In 1988, James Bishop (plaintiff) registered a trademark for a mineral-electrolyte solution called “Essence of Life.” Equinox International Corporation (Equinox) (defendant) began marketing a dietary supplement called Equinox Master Formula Essence of Life Liquid Mineral Complex. When Bishop learned of Equinox’s product, Bishop requested that Equinox cease and desist from infringing upon Bishop’s mark. Although Equinox agreed to stop using Bishop’s mark, Equinox in fact continued to use Bishop’s mark. Bishop sued Equinox for trademark infringement, seeking injunctive and monetary relief. The district court granted a permanent injunction but denied monetary relief. The district court determined that Bishop had not demonstrated actual damages and was not entitled to monetary relief in the form of an accounting of profits. Bishop appealed.