Trademark Infringement

January 13, 2020

Trademark Law: United States Court of Appeals for the Seventh Circuit Affirms Award of Over $17.3 Million

The United States Court of Appeals for the Seventh Circuit issued an opinion reversing the denial of attorney’s fees, remanding for an entry of a reasonable fee reward under 15 U.S.C. § 1117(a), and affirming all other aspects of the judgment of the district court in the case of 4SEMO.com Incorporated (“4SEMO”) versus Southern Illinois Storm Shelters, Inc. (“SISS”), et al. (collectively “Defendants”). While the Defendants originally sued 4SEMO in this case, the case was reconfigured as above for the July 2017 bench trial and decision, which was on appeal.

According to the opinion, 4SEMO began selling storm shelters manufactured by SISS in 2005. 4SEMO is a Missouri-based home-remodeling firm while Robert Ingoldsby and his brother Scott (the “Ingoldsbys”) run the Illinois based company, SISS. 4SEMO began marketing the storm shelters under a wordmark “Life Saver Storm Shelters” and a matching logo (the “Marks”) that it affixed to the shelters it sold in Missouri and Arkansas pursuant to an exclusive dealership agreement with SISS. The Ingoldsbys were granted a limited license to use the 4SEMO Marks for shelters marketed in southern Illinois. However, the Ingoldsbys violated the limited license by using the 4SEMO Marks on shelters sold throughout the country.

SISS sued 4SEMO for trademark infringement over the “Life Saver” wordmark, claiming they had used it prior to 4SEMO and that they had ownership of the wordmark. 4SEMO counterclaimed for trademark infringement and false endorsement, along with various state-law claims. After SISS’s claim did not survive summary judgement, 4SEMO’s counterclaims were tried to the bench and the district court found in favor of 4SEMO on all counts and awarded $17,371,003 in damages for profit disgorgement and $26,940 for breach of contract. However, 4SEMO’s motion for vexatious-litigation sanctions and attorney’s fees under 28 U.S.C. § 1927 and the Lanham Act, respectively, was denied.

December 23, 2019

Trademark Litigation: Seventh Circuit Adopts New Standard for Lanham Act’s Fee-Shifting Provision

By Overhauser Law Offices, LLC

LHO Chicago River, LLC (“LHO”) filed a trademark infringement suit against Joseph J. Perillo, Rosemoor Suites, LLC, and Portfolio Hotels & Resorts, LLC (collectively the “Defendants”) in the Northern District of Illinois, Eastern District. The case was voluntarily dismissed by LHO and after being denied their Lanham Act attorney fees, the Defendants appealed to the United States Court of Appeals for the Seventh Circuit. The Court of Appeals held the Supreme Court’s decision in Octane Fitness, LLC v. ICON Health & Fitness, Inc., 572 U.S. 545 (2014), which was a patent case, should guide district courts when facing attorney fee applications under the Lanham Act.

LHO’s upscale hotel in downtown Chicago underwent a branding change to become “Hotel Chicago” in February 2014. Just over two years later, the Defendants opened their own “Hotel Chicago” about three miles from LHO’s hotel. LHO then sued “for trademark infringement and unfair competition under the Lanham Act, 15 U.S.C. § 1125(a), and for trademark infringement and deceptive trade practices under Illinois state law.” After litigating for over one year, LHO moved to voluntarily dismiss its claims and the judgment was entered on February 21, 2018.

After judgment was entered, pursuant to 15 U.S.C. § 1117(a), Defendants made a post-judgment request for attorney fees. In their brief, the Defendants cited two different standards for determining if attorney fees should be granted: (1) the Seventh Circuit’s prevailing standard, “that a case is exceptional under § 1117(a) if the decision to bring the claim constitutes an ‘abuse of process’; and (2) the more relaxed totality-of-the-circumstances approach under the Patent Act” from the Octane case. The district judge acknowledged Octane in his findings but did not adopt that approach and denied Defendants request for attorney fees.

December 9, 2019

Indiana Trademark Litigation: Dean Potter LLC Sues LG for Unauthorized Use of Video Footage

By Overhauser Law Offices, LLC

Indianapolis, Indiana – Attorneys for Plaintiff, Dean Potter LLC (“Potter LLC”), an Indiana limited liability company, filed suit in the Southern District of Indiana alleging that Defendants, LG Electronics USA, Inc. (“LG”), a Delaware corporation, and DOES 1 – 10, infringed its intellectual property rights, including the right of publicity. Potter LLC is seeking injunctive relief, judgment including statutory damages, and attorneys’ fees.

