On Dec. 11, the U.S. Supreme Court is set to hear oral arguments in the trademark infringement case of Dewberry Group v. Dewberry Engineers. The outcome of this case may affect the scope of corporate liability and judicial discretion. It could also impact how companies choose to configure affiliates and holding companies and how they assign trademark ownership within that structure.

Section 1117(a) of the Lanham Act provides that a plaintiff that establishes trademark infringement is entitled to recover the defendant’s profits, subject to the principles of equity: