Duck Dive v. Michaeline Heydari
2:13-cv-07791
C.D. Cal.Mar 27, 2014Background
- Plaintiff Duck Dive (San Diego gastropub, opened Mar 2012) uses the name and a logo (woman duck-diving) and sells apparel; has pending trademark applications and local/regional media recognition.
- Defendants opened "Duck Dive Gastropub" in Malibu (May 2013) and attempted trademark registration then abandoned one application; continue to operate under a similar name and seek registration for “Duck Dive Gastropub Malibu.”
- Plaintiff sent a cease-and-desist; after no compliance, Plaintiff sued for trademark infringement, unfair competition, unfair business practices, and unjust enrichment and sought a preliminary injunction to enjoin Defendants’ use of “Duck Dive.”
- Evidence of actual confusion: customer calls misdirected to Plaintiff, unclaimed to-go orders, and a Los Angeles food blog reporting Defendants’ location as Plaintiff’s “second location.”
- Court found risk of reputational harm and loss of goodwill (irreparable injury) and that Plaintiff is the senior user in the relevant market/industry despite other uses of the term elsewhere.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Irreparable harm | Confusion has caused reputational harm, lost customers, and unclaimed orders — non-monetary injuries justify injunction | Presumption of irreparable harm is invalid; Plaintiff hasn’t shown irreparable injury | Court: Plaintiff showed actual confusion and reputational/goodwill harms constituting irreparable injury; no need to resolve presumption issue |
| Ownership/prior use | Duck Dive is senior user in San Diego market and seeks protection in its industry/zone of expansion | Other unrelated uses of "Duck Dive" nationally negate protectable rights | Court: Priority is based on first use in market/industry; Plaintiff is senior user and has protectable interest |
| Likelihood of consumer confusion | Marks are essentially identical, services proximate (both beach gastropubs), evidence of actual confusion supports likelihood | Geographic distance (San Diego vs Malibu) reduces confusion risk | Court: Likelihood of confusion found — strong mark, similar services/marketing, zone of expansion into LA, and actual confusion evidence weigh for Plaintiff |
| Scope of preliminary relief | Injunction needed to prevent further consumer confusion and reputational harm | Injunction would be overbroad given generic uses and distance | Court: Granted broad preliminary injunction barring use of "DUCK DIVE"/"DUCK DIVE GASTROPUB" for restaurant/bar/apparel/advertising/etc.; allowed generic use of the word "Gastropub" alone |
Key Cases Cited
- Winter v. Natural Res. Defense Council, 555 U.S. 7 (2008) (four-factor test for preliminary injunctions)
- Marlyn Nutraceticals, Inc. v. Mucos Pharma GmbH & Co., 571 F.3d 873 (9th Cir. 2009) (historical presumption of irreparable harm in trademark cases)
- Flexible Lifeline Sys., Inc. v. Precision Lift, Inc., 654 F.3d 989 (9th Cir. 2011) (rejection of irreparable-harm presumption in copyright context)
- Arcamuzi v. Continental Air Lines, Inc., 819 F.2d 935 (9th Cir. 1987) (sliding-scale approach for preliminary injunctions)
- Sengoku Works Ltd. v. RMC Int’l, Ltd., 96 F.3d 1217 (9th Cir. 1996) (priority-of-use test for trademark ownership)
- Brookfield Commc’ns, Inc. v. West Coast Entm’t Corp., 174 F.3d 1036 (9th Cir. 1999) (senior user rights and natural zone of expansion principle)
- Rearden LLC v. Rearden Commerce, Inc., 683 F.3d 1190 (9th Cir. 2012) (strength of marks spectrum)
- Playboy Enters., Inc. v. Netscape Comms. Corp., 354 F.3d 1020 (9th Cir. 2004) (weight of actual confusion evidence)
- Stuhlbarg Int’l Sales Co. v. John D. Brush & Co., 240 F.3d 832 (9th Cir. 2001) (non-monetary harms like damage to goodwill can be irreparable)
- MySpace, Inc. v. Wallace, 498 F. Supp. 2d 1293 (C.D. Cal. 2007) (irreparable injury in trademark/unfair competition contexts)