According to the Complaint, Potter LLC “is the exclusive owner of the name, likeness, image, right of publicity and endorsement, trademarks, and other intellectual property rights of the late Dean Potter.” Potter LLC claims Mr. Potter was a well-known extreme sports athlete who was featured in National Geographic for his stunts including highlining, BASE jumping, and rock climbing. Mr. Potter was allegedly featured traversing a highline in the short film entitled Moonwalk, that was shot in 2011 and published by 2012. It is alleged that no one else has recreated Mr. Potter’s performance in Moonwalk and that Potter LLC is the owner of Mr. Potter’s right of publicity and common law trademark rights in the film.

Potter LLC alleges Defendants utilized footage from Moonwalk in which Mr. Potter was traversing the highline in its commercial entitled “Listen. Think. Answer.” (the “Commercial”). According to the Complaint, LG is a multi-billion dollar corporation that has previously protected and enforced its intellectual property rights, meaning it is aware of the need to obtain a license for using Mr. Potter’s right of publicity and or likeness or commercial purposes. However, Potter LLC claims it was not approached by Defendants regarding a license for the Commercial and it never authorized Defendants to use Mr. Potter’s likeness. Potter LLC further claims Mr. Potter, during his life, “rejected the corporate, commercial, and competitive worlds that sought to profit from his art without understanding it”.

November 26, 2019

Indiana Trademark Litigation: AWGI, LLC and Atlas Van Lines, Inc. Granted Default Judgment

By Overhauser Law Offices, LLC

Indianapolis, Indiana – The case of AWGI, LLC and Atlas Van Lines, Inc. versus American Wide Relocation Inc. d/b/a Atlas Moving and Storage (“American Wide”) was filed by Plaintiffs alleging American Wide infringed their rights in two separate United States Registered Trademarks. American Wide failed to appear or respond to Plaintiffs’ Complaint and upon Motion for Final Default Judgment, the Court granted default judgment to the Plaintiffs on October 1, 2019.

In accordance with the default judgment, American Wide and all those persons who receive actual notice of the Court’s Order are permanently enjoined and restrained from: causing likelihood of confusion; “directly or indirectly falsely designating or representing that any goods or services are authorized, approved, associated with, or originate from, Plaintiffs”; “directly or indirectly using the ‘Atlas’ mark and the Infringing Logo or any confusingly similar variants”; utilizing the “Atlas” mark and the Infringing Logo; and “publishing, assembling, marketing, distributing, or otherwise utilizing any literature . . . which bear the ‘Atlas’ mark and the Infringing Logo”.

American Wide was further ordered: to destroy all literature, advertisements, etc. that bear the “Atlas” mark and the Infringing Logo; to notify its customers that the “Atlas” mark and Infringing Logo are not connected with Plaintiffs; and to immediately comply with the Court’s Order including filing “a statement, under oath and penalty of perjury, that each and every injunctive provision has been fully and completely complied with.” Finally, American Wide was ordered to transfer all internet domains and social media accounts that incorporate the term “Atlas” to the Plaintiffs.

November 25, 2019

Indiana Trademark Litigation: Three Floyds Brewing LLC of Munster, Indiana Seeks Damages for Alleged Trademark Infringement

By Overhauser Law Offices, LLC

Hammond, Indiana – Attorneys for Plaintiff, Three Floyds Brewing LLC (“Three Floyds”) of Munster, Indiana filed suit in the Northern District of Indiana alleging that Defendants, Floyd’s Spiked Beverages LLC and Lawrence Trachtenbroit, both of Basking Ridge, New Jersey, infringed its rights in United States Trademark Registration Nos. 3,853,136, 4,759,863, 4,341,332 and 5,781,941 (collectively the “Three Floyds’ Marks”). Plaintiff is seeking actual damages, punitive damages, pre and post judgment interest, and attorneys’ fees..

Three Floyds claims to be one of the top craft brewers in the United States, selling under the trade name and mark “THREE FLOYDS” since 1996. Two of the Three Floyds’ Marks at issue in this case are claimed to be incontestable by Three Floyds pursuant to 15 U.S.C. § 1065. Three Floyds further claims that its marks have become publicly identifiable and that its customers frequently shorten the Three Floyds’ Marks to “‘FLOYDS’ and refer to ‘FLOYDS’ as the source of Three Floyds’ products and services.”

According to the Complaint, Defendants produce and sell alcoholic lemonade and tea beverages under the name “Floyd’s”. Defendants allegedly filed U.S. Trademark Application Serial No. 87922801 (the “First Application”) with the USPTO for a stylized FLOYD’s logo (the “Floyd’s logo”) for “Alcoholic beverages, except beer” on May 15, 2018. Defendants claimed to have used the Floyd’s logo in commerce since at least May 1, 2018. On or about November 5, 2018, it is alleged that Defendants filed U.S. Trademark Application Serial No. 88181124 (the “Second Application”) with the USPTO to register the mark “FLOYD’S” for “Beer-based coolers” and claimed to have used the mark in commerce since at least January 1, 2018.

