Trademark Infringement Penalties & Damages
What trademark infringement can cost—injunctions, actual damages, the infringer’s profits, treble and statutory damages, attorney’s fees, and criminal penalties.
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Trademark infringement can cost far more than most people expect. Under the federal Lanham Act, remedies include an injunction to stop the use, the infringer's profits, the owner's actual damages (which a court can treble), attorney's fees in exceptional cases, and destruction of infringing goods. For counterfeiting, statutory damages run up to $2 million per mark, plus potential criminal penalties.
Whether you're a brand owner weighing enforcement or a business worried you've crossed a line, the stakes are real. Here's what the law actually allows—and what drives the size of an award.
Civil Remedies for Trademark Infringement
The Lanham Act gives trademark owners a powerful toolkit. In a typical infringement case, a successful plaintiff can obtain:
- Injunctive relief — a court order stopping the infringer from using the mark. This is often the primary goal, since it protects the brand going forward.
- The infringer's profits — the money they made using your mark.
- Actual damages — your losses, such as lost sales or harm to reputation.
- Costs of the action, and in some cases attorney's fees.
- Destruction of infringing labels, packaging, and products.
The right mix depends on the facts, but injunctions plus a monetary award are the backbone of most cases. To understand when a claim even exists, see trademark infringement vs. dilution.
Monetary Damages Explained
Under 15 U.S.C. §1117(a), a prevailing owner can recover the defendant's profits, their own damages, and costs. Two features make this potent:
- Up to treble (3×) damages. A court can enter judgment for up to three times actual damages when the circumstances justify it—compensation, not a penalty.
- Disgorgement of profits. The infringer may have to hand over what they earned from using your mark, which can dwarf your direct losses.
The more deliberate the infringement, the more aggressively courts tend to award these remedies.
Statutory Damages for Counterfeiting
Counterfeiting—using a spurious mark identical or substantially indistinguishable from a registered mark—triggers the harshest remedies. Instead of proving actual damages, an owner can elect statutory damages under §1117(c):
| Scenario | Statutory damages range |
|---|---|
| Non-willful counterfeiting | $1,000 – $200,000 per mark, per type of goods |
| Willful counterfeiting | up to $2,000,000 per mark, per type of goods |
On top of that, §1117(b) requires courts to award treble damages and attorney's fees for intentional use of a counterfeit mark, absent extenuating circumstances. These numbers add up fast when multiple marks or product lines are involved—one reason counterfeiting cases settle quickly once liability is clear.
Injunctions and Non-Monetary Penalties
Money isn't the only consequence. Courts can order an infringer to:
- Immediately stop all use of the mark (preliminary and permanent injunctions).
- Destroy infringing inventory, packaging, and marketing materials.
- Recall products already in the market in serious cases.
- Transfer an infringing domain name in cybersquatting situations.
For many brand owners, stopping the harm and clearing the market matters more than the dollars. Our trademark infringement practice pursues both.
When Are Attorney's Fees Awarded?
Under §1117(a), a court may award reasonable attorney's fees to the prevailing party in "exceptional" cases—typically those involving willful, bad-faith, or particularly egregious conduct. In counterfeiting cases under §1117(b), fees are generally mandatory for intentional violations. Because fee-shifting can flip the economics of a case, willfulness is often the central battleground.
Criminal Penalties for Counterfeiting
Trafficking in counterfeit goods isn't just a civil matter—it's a federal crime under 18 U.S.C. §2320. An individual convicted of a first offense can face fines up to $2 million and up to 10 years in prison, with steeper penalties for repeat offenders and organizations. Ordinary infringement (a confusingly similar name) is civil; deliberate counterfeiting is where criminal exposure begins.
What Affects the Size of an Award
Not every case ends in a headline number. Courts weigh:
- Willfulness — intentional infringers face treble damages and fee awards.
- The infringer's profits and the owner's actual losses.
- Whether the mark is registered — registration unlocks stronger remedies and the ability to claim statutory damages for counterfeiting.
- Harm to the brand's reputation and goodwill.
- The scale and duration of the infringement.
The single biggest lever a business controls is registration. A federally registered mark gives you access to the full range of Lanham Act remedies—another reason to understand what the ® symbol really means and to register the type of mark that fits your brand.
Frequently Asked Questions
What are the penalties for trademark infringement?
Civil remedies include an injunction, the infringer's profits, the owner's actual damages (which can be tripled), costs, and sometimes attorney's fees. Counterfeiting adds statutory damages up to $2 million per mark and possible criminal fines and imprisonment.
How much can you sue for trademark infringement?
It depends on the harm. You can recover the infringer's profits plus your actual damages, which a court may treble. In counterfeiting cases you can elect statutory damages of $1,000–$200,000 per mark—up to $2 million per mark if the conduct was willful.
Can you go to jail for trademark infringement?
Not for ordinary infringement, which is a civil matter. But counterfeiting—trafficking in goods with a fake mark—is a federal crime that can carry up to 10 years in prison and multimillion-dollar fines under 18 U.S.C. §2320.
Do I need a registered trademark to recover damages?
You have some rights through use alone, but federal registration unlocks the strongest remedies—including statutory damages for counterfeiting and easier proof of your rights. Registration dramatically improves your position. Talk to an attorney about protecting your mark.
Trademark infringement carries teeth: injunctions, disgorged profits, trebled damages, attorney's fees, and—for counterfeiting—statutory damages up to $2 million per mark plus criminal exposure. The owners who recover the most are the ones who registered early and enforced promptly. If your brand is being copied, an Orlando trademark attorney can assess your remedies and act before the damage compounds.
