Issue No. 046 · Story 03 · August 28, 2026
TrademarkNike and Lontex Settle Trademark Fee Appeal
Nike and Lontex settled their long-running Cool Compression trademark dispute, and the Third Circuit vacated lower court rulings that required Nike to pay about $5.8 million in attorneys' fees.
- §The parties reached a settlement after oral argument and during court-ordered mediation.
- §The appeals court granted their joint request to erase the fee-related rulings and judgment.
- §A prior precedential decision upholding Nike's willful infringement liability and damages remains intact.
- §The settlement ends the dispute without disturbing the underlying infringement finding.
THE TAKEAWAY
The settlement separates the continuing infringement judgment from later findings about litigation conduct and fees. It also shows how an appellate court may erase fee decisions when a court-encouraged settlement resolves the dispute.
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