Justia Daily Opinion Summaries

Intellectual Property
February 2, 2024

Table of Contents

Ward v. Schaefer

Intellectual Property, Medical Malpractice, Personal Injury

US Court of Appeals for the First Circuit

Rolex Watch v. Beckertime

Civil Procedure, Intellectual Property, Trademark

US Court of Appeals for the Fifth Circuit

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Intellectual Property Opinions

Ward v. Schaefer

Court: US Court of Appeals for the First Circuit

Docket: 22-1547

Opinion Date: January 29, 2024

Judge: Selya

Areas of Law: Intellectual Property, Medical Malpractice, Personal Injury

In this case, the plaintiff, Virginia Cora Ward, the administratrix of the estate of Edmund Edward Ward, appealed against the verdict in favor of Dr. Ernst J. Schaefer. Edmund Edward Ward, who suffered from a rare genetic deficiency that caused his body to refrain from producing a critical blood enzyme, was a subject of experimental enzyme therapy developed by Dr. Schaefer and others. The plaintiff claimed that Dr. Schaefer fraudulently induced Ward to participate in the experimental protocol and failed to obtain informed consent for his participation. However, the jury disagreed and returned a verdict in favor of Dr. Schaefer.

On appeal, the United States Court of Appeals for the First Circuit affirmed the judgment of the lower court. The appellate court found that the district court did not err in excluding the patent for the experimental drug from evidence, as its probative value was substantially outweighed by the potential for confusion. Further, the court found no error in the jury instructions provided by the district court regarding the nature of the doctor-patient relationship and the application of the doctrine of res ipsa loquitur. The court concluded that the jury instructions sufficiently conveyed the legal standards to be applied, and the plaintiff failed to show that the occurrence of a medical condition during the experimental protocol implied that the protocol caused the condition.

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Rolex Watch v. Beckertime

Court: US Court of Appeals for the Fifth Circuit

Docket: 22-10866

Opinion Date: January 26, 2024

Judge: Douglas

Areas of Law: Civil Procedure, Intellectual Property, Trademark

This case arises from a trademark infringement dispute under the Lanham Act between Rolex Watch USA, Incorporated (Rolex) and Beckertime, L.L.C.; Matthew Becker (Beckertime). Rolex is a luxury watch seller with legally protectable interest in numerous trademarks. Beckertime sells primarily decades-old preowned watches containing Rolex branded parts, including watches identified as “Genuine Rolex,” but contain both Rolex and non-Rolex parts. The United States Court of Appeals for the Fifth Circuit affirmed in part, modified in part, and remanded in part the decision of the United States District Court for the Northern District of Texas.

The district court found that Beckertime infringed Rolex’s trademark but refused to disgorge Beckertime of its profits, applying the laches defense. Rolex appealed, seeking a modification to the injunction, treble profits, and attorneys’ fees, while Beckertime sought the application of an alternative test to determine infringement.

The Appellate Court upheld the district court's ruling that Beckertime infringed Rolex’s trademark, finding no clear error in the determination. The court affirmed the district court's decision to apply the laches defense, preventing the disgorgement of Beckertime's profits. The court found that Rolex had failed to offer a valid justification for its delay in filing suit and that Beckertime was prejudiced by this delay.

Regarding remedies, the Appellate Court found that Rolex was not entitled to treble profits or attorneys’ fees. The court pointed out that Rolex had not moved for attorneys’ fees within the required time period under Federal Rule of Civil Procedure 54(d)(2), thereby waiving its right to such fees. Furthermore, the district court found no evidence of deliberate counterfeiting by Beckertime to warrant the imposition of treble profits.

The court also addressed the scope of the injunction issued by the district court. It modified the injunction to prohibit the sale of Rolex watches with non-genuine bezels, but upheld the exclusion of all non-genuine dials from the injunction. The court also agreed with Rolex that the typographical errors in one section of the injunction rendered it vague and unqualified, and remanded the case to the district court for clarification.

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