Jury Sides with Penn State in Vintage Trademark Case

16 hours ago

The National Law Review

Thursday, November 21, 2024

A jury determined Tuesday, November 20, that Vintage Brands willfully violated Penn State University's trademarks by selling merchandise featuring vintage Penn State logos. The jury also rejected Vintage Brands’ affirmative defenses and counterclaims against Penn State.

A number of universities have gone toe-to-toe with Vintage Brands over the same issue, but Penn State’s case is the first to go to trial and result in a jury verdict. The case reached trial after the US District Court for the Middle District of Pennsylvania denied Penn State’s motion to dismiss Vintage’s counterclaims in 2022. At that time, District Judge Matthew W. Brann questioned the longstanding legal basis for granting teams and universities exclusive control over the “ornamental” use of their names and logos on merchandise, setting off alarm bells throughout the trademark community.

Throughout the dispute, Vintage Brands leaned into the argument that consumers would not automatically perceive an affiliation between their merchandise and the university, a key aspect for a claim of trademark infringement. However, the jury, drawn from communities close to Penn State, found that Vintage Brands’s products misled consumers into thinking they were approved or licensed by the university and denying that such brands were merely ornamental or aesthetically functional (earning a collective sigh of relief from the trademark community).

Vintage Brands and manufacturer Sportswear Inc. have been ordered to pay Penn State $28,000 in damages for the unauthorized merchandise.

While this federal district court jury verdict is not a binding precedent, it is significant for those advocating for the control sports teams, universities and other such trademark owners have over their merchandise branding. An award of damages, no matter the sum, will hopefully also act as a deterrent for other print-on-demand retailers creating and selling merchandise without authorization from and payment to trademark owners.

The case is The Pennsylvania State University v. Vintage Brand LLC, M.D. Pa., No. 21-1901, Verdict 11/19/24.