Nike's Covenant Ends Yums' Shoe IP Claims: 2nd Circ.

Law360, San Diego (November 10, 2011, 5:16 PM EST) -- The Second Circuit on Thursday affirmed that Nike Inc.’s covenant not to sue and voluntary dismissal of its suit alleging Yums’ shoes infringed its trademark divested a lower court of jurisdiction over Yums’ counterclaims against the trademark.

The three-judge panel agreed that Nike’s covenant ended the dispute between the companies and that the New York federal court properly dismissed Yums’ counterclaims because no controversy existed under Article III of the U.S. Constitution.

Nike in July 2009 sued Already LLC, doing business as Yums, alleging that the...
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