throbber
(Slip Opinion)
`
`
`
` OCTOBER TERM, 2012
`
`
`Syllabus
`
`1
`
` NOTE: Where it is feasible, a syllabus (headnote) will be released, as is
`
`
`
` being done in connection with this case, at the time the opinion is issued.
`
`
`
` The syllabus constitutes no part of the opinion of the Court but has been
`
` prepared by the Reporter of Decisions for the convenience of the reader.
`
` See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.
`
`
`SUPREME COURT OF THE UNITED STATES
`
`
`
` Syllabus
`
` ALREADY, LLC, DBA YUMS v. NIKE, INC.
`
`CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR
`
`THE SECOND CIRCUIT
`No. 11–982. Argued November 7, 2012—Decided January 9, 2013
`Nike filed this suit, alleging that two of Already’s athletic shoes violat-
`ed Nike’s Air Force 1 trademark. Already denied the allegations and
`
`
`filed a counterclaim challenging the validity of Nike’s Air Force 1
`
`
`trademark. While the suit was pending, Nike issued a “Covenant
`Not to Sue,” promising not to raise any trademark or unfair competi-
`tion claims against Already or any affiliated entity based on Al-
`
`ready’s existing footwear designs, or any future Already designs that
`constituted a “colorable imitation” of Already’s current products.
`
`Nike then moved to dismiss its claims with prejudice, and to dismiss
`Already’s counterclaim without prejudice on the ground that the cov-
`enant had extinguished the case or controversy. Already opposed
`dismissal of its counterclaim, contending that Nike had not estab-
`lished that its covenant had mooted the case. In support, Already
`presented an affidavit from its president, stating that Already
`
`
`planned to introduce new versions of its lines into the market; affida-
`vits from three potential investors, asserting that they would not
`consider investing in Already until Nike’s trademark was invalidat-
`ed; and an affidavit from an Already executive, stating that Nike had
`intimidated retailers into refusing to carry Already’s shoes. The Dis-
`
`
`
`
`trict Court dismissed Already’s counterclaim, concluding that there
`was no longer a justiciable controversy. The Second Circuit affirmed.
`
`It explained that the covenant was broadly drafted; that the court
`could not conceive of a shoe that would infringe Nike’s trademark yet
`not fall within the covenant; and that Already had not asserted any
`intent to market such a shoe.
`Held: This case is moot. Pp. 3–15.
`(a) A case becomes moot—and therefore no longer a “Case” or “Con-
`
`troversy” for Article III purposes—“when the issues presented are no
`
`
`
`
`
`
`
`
`