November 6, 2019

Cummins Reports Wins in Patent and Trademark Infringement Suits

By Overhauser Law Offices, LLC

Cummins Inc. of Columbus, Indiana has announced success in legal actions against Turbotechsnab LLC and Weifang Yuhang Turbocharger Co. Ltd. for infringement of Cummins’ trademarks and patents.

In a decision reached by the Moscow City Arbitrazh Court, Turbotechsnab was held to have infringed Cummins’ HOLSET trademarks. The court awarded an injunction against Turbotechsnab prohibiting further illegal use of Cummins’ HOLSET trademarks in connection with selling, offering to sell, storing and advertising turbochargers. Additionally, the court ordered Turbotechsnab to pay damages and fees to Cummins.

As part of the settlement with Weifang Yuhang Turbocharger Co. Ltd., that company agreed to cease and desist purchasing, making and selling any nozzle ring product that infringes Cummins’ patents, and agreed to destroy all existing infringing stock.

September 25, 2019

Indiana Trademark Litigation: Fanimation, Inc. Sues New Jersey Based Company for Alleged Trademark Infringement

By Overhauser Law Offices, LLC

Indianapolis, Indiana – Attorneys for Plaintiff, Fanimation, Inc. of Zionsville, Indiana, filed suit in the Southern District of Indiana alleging that Defendant, Décor Selections, LLC d/b/a Lighting Merchant (“Lighting Merchant”) of Ocean, New Jersey, infringed its rights in United States Trademark Registration No. 2,318,516 for FANIMATION (the “Registered Mark”). Fanimation is seeking injunctive relief, judgment including statutory damages, and attorneys’ fees.

Fanimation claims it owns the Registered Mark for “electric wall mounted fans, electric free-standing floor pedestal fans and electric ceiling fans for non-industrial use.” Further, Fanimation alleges it has been using the Registered Mark, FANIMATION, since at least 1984 and because it has filed all proper paperwork and the Registered Mark has been registered more than five years, the Registered Mark is now “incontestable” pursuant to 15 U.S.C. §1065. According to the complaint, Fanimation sells its fans in a variety of ways through direct sales via its website or showrooms, or through Authorized Dealers. Authorized Dealers have entered into a written Authorized Dealer Agreement (“ADA”) to sell Fanimation fans through specially trained staff. Fanimation claims “original buyers” of its fans from direct sales or those through an Authorized Dealer receive a warranty that is redeemable with proof of purchase, purchase order, or invoice number.

Per the complaint, Fanimation claims Lighting Merchant is and has been selling fans bearing the Registered Mark on its website without authorized use via an ADA. Fanimation claims that Lighting Merchant’s lack of warranty and failure to specially train staff on Fanimation’s products make “the fans sold by Lighting Merchant materially different from the genuine FANIMATION® fans offered by Fanimation and its Authorized Dealers.” Fanimation believes consumers are likely to be confused when purchasing fans from Lighting Merchant as to the source and quality of the fans.

Fanimation allegedly sent a cease and desist letter to Lighting Merchant on or about January 19, 2019. Fanimation believes Lighting Merchant purchases fans from Authorized Dealer(s) and then sells them second-hand. These acts, if true, would breach at least one of the terms of the ADA signed by the Authorized Dealer(s) selling to Lighting Merchant. As such, Fanimation is seeking injunctive relief and seeking damages for trademark infringement, false designation of origin, dilution, unfair competition, and unjust enrichment.

September 11, 2019

Evansville Moving Company Seeks Damages for the Use of the “ATLAS” Trademark

By Overhauser Law Offices, LLC

Indianapolis, Indiana – Attorneys for Plaintiffs, AWGI, LLC and Atlas Van Lines, Inc. (“Atlas”) both of Evansville, Indiana, filed suit in the Southern District of Indiana alleging that Defendant, American Wide Relocation Inc. d/b/a Atlas Moving and Storage (“American”) of North Palm Beach, Florida, infringed their rights in United States Registration Nos. 3,718,117 for the mark “ATLAS”, and 1,591,344 for the mark “ATLAS—THE AGENTS’ VAN LINES” (the “Registered Marks”). Plaintiffs are seeking damages, statutory and treble damages, punitive damages, attorneys’ fees and any other relief the court deems proper.

