Trademark Infringement Profits Calculator
Estimate recoverable profits in a trademark infringement dispute by comparing the infringer's net profits against the trademark owner's lost profits. Useful for IP attorneys and brand owners assessing litigation value or settlement terms.
About this calculator
Under the Lanham Act (15 U.S.C. § 1117), a trademark owner can recover the greater of the infringer's profits or the owner's own lost profits. The formula used here is: Damages = max(infringerRevenue − infringerCosts, ownerLosses). The infringer's profit is calculated by subtracting documented production and operating costs from gross revenue attributable to the infringing mark. The burden shifts to the defendant to prove deductible costs once the plaintiff establishes gross revenue. Owner's lost profits represent sales diverted from the legitimate brand due to consumer confusion. Courts may also adjust the final award upward (up to treble damages) for willful infringement or downward if the award would be unjust. This calculator isolates the economic comparison at the core of most Lanham Act damages analyses.
How to use
Suppose the infringer earned $200,000 in revenue from goods bearing your trademark and incurred $80,000 in costs, while you estimate you lost $100,000 in diverted sales. Step 1: Calculate infringer's net profit — $200,000 − $80,000 = $120,000. Step 2: Compare to owner's lost profits — $100,000. Step 3: Take the maximum — max($120,000, $100,000) = $120,000. Enter infringerRevenue = $200,000, infringerCosts = $80,000, and ownerLosses = $100,000. The calculator returns $120,000 as the estimated damages floor.
Frequently asked questions
How do courts calculate an infringer's profits in a trademark case?
Courts start with the infringer's gross revenue from products or services tied to the infringing mark. The defendant then bears the burden of proving deductible costs such as manufacturing, distribution, and allocated overhead. Only costs directly attributable to the infringing line are typically deductible; general corporate overhead may be disputed. If the infringing use represents only part of the defendant's business, courts may apportion revenue accordingly. Detailed financial discovery is usually necessary to pin down these figures.
What is the difference between trademark damages and trademark profits recovery?
Trademark 'damages' refers to the plaintiff's own losses — sales diverted, price erosion, or harm to brand reputation — caused by the infringement. 'Profits recovery' refers to disgorgement of what the infringer made, regardless of whether the owner can prove its own losses dollar-for-dollar. The Lanham Act allows recovery of whichever measure is larger, preventing infringers from profiting even when the owner's direct losses are hard to quantify. Willful infringement can further trigger enhanced damages up to three times the calculated amount. Courts have discretion to adjust awards based on equitable considerations.
When is it worth pursuing a trademark infringement profits claim in litigation?
Pursuing a profits claim is most valuable when the infringer generated substantial revenue from the infringing use and your own lost-profits figure is lower or harder to prove. It is particularly compelling in cases of willful infringement, where a court is more likely to award full disgorgement. If the infringer's profits are minimal, focusing on actual damages or statutory damages under the Lanham Act may be more efficient. Cost-benefit analysis — weighing litigation costs against the recoverable amount — should guide the decision. Early use of this calculator helps attorneys and clients gauge whether a case justifies the investment.