`
`ALREADY, LLC v. NIKE, INC.
`
`
`Syllabus
`
`longer ‘live’ or the parties lack a legally cognizable interest in the
`
`outcome.” Murphy v. Hunt, 455 U. S. 478, 481. A defendant cannot,
`
`
`however, automatically moot a case simply by ending its unlawful
`
`conduct once sued. City of Mesquite v. Aladdin’s Castle, Inc., 455
`U. S. 283, 289. Instead, “a defendant claiming that its voluntary
`compliance moots a case bears the formidable burden of showing that
`it is absolutely clear the allegedly wrongful behavior could not rea-
`
`
`sonably be expected to recur.” Friends of the Earth, Inc. v. Laidlaw
`Environmental Services (TOC), Inc., 528 U. S. 167, 190. Pp. 3–4.
`
`
`(b) Nike has the burden to show that it “could not reasonably be
`
`expected” to resume its enforcement efforts against Already. The
`voluntary cessation doctrine was not disavowed in Deakins v. Mona-
`ghan, 484 U. S. 193. There, the Court employed precisely the analy-
`sis the test requires, finding a case moot because the challenged ac-
`
`tion—pursuing a claim in court—could not be resumed in “this or any
`
`subsequent action” and because it was entirely “ ‘speculative’ ” that
`
`
`any similar claim would arise in the future. Id., at 201, n. 4. Pp. 5–6.
`
`
`(c) Application of the voluntary cessation doctrine shows that this
`
`case is moot. Pp. 6–14.
`
`
`(1) The breadth of the covenant suffices to meet the burden im-
`posed by the doctrine. The covenant is unconditional and irrevocable.
`It prohibits Nike from filing suit or making any claim or demand;
`
`
`protects both Already and Already’s distributors and customers; and
`covers not just current or previous designs, but also colorable imita-
`
`tions. Once Nike demonstrated that the covenant encompasses all of
`Already’s allegedly unlawful conduct, it became incumbent on Al-
`ready to indicate that it engages in or has sufficiently concrete plans
`
`
`to engage in activities that would arguably infringe Nike’s trademark
`yet not be covered by the covenant. But Already failed to do so in the
`courts below or in this Court. The case is thus moot because the chal-
`
`lenged conduct cannot reasonably be expected to recur. Cardinal
`Chemical Co. v. Morton Int’l, Inc., 508 U. S. 83, and Altvater v. Free-
`man, 319 U. S. 359, distinguished. Pp. 6–9.
`(2) Already’s alternative theories of Article III injuries do not
`save the case from mootness, because none of those injuries suffices
`to support Article III standing in the first place. Already argues that
`
`as long as Nike is free to assert its trademark, investors will hesitate
`
`to invest in Already. But once it is “absolutely clear” that challenged
`
`conduct cannot “reasonably be expected to recur,” Friends of the
`
`Earth, supra, at 190, the fact that some individuals may base deci-
`sions on conjectural or hypothetical speculation does not give rise to
`the sort of concrete and actual injury necessary to establish Article
`
`III standing, Lujan v. Defenders of Wildlife, 504 U. S. 555, 560. Al-
`
`ready worries about its retailers, but even if a plaintiff may bring an
`
`
`
`
`
`2
`
`
`
`
`

`
`
`
` Cite as: 568 U. S. ____ (2013)
`
`
`Syllabus
`invalidity claim based on a reasonable expectation that a trademark
`holder will take action against the plaintiff ’s retailers, the covenant
`here extends protection to Already’s distributors and customers. Al-
`ready also complains that Nike’s decision to sue in the first place has
`led Already to fear another suit. But, since Nike has met its burden
`to demonstrate that there is no reasonable risk of such a suit, this
`concern is unfounded. Already falls back on the sweeping argument
`that, as one of Nike’s competitors, it inherently has standing because
`
`no covenant can eradicate the effects of a registered but invalid
`trademark. The logical conclusion of this theory seems to be that a
`market participant is injured for Article III purposes whenever a
`competitor benefits from something allegedly unlawful—e.g., a
`trademark or the awarding of a contract—but this Court has never
`accepted such a boundless theory of standing.
`
`Already’s policy objection that dismissing this case allows Nike to
`
`
`bully small innovators does not support adoption of this broad theory.
`
`Granting covenants not to sue may be a risky long-term strategy for a
`trademark holder. And while accepting Already’s theory may benefit
`the small competitor in this case, it also lowers the gates for larger
`companies with more resources, who may challenge the intellectual
`
`property portfolios of more humble rivals simply because they are
`
`competitors in the same market. This would further encourage par-
`ties to employ litigation as a weapon against their competitors rather
`
`than as a last resort for settling disputes. Pp. 9–14.
`
`(d) No purpose would be served by remanding the case. Already
`
`has had every opportunity and incentive to submit evidence in the
`proceedings below. It has refused, at every stage of the proceedings,
`to suggest that it has any plans to design a shoe that violates the Air
`Force 1 trademark yet falls outside the covenant. And while the
`courts below did not expressly invoke the voluntary cessation stand-
`ard, their analysis addressed the same questions this Court address-
`es here under that standard. Pp. 14–15.
`
`
`663 F. 3d 89, affirmed.
`
` ROBERTS, C. J., delivered the opinion for a unanimous Court. KEN-
`
`NEDY, J., filed a concurring opinion, in which THOMAS, ALITO, and SO-
`
`
`TOMAYOR, JJ., joined.
`
`
`
`
`
`
`3
`
`
`
`
`
`
`
`
`
`

