Fifth Circuit Affirms $4.7 Million Disgorgement in Trojan Trademark Case
The Fifth Circuit upheld a $4.7 million disgorgement against Golf Carts of Cypress and Trojan EV for willful trademark infringement in Trojan Battery Company, L.L.C. v. Golf Carts of Cypress, L.L.C. and Trojan EV, L.L.C.
Why it matters: This appeals court decision clarifies monetary remedies for intentional trademark violations, affecting how legal teams assess damages and litigation strategies in future IP disputes. In-house and IP counsel gain insight on the standards for disgorgement and boundaries of injunctive relief.
- May 8, 2026: Fifth Circuit affirmed that Golf Carts of Cypress and Trojan EV will pay $4.7 million total disgorgement to Trojan Battery.
- Disgorgement split: $3.4 million from Golf Carts of Cypress and $1.3 million from Trojan EV.
- The panel confirmed that willful trademark infringement supports significant disgorgement awards under the Lanham Act and Texas law.
- Court vacated a permanent injunction as overbroad and sent the case back for a narrower injunction.
The Fifth Circuit has ruled in Trojan Battery Company, L.L.C. v. Golf Carts of Cypress, L.L.C. and Trojan EV, L.L.C., affirming the district court’s decision to order the defendants to pay $4.7 million in disgorged profits for willful trademark infringement.
- Trojan Battery demonstrated at trial that both defendants willfully used its protected trademarks. The award represents profits earned from the infringing conduct.
- Specifically, the appellate court found no abuse of discretion in the district court's calculation: $3,400,215 to be disgorged from Golf Carts of Cypress and $1,301,507 from Trojan EV.
- The opinion emphasized that "the district court did not abuse its discretion in awarding Trojan Battery disgorgement of Defendants' profits," providing clear support for financial penalties where willful infringement is found.
However, the court vacated the district court's permanent injunction, holding it was "overbroad" as it covered product markets beyond golf carts and batteries. The case returns to the lower court for entry of a narrower injunction tailored to the infringement proven at trial.
This judgment offers practical guidance for legal teams handling trademark damages and remedies. For further analysis, see this National Law Review report.
By the numbers:
- $4.7 million — total disgorgement ordered for willful infringement
- $3.4 million — disgorged from Golf Carts of Cypress
- $1.3 million — disgorged from Trojan EV
Yes, but: The court's decision to vacate and remand the overbroad injunction highlights the need for carefully tailored injunctive relief, not just monetary remedies.
What's next: The district court will issue a revised injunction limited to the golf cart and battery markets, per the Fifth Circuit's instructions.