Byler v. Elicit Life LLC
1:14-cv-02103
D. Colo.Apr 20, 2015Background
- Byler claims a non-tobacco herbal chew recipe and the ELICIT mark; he alleges consumer association with the mark through his marketing efforts.
- BB&G Enterprise operated as Elicit Herbal Chew; Byler alleges he never assigned common-law rights in the Mark to BB&G.
- BB&G/Guess/Berry partnership allegedly used Byler’s statements and continued to associate the Mark with Byler even after the partnership.
- Triumph Tobacco Alternatives LLC was formed by Byler for a competing line under the TRIUMPH mark after a falling-out with Guess and Berry.
- Guess and Berry formed Elicit Life and continued to market as Elicit Herbal Chew, using Byler’s statements and the Mark after dissolution of BB&G.
- In Oct. 2014, the USPTO issued a trademark for “ELICIT HERBAL CHEW” to Bangumbo Marketing Group, an LLC controlled by Guess and Berry.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Lanham Act claim viability without registration | Byler asserts false advertising under §1125(a) despite unregistered mark. | Defendants contend lack of superior rights and that §1125(c) bars action. | Plaintiff's claim not barred by registration; needs discovery on rights. |
| Effect of federal registration on false advertising claim | Registration does not bar §1125(a) claims. | Registration purportedly precludes related claims. | No statutory bar; §1125(c) does not preempt §1125(a). |
| Sufficiency of showing consumer association | Byler adequately alleges consumer association with the Mark through marketing history. | Association allegations are insufficient or speculative. | Allegations may be problematic as to form but are sufficient at pleading; can proceed. |
| Preemption and sufficiency of Colorado unfair competition claim | Unfair competition can exist alongside federal trademark rights. | State claim should be preempted by federal registration and theory. | Unfair competition preemption not properly argued; claim dismissed for failure to plead harm (see below). |
| Harm and information-and-belief pleading adequacy | Defendants harmed Byler; continuation under TRIUMPH shows harm. | Harm is conclusory and not tied to pleaded facts; information-and-belief allegations improper. | Harm not adequately pleaded; dismissal without prejudice; information-and-belief pleadings cautioned. |
Key Cases Cited
- Ridge at Red Hawk, LLC v. Schneider, 493 F.3d 1174 (10th Cir. 2007) (pleading must show plausible claim; review under Twombly standard)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (U.S. 2007) (plausibility standard for stating a claim)
- PHC, Inc. v. Pioneer Healthcare, Inc., 75 F.3d 75 (1st Cir. 1996) (close cousin to infringement claim for unregistered marks)
- Kirksey v. R.J. Reynolds Tobacco Co., 168 F.3d 1039 (7th Cir. 1999) (distinguishes form over substance in pleading requirements)
- NetQuote, Inc. v. Byrd, 504 F. Supp. 2d 1126 (D. Colo. 2007) (deception or confusion element in unfair competition pleading)