`
`
`
`
`
` Cite as: 568 U. S. ____ (2013)
`
`Opinion of the Court
`
`1
`
`
` NOTICE: This opinion is subject to formal revision before publication in the
`
`
`
` preliminary print of the United States Reports. Readers are requested to
`
` notify the Reporter of Decisions, Supreme Court of the United States, Wash-
`
` ington, D. C. 20543, of any typographical or other formal errors, in order
`
`
` that corrections may be made before the preliminary print goes to press.
`
`
`
`
`SUPREME COURT OF THE UNITED STATES
`
`_________________
`
` No. 11–982
`_________________
` ALREADY, LLC, DBA YUMS, PETITIONER v. NIKE,
`
`INC.
`
`ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF
`
`
`APPEALS FOR THE SECOND CIRCUIT
`
`
`[January 9, 2013]
`
` CHIEF JUSTICE ROBERTS delivered the opinion of the
`
`Court.
`
`The question is whether a covenant not to enforce a
`
`trademark against a competitor’s existing products and
`any future “colorable imitations” moots the competitor’s
`action to have the trademark declared invalid.
`I
`
`Respondent Nike designs, manufactures, and sells ath-
`letic footwear, including a line of shoes known as Air
`Force 1s. Petitioner Already also designs and markets
`athletic footwear, including shoe lines known as “Sugars”
`and “Soulja Boys.” Nike, alleging that the Soulja Boys in-
`fringed and diluted the Air Force 1 trademark, demanded
`
`that Already cease and desist its sale of those shoes.
`When Already refused, Nike filed suit in federal court
`alleging that the Soulja Boys as well as the Sugars in-
`fringed and diluted its Air Force 1 trademark. Already
`denied these allegations and filed a counterclaim contend-
`ing that the Air Force 1 trademark is invalid.
`
`In March 2010, eight months after Nike filed its com-
`
`plaint, and four months after Already counterclaimed,
`
`
`
`
`
`
`
`

`
`ALREADY, LLC v. NIKE, INC.
`
`Opinion of the Court
`
` Nike issued a “Covenant Not to Sue.” Its preamble stated
`that “Already’s actions . . . no longer infringe or dilute
`
`the NIKE Mark at a level sufficient to warrant the substan-
`tial time and expense of continued litigation.” App. 96a.
`The covenant promised that Nike would not raise against
`Already or any affiliated entity any trademark or unfair
`competition claim based on any of Already’s existing foot-
`wear designs, or any future Already designs that consti-
`tuted a “colorable imitation” of Already’s current products.
`Id., at 96a–97a.
`After issuing this covenant, Nike moved to dismiss its
`
`claims with prejudice, and to dismiss Already’s invalid-
`ity counterclaim without prejudice on the ground that the
`covenant had extinguished the case or controversy. Al-
`ready opposed dismissal of its counterclaim, arguing that
`Nike had not established that its voluntary cessation had
`mooted the case. In support, Already presented an affi-
`davit from its president, stating that Already had plans to
`introduce new versions of its shoe lines into the market;
`affidavits from three potential investors, asserting that
`they would not consider investing in Already until Nike’s
`trademark was invalidated; and an affidavit from one of
`
`Already’s executives, stating that Nike had intimidated
`
` retailers into refusing to carry Already’s shoes.
`The District Court dismissed Already’s counterclaim,
`
`
`stating that because Already sought “to invoke the Court’s
`declaratory judgment jurisdiction, it bears the burden of
`demonstrating that the Court has subject matter jurisdic-
`tion over its counterclaim[ ].” Civ. No. 09–6366 (SDNY,
`Jan. 20, 2011), App. to Pet. for Cert. 25a.
` The Court
`read the covenant “broad[ly],” concluding that “any of [Al-
`ready’s] future products that arguably infringed the Nike
`Mark would be ‘colorable imitations’ ” of Already’s current
`footwear and therefore protected by the covenant. Id., at
`29a, n. 2. Finding no evidence that Already sought to
`
` develop any shoes not covered by the covenant, the Court
`
`
`
`
`
`
`
`
`
`2
`
`
`

