Canada Goose Inc. is one of the world’s leading makers of winter outerwear. In an effort to protect the brand associated with its high quality, fur-trimmed, down-filled parkas with the red, white, and blue circular patch on the left sleeve, it has sued competing manufacturers for trademark infringement. It has alleged that both International Clothiers and Sears Canada intentionally designed logos and positioned them on the sleeves of jackets to confuse consumers into thinking their jackets were genuine Canada Goose jackets. 

The International Clothiers jackets featured a white maple leaf on a red circular patch with three geese flying by and the words “Canada Weather Gear” and “Super Triple Goose” above and below the maple leaf. The Canada Goose patch has red trim on a blue background, a white silhouette of Antarctica in the middle, and the words “Canada Goose—Arctic program” around the edge. The matter has been settled out of court and the terms are confidential. The lawsuit against Sears has also been settled out of court.

What is the harm in trademark infringement? Why do you think these cases were settled out of court?