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Case s ummary:The company N manufactures and sells athletic footwear which includes its lines of the shoes AF. The company A is a limited liability company that produces and markets athletic footwear that includes the line of the shoes, S and SB. The company N filed a case against the company A in federal district court for the violation of the trademark of the product AF. The company A filed a counterclaim against the company N stating that the trademark of the product AF was invalid. The company N issued a contract of covenant agreement. The company N vowed that it would not raise any claim against the company A for colorable imitation. Later on the company N filed a motion for dismissal of his own claims and the counterclaims of the company A.
To f ind : The reason why a party would agree to a covenant than to sue the party.

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