`
`
`
`3
`
`
`
` Cite as: 568 U. S. ____ (2013)
`
`Opinion of the Court
`held there was no longer “a substantial controversy . . . of
`sufficient immediacy and reality to warrant the issuance
`of a declaratory judgment.” Id., at 34a (quoting Med-
`Immune, Inc. v. Genentech, Inc., 549 U. S. 118, 127 (2007)
`
`(internal quotation marks omitted)).
`
`The Second Circuit affirmed. It held that in determin-
`ing whether a covenant not to sue “eliminates a justiciable
`
`case or controversy,” courts should look to the totality
`of the circumstances, including “(1) the language of the
`covenant, (2) whether the covenant covers future, as well
`as past, activity and products, and (3) evidence of inten-
`tion . . . on the part of the party asserting jurisdiction” to
`engage in conduct not covered by the covenant. 663 F. 3d
`89, 96 (2011) (footnote omitted). Noting that the covenant
`covers “both past sales and future sales of both existing
`products and colorable imitations,” the Second Circuit
`found it hard to conceive of a shoe that would infringe the
`
`Air Force 1 trademark yet not fall within the covenant.
`Id., at 97. Given that Already “ha[d] not asserted any
`intention to market any such shoe,” the court concluded
`
`that Already could not show any continuing injury, and
`that therefore no justiciable controversy remained. Ibid.
`
`We granted certiorari. 567 U. S. ___ (2012).
`
`II
`
`
`Article III of the Constitution grants the Judicial
`Branch authority to adjudicate “Cases” and “Controver-
`sies.” In our system of government, courts have “no busi-
`ness” deciding legal disputes or expounding on law in the
`absence of such a case or controversy. DaimlerChrysler
`Corp. v. Cuno, 547 U. S. 332, 341 (2006). That limitation
`requires those who invoke the power of a federal court to
`demonstrate standing—a “personal injury fairly traceable
`to the defendant’s allegedly unlawful conduct and likely to
`be redressed by the requested relief.” Allen v. Wright, 468
`U. S. 737, 751 (1984). We have repeatedly held that an
`
`
`
`
`
`
`
`

`
`ALREADY, LLC v. NIKE, INC.
`
`Opinion of the Court
`“actual controversy” must exist not only “at the time the
`complaint is filed,” but through “all stages” of the litiga-
`tion. Alvarez v. Smith, 558 U. S. 87, 92 (2009) (internal
`quotation marks omitted); Arizonans for Official English
`v. Arizona, 520 U. S. 43, 67 (1997) (“To qualify as a case
`fit for federal-court adjudication, ‘an actual controversy
`must be extant at all stages of review, not merely at the
`time the complaint is filed’” (quoting Preiser v. Newkirk, 422
`U. S. 395, 401 (1975))).
`
`A case becomes moot—and therefore no longer a “Case”
`or “Controversy” for purposes of Article III—“when the
`issues presented are no longer ‘live’ or the parties lack
`a legally cognizable interest in the outcome.” Murphy v.
`Hunt, 455 U. S. 478, 481 (1982) (per curiam) (some in-
`ternal quotation marks omitted). No matter how vehe-
`
`
`mently the parties continue to dispute the lawfulness of the
`conduct that precipitated the lawsuit, the case is moot if
`the dispute “is no longer embedded in any actual contro-
`versy about the plaintiffs’ particular legal rights.” Alva-
`rez, supra, at 93.
`
`We have recognized, however, that a defendant cannot
`automatically moot a case simply by ending its unlawful
`conduct once sued. City of Mesquite v. Aladdin’s Castle,
`
`Inc., 455 U. S. 283, 289 (1982). Otherwise, a defendant
`
`
`could engage in unlawful conduct, stop when sued to have
`the case declared moot, then pick up where he left off,
`repeating this cycle until he achieves all his unlawful
`ends. Given this concern, our cases have explained that
`
`“a defendant claiming that its voluntary compliance moots
`a case bears the formidable burden of showing that it is
`absolutely clear the allegedly wrongful behavior could not
`
`reasonably be expected to recur.” Friends of the Earth,
`Inc. v. Laidlaw Environmental Services (TOC), Inc., 528
`U. S. 167, 190 (2000).
`
`
`
`
`
`
`
`4
`
`
`
`
`

