Barrio Fiesta, LLC v. Northridge Foods International, Inc.
4:15-cv-02669
N.D. Cal.May 5, 2017Background
- Barrio Fiesta, LLC (Plaintiff) operates a Barrio Fiesta restaurant in Milpitas, CA and asserts federal and state trademark claims against Northridge Foods International, Inc., which imports and distributes packaged food products bearing the mark "Barrio Fiesta."
- Plaintiff relies on a federal registration for "Barrio Fiesta Express" and claims rights in the common-law mark "Barrio Fiesta."
- Prior to summary judgment, the record showed Plaintiff was a non-exclusive licensee of the registered mark; Plaintiff later produced a declaration and a written instrument (post-motion) purporting to memorialize an earlier oral grant of exclusive enforcement rights.
- Northridge and its foreign licensor (BFMC) have used the "Barrio Fiesta" mark in the Philippines since the 1950s and in the United States since at least 1987; Northridge has been BFMC’s U.S. distributor since 2006.
- Plaintiff was not incorporated until 2010; its license agreement is dated 2012; Plaintiff filed suit in 2015 after becoming aware of Northridge’s U.S. use years earlier.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to sue under the Lanham Act | Plaintiff contends it has standing as the registrant’s legal representative/assignee and later claims an exclusive license (oral, then written) | Northridge argues Plaintiff is only a non-exclusive licensee and thus lacks statutory standing | Court: Plaintiff lacked standing; post-motion exclusive-license evidence contradicted prior testimony and was untimely — summary judgment for lack of standing granted |
| Priority of use | Plaintiff claims rights in the mark based on registration and association with Philippine restaurants | Northridge shows long prior use abroad and in the U.S. (since 1987) and earlier continuous distribution | Court: Plaintiff cannot show priority of use; summary judgment granted on that independent ground |
| Laches (equitable defense) | Plaintiff implied delay was justified or limited | Northridge argues Plaintiff unreasonably delayed litigation and Northridge would be prejudiced by delay | Court: Declined to grant summary judgment solely on laches given record gaps about prejudice; laches not determinative here |
| State-law and common-law claims (CA dilution, unfair competition) | Claims rest on underlying trademark violations | Northridge: State claims depend on federal trademark liability | Court: Because federal claims fail, California statutory and common-law trademark and unfair competition claims also dismissed via summary judgment |
Key Cases Cited
- Celotex Corp. v. Catrett, 477 U.S. 317 (summary judgment standard)
- Anderson v. Liberty Lobby, 477 U.S. 242 (genuine issue and materiality standards)
- Freeman v. Arpaio, 125 F.3d 732 (9th Cir.) (inferences for nonmoving party)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (standing is case-or-controversy requirement)
- Kennedy v. Allied Mut. Ins. Co., 952 F.2d 262 (9th Cir.) (sham affidavit doctrine in opposing summary judgment)
- Sengoku Works Ltd. v. RMC Int’l, Ltd., 96 F.3d 1217 (9th Cir.) (ownership = priority of use)
- Grupo Gigante S.A. de C.V. v. Dallo & Co., 391 F.3d 1088 (9th Cir.) (priority/territoriality and foreign fame)
- Chance v. Pac-Tel Teletrac Inc., 242 F.3d 1151 (9th Cir.) (ownership requires appropriation and use in trade)
- Jarrow Formulas, Inc. v. Nutrition Now, Inc., 304 F.3d 829 (9th Cir.) (laches factors in trademark context)
- Miller v. Glen Miller Prods., Inc., 454 F.3d 975 (9th Cir.) (laches/knew-or-should-have-known trigger)
- Danjaq LLC v. Sony Corp., 263 F.3d 942 (9th Cir.) (laches and prejudice analysis)
