Section 6 Corrective Advertising Expenses

• Library: Damages 2012

In Obear-Nester Glass Co. v. United Drug Co., 149 F.2d 671 (8^th Cir. 1945), the Eighth Circuit pointed out that the trademark owner could recover the expenses incurred in preventing purchasers from being deceived by the infringer’s wrongful conduct. Later cases have followed this lead and awarded damages based on the amount that would be necessary to correct the damage to the reputation of the trademark owner caused by the infringement. A leading case in this area is Big O Tire Dealers, Inc. v. Goodyear Tire & Rubber Co., 408 F. Supp. 1219 (D. Colo. 1976), modified and remanded by561 F.2d 1365 (10^th Cir. 1977), cert. dismissed, 434 U.S. 1052 (1978). In Big O, the jury was informed that the infringer had spent $10 million in advertising the Big...