Defendant had sold US-manufactured BOSE home theater systems in the UK. Bose sued in the UK, the parties signed a world-wide settlement agreement. Defendant allegedly continued to sell in Australia. Bose sues in Boston. Defendant makes some (imho) not well-taken arguments against the enforceability of the agreement. Defendant also argues that the $50k per incident liquidated damage clause was unconscionable. 1st Circ: $50k is proportionate to the damages from an infringing sale of a $6500 product, when considering legal fees, etc.
Interesting question: defendant apparently purchased the items in the US, and shipped to Australia. Which country’s trademark laws should apply?
Short note on the extraterritorial effect of the Lanham Act here.