Banjo Buddies, Inc. v. Renosky

Joseph Renosky (defendant), a board member of Banjo Buddies, Inc. (BBI) (plaintiff), pitched an improved version of BBI's Banjo Minnow lure to BBI's board, which took no action, and then developed and sold the product independently as the Bionic Minnow through his own company. BBI sued for false designation of origin and won a net-profits award at trial; the court rejected Renosky's financial report claiming a roughly $500,000 net loss as not credible and instead estimated profits at 16%, in line with Renosky's other products. Renosky appealed, arguing disgorgement required a finding of willful infringement.