Thomas Abraham v. Alpha Chi Omega
708 F.3d 614
| 5th Cir. | 2013Background
- Abraham founded Paddle Tramps (1961) to manufacture and sell fraternity/sorority paddles using Greek names, crests, and insignia.
- Paddle Tramps advertised and marketed products bearing Greek marks since the 1960s, including online display since 1997.
- Greek Organizations (32 entities) and Affinity Marketing Consultants sent licensing and litigation letters starting in 1990s, culminating in a 2007 suit in Florida later transferred to ongoing litigation.
- District court found Abraham infringed and diluted marks; laches and acquiescence defenses were disputed; jury found laches and acquiescence for Pi Kappa Alpha, and no unclean hands against Abraham.
- District court issued permanent injunction restricting Abraham’s future uses of marks, except for a narrow “double raised crest backing” product; the court balanced equities and concluded injunction appropriate despite laches.
- Abraham appealed the injunction primarily on laches grounds and breadth of the injunction; Greek Organizations cross-appealed on jury instructions and scope of injunction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether jury instructions on laches/unclean hands were proper | Abraham lacked clean hands; instruction allowed presumption of bad faith. | Abraham lacked bad faith; instructions properly distinguished infringement from unclean hands. | Instructions proper; deference to district court’s framing of laches/unclean hands. |
| Whether evidence supports laches and undue prejudice findings | Delay was unexcused and prejudicial to Greek Organizations. | Evidence showed lack of excuse via progressive encroachment and substantial prejudice from delayed enforcement. | Evidence supports laches and undue prejudice findings. |
| Whether injunction appropriately balances equities given laches | Injunction should be broader to bar all infringing uses. | Balance favored narrower relief (excluding double raised crest backing). | District court did not abuse discretion; injunction tailored to minimize prejudice. |
| Whether double raised crest backing should be enjoined | All infringing items including backings should be enjoined. | Backings drove sales and should be enjoined only if prejudicial. | Discretion upheld; backings excepted as necessary to avoid substantial prejudice. |
Key Cases Cited
- Conan Properties, Inc. v. Conans Pizza, Inc., 752 F.2d 145 (5th Cir. 1985) (unclean hands require knowledge-based bