Justia U.S. 11th Circuit Court of Appeals Opinion Summaries

Articles Posted in Trademark
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Pace (a company that sells and services garage doors) sued a competitor, Overhead Garage Door (“OGD”) (a company that also offers garage door services), alleging a host of federal and state law violations relating to OGD’s trade practices. Pace and Overhead Door Corporation (a garage door manufacturer that is not a party to this case but that has a name noticeably similar to Defendant OGD, its competition) have a licensing agreement in which Pace is the licensee, and Overhead Door Corporation is the licensor. As part of this agreement, Pace uses Overhead Door Corporation’s marks. The district court granted summary judgment to OGD on all of Pace’s claims, concluding in large part that Pace could not bring suit because Pace was a nonexclusive licensee that lacked sufficient ownership rights in Overhead Door Corporation’s marks and because OGD and Overhead Door Corporation’s settlement agreement extinguished Pace’s claims. Pace timely appealed.   The Eleventh Circuit vacated. The court concluded that Pace may bring its federal and state law claims. The court concluded that the licensing agreement, Pace’s status as a nonexclusive licensee, and the settlement agreement do not bar Pace from bringing its claims under the Lanham Act, state law, or common law. The court explained that although the agreement may prevent OGD and Overhead Door Corporation from suing each other, the settlement agreement is “not . . . binding on . . . current and future licensees.” As such, the settlement agreement is not binding on licensees like Pace and does not prevent Pace from suing View "D.H. Pace Company, Inc. v. OGD Equipment Company, LLC" on Justia Law

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Microsoft Corporation offers email security software to shield users from cyber threats. TocMail, Inc. is a relative newcomer to the cybersecurity scene and offers a product geared towards a specific type of threat called Internet Protocol (IP) evasion. TocMail sued Microsoft for false advertising—all within two months. In its complaint, TocMail alleged that Microsoft misled the public into believing that Microsoft’s product offered protection from IP evasion. And TocMail—who had been selling its product for two months, spent almost nothing on advertising and had not made a single sale—alleged billions of dollars in lost profits. TocMail brought two counts: false and misleading advertising under the Lanham Act (count one); and contributory false and misleading advertising under the Lanham Act. The district court entered summary judgment for Microsoft.   The Eleventh Circuit vacated the district court’s summary judgment order and remanded to the district court with instructions to dismiss this case without prejudice for lack of standing. The court explained that to establish an injury, in fact, a plaintiff must show “an invasion of a legally protected interest which is (a) concrete and particularized; and (b) actual or imminent, not conjectural or hypothetical.” The court wrote that TocMail failed to meet this standard because TocMail has offered no evidence from which a reasonable jury could find that it suffered any injury. TocMail didn’t offer testimony from any witness saying that he or she would have purchased TocMail’s product if not for Microsoft’s advertising. TocMail didn’t offer any expert testimony calculating TocMail’s lost sales from consumers who went with Microsoft. View "TocMail Inc. v. Microsoft Corporation" on Justia Law

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Plaintiffs in this case—Sherman Nealy and Music Specialist, Inc.—filed this copyright action seeking, among other things, damages for infringement they allege occurred more than three years before they filed this lawsuit. The defendants—Warner Chappell Music, Inc. and Artist Publishing Group, LLC—contend that Plaintiffs cannot recover damages for anything that happened more than three years before they filed suit.  The district court certified the following question for interlocutory appellate review: whether damages in this copyright action are limited to a three-year lookback period as calculated from the date of the filing of the complaint.   The Eleventh Circuit answered that question in the negative. The court wrote that given that the plain text of the Copyright Act does not support the existence of a separate damages bar for an otherwise timely copyright claim, the court held that a copyright plaintiff with a timely claim under the discovery rule may recover retrospective relief for infringement that occurred more than three years prior to the filing of the lawsuit. View "Sherman Nealy, et al. v. Warner Chappell Music, Inc., et al." on Justia Law

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FIC was founded and started using FOREMOST branded marks to market and sell its insurance products. After FIC operated independently for several decades, Farmers Insurance Group acquired FIC in 2000. Now a subsidiary of Farmers, FIC continues to sell insurance in the United States and Florida under its FOREMOST-branded marks. At issue is whether parties’ FOREMOST trademarks at issue could confuse consumers into thinking that a relationship exists between the parties. The district court found at summary judgment that there was no likelihood of confusion (and thus no trademark infringement) between the FOREMOST marks of Foremost Insurance Company (“FIC”), a multi-billion dollar insurance company, and Foremost Title and Escrow (“FT&E”), a shell company set up to sell title insurance for a law firm.   The Eleventh Circuit reversed the grant of summary judgment on FIC’s trademark infringement claim. The court explained that while the district court implicitly decided this case under the Nunez framework, it never actually decided whether all the material facts had been “incontrovertibly proved.” A district court may not ignore the traditional summary judgment standard merely by invoking the specter of Nunez. The court wrote, in this case, the parties should have eschewed moving for summary judgment, informed the court that discovery was complete and that the case was ready for trial, and then held a bench trial. Thus because the court held a reasonable factfinder could determine that a likelihood of confusion exists, the court reversed  grant of summary judgment as to Count I of FIC’s complaint and remanded the case for trial on the merits. View "FCOA LLC v. Foremost Title & Escrow Services LLC" on Justia Law

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Plaintiffs sued Defendants, alleging that the title of Defendants’ series, MTV Floribama Shore, infringes on Plaintiffs’ Flora-Bama trademarks. The district court granted summary judgment to Defendants. Plaintiffs timely appealed.   The Eleventh Circuit affirmed the district court’s judgment for Defendants. The court explained that the titles are not being used as trademarks to identify and distinguish the source of the artistic works. Plaintiffs have presented no evidence that any of these titles to the third parties’ artistic works have any source-identifying function. Because these titles are not being used as trademarks, this is not a title-versus-title case for purposes of the Rogers footnote. Further, Plaintiffs have not provided any evidence that they own interests in those artistic works as trademarks for Plaintiffs’ own goods or services—the foundation of trademark rights. Indeed, nothing in the record would allow a reasonable jury to conclude that the public views Plaintiffs as the source of these artistic works. Moreover, Plaintiffs’ claims are premised on alleged confusion with Plaintiffs’ commercial establishments, not with any artistic works purportedly owned by Plaintiffs. As Defendants note, Plaintiffs’ complaint did not claim rights in or allege any confusion relating to any artistic work, and Plaintiffs’ cease-and-desist letter did not mention any artistic works. View "MGFB Properties, Inc., et al. v. 495 Productions Holdings LLC, et al." on Justia Law

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AcryliCon USA, LLC (“AC-USA”) and Silikal GmbH (“Silikal”) have been fighting for years over a trade secret. The last time they were before this Court, a panel erased some of the relief awarded to AC-USA after a jury trial. On remand, the district court basically entered the same amount of attorney’s fees it had originally awarded. The district court also entered a “permanent” injunction barring the use of the trade secret at issue, concluding that it was obliged to do so.   The Eleventh Circuit found that the district court misread the court’s holdings, including the court’s unambiguous determination in AcryliCon II that no permanent injunction had been entered because the district court’s original final judgment did not include one. The court explained that the district court could not simply “reenter” a permanent injunction against Silikal without first making the appropriate findings pursuant to Rule 65 of the Federal Rules of Civil Procedure. The court further concluded that the district court abused its discretion when it awarded AC-USA nearly its full attorney’s fees even after the court reversed, in AcryliCon II, significant portions of the relief AC-USA had been previously awarded. Thus, the court vacated and remanded. View "Acrylicon USA, LLC v. Silikal GMBH" on Justia Law

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Miami Velvet operated as a swingers’ nightclub in Miami, Florida. The appellants, in this case, Yorkies and Mrs. Dorfman were Miami Velvet’s managers. Appellants appealed the district court’s final judgment, which awarded over 30 plaintiffs damages for false advertising and false endorsement under the Lanham Act, following the entry of summary judgment on liability and a jury award of damages. The Eleventh Circuit reversed the district court’s judgment, set aside the jury’s award of damages to Appellants, and remanded for trial. The court explained that there was not enough evidence to support the entry of summary judgment. Here the advertisements with Plaintiffs’ images were created for and used by Velvet Lifestyles. But Plaintiffs did not just sue Velvet Lifestyles; they also sued Yorkies and Mrs. Dorfman. To prevail on their false advertising and false endorsement claims against Appellants, Plaintiffs had to show that Yorkies itself engaged in or participated in the prohibited conduct along with Velvet Lifestyles (direct liability) or that the corporate veil between Yorkies and Velvet Lifestyles should be pierced (indirect liability).Plaintiffs did not satisfy their burden of showing the absence of a genuine issue of material fact regarding whether Yorkies and Mrs. Dorfman were responsible for the Lanham Act violations. Rather than making the necessary showing in their motion for summary judgment, Plaintiffs simply treated Velvet Lifestyles, Yorkies, and Mrs. Dorfman as one and the same. They exclusively discussed Defendants collectively in the argument section of their motion, presumably operating on the mistaken assumption that if Velvet Lifestyles was liable for violating the Act, so were Yorkies and Mrs. Dorfman. View "Jaime Faith Edmondson, et al. v. Velvet Lifestyles, LLC, et al." on Justia Law

