It all begins with intent. When it comes to a trademark infringement, does ignorance or lack of intent excuse an unfortunate event of infringing on somebody else’s mark. If you did not know for a fact that you were stepping over somebody else’s intellectual property does it mean that you don’t have to pay for any damages?
This is an excellent question to ask, and you’re in luck because, in this article, you will learn about this landmark case of Romag Fasteners versus Fossil and why intent (or the lack of) cannot excuse anybody for trademark infringement.
The Story of the Fake Fasteners
Well, for starters, Romag and Fossil were working harmoniously together and had agreed that the latter could use Romag fasteners for their handbags and other products. It seemed like there wasn’t going to be any problem until an inspection happened and Romag discovered that the factory in China producing Fossil products were using fake Romag products.
That’s why in January of 2020, Romag filed a lawsuit over the usage of these fake fasteners, which were trademarked, and wanted to sue for damages. They wanted to make Fossile pay for all the damages they had caused their company. Imagine the millions of dollars lost in profit because of these counterfeit Romag fasteners they used? It was simply too big to ignore and to just let it pass. Imagine millions of Fossil products with fake buckles (and to think the bulk of the profit only goes to Fossil)?
This is why Romag went to court and used the Lanham Act, also known as the Trademark Act of 1946 against Fossil, and for the court to make true to their promise of justice in this horrible situation. What’s interesting here is that this became a truly unique trademark infringement case as they went through something nobody quite focused on— intent.
Now the argument here of Fossil is that they had absolutely no intent to infringe on Romag by using fake magnetic buckles. They did not do it on purpose and that the factory in China made this error, which shouldn’t make them liable for anything at all. Well, what surprised them is how Romag’s lawyers approached the case which led to their unanimous win.
Romag cited section 35 of the Lanham act stating that intent or the lack of it was not stated in that section and that it only requires a “violation” and not “a willful violation”. This means that trademark infringement may occur even without intent. This only means that despite the “innocence” of Fossil in this situation (because they claim they did not have intent at all), they will have to pay and make up for the damages caused.
The result of this case was a unanimous decision which awarded Romag over $6.7 million in damages to be paid for by Fossil due to the unlawful usage of fake fasteners that in turn, infringed on their trademarked product.
This is exciting news for many business owners because they get to see firsthand how the law protects a brand because of a registered intellectual property. Now that you’ve learned and read this entire article, if you are or if you’re ever planning on becoming an entrepreneur, do not hesitate to protect your intellectual property as justice will be served to those who will infringe on your rights.
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