Burger King Corporation v. C.R. Weaver ; M-W-M, Inc. Case Overview.
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Weaver appealed the award of lost profits. He argued that BKC was not damaged by his infringement of its trademark since the franchise fees have been held in escrow. He further argued that BKC, in fact, benefited from the infringement because “BKC’s goodwill and marks were enhanced by Weaver’s continued operation, and thus, an award of lost profits to BKC represents a windfall”
The eleventh circuit disagreed. It noted that BKC does not need to show actual damages to receive a lost profits accounting under the Lantham Act. It further noted that an accounting for profits under this act is designed to make the infringement unprofitable and deter the infringer from future similar activity. The Eleventh Circuit affirmed the award of a lost profits accounting because Weaver’s use of the mark after receiving a note of termination was willful and deliberate.
Lost profits accounting awarded even though the franchiser may have benefited from the trademark Infringement.
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