ProMex, LLC v. Hernandez, 2011 U.S.Dist. LEXIS 21832 (C.D. Cal. 2011)

This case is informative on what could happen when that settlement agreement is breached down the line.  After an initial infringement suit, plaintiff and defendant agreed that defendant could use its mark only in Southern California.  They also agreed plaintiff would abandon another unrelated registration.  Defendant sold outside Southern California so plaintiff sued for infringement and breach of contract.  Defendant said it didn’t have to perform because plaintiff never abandoned its registration.

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