Plaintiff supplier and defendant distributor entered into a “handshake” agreement in which the supplier agreed to manufacture
and supply its trademarked rug gripper product to the distributor and the distributor, in turn, agreed to assume responsibility for
marketing and distributing the product to retailers. After several years, however, the distributor developed its own rug gripper
and began distributing its product to retailers instead of the supplier’s product. Many retailers mistakenly believed that the new
product was an upgrade on the supplier’s product rather than a completely different product, so the new product appeared on
many retailers’ shelves under the supplier’s label. The supplier filed an action for trademark infringement, unfair competition,
and various contract and tort claims. The United States District Court for the District of Northern Georgia, Atlanta Division, found
in favor of the distributor, and the supplier appealed