`
`5
`
`
`
`
`
`
`
`
`
` Cite as: 568 U. S. ____ (2013)
`
`Opinion of the Court
`
` III
`At the outset of this litigation, both parties had standing
`
`to pursue their competing claims in court. Nike had
`standing to sue because Already’s activity was allegedly
`infringing its rights under trademark law. Already had
`standing to file its counterclaim because Nike was alleg-
`edly pressing an invalid trademark to halt Already’s le-
`gitimate business activity. See MedImmune, supra, at
`126–137 (a genuine threat of enforcement of intellectual prop-
`erty rights that inhibits commercial activity may support
`
`
`standing). But then Nike dismissed its claims with preju-
`dice and issued its covenant, calling into question the
`existence of any continuing case or controversy.
`Under our precedents, it was Nike’s burden to show
`
`that it “could not reasonably be expected” to resume its
`enforcement efforts against Already. Friends of the Earth,
`supra, at 190. Nike makes a halfhearted effort to avoid
`this test. Relying on Deakins v. Monaghan, 484 U. S. 193
`(1988), it argues that “when a defendant makes a judicially
`enforceable commitment to avoid the conduct that forms
`the basis for an Article III controversy, there is no reason
`to apply a special rule premised on the defendant’s unfet-
`tered ability to ‘return to [its] old ways.’” Brief for Re-
`spondent 42.
`
`
`
`Nike’s reliance on Deakins is misplaced. In Deakins, the
`Court did not disavow the voluntary cessation doctrine;
`the Court employed precisely the analysis required by that
`test. It found the case was moot because the challenged
`action—pursuing a claim in court—could not be resumed
`in “this or any subsequent action” and because it was
`entirely “speculative” that any similar claim would arise
`in the future. 484 U. S., at 201, n. 4 (internal quotation
`marks omitted). It distinguished that situation from one
`in which a defendant is “free to return to his old ways.”
`Ibid. (internal quotation marks omitted). That is the
`question the voluntary cessation doctrine poses: Could the
`
`
`
`
`
`
`
`

`
`6
`
`
`ALREADY, LLC v. NIKE, INC.
`
`Opinion of the Court
`allegedly wrongful behavior reasonably be expected to re-
`cur? Nike cannot avoid its “formidable burden” by as-
`suming the answer to that question. Friends of the Earth,
`supra, at 190.
`
`IV
`
`A
`
`Having determined that the voluntary cessation doc-
`
`trine applies, we begin our analysis with the terms of the
`covenant:
`“[Nike] unconditionally and irrevocably covenants to
`refrain from making any claim(s) or demand(s) . . .
`against Already or any of its . . . related business enti-
`ties . . . [including] distributors . . . and employees of
`such entities and all customers . . . on account of any
`possible cause of action based on or involving trade-
`mark infringement, unfair competition, or dilution,
`under state or federal law . . . relating to the NIKE
`Mark based on the appearance of any of Already’s cur-
`rent and/or previous footwear product designs, and any
`
`
`
`
`
`colorable imitations thereof, regardless of whether
`that footwear is produced . . . or otherwise used in
`commerce before or after the Effective Date of this
`Covenant.” App. 96a–97a (emphasis added).
`The breadth of this covenant suffices to meet the burden
`
`imposed by the voluntary cessation test. The covenant is
`
`unconditional and irrevocable. Beyond simply prohibiting
`Nike from filing suit, it prohibits Nike from making any
`claim or any demand. It reaches beyond Already to pro-
`tect Already’s distributors and customers. And it covers
`not just current or previous designs, but any colorable
`imitations.
`
`In addition, Nike originally argued that the Sugars and
`
`Soulja Boys infringed its trademark; in other words, Nike
`believed those shoes were “colorable imitations” of the Air
`
`
`
`
`
`
`
`

