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Sunday, May 28, 2023

Landstar Awarded 6 million in Trademark Violation Case

ย U.S. District Judge Kiyo Matsumoto ordered on March 13 for American Landstar Logistics, American Landstar Motor Trans, and American Landstar Transport to pay $2 million each calling it an โ€œexceptional and egregious caseโ€ ofย  trademark violations.

Landstar, a trucking company based out of Jacksonville, Florida, filed a lawsuit in 2015, alleging federal trademark infringement, unfair competition and false designation of origin. The three trucking companies are based out of Staten Island, N.Y.

Judge Matsumoto disagreed with a previous opinion that recommended damages of about $375,000.

Tax returns that showed about $7 million in gross profits from 2010 until 2016 factored into Judge Matsumotoโ€™s decision to give Landstar the maximum award.

โ€œThe goal of deterring similar conduct generally requires a significant award,โ€ Matsumoto wrote.

In addition, the court said the defendantsโ€™ conduct was โ€œconsistently willful.โ€

In May 2017, the court granted Landstarโ€™s summary judgement. A few months later, the court ordered a permanent injunction enjoining defendants from further use of the name American Landstar, any other name that incorporates โ€œLandstarโ€ or โ€œRoadstar,โ€ and any other name involving a combination of the words โ€œLandโ€ and โ€œStarโ€ or โ€œRoadโ€ and โ€œStar.โ€

Landstar first served American Landstar a cease-and-desist letter in November 2011.

In addition to statutory damages, the court awarded Landstar attorney fees and costs.

โ€œThe court adopts Magistrate Judge Scanlonโ€™s recommendation for an award of attorneysโ€™ fees and costs as this is an exceptional and egregious case,โ€ Matsumoto wrote. โ€œThe court granted plaintiffโ€™s summary judgment motion and found that defendants infringed plaintiffโ€™s marks willfully and in bad faith.โ€