Diamond J. Wholesale, LLC, dba Gabsons Novelties v. Top Tobacco, L.P., et al.
Trademark Patent
When does individual liability attach for corporate employees under the Lanham Act?
QUESTION PRESENTED The Lanham Act sets up a two-tiered penalty regime for cases involving counterfeit marks depending on whether the use of those marks was knowing. While 15 U.S.C. § 1117(a) does not require a showing of a knowing violation to subject a corporation or individual to liability, left unclear is when individual liability attaches when one is acting on behalf of a corporation. Does any amount of involvement in the misuse of a mark subject a corporate employee to individual liability, or does the individual need to be the moving force in violation? If the latter, what threshold of significance is necessary to subject an individual to liability?