Salt Lake’s convention began in 2013, but it has quickly grown to over 120,000 attendees. ![]() And it is the largest convention of its kind, drawing more than 130,000 attendees each year. The San Diego convention was one of the first comics-fan conventions. What explains the different results?Ĭomic-con: The Comic Con (short for “comic book convention”) dispute began when the San Diego Comic Con sued the Salt Lake Comic Con for infringing on San Diego’s “Comic-Con” trademarks. But the result was legally different in both cases, with Comic-con obtaining millions in fees under the Lanham Act, while Grumpy Cat obtained nothing under the Act, but recovered nevertheless pursuant to a contract between her and the infringer. The Lanham Act’s fee provision has come up recently in two high-profile trademark cases: one involving Comic Con (reported on previously here and here), the other meme-famous Grumpy Cat (also reported on previously here). Thus, the Lanham Act strikes a balance, providing for reimbursement in cases of brazen and clear infringement–or brazen and clear abuse of the litigation process–while retaining the benefits the American Rule otherwise provides. ![]() In such circumstances, the American Rule provides some protection to litigants who would otherwise be discouraged from seeking redress due to the risk that they might have to pay the defendant’s fees in the end if they lose. But on the other hand, trademark violations are sometimes debatable and unclear. Indeed, the estimated cost of protecting one’s rights can dramatically affect the calculus of whether to sue for infringement in the first place. ![]() On the one hand, trademark owners should not have to fully shoulder the burden of what often turns into expensive litigation just to enforce their rights. But the Lanham Act erects a high bar to obtaining fees by requiring that the case be “exceptional.” This is because the Lanham Act only provides for attorneys’ fees in “ exceptional cases.” Congress’s (and courts’) reluctance to award attorneys’ fees stems from the “ American Rule,” which provides that each party to a lawsuit is responsible for paying its own fees–unless a statute provides otherwise. The battle for attorneys’ fees after an intense trademark dispute often leaves many prevailing parties empty handed.
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