Polo Fashions, Inc. v. Dick Bruhn, Inc. The Woolen Mill Richard L. Bruhn and Larry Pickens

This is a trademark infringement action. The plaintiff, Polo Fashions, Inc. (Polo), prevailed in the district court and received approximately $6,000, the amount of profits the defendants earned from sales of counterfeit Polo shirts. Polo argues that the district court did not award an adequate remedy. We agree in part. Therefore, we affirm in part, reverse in part, and remand.

I.

FACTS

Polo manufactures a popular line of quality menswear. It goes to great efforts to ensure that its products are of excellent quality and are sold only in suitable establishments. In January 1982, Larry Pick-ens, one of the defendants, began purchasing Polo shirts under unusual circumstances from Ladowitz & Sergio, a firm not party to this appeal. Pickens sold these shirts to Dick Bruhn, Inc. (Bruhn), a California retail clothing chain, the other defendant in the case. Bruhn sold a number of shirts to customers at a profit. The district court found, and the parties do not dispute, that the questionable nature of the supply arrangements, and the low quality of the shirts, put Pickens and Bruhn on notice that the shirts were not manufactured by Polo.

Polo soon learned that Bruhn was selling…