Justia Trademark Opinion Summaries
Articles Posted in Contracts
Creative Playthings Franchising Corp. v. Reiser
Plaintiff Creative Playthings Ltd., a Massachusetts corporation, entered into a franchising agreement with Defendant under which Defendant agreed to operate a Creative Playthings franchise store in Florida. Plaintiff later terminated its agreement with Defendant and commenced this action against Defendant in the U.S. district court for breach of contract and associated claims. Defendant filed several counterclaims against Creative. Creative moved for summary judgment on Defendant's counterclaims, asserting they were time barred under the limitations provision in the franchise agreement. The federal district court judge declined to decide Creative's motion and instead certified the question of whether contractually shortened statutes of limitations are generally enforceable under Massachusetts law. The Supreme Court answered by holding that, in a franchise agreement governed by Massachusetts law, a limitations period in the contract shortening the time within which claims must be brought is valid and enforceable under Massachusetts law if the claim arises under the contract and the agreed-upon limitations period is subject to negotiation by the parties, is not otherwise limited by controlling statute, is reasonable, is not a statute of repose, and is not contrary to public policy. View "Creative Playthings Franchising Corp. v. Reiser" on Justia Law
H-D MI, LLC v. Hellenic Duty Free Shops, S.A.
Harley-Davidson had a licensing agreement with a subsidiary of DFS and received notice that the companies had merged. Harley-Davidson did not exercise its right to terminate, but later discovered that DFS had sold unauthorized products bearing the trademark to an unapproved German retailer. Harley-Davidon sent an e-mail saying that it believed DFS was in breach of contract and that it was suspending approval of products. DFS responded in kind. Harley-Davidson then attempted to recover unpaid royalties and to secure from DFS information required under the agreement. DFS refused these attempts, but submitted production samples for a new collection. Harley-Davidson reminded DFS of the termination. DFS advised Harley-Davidson that it had “wrongfully repudiated the License Agreement” and that DFS planned to act unilaterally in accordance with its own views of rights and obligations. The district court granted injunctive relief against DFS, which was attempting to litigate the dispute in Greece. The Seventh Circuit affirmed. Harley-Davidson made strong showings that DFS was deliberately breaching a licensing agreement and “has tried numerous legal twists and contortions to try to avoid the legal consequences.” The court rejected an argument that the agreement provision consenting to personal jurisdiction in Wisconsin was not binding on DFS. View "H-D MI, LLC v. Hellenic Duty Free Shops, S.A." on Justia Law
Eureka Water Company v. Nestle Waters North America
Eureka Water Company contended that a 1975 agreement granted it the exclusive license in 60 Oklahoma counties to sell spring water and other products using the "Ozarka" trademark. It sued Nestle Waters North America, Inc., the current owner of the Ozarka trademark, to obtain a declaratory judgment of that right and to obtain monetary relief under several theories, including breach of contract, tortious interference with business relations, unjust enrichment, and promissory estoppel. A jury found for Eureka on its contract and tortious interference claims, and the district court entered a judgment declaring that the 1975 agreement granted Eureka the exclusive right that it claimed in the Ozarka mark. In a post-verdict ruling, the district court denied as duplicative Eureka's equitable claims based on unjust enrichment and promissory estoppel. Nestle appealed. The Tenth Circuit agreed with most of Nestle's principal arguments. First, the Court reversed the district court's denial of Nestle's motion for JMOL on the contract claim because the 1975 agreement unambiguously did not cover spring water and under Oklahoma contract law. The Court reversed the denial of JMOL on the tortious-interference claim because Eureka failed to show that Nestle's decision to charge Eureka what it charged other vendors for bottled water was not privileged or justified. Third, the Court affirmed the denial of Eureka's unjust enrichment claim because the claim is based on the false premise that Eureka's license to use the Ozarka trademark covers spring water. The Court reversed, however, the denial of Eureka's promissory-estoppel claim, and remanded that claim for further consideration by the district court.
View "Eureka Water Company v. Nestle Waters North America" on Justia Law
Stone Flood & Fire Restoration, Inc. v. Safeco Ins. Co.
In 2000, a fire destroyed a business location of Stone Flood and Fire Restoration Inc., spurring years of litigation with its insurer, Safeco Insurance Company of America. After Stone Flood and its two shareholders, James and Patrice Stone, sued Safeco in 2007, the district court dismissed all claims against Safeco. The court concluded (1) Stone Flood's claims on the insurance policy were filed three days beyond the applicable statute of limitations and were therefore barred; (2) the Stones were not insureds and lacked standing to bring individual claims under the policy; and (3) the Stones lacked standing to bring a claim of intentional infliction of emotional distress (IIED) because their alleged injuries were merely derivative of the corporation's. The Supreme Court reversed in part and affirmed in part, holding (1) the district court's calculation of the tolling of the limitations period was incorrect and a correct calculation saved Stone Flood's claims under the insurance policy; and (2) the district court properly concluded the Stones were not insureds and lacked standing to sue under the policy, and their claim of IIED failed for lack of a distinct, non-derivative injury. Remanded.View "Stone Flood & Fire Restoration, Inc. v. Safeco Ins. Co." on Justia Law
University of Ala. Bd of Trustees v. New Life, Inc
This case arose when the University told Daniel A. Moore, an artist who painted famous football scenes involving the University since 1979, that he would need permission to depict the University's uniforms because they were trademarks. Moore contended that he did not need permission because the uniforms were being used realistically to portray historic events. The parties could not reach a resolution and the University subsequently sued Moore for breach of contract, trademark infringement, and unfair competition. The court held that, as evidenced by the parties' course of conduct, Moore's depiction of the University's uniforms in his unlicensed paintings, prints, and calendars was not prohibited by the prior licensing agreements. Additionally, the paintings, prints, and calendars did not violate the Lanham Act, 15 U.S.C. 1125(a), because these artistically expressive objects were protected by the First Amendment. Accordingly, the court affirmed the grant of summary judgment by the district court with respect to the paintings and prints, and reversed with respect to the prints as replicated on calendars. With respect to the licensing agreements' coverage of the mugs and other "mundane products," the court reversed the district court's grant of summary judgment because disputed issues of fact remained. Accordingly, the court affirmed in part, reversed in part, and remanded. View "University of Ala. Bd of Trustees v. New Life, Inc" on Justia Law
Kyle, et al. v. Georgia Lottery Corp., et al.
