Prejudgment Interest (Trademark) Law and Legal Definition

Prejudgment interest is the interest awarded to a plaintiff in some jurisdictions for trademark infringement. Such interest can be calculated beginning from the date that infringement first began or the first date that plaintiff made a demand for settlement. When the ultimate damage award is large and the case protracted, prejudgment interest is not to be considered lightly.

Generally, prejudgment interest was unavailable until damages became liquidated. It is mostly awarded under the discretion of the district courts in the U.S. Prejudgment interests are generally awarded to deter the defendant from continuous infringement of trademark even after preliminary injunction. Prejudgment interest is only available on the compensatory portion of the damages award. It should not be assessed on an award of augmented damages or attorneys’ fees. However, prejudgment interest should be awarded under extraordinary circumstances in a case.