By Olivia Wilson Armadillo Distribution Enterprises, the parent company of Dean Guitars, has been ordered to pay Gibson more than $4 million in attorneys’ fees and litigation costs after years of federal trademark litigation over famous guitar designs. The September 25, 2026 ruling by Chief U.S. District Judge Amos L. Mazzant of the Eastern District of Texas does not create a new infringement finding. Instead, it determines how much Gibson may recover for legal work and expenses in the long-running case.
How Did the Gibson–Armadillo Dispute Begin?
Gibson sued Armadillo in 2019, alleging that Dean-branded guitars infringed several Gibson trademarks. The disputed marks included the Flying V, Explorer, SG and ES body shapes, the Dove Wing headstock, and the Hummingbird and Flying V word marks.
A jury initially returned a verdict in 2022 largely favoring Gibson. After post-trial proceedings and an appeal, key issues went back for another trial in March 2025.
At the retrial, the jury found infringement as to five Gibson marks: the Flying V, Explorer and SG body shapes, plus the Hummingbird and Flying V word marks. It did not find infringement of the ES body shape or Dove Wing headstock. The jury also found the ES body-shape trademark generic and subject to cancellation.
Although the jury awarded Gibson only $1 in damages, the district court later ordered Armadillo to disgorge $168,399.22 in profits and entered a permanent injunction restricting the manufacture, advertising and sale of infringing products.
Why Did Gibson Receive Millions in Attorneys’ Fees?
The new ruling concerns Gibson’s request for attorneys’ fees under the Lanham Act and Federal Rule of Civil Procedure 54.
Gibson sought more than $4.07 million in fees and asked the judge for an additional enhancement of about $2.34 million. It also requested approximately $237,725 in litigation costs.
Judge Mazzant did not grant the full request. The court used the “lodestar” method, which generally multiplies reasonable hours worked by reasonable hourly rates. After reviewing the submitted billing records, the judge awarded Gibson $3,811,026.13 in attorneys’ fees.
The court rejected the requested upward enhancement. Gibson had achieved significant success by protecting several marks and obtaining a permanent injunction, but it had not prevailed on every issue. The ES body-shape mark, for example, was declared generic.
Why Were Appeal Fees Excluded?
The court excluded approximately $261,697 in attorneys’ fees connected to Gibson’s earlier appeal because Armadillo had prevailed on that appeal and was awarded appellate costs.
Judge Mazzant concluded that Gibson could recover reasonable fees connected to the trials, including work from the first trial that was later vacated, but not fees incurred in an appeal it lost.
The judge similarly deducted $2,307.33 in appeal-related litigation expenses. Gibson was awarded $235,417.92 in costs.
Together, the latest attorneys’ fee and cost awards total $4,046,444.05.
What Does Armadillo’s Bankruptcy Mean?
Armadillo filed for Chapter 11 bankruptcy protection on June 9, 2026, temporarily staying the trademark case.
In August, the bankruptcy court granted Gibson relief from the automatic stay so the Texas court could decide the outstanding attorneys’ fees and costs issue. That cleared the way for the September 25 order.
The district court ordered Armadillo to pay the awarded amounts within 14 days. However, the company’s Chapter 11 case may affect practical collection and how Gibson’s claim is treated. The fee ruling establishes the amount awarded by the district court, while bankruptcy proceedings can determine how creditor claims are handled.
Why the Decision Matters
The case shows how the financial consequences of trademark litigation can greatly exceed a jury’s damages award. Gibson received only nominal damages from the 2025 jury, yet its permanent injunction, profit disgorgement and prevailing-party status supported a multimillion-dollar fee recovery.
As of October 4, 2026, the September 25 fee ruling is the latest major development in the dispute. The underlying case has already affected which Dean guitar designs Armadillo may sell, while the new order adds more than $4 million in legal costs as the company goes through Chapter 11 restructuring.
This article provides general information about U.S. trademark litigation and is not legal advice.