Appellants sued GLC and SGI asserting trademark infringement, deceptive trade practices, and breach of contract stemming from GLC's "Money Bags" lottery games of 2005 and 2007. At issue was whether the Court of Appeals erred in finding that GLC was entitled to assert sovereign immunity as a bar to a suit raising claims that arose outside the Georgia Tort Claims Act and whether the Court of Appeals erred in finding that OCGA 10-1-440 required the bona fide use of a trademark to make out a claim concerning the trademark's infringement? The court held that because sovereign immunity applied to state instrumentalities, GLC was entitled to assert sovereign immunity as a defense in this case. The court also held that there was no error in the interpretation of OCGA 10-1-440(b) by the Court of Appeals where appellants have not made "bona fide" use of their MONEYBAG$ mark in commerce sufficient to establish protectable rights in the mark. Accordingly, the judgment was affirmed.View "Kyle, et al. v. Georgia Lottery Corp., et al." on Justia Law
Mercado-Salinasl v. Bart Enter. Int’l, Ltd.
In 1995, plaintiff, a popular psychic and astrologer, and defendant entered into a contract for production and distribution of materials featuring plaintiff's psychic and astrological services. Plaintiff granted defendant the right to use his trademark, name, and likeness. After a 2006 dispute led to litigation; a jury rejected plaintiff's claim that he had validly terminated the agreement, found that he had violated the agreement, and found that defendant owed him no compensation. In 2009, both parties sought injunctive relief to prevent the other party from using the trademark. The district court entered a preliminary injunction in favor of defendant, finding that plaintiff had assigned the trademark in perpetuity. The First Circuit affirmed. The district court did not abuse its discretion in issuing a preliminary injunction, based on its interpretation of the agreement and application of collateral estoppel, based on the prior litigation. View "Mercado-Salinasl v. Bart Enter. Int'l, Ltd." on Justia Law
Nike, Inc. v. Already, LLC
Plaintiff filed suit alleging that two shoe lines manufactured by defendant infringed plaintiff's trademark. At issue was whether a trademark registrant's delivery of a covenant not to sue, and voluntary dismissal of its trademark claims, divested a federal court of subject matter jurisdiction over a defendant's counterclaims for a declaratory judgment and cancellation of the trademark's registration. After considering the breadth of plaintiff's covenant not to sue and the improbability of future infringement, the district court dismissed defendant's counterclaims because no case or controversy existed under Article III of the United States Constitution. The court agreed with the district court and affirmed the judgment. View "Nike, Inc. v. Already, LLC" on Justia Law
Patsy’s Italian Restaurant, Inc., et al. v. Banas, et al.
This appeal stemmed from numerous trademark and unfair competition claims over the name "Patsy's." Patsy's Italian Restaurant appealed, and Patsy's Pizzeria cross-appealed, from a judgment of the district court after a jury trial on claims brought pursuant to trademark and unfair competition law. The court upheld the district court's jury instructions; affirmed the district court's refusal to grant a new trial on the issue of whether Patsy's Pizzeria made fraudulent statements to the Patent and Trademark Office, as well as its refusal to vacate the jury's verdict that Patsy's Italian Restaurant did not fraudulently obtain its trademark registrations; affirmed the district court's refusal to reinstate Patsy's Pizzeria's trademark registrations; and upheld the district court's denial of attorneys' fees and injunctive relief. Accordingly, the court affirmed the judgment of the district court. View "Patsy's Italian Restaurant, Inc., et al. v. Banas, et al." on Justia Law
CollegeSource, Inc. v. AcademyOne, Inc.
CollegeSource, Inc. (CollegeSource), a California corporation with its principal place of business in California, sued AcademyOne, Inc. (AcademyOne), a Pennsylvania corporation with its principal place of business in Pennsylvania, in federal district court for the Southern District of California, alleging that AcademyOne misappropriated material from CollegeSource's websites. AcademyOne moved to dismiss for lack of personal jurisdiction and the district court granted its motion. The court held that AcademyOne was subject to specific personal jurisdiction, but not general personal jurisdiction, in California with respect to CollegeSource's misappropriation claims. Under the doctrine of pendant personal jurisdiction, AcademyOne was also subject to personal jurisdiction in California with respect to the remainder of CollegeSource's claims. Therefore, the court reversed the district court's dismissal of CollegeSource's complaint and remanded for further proceedings. View "CollegeSource, Inc. v. AcademyOne, Inc." on Justia Law