Maltina Corp. v. Cawy Bottling Co.
United States Court of Appeals for the Fifth Circuit
613 F.2d 582 (1980)
After fleeing Cuba, Julio Blanco-Herrera founded Maltina Corporation (plaintiff) and assigned it the Malta Cristal trademark his Cuban company had previously registered for a popular malt beverage, but Maltina never secured enough financing to produce more than $356 worth of product. Cawy Bottling Company (defendant) tried to register the Cristal mark itself to capitalize on existing brand recognition, was rejected by the Patent and Trademark Office due to Maltina's senior registration, but began selling its own malta under the Cristal label anyway; Maltina sued for infringement, and the district court found infringement, leaving only damages to be determined.
Whether a trademark owner needs proof of lost or diverted sales in order to recover profits earned by a defendant as a result of trademark infringement.