`
`
`
`7
`
`
`Cite as: 568 U. S. ____ (2013)
`
`Opinion of the Court
`Force 1s. See Trademark Act of 1946 (Lanham Act), §32,
`60 Stat. 437, as amended, 15 U. S. C. §1114. Nike’s cov-
`enant now allows Already to produce all of its existing
`footwear designs—including the Sugar and Soulja Boy—
`and any “colorable imitation” of those designs. We agree
`with the Court of Appeals that “it is hard to imagine a
`scenario that would potentially infringe [Nike’s trade-
`mark] and yet not fall under the Covenant.”* 663 F. 3d, at
`97. Nike, having taken the position in court that there
`is no prospect of such a shoe, would be hard pressed to as-
`sert the contrary down the road. See New Hampshire v.
`Maine, 532 U. S. 742, 749 (2001) (“‘[W]here a party as-
`sumes a certain position in a legal proceeding, and suc-
`ceeds in maintaining that position, he may not thereafter,
`simply because his interests have changed, assume a
`contrary position, especially if it be to the prejudice of the
`party who has acquiesced in the position formerly taken
`
`by him’” (quoting Davis v. Wakelee, 156 U. S. 680, 689
`(1895))). If such a shoe exists, the parties have not pointed
`
`to it, there is no evidence that Already has dreamt of it,
`and we cannot conceive of it. It sits, as far as we can tell,
`
`on a shelf between Dorothy’s ruby slippers and Perseus’s
`winged sandals.
`
`Given Nike’s demonstration that the covenant encom-
`passes all of its allegedly unlawful conduct, it was incum-
`——————
`*Nike has “acknowledged that if [Already] were to manufacture an
`exact copy of the Air Force 1 shoe . . . Nike could claim that the Cov-
`enant permits an infringement suit on the ground that a counterfeit
`differs from a colorable imitation under the Lanham Act.” 663 F. 3d, at
`97, n. 5. Already, however, has never asserted any intent to make
`
`
`
`counterfeit Air Force 1s. Ibid. Moreover, because a counterfeit would
`
`presumably include Nike’s swoosh, an independently registered trade-
`mark not at issue here, invalidating the Air Force 1 trademark may
`not be sufficient to allow Already to proceed to make counterfeits. See
`15 U. S. C. §1127 (defining a counterfeit as a “spurious mark which is
`identical with, or substantially indistinguishable from, a registered
`mark”).
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`

`
`8
`
`
`ALREADY, LLC v. NIKE, INC.
`
`Opinion of the Court
`bent on Already to indicate that it engages in or has suffi-
`ciently concrete plans to engage in activities not covered
`
`by the covenant. After all, information about Already’s
`business activities and plans is uniquely within its posses-
`sion. The case is moot if the court, considering the cove-
`nant’s language and the plaintiff ’s anticipated future
`activities, is satisfied that it is “absolutely clear” that the
`allegedly unlawful activity cannot reasonably be expected
`
`to recur.
`
`But when given the opportunity before the District
`Court, Already did not assert any intent to design or
`market a shoe that would expose it to any prospect of in-
`fringement liability. See App. to Pet. for Cert. 31a (find-
`ing that there was “no indication” of any such intent);
`663 F. 3d, at 97, n. 5 (noting the “absence of record evi-
`dence that [Already] intends to make any arguably in-
`fringing shoe that is not unambiguously covered by the
`Covenant”). The only affidavit it submitted to the District
`Court on that question was from its president, saying little
`more than that Already currently has plans to introduce
`new shoe lines and make modifications to existing shoe
`lines. It never stated that these shoes would arguably
`
`
`infringe Nike’s trademark yet fall outside the scope of the
`
`covenant. Nor did it do so on appeal to the Second Circuit.
`And again, it failed to do so here, even when counsel for
`Already was asked at oral argument whether his client
`had any intention to design or market a shoe that would
`even arguably fall outside the covenant. Tr. of Oral Arg.
`6–8. Given the covenant’s broad language, and given that
`Already has asserted no concrete plans to engage in con-
`duct not covered by the covenant, we can conclude the case
`is moot because the challenged conduct cannot reasonably
`
`be expected to recur.
`
`
`The authorities on which Already relies are not on point.
`In Cardinal Chemical Co. v. Morton Int’l, Inc., we affirmed
`
`the unremarkable proposition that a court’s “decision to
`
`
`
`
`
`

