Question: What civil and criminal liabilities may be imposed for trademark infringement?
Answer: Under federal law (Lanham Act Section 32), an infringer shall be liable in a civil action by the registrant for certain remedies provided in the Act.
One such remedy is an injunction, where a court orders a person who was found to violate the Act to stop its infringing activities.
A trademark owner/registrant may also be able to obtain lost profits or damages against a defendant in a civil action only if the acts were committed with knowledge that such imitation was intended to be used to cause confusion, mistake, or to deceive. The trademark owner can recover (1) the domain holder’s profits from use of the mark, (2) the trademark owner’s damages resulting from harm to the value of mark, and (3) court costs as “actual damages.” In determining the award to be paid, the court can choose to award up to three times the amount of actual damages. Instead of having to prove the amount of “actual” damages suffered as above, the mark owner can instead request payment of “statutory damages” from $1000 and $100,000 per domain name.
Attorney fees may be awarded in exceptional circumstances, such as when there was a willful and malicious violation.
The court can order the cancellation or transfer of a domain registration.
In the case of a willful violation of Lanham Act section 43, a court may order that all labels, signs, prints, packages, wrappers, receptacles, and advertisements in the possession of a defendant bearing the registered trademark shall be delivered up and destroyed.