The company that first marketed the “Naked” brand of condoms has statutory standing to sue for cancellation of a rival’s mark—even if a settlement between the parties may ultimately prove a bar to damages.

Reversing a Trademark Trial and Appeal Board ruling by a 2-1 vote, the U.S. Court of Appeals for the Federal Circuit ruled that an apparent deal between Australian Therapeutic Supplies Pty. Ltd. and Naked TM LLC is not a bar to a cancellation proceeding.

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