3:17-cv-02676
N.D. Cal.Sep 24, 2017Background
- Planet Drum Foundation owns the PLANET DRUM trademark (registered 1996) and alleges continuous use since 1973 in ecology-related publications and services.
- Mickey Hart and 360° Productions (360) used "Planet Drum" for a musical group and albums; 360 and Planet Drum Foundation entered a 1998 license granting an exclusive license to musical groups, with quality-control provisions tied to Hart's control of 360.
- 360 made royalty payments through June 1999; Planet Drum Foundation terminated the license in June 2000 for nonpayment and notified that future uses would require re-licensing.
- Plaintiff alleges Defendants continued some uses (album/book sales) and planned a 2016–2017 re-release of the PLANET DRUM album without authorization, prompting suit for trademark infringement (15 U.S.C. § 1114) and false designation of origin (15 U.S.C. § 1125(a)).
- Defendants moved to dismiss under Rule 12(b)(6), arguing laches (17-year delay), naked licensing (failure to police quality), and failure to plead likelihood of confusion; the court denied the motion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Laches | Delay was excusable; suit timely for alleged ongoing/unlawful uses and willfulness | Plaintiff slept on rights ~17 years; presumption of laches and prejudice | Denied — factual questions (knowledge date, reasonableness, prejudice, willfulness) make dismissal premature |
| Naked licensing | Licensed with quality-control terms; did not abandon mark; informal control occurred | Plaintiff failed to police post-license uses, amounting to naked licensing and forfeiture of rights | Denied — complaint does not show as a matter of law that mark was abandoned; quality control allegations suffice at pleading stage |
| Likelihood of confusion | Alleged unauthorized identical use of PLANET DRUM creates confusion; Rule 8 notice pleading met | Goods/services differ, no actual confusion, different channels, no expansion into music | Denied — identical marks alleged; Sleekcraft factors are fact-specific and dismissal inappropriate at pleading stage |
| Rule 12(b)(6) pleading sufficiency | Allegations state claims under Lanham Act | Defendants argue legal defenses defeat claims on face of complaint | Denied — factual nature of defenses (laches, naked license, Sleekcraft factors) precludes dismissal now |
Key Cases Cited
- AMF, Inc. v. Sleekcraft Boats, 599 F.2d 341 (9th Cir. 1979) (establishes eight-factor likelihood-of-confusion test)
- Jarrow Formulas, Inc. v. Nutrition Now, Inc., 304 F.3d 829 (9th Cir. 2002) (laches is a defense to Lanham Act claims; outlines analysis)
- Danjaq LLC v. Sony Corp., 263 F.3d 942 (9th Cir. 2001) (willful infringement can defeat laches; discusses laches framework)
- FreecycleSunnyvale v. Freecycle Network, 626 F.3d 509 (9th Cir. 2010) (discusses naked licensing and standard for forfeiture)
- Barcamerica Intern. USA Trust v. Tyfield Importers, Inc., 289 F.3d 589 (9th Cir. 2002) (naked licensing precedents and stringent standard)
- Brookfield Commc’ns, Inc. v. W. Coast Entm’t Corp., 174 F.3d 1036 (9th Cir. 1999) (discussion of likelihood-of-confusion and flexible application of Sleekcraft factors)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (pleading standard — plausibility)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (limits on accepting legal conclusions as facts in pleadings)
