Third Circuit Vacates $5M Fees Award in Nike Trademark Dispute

The U.S. Court of Appeals for the Third Circuit vacated a lower court’s award of approximately $5 million in attorneys’ fees in a trademark case involving Nike Inc. and Lontex Corp. The ruling came after the parties reached a settlement during court-ordered mediation following oral argument.

Judge Emil Bove wrote that judicial economies achieved by the agreement outweighed the public’s interest in the underlying district court decision that had awarded the fees. The court described the circumstances as rare and appropriate for vacating the fee judgment.

The dispute originated in the U.S. District Court for the Eastern District of Pennsylvania. The Third Circuit opinion emphasized the benefits of settlement in conserving judicial resources while noting the exceptional nature of the joint motion to vacate.

Sources: https://news.bloomberglaw.com/ip-law/nike-lontex-win-bid-to-nix-5-million-fee-in-trademark-case https://www.law360.com/ip/news