Nike, Inc. v. ALREADY, LLC

LOHIER, Circuit Judge:

This appeal requires us to decide whether a trademark registrant’s delivery of a covenant not to sue, and voluntary dismissal of its trademark claims, divests a federal court of subject matter jurisdiction over a defendant’s counterclaims for a declaratory judgment and cancellation of the trademark’s registration. After considering the breadth of the plaintiffs covenant not to sue and the improbability of future infringement, the United States District Court for the Southern District of New York (Richard J. Sullivan, J.) dismissed the defendant’s counterclaims because no…