SCOTUS Dewberry Group Decision Limits Disgorgement of Affiliates’ Profits

What Happened

According to U.S. Supreme Court on February 26, 2025 in Federal — U.S. Supreme Court, In Dewberry Group v. Dewberry Engineers, the Supreme Court held that a court may not award profits earned by non-party affiliates of a defendant under §35(a) of the Lanham Act. The primary source is linked in the Source section below; readers are encouraged to review it directly for full context.

Why This Is Trending Now

The decision continues to reshape damages theories in trademark litigation.

Why Businesses Should Pay Attention

Plaintiffs must retool damages models; corporate groups should revisit affiliate structuring.

Practical Considerations

Businesses may want to monitor the status of the underlying rule, filing, proceeding, or announcement as it evolves. Companies may need to evaluate how this development could interact with current contracts, licenses, disclosures, and compliance programs. The issue may raise questions around vendor obligations, reporting timelines, and internal policy updates that warrant discussion with qualified counsel.

Cogent Law Perspective

Cogent Law helps clients think through affiliate structuring and trademark risk allocation. The best next step is to speak with counsel about the facts specific to your organization.

Key Takeaways

• The decision continues to reshape damages theories in trademark litigation.
• Plaintiffs must retool damages models; corporate groups should revisit affiliate structuring.
• Cogent Law helps clients think through affiliate structuring and trademark risk allocation.
• Review the primary source from U.S. Supreme Court for the full record before making any decisions.
• Speak with Cogent Law to discuss how this development may affect your business.

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