Potential Ramifications Of Already V. Nike

Law360, New York (September 6, 2012, 12:43 PM EDT) -- On June 25, 2012, the U.S. Supreme Court granted certiorari in Already LLC v. Nike Inc., No. 11-982, on the issue of whether a federal district court is divested of Article III jurisdiction over a party's challenge to the validity of a federally registered trademark if the registrant promises not to assert its mark against the party's then-existing commercial activities. The issue in Already concerns a tactic commonly used in trademark cases: the holder of a trademark registration signs a covenant not to sue the alleged infringer so as to divest the district court of jurisdiction over the infringer's declaratory judgment claim or counterclaim for cancellation of the mark....

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