Nike No-Sue Deal Bars Trademark Challenge, High Court Says

Law360, New York (January 9, 2013, 3:30 PM EST) -- The U.S. Supreme Court found Wednesday that a shoe company couldn't challenge the validity of a Nike Inc. trademark after Nike agreed not to sue it for infringement, ruling the agreement fully insulated the rival company from future litigation.

In a unanimous decision written by Chief Justice John Roberts, the high court affirmed a Second Circuit ruling that because Nike had given Already LLC an unconditional covenant not to sue, the federal courts lacked jurisdiction to hear Already's counterclaims that Nike's mark was invalid.

Under the...
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