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Evidence of Lost Sales Not Required Under Lanham Act

by Mark VB Partridge on Fri 30 Jul 2004 04:59 PM EDT | Permanent Link

Actionable confusion is not limited to potential purchasers but may simply involve persons in a position to influence purchasers, according to the First Circuit. Beacon Mutual Ins. Co. v. OneBeacon Ins. Group, Case No. 3-2671 (1st Cir., July 12, 2004).

The District Court had granted summary judgment because there was no evidence of any lost sales. The First Circuit reversed, stating:

"[T]he type of commerical injury actionable under . . . the Lanham Act . . . is not restricted to the loss of sale to actual and prospective buyers of the product in question. . . [rather confusion] is relevant when it exists in the minds of persons in a position to influence the purchasing decision or persons whose confusion presents a significant risk to the sales, goodwill, or reputation of the trademark owner."

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