A 5th U.S. Circuit Court of Appeals opinion expands the range of what federal trial courts should consider when determining whether to sanction a plaintiff who brings an action under the statute that protects trademarks. In the unanimous Jan. 17 decision, a 5th Circuit panel vacated a lower court’s order awarding almost $500,000 in attorneys’ fees and costs, including some under the Lanham Act, to three defendants in Procter & Gamble Co. v. Amway Corp., et al. — a case stemming from the circulation of false rumors that P&G has links to Satanism.

The court remanded the case to U.S. District Judge Vanessa Gilmore’s court in Houston with a directive that she consider the objective merits of the suit when determining whether P&G acted in good faith when it pursued claims against three entities – Amway Distributors Association (ADA), Ja-Ri Corp. and Internet Services Corp.

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