Entitlement to sue and protected commercial interest

AND · 15usc1125:actionable-interest

Kroma EU illustrates enforcement rights reserved to the licensor; mere economic interest is insufficient in that contractual setting. Article III injury and statutory cause-of-action entitlement are distinct. Lexmark’s specific commercial-injury test is set out separately for advertising.

Exact element source

shall be liable in a civil action by any person who believes that he or she is or is likely to be damaged by such act.
Source: docroot/ir/usc/title15.jsonl#title15_sec1125; Unicode character offsets [870:988] (end exclusive); SHA-256 0a5680239d11ae3247a99abab2344db45177346d2d2e3050e95c82fb39f3aca7.

All variants

Recorded DB variant labels, including zero-count variants
VariantDescriptionMerits instance blocksDistinct casesExample cases (up to 3 per group)
licensing/enforcement-reserved-to-licensor1
Satisfied 0; not satisfied 1; excluded context 0
1/f3d/920/0704-01 — United States Court of Appeals for the Eleventh Circuit · 2019 — not

How courts decided this element

Annotation blocks, including explicitly excluded context
CaseElementHolding and scopeVariantExact source quotations
/f3d/920/0704-01 — United States Court of Appeals for the Eleventh Circuit · 2019Entitlement to sue and protected commercial interestnot
Counted merits instance
applied / merits

basis: law; party: Kroma EU against Kardashian defendants; subject: party=Kroma EU against Kardashian defendants

Pure contract construction resolves statutory entitlement on summary judgment. Economic injury and exclusive distribution do not override this reservation; no universal registered-owner restriction or jurisdictional standing failure is inferred.
licensing/enforcement-reserved-to-licensor
In October 2012, Tillett granted an exclusive license to Kroma EU to import, sell, and distribute KROMA products in Europe, and to use the KROMA mark in furtherance of its business.
Source: docroot/ir/caselaw/f3d_920.jsonl#/f3d/920/0704-01; Unicode character offsets [623:804] (end exclusive); SHA-256 6e77869881244fd295fa194aa518afd7917c84bbbeb6287a54038cc81c2dab35.

Evidence kind: fact; polarity: supports; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Tillett retains the KROMA trademark as its "exclusive and inalienable property" and "reserves the right to assign/transfer it to any individual person or legal entity."
Source: docroot/ir/caselaw/f3d_920.jsonl#/f3d/920/0704-01; Unicode character offsets [12083:12251] (end exclusive); SHA-256 6e77869881244fd295fa194aa518afd7917c84bbbeb6287a54038cc81c2dab35.

Evidence kind: fact; polarity: cuts-against; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

But importantly, Section 4.3.2 only vested Kroma EU with the obligation to "inform [Tillett] of any illegal use of the trademark," prompting Tillett to file suit against the infringer-at which point Tillett would be required to compensate Kroma for its losses resulting from the infringement.
Source: docroot/ir/caselaw/f3d_920.jsonl#/f3d/920/0704-01; Unicode character offsets [13782:14074] (end exclusive); SHA-256 6e77869881244fd295fa194aa518afd7917c84bbbeb6287a54038cc81c2dab35.

Evidence kind: fact; polarity: cuts-against; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

We adopt the position taken by the district courts in this circuit-that a licensee's right to sue to protect the mark "largely depends on the rights granted to the licensee in the licensing agreement."
Source: docroot/ir/caselaw/f3d_920.jsonl#/f3d/920/0704-01; Unicode character offsets [7190:7391] (end exclusive); SHA-256 6e77869881244fd295fa194aa518afd7917c84bbbeb6287a54038cc81c2dab35.

Evidence kind: rule; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Therefore, the licensing agreement does not give Kroma EU sufficient "rights in the name" to sue under the Lanham Act.
Source: docroot/ir/caselaw/f3d_920.jsonl#/f3d/920/0704-01; Unicode character offsets [16861:16979] (end exclusive); SHA-256 6e77869881244fd295fa194aa518afd7917c84bbbeb6287a54038cc81c2dab35.

Evidence kind: held; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Court interpretations

interpretation

Here, applying the licensing agreement to this inquiry is a straightforward exercise. The plain language of the agreement demonstrates the parties' intent for Tillett to retain all ownership and enforcement rights. Kroma EU-while it may have other rights under the agreement-does not possess the ability to assert its rights in the mark in this proceeding.

/f3d/920/0704-01 — United States Court of Appeals for the Eleventh Circuit · 2019

Here, applying the licensing agreement to this inquiry is a straightforward exercise. The plain language of the agreement demonstrates the parties' intent for Tillett to retain all ownership and enforcement rights. Kroma EU-while it may have other rights under the agreement-does not possess the ability to assert its rights in the mark in this proceeding.
Source: docroot/ir/caselaw/f3d_920.jsonl#/f3d/920/0704-01; Unicode character offsets [11514:11870] (end exclusive); SHA-256 6e77869881244fd295fa194aa518afd7917c84bbbeb6287a54038cc81c2dab35.

Kroma EU illustrates enforcement rights reserved to the licensor; mere economic interest is insufficient in that contractual setting. Article III injury and statutory cause-of-action entitlement are distinct. Lexmark’s specific commercial-injury test is set out separately for advertising.