Sream Inc. v. LB Smoke Shop, Inc.
1:16-cv-24936
S.D. Fla.Jun 23, 2017Background
- Sream, Inc. (licensee) sued LB Smoke Shop alleging Lanham Act trademark infringement, counterfeiting, false designation of origin, and FDUTPA violations based on sale of counterfeit RooR-branded water pipes.
- RooR trademarks are federally registered in the name of Martin Birzle; Sream claims it is the exclusive U.S. licensee of those trademarks since August 1, 2013.
- LB Smoke Shop moved to dismiss for lack of standing, arguing Sream failed to plead or show a chain of title or an assignment/license from the registered owner (Birzle).
- The Court ordered Sream to amend and plead a complete chain of interest from the USPTO registrant to Sream; Sream filed an Amended Complaint and later attached the August 1, 2013 license agreement in its response.
- The license agreement (between Birzle and Sream) purports to grant Sream an exclusive license and full enforcement rights; LB Smoke Shop argued the Amended Complaint still failed to comply with the Court’s order.
- The Court denied LB Smoke Shop’s motion, finding Sream sufficiently alleged a complete chain of interest and provided competent proof (the license) showing standing to sue as an exclusive licensee.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to sue under the Lanham Act | Sream is the exclusive licensee of RooR marks and has enforcement rights, so it has standing equivalent to an assignee | LB Smoke Shop: Sream failed to plead or show a chain of title; USPTO records list Birzle, not RooR or Sream, so no standing | Court: Denied dismissal — Sream alleged Birzle = RooR and produced the August 1, 2013 exclusive license showing an unbroken chain of interest, satisfying standing |
| Sufficiency of amended pleading after court order | Amended Complaint plus license exhibit prove exclusive license and enforcement rights | Amended Complaint merely repackages prior defects and lacks documentary proof | Court: Allegations and attached license, construed favorably, are adequate under Rule 12 standards; plaintiff met obligation to supply competent proof when jurisdiction was challenged |
Key Cases Cited
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (pleading must state a plausible claim)
- Ashcroft v. Iqbal, 556 U.S. 662 (legal conclusions not presumed true; factual support required)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (standing requires injury in fact and constitutionally cognizable interest)
- Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375 (federal courts have limited jurisdiction)
- McNutt v. Gen. Motors Acceptance Corp. of Indiana, 298 U.S. 178 (plaintiff bears burden to prove jurisdictional facts by competent proof)
- Fin. Inv. Co. (Bermuda) v. Geberit AG, 165 F.3d 526 (exclusive licensee equated with assignee for standing to sue)
- Fla. Virtual Sch. v. K12, Inc., 735 F.3d 1271 (no standing absent legal title to registered trademark)
