764 F. Supp. 2d 122
D.D.C.2011Background
- Plaintiffs own Bell Jet Ranger 206 helicopter trade dress and related design patents and allege infringement by Iran.
- Iran manufactured, distributed, offered for sale, and sold counterfeit 206 Model Helicopter Series helicopters and parts since 2001.
- Plaintiffs seek damages and injunctive relief under the FSIA commercial activity exception, 28 U.S.C. § 1605(a)(2), and the Lanham Act.
- Iran’s use of the trade dress after it had achieved fame allegedly dilutes and creates consumer confusion.
- Default was entered against Iran after it failed to answer or appear; an evidentiary damages hearing was held.
- Court finds Iran liable for trade dress infringement and dilution and awards monetary damages, trebled, plus fees and interest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether FSIA commercial activity lifts immunity | Bell Hel. contends Iran's commercial activity caused direct U.S. effects. | Iran argues activity outside U.S. does not trigger liability. | FSIA commercial activity applies; jurisdiction proper. |
| Validity and protectability of the Bell 206 trade dress | Trade dress is inherently distinctive with secondary meaning and non-functional. | Iran challenges distinctiveness and likelihood of confusion. | Trade dress is valid, distinctive, non-functional, and protected. |
| Infringement and likelihood of confusion by Iran's Shahed 278/285 | Shahed 278/285 imitate Bell 206 trade dress and cause confusion. | Iran disputes similarity or confusion. | Substantial likelihood of confusion established; infringement proven. |
| Trade dress dilution (blurring and tarnishment) | Iran adopted after fame and dilutes Bell 206 mark via blurring and tarnishment. | Iran disputes dilution claim. | Dilution by blurring and tarnishment established. |
| Damages and equitable relief under Lanham Act after default | Trespass damages, trebled profits, pre- and post-judgment interest, and fees warranted. | Default does not preclude damage calculation specifics. | Injunctive relief granted; monetary relief awarded with trebled damages and fees. |
Key Cases Cited
- Argentine Republic v. Amerada Hess Shipping Corp., 488 U.S. 428 (1989) (FSIA commercial activity reach and immunities framework)
- Hill v. Republic of Iraq, 328 F.3d 680 (D.C. Cir. 2003) (default judgment standard against foreign states)
- Roeder v. Islamic Republic of Iran, 333 F.3d 228 (D.C. Cir. 2003) (default judgment and evidence standard under FSIA)
- Foremost-McKesson v. Islamic Republic of Iran, 905 F.2d 438 (D.C. Cir. 1990) (FSIA jurisdiction and control principles)
- Cicippio-Puleo v. Islamic Republic of Iran, 353 F.3d 1024 (D.C. Cir. 2004) (FSIA as jurisdiction conferrer; cause of action otherwise under private law)