Already v. Nike: the Supreme Court finds covenant not to sue made competitor’s claim for invalidity of trademark moot
The US Supreme Court issued its opinion yesterday in the closely-watched case, Already, LLC v Nike, Inc. In a decision that is almost certain to affect patent owners as well, the Court unanimously affirmed the Second Circuit’s opinion and ended the speculation of commentators that trademark holders might no longer have the ability to dismiss an invalidity challenge by entering into a covenant not to sue. The Court concluded that an appropriately framed, broad covenant not to enforce a trademark against a competitor moots the competitor’s action to have the trademark declared invalid.
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