Romag Fasteners, Inc. v. Fossil Group, Inc.

140 S. Ct. 1492 (2020)

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Nature of the Case

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Facts

Romag (P) sells magnetic snap fasteners for use in leather goods. Fossil (D) designs, markets, and distributes a wide range of fashion accessories. P and D signed an agreement allowing D to use P’s fasteners in D’s handbags and other products. P discovered that the factories D hired in China to make its products were using counterfeit P fasteners-and that D was doing little to guard against the practice. P sued alleging that D had infringed its trademark and falsely represented that its fasteners came from P. The jury found that D had acted “in callous disregard” of P’s rights. The jury rejected P’s accusation that D had acted willfully. P had sought an order requiring D to hand over the profits it had earned thanks to its trademark violation. The district court refused this request. It held that in order to seek a profits award P must show D acted willfully. The Supreme Court eventually granted certiorari.