$900K Compensatory Award Vacated in Rain-X Case

Illinois Tool Works, the maker of the leading windshield water-repellant Rain-X, sued it’s competitor Rust-Oleum Corp. over its commercial for a competing product, RainBella. The jury agreed with Illinois Tool Works that Rust-Oleum’s claims were false and misleading. They awarded Illinois Tool Works $392,406 of Rust-Oleum’s profits and $925,617 for corrective advertising bringing the award to a total of more than $1.3 million. The district court reduced the corrective-advertising award. The Fifth Circuit Court of Appeals vacated the damages awards because Illinois Tool Works failed to prove Rust-Oleum’s false advertising damaged their sales or that they planned to increase advertising to recoup those sales lostRead the full case here:

http://www.ca5.uscourts.gov/opinions/pub/19/19-20210-CV0.pdf