According to the Complaint, Atlas has provided transportation and storage of goods to the public since at least 1948. Atlas and non-party, Atlas Investment Company, Inc., allegedly assigned all of their rights in the Registered Marks to AWGI on November 9, 2009. Atlas claims it has maintained a license to the Registered Marks since the assignment and that the Registered Marks have developed substantial goodwill as a result of the high quality of services it provides and the extensive amount of promotion it has put forth using the Registered Marks.

AWGI claims it sent a cease and desist letter to American on May 13, 2019 after discovering the alleged infringement of the Registered Marks on American’s website, which American uses to promote its moving and storage services. Richard Falcone, whom Plaintiffs believe is the owner of American, contacted Plaintiffs’ attorney on May 15, 2019 and claimed he could use the term “Atlas” because “it can be found in the dictionary”. Plaintiffs claim American’s services are inferior to their own and that American is employing deceptive practices such as using nearly identical Testimonials on its website as those found on other sites for different moving services. Due to their belief that American’s use of the Registered Marks is likely to cause confusion for consumers, Plaintiffs are seeking damages for trademark infringement under 15 U.S.C. § 1125(a)(1) and common law unfair competition.

August 30, 2019

Indiana-Based Grand Design RV, LLC Accused of Trademark Infringement

By Overhauser Law Offices, LLC

South Bend, Indiana – Attorneys for Plaintiff, Trane International, Inc. (“Trane”) of Davidson, North Carolina, filed suit in the Northern District of Indiana alleging that Defendant, Grand Design RV, LLC (“Grand Design”) of Middlebury, Indiana, infringed its rights in United States Trademark Registration No. 5,380,586 (the “‘586 Mark”) for the mark BUILT TO A HIGHER STANDARD. Trane is seeking actual damages, treble damages, attorneys’ fees, and any other relief the Court deems proper.

According to the Complaint, Trane is in the business of designing, building, and selling a variety of products including refrigeration and heating units for vehicles such as trucks and trailers. Trane alleges it has used the ‘586 Mark since at least 1992. Trane further claims that its air conditioners, furnaces, and heat pumps sold under the ‘586 Mark accounted for over $700 million of its sales in 2018.

Trane alleges Grand Design utilizes the ‘586 Mark on its temperature control devices that are used in recreational vehicles. Due to this use, Trane believes Grand Design’s actions will likely confuse consumers and will deceive third parties leading them to think Grand Design’s products are affiliated with Trane. Trane claims it sent two cease and desist letters in the spring of 2018, the second of which finally received a response from Grand Design refusing to cease the use of the ‘586 Mark. Instead, it is alleged Grand Design offered to use the designation “RV’S BUILT TO A HIGHER STANDARD”.

After multiple failed attempts at following up with Grand Design regarding its allegedly infringing use, Trane filed this suit for federal trademark infringement pursuant to 15 U.S.C. § 1114. Trane is further claiming federal unfair competition and trademark infringement under 15 U.S.C. § 1125(a). Finally, Trane is seeking damages for common law unfair competition under the common law of the State of Indiana.

August 29, 2019

Gatorade’s Use of the Term “Sports Fuel” Protected by Fair Use

By Overhauser Law Offices, LLC

Attorneys for Plaintiff-Appellant, SportFuel, Inc. (“SportFuel”), of Chicago, Illinois, originally filed suit against Defendants-Appellees, PepsiCo, Inc. (“Pepsi”) and The Gatorade Company (“Gatorade”) (collectively the “Appellees”), for trademark infringement in the United States District Court for the Northern District of Illinois, Eastern Division. After the District Court granted summary judgment for Gatorade and Pepsi, SportFuel appealed to the United States Court of Appeals for the Seventh Circuit. Circuit Judge Kanne wrote the opinion affirming the grant of summary judgment by the District Court.

SportFuel provides personalized nutrition services to professional and amateur athletes and sells its own brand of dietary supplements. SportFuel registered two trademarks for “SportFuel” the first of which was registered for “food nutrition consultation, nutrition counseling, and providing information about dietary supplements and nutrition.” Pursuant to 15 U.S.C. § 1065, the first registration became “incontestable” in 2013. The second registration for “SportFuel” was for “goods and services related to dietary supplements and sports drinks enhanced with vitamins.”

Gatorade, now a household name, was created in 1965. Although Gatorade is known for its traditional sports drinks, it also sells customizable sports drinks for individual professional athletes and other sports nutrition products. Starting in 2013, Gatorade began describing and marketing its products as “sports fuels” and registered the trademark “Gatorade The Sports Fuel Company” in 2016 with the United States Patent and Trademark Office (“PTO”). During the registration process, “Gatorade disclaimed the exclusive use of ‘The Sports Fuel Company’ after the PTO advised the company that the phrase was merely descriptive of its products.”