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Royal Palm Properties, LLC ("Royal Palm") sued Pink Palm Properties, LLC ("Pink Palm)" for trademark infringement and Pink Palm countersued. Both parties ultimately lost on their claims. Pink Palm asserted that it was the prevailing party, and thereby entitled to costs under Rule 54 and “exceptional case” fees under the Lanham Act because it successfully defended the initial infringement claim. The district court ruled that there was no prevailing party because there was a split judgment and both parties lost on their claims. Because it found that neither party could be characterized as the prevailing party, the district court declined to award costs or fees to Pink Palm.   Pink Palm’s appealed the district court’s fee order. The Eleventh Circuit affirmed the district court’s order. The court wrote that when the parties achieve a “tie,” a district court may find no prevailing party for purposes of costs and fees. While there will be occasional instances, such as this one, where neither party prevails, the court noted that in the majority of cases whether there is a prevailing party and which party prevailed will be easily determined. Further when granting prevailing party status in those instances, however, a district court is limited to naming one, and only one, prevailing party. Here, neither party was the prevailing party, and, because it did not meet the threshold requirement of prevailing party status, Pink Palm was rightly denied costs under Rule 54 and attorney fees under the Lanham Act. View "Royal Palm Properties, LLC v. Pink Palm Properties, LLC" on Justia Law

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Plaintiff, Wreal, LLC, a pornography company, has been using the mark “FyreTV” in commerce since 2008. Defendant, Amazon.com, Inc., has been using the mark “Fire TV” (or “fireTV”) in commerce since 2012. Wreal contended that Amazon’s allegedly similar mark is causing consumers to associate its mark—“FyreTV”—with Amazon. After the close of discovery, the district court granted summary judgment to Amazon.   The Eleventh Circuit reversed and remanded the district court’s ruling. The court explained that the case addresses the application of the seven likelihood-of-confusion factors to a reverse-confusion trademark infringement case. Although some of those factors are analyzed and applied in the same way in both reverse-confusion cases and the more familiar forward-confusion cases, there are important differences in how other factors are analyzed and applied that stem from the fact that the harm and the theory of infringement differ between forward and reverse confusion.   Here, the record evidence establishes that Amazon acquired actual knowledge of Wreal’s registered trademark and still launched a product line. The two marks at issue are nearly identical, the commercial strength of Amazon’s mark is consistent with Wreal’s theory of recovery. Furthermore, Wreal has identified two consumers who a reasonable juror could conclude were confused by Amazon’s chosen mark. The court wrote, that there is no mechanical formula for applying the seven factors relating to the likelihood of confusion. But when considering all seven factors as they apply to a theory of reverse confusion and taking all the circumstances of this case into account on the record, it concluded that they weigh heavily in favor of Wreal. View "Wreal, LLC v. Amazon.com, Inc." on Justia Law

Posted in: Patents, Trademark
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EWC, which runs a nationwide beauty brand European Wax Center and holds the trademark "European Wax Center," filed suit under the Anti-Cybersquatting Consumer Protection Act (ACPA), against defendant, who used GoDaddy.com to register the domain names "europawaxcenter.com" and "euwaxcenter.com." EWC alleged that defendant registered his domain names with a bad faith intent to profit from their confusing similarity to EWC's "European Wax Center" mark.The Eleventh Circuit affirmed the district court's grant of summary judgment in favor of EWC, concluding that no reasonable juror could conclude that "europawaxcenter" and "euwaxcenter" are not confusingly similar to "European Wax Center" -- they are nearly identical to the mark in sight, sound, and meaning. View "Boigris v. EWC P&T, LLC" on Justia Law