Supreme Court Limits Lanham Act Disgorgement Awards

Ruling clarifies profits can only be disgorged from named defendants, not affiliated companies

Published on Feb. 6, 2026

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The Supreme Court unanimously ruled in Dewberry Group, Inc. v. Dewberry Engineers, Inc. that Lanham Act disgorgement awards are limited to the profits of named defendants and do not extend to the profits of separately incorporated affiliates. The Court emphasized the bedrock principle of corporate separateness, stating that absent exceptional circumstances, liability does not automatically extend to affiliates. This case underscores the strategic importance of precisely identifying and naming infringing parties in trademark lawsuits.

Why it matters

The Supreme Court's ruling provides important guidance on the scope of Lanham Act disgorgement awards, clarifying that profits can only be disgorged from named defendants, not affiliated companies. This decision has significant implications for trademark litigation strategy, as plaintiffs must carefully identify and name all infringing parties to ensure they can recover the full extent of profits earned through infringement.

The details

In Dewberry Group, Inc. v. Dewberry Engineers, Inc., the Supreme Court addressed the appropriate scope of Lanham Act disgorgement awards. The case arose after Dewberry Engineers prevailed in a trademark infringement suit against an unrelated competitor, Dewberry Group. Although Dewberry Group operated at a loss, it provided services solely to its profitable, but separately incorporated, affiliates. The lower courts treated the companies as a "single corporate entity" for the purposes of calculating a profits award. However, the Supreme Court disagreed, emphasizing the bedrock principle of corporate separateness. The Court held that, absent veil-piercing or other exceptional circumstances, liability does not automatically extend to affiliates, and disgorgement awards are limited to the profits of named defendants.

  • The Supreme Court issued its ruling in Dewberry Group, Inc. v. Dewberry Engineers, Inc. in 2025.

The players

Dewberry Group, Inc.

A real estate company that was found liable for trademark infringement in a lawsuit brought by Dewberry Engineers, Inc.

Dewberry Engineers, Inc.

The company that prevailed in a trademark infringement lawsuit against Dewberry Group, Inc.

Supreme Court

The highest court in the United States, which issued a unanimous ruling in the Dewberry Group, Inc. v. Dewberry Engineers, Inc. case.

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What’s next

The Supreme Court's ruling in Dewberry Group, Inc. v. Dewberry Engineers, Inc. provides clear guidance for trademark litigation strategy, underscoring the importance of precisely identifying and naming all infringing parties to ensure the full scope of profits can be disgorged.

The takeaway

The Supreme Court's decision in Dewberry Group, Inc. v. Dewberry Engineers, Inc. reinforces the principle of corporate separateness, limiting Lanham Act disgorgement awards to the profits of named defendants rather than affiliated companies. This ruling has significant implications for trademark litigation, emphasizing the need for plaintiffs to carefully identify and name all infringing parties to recover the full extent of profits earned through infringement.