the case and the equities involved.

Review Questions

• Explain the purpose and rationale behind the disgorgement remedy in trademark law.
  • The purpose of disgorgement in trademark law is to prevent the infringer from profiting from their wrongful conduct and to deprive them of any benefits they have obtained through the unauthorized use of the trademark. This remedy is based on the principle of unjust enrichment, which holds that a party should not be allowed to retain gains that were obtained through unlawful means. By requiring the infringer to disgorge their profits, the trademark owner is made whole and the infringer is deterred from engaging in similar infringing behavior in the future.
• Describe the relationship between disgorgement and other forms of monetary relief in trademark cases.
  • Disgorgement is typically awarded in addition to other forms of monetary relief, such as actual damages or statutory damages. While actual damages and statutory damages are designed to compensate the trademark owner for their losses, disgorgement is a distinct remedy that is intended to prevent the infringer from benefiting from their wrongful conduct. The combination of these different forms of monetary relief provides a more comprehensive and effective remedy for the trademark owner, ensuring that they are made whole and the infringer is held accountable for their actions.
• Analyze the factors that a court may consider in determining the appropriate amount of disgorgement damages in a trademark infringement case.
  • The calculation of disgorgement damages can be complex, as the court must determine the infringer's profits that are directly attributable to the unlawful use of the trademark. Factors that a court may consider include the infringer's gross revenue from the infringing products or services, the infringer's costs and expenses related to the infringing activities, the trademark owner's lost sales or market share, the value of the trademark, and the degree of the infringer's culpability. The court must carefully examine the evidence and make a reasoned determination of the appropriate disgorgement amount to ensure that the trademark owner is made whole and the infringer is deprived of their ill-gotten gains.

Related terms

Trademark Infringement:

The unauthorized use of a trademark that is likely to cause consumer confusion or dilution of the trademark owner's rights.

Unjust Enrichment:

The principle that a party should not be allowed to profit from wrongful conduct at the expense of another.

Monetary Relief: The award of financial compensation to the trademark owner as a remedy for the infringer's unlawful actions.