Polaris Industries Inc v. TBL International Inc.
0:19-cv-00291
D. MinnesotaMar 6, 2020Background:
- Polaris Industries owns the registered RHINO GRIP trademark for a mounting bracket used on ATVs and similar vehicles.
- TBL International (doing business as Maggift LLC) manufactured and sold mounting brackets labeled “Rhino Grip” that Polaris alleges are counterfeit and visually identical to Polaris’s product.
- Polaris sent two cease-and-desist letters (starting Jan. 2018), then sued TBL in Feb. 2019 under the Lanham Act, Minnesota UDTPA, and related common-law claims.
- TBL failed to answer or otherwise defend; the clerk entered default and TBL did not appear at the October 2, 2019 hearing.
- The court found liability on Polaris’s Lanham Act and state/common-law claims based on the unchallenged complaint, and concluded TBL willfully counterfeited the mark.
- Relief awarded: permanent injunction, destruction of infringing goods, statutory damages of $109,500, attorneys’ fees of $10,574.50, costs of $897.71, and post-judgment interest; prejudgment interest denied.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Liability for trademark infringement (likelihood of confusion) | Polaris: RHINO GRIP is distinctive and registered; TBL’s product is substantially similar and sold to the same consumers, creating confusion; TBL had actual notice. | TBL: no response/failed to defend. | Court: Allegations taken as true on default; majority of confusion factors favor Polaris; infringement proven. |
| Claim for false designation (Lanham Act §1125) and deceptive trade practices (Minn. UDTPA) | Polaris: same facts that support infringement also show false designation and passing off; injunctive relief appropriate. | TBL: no response. | Court: Likelihood of confusion established; claims stated and relief available. |
| Willfulness and statutory damages amount under §1117(c) | Polaris: willful counterfeiting; seeks maximum statutory award ($2,000,000) to punish and deter. | TBL: no response/cooperation; no sales records produced. | Court: Willfulness found (notice and continued sales); statutory damages appropriate but $2M excessive; awarded $109,500 based on product value, deterrence, and analogues. |
| Injunctive relief; destruction of goods | Polaris: irreparable harm via confusion and goodwill loss; destruction authorized under §1118. | TBL: no response. | Court: Permanent injunction granted; TBL must destroy infringing goods and file compliance report. |
| Attorneys’ fees, costs, and interest | Polaris: TBL’s willful misconduct makes case exceptional under §1117(a) and Minn. law; fees/costs recoverable; seeks prejudgment and post-judgment interest. | TBL: no response. | Court: Fees ($10,574.50) and costs ($897.71) awarded using lodestar; prejudgment interest denied for statutory-damages award; post-judgment interest required. |
Key Cases Cited
- B & B Hardware, Inc. v. Hargis Indus., Inc., 575 U.S. 138 (2015) (standard for likelihood of confusion).
- Lovely Skin, Inc. v. Ishtar Skin Care Prods., LLC, 745 F.3d 877 (8th Cir. 2014) (six-factor confusion test application).
- Murray v. Lene, 595 F.3d 868 (8th Cir. 2010) (unchallenged allegations in default are taken as true).
- Co-Rect Prods., Inc. v. Marvy! Advert. Photography, Inc., 780 F.2d 1324 (8th Cir. 1985) (false designation of origin and injunctive relief under Lanham Act).
- Doctor’s Assocs., Inc. v. Subway.SY LLC, 733 F. Supp. 2d 1083 (D. Minn. 2010) (willful counterfeiting standard and statutory-damages discussion).
- All-Star Mktg. Grp., LLC v. Media Brands Co., Ltd., 775 F. Supp. 2d 613 (S.D.N.Y. 2010) (factors for assessing statutory damages after default).
- Cass Cty. Music Co. v. C.H.L.R., Inc., 88 F.3d 635 (8th Cir. 1996) (statutory-damages fact-finding and limits).
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (lodestar method for reasonable attorneys’ fees).
- Blum v. Stenson, 465 U.S. 886 (1984) (prevailing-market-rate standard for fee awards).
- Pennsylvania v. Del. Valley Citizens’ Council for Clean Air, 478 U.S. 546 (1986) (lodestar presumption and fee calculations).
