Intellectual Property Law

Doesn't Happen Often, But Bankruptcy Filing Can Frustrate Trademark Case

By Michael Atkins

Court’s order following the defendant’s bankruptcy filing

We don’t see it very often, but a bankruptcy filing can frustrate a trademark infringement claim. Or it can be a needed escape hatch for a trademark infringement defendant. Either way, it shouldn’t be forgotten as a factor in trademark infringement litigation.

I was reminded of that today in the Western District trademark infringement case of Precision Automotive LLC v. Avstar Fuel Systems, Inc.

The defendant filed for bankruptcy protection.

Game over. Or at least game stayed.

The court’s order says it all: “The court received notice that the Defendant has filed a Chapter 11 bankruptcy petition, and that as a result, the Plaintiff’s claims against Defendant may be subject to an automatic stay. The court ORDERS the Plaintiff to file a further notice no later than October 8, 2010, indicating the Plaintiff’s proposed course of action in this court with regard to its claims against Defendant in light of the bankruptcy filing.”

The case cite is Precision Automotive LLC v. Avstar Fuel Systems, Inc., No. 10-1174 (W.D. Wash. Sept. 13, 2010) (Jones, J.).

Full post as published by Seattle Trademark Lawyer on September 15, 2010 (boomark / email).