`
`
`
`9
`
`
`
` Cite as: 568 U. S. ____ (2013)
`
`Opinion of the Court
`rely on one of two possible alternative grounds (nonin-
`fringement rather than invalidity) did not strip it of power
`to decide the second question, particularly when its decree
`was subject to review by this Court.” 508 U. S. 83, 98
`(1993). In essence, when a court has jurisdiction to review
`a case, and decides the issue on two independent grounds,
`the first half of its opinion does not moot the second half,
`or vice versa. Here the issue is whether the District Court
`had jurisdiction to consider the claim in the first place.
`
`This case is also unlike Altvater v. Freeman, 319 U. S.
`359 (1943). There, patent holders brought suit against
`licensees for specific performance of a license. The licen-
`sees counterclaimed, seeking a declaratory judgment that
`the patents were invalid. The Court of Appeals, after
`finding that the license was no longer in force and the
`devices at issue did not infringe, dismissed the licensees’
`counterclaim as moot. We reversed, finding the contro-
`versy still live because the licensees continued to “manu-
`factur[e] and sell[ ] additional articles claimed to fall under
`the patents,” and the patent holders continued to “de-
`
`mand[ ] . . . royalties” for those products. Id., at 364–365.
`
`Here of course the whole point is that Already is free to
`
`sell its shoes without any fear of a trademark claim.
`B
`
`Already argues, however, that there are alternative
`theories of Article III injuries that save the case from
`mootness. First, it argues that so long as Nike remains
`free to assert its trademark, investors will be apprehen-
`sive about investing in Already. Second, it argues that
`given Nike’s decision to sue in the first place, Nike’s
`trademarks will now hang over Already’s operations like a
`Damoclean sword. Finally, and relatedly, Already argues
`that, as one of Nike’s competitors, it inherently has stand-
`ing to challenge Nike’s intellectual property.
`
`The problem for Already is that none of these injuries
`
`
`
`
`
`
`
`

`
`10
`
`
`ALREADY, LLC v. NIKE, INC.
`
`Opinion of the Court
`suffices to support Article III standing. Although the
`
`voluntary cessation standard requires the defendant to
`show that the challenged behavior cannot reasonably be
`expected to recur, we have never held that the doctrine—
`by imposing this burden on the defendant—allows the
`
`plaintiff to rely on theories of Article III injury that would
`fail to establish standing in the first place.
`We begin with Already’s argument that Nike’s trade-
`
`mark registration “gives false color to state and federal
`trademark claims which expose [Already’s] business to
`substantial and unpredictable risks,” deterring investors.
`Brief for Petitioner 31. To demonstrate this, Already
`presented affidavits from potential investors stating that
`Nike’s lawsuit dissuaded them from investing in Already
`or prompted them to withdraw prior investments, and
`that they would “consider” investing in Already only if
`
`Nike’s trademark were struck down. App. to Pet. for Cert.
`33a. Already argues that like the plaintiffs in Village
`of Euclid v. Ambler Realty Co., 272 U. S. 365 (1926)—
`who had standing to challenge an ordinance because it re-
`duced their property value—Already should have standing to
`challenge the trademark because its mere existence ham-
`
`pers its ability to attract capital.
`But once it is “absolutely clear” that challenged conduct
`
`cannot “reasonably be expected to recur,” Friends of the
`Earth, 528 U. S., at 190, the fact that some individuals
`may base decisions on “conjectural or hypothetical” specu-
`lation does not give rise to the sort of “concrete” and “ac-
`tual” injury necessary to establish Article III standing,
`Lujan v. Defenders of Wildlife, 504 U. S. 555, 560 (1992)
`(internal quotation marks omitted). In Euclid, we rea-
`soned that, assuming the merits of plaintiff ’s claim, “the
`ordinance, in effect, constitutes a present invasion of
`[plaintiff ’s] property rights.” 272 U. S., at 386. Here
`there is no such present invasion; in fact there is a cove-
`nant promising no invasion. In addition, unlike the plain-
`
`
`
`
`
`
`
`
`
`
`
`
`
`

`
`
`
` Cite as: 568 U. S. ____ (2013)
`
`Opinion of the Court
`tiffs in Euclid, Already does not claim that Nike’s Air
`
`Force 1 infringes any of its property rights.
`Already has also pointed to an affidavit from a vice
`
`president stating that Nike has “suggested” to Already’s
`retailers that they refrain from carrying Already’s shoes,
`lest “Nike . . . cancel its account or take other actions
`against the retailer, e.g., delay shipment of the retailer’s
`Nike order or ‘lose’ the retailer’s Nike order.” App. 177a.
`
`Even if a plaintiff may bring an invalidity claim based
`on a reasonable expectation that a trademark holder will
`take action against the plaintiff ’s retailers, the covenant
`here extends protection to Already’s distributors and
`customers. And even if Nike were engaging in harass-
`ment or unfair trade practices, Already has not explained
`how invalidating Nike’s trademark would do anything to
`stop it.
`
`
` Already also complains that it can no longer “just blithely
`go about its shoe business as if there were no risk of
`being sued again.” Reply Brief 14. As counsel told us at
`oral argument: “once bitten, twice shy.” Tr. of Oral Arg. 8.
`But we have never held that a plaintiff has standing to
`pursue declaratory relief merely on the basis of being
`“once bitten.” Quite the opposite. See, e.g., Los Angeles v.
`Lyons, 461 U. S. 95, 109 (1983) (holding there is no justici-
`able controversy where plaintiff had once been subjected
`to a chokehold). Given our conclusion that Nike has met
`its burden of demonstrating there is no reasonable risk
`that Already will be sued again, there is no reason for
`Already to be so shy. It is the only one of Nike’s competi-
`tors with a judicially enforceable covenant protecting it
`from litigation relating to the Air Force 1 trademark.
`Insofar as the injury is a threat of Air Force 1 trademark
`litigation, Already is Nike’s least injured competitor.
`
`
`Already falls back on a sweeping argument: In the
`context of registered trademarks, “[n]o covenant, no mat-
`ter how broad, can eradicate the effects” of a registered
`
`
`
`
`
`
`
`
`
` 11
`
`
`
`
`
`
`
`
`
`
`
`
`
`

`
`12
`
`
`ALREADY, LLC v. NIKE, INC.
`
`Opinion of the Court
`but invalid trademark. Brief for Petitioner 33–34. Ac-
`cording to Already, allowing Nike to unilaterally moot the
`case “subverts” the important role federal courts play in
`the administration of federal patent and trademark law.
`Id., at 40. It allows companies like Nike to register and
`brandish invalid trademarks to intimidate smaller com-
`petitors, avoiding judicial review by issuing covenants in
`the rare case where the little guy fights back. Already and
`its amici thus contend that Already, “[a]s a company
`engaged in the business of designing and marketing ath-
`letic shoes,” has standing to challenge Nike’s trademark.
`See id., at 21; see also Brief for Intellectual Property Pro-
`fessors as Amici Curiae 3 (suggesting that standing ex-
`
`tends to all “participants in that field”); Brief for Public
`Patent Foundation as Amici Curiae 12 (“[T]he public has
`standing to challenge the validity of any issued patent or
`
`registered trademark in court”).
`
`Under this approach, Nike need not even have threat-
`ened to sue first. Already, even with no plans to make
`anything resembling the Air Force 1, could sue to invali-
`
`date the trademark simply because Already and Nike both
`compete in the athletic footwear market. Taken to its
`logical conclusion, the theory seems to be that a market
`participant is injured for Article III purposes whenever a
`competitor benefits from something allegedly unlawful—
`whether a trademark, the awarding of a contract, a landlord-
`
`tenant arrangement, or so on. We have never accepted
`such a boundless theory of standing. The cases Already
`cites for this remarkable proposition stand for no such
`thing.
`In each of those cases, standing was based on
`an injury more particularized and more concrete than
`the mere assertion that something unlawful benefited the
`plaintiff ’s competitor. Northeastern Fla. Chapter, Associ-
`
`
`ated Gen. Contractors of America v. Jacksonville, 508 U. S.
`
`656 (1993); Super Tire Eng

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket