High Court Nike Ruling Lets IP Owners Skirt Invalidity Claims

Law360, New York (January 9, 2013, 9:15 PM EST) -- Patent and trademark owners who want to foreclose challenges to the validity of their intellectual property when dropping infringement suits have clear guidance from the U.S. Supreme Court on how to do so after a decision Wednesday that barred a challenge to a Nike Inc. trademark, attorneys said.

The justices ruled that a covenant not to sue that Nike had given rival shoe-maker Already LLC eliminated any future disputes between the companies and prevented courts from considering Already's claim that Nike's mark was invalid.

The dispute...
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