Header graphic for print
Chicago IP Litigation Tracking Northern District of Illinois IP Cases

Proof of Paying Sales Tax and Tracking Sales are not Enough Control for Trademark Licensing

Posted in Legal News

Eva’s Bridal Ltd. v. Halanick Enters., Inc., No. 07 C 1668, Slip Op. (N.D. Ill. Aug. 4, 2010) (Darrah, J.)

Judge Darrah granted in part defendants’ (collectively "Halanick") motion to reconsider the Court’s summary judgment decisions in this trademark dispute. Initially, the Court overturned its decision that Sarniti could not file a proper claim in light of the Court’s earlier decision allowing the same claim.

The Court also reversed its decision regarding plaintiffs’ trademark claims. Plaintiffs exercised new control over defendants’ use of the marks. Proof of plaintiff paying sales tax and keeping tabs on sales were insufficient. As such, plaintiffs’ license is a "naked license".

Finally, the Court declined to exercise supplemental jurisdiction over the state law claims.