Did either of the parties act unethically

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Reference no: EM133314114

WAL-MART VS. SAMARA BROS. CASE:

Samara Brothers, Inc. designs and manufactures children's clothing. Its primary product is a line of spring/summer one-piece seersucker outfits decorated with appliques of hearts, flowers, fruits, and the like. A number of chain stores, including JCPenney, sell this line of clothing under contract with Samara. In 1995, Wal-Mart contracted with one of its suppliers, Judy-Philippine, Inc., to manufacture a line of children's outfits for sale in the 1996 spring/summer season. Wal-Mart sent Judy-Philippine photographs of a number of garments from Samara's line, on which Judy-Philippine's garments were to be based; Judy- Philippine duly copied, with only minor modifications, sixteen of Samara's garments, many of which contained copyrighted elements. In 1996, Wal-Mart briskly sold the so-called knockoffs, generating more than $1.15 million in gross profits.

Samara officials launched an investigation, which disclosed that Wal-Mart and several other major retailers-Kmart, Caldor, Hills, and Goody's-were selling the knockoffs of Samara's outfits produced by Judy-Philippine. Samara brought an action against Wal-Mart, Judy-Philippine, Kmart, Caldor, Hills, and Goody's for copyright infringement under federal law and infringement of unregistered trade dress under Section 43(a) of the Lanham Act. All of the defendants except Wal-Mart settled before trial.

Questions:

1. Did either of the parties act unethically?

2. Should the court issue an injunction?

3. If not, why? If so, what should the penalty be?

Reference no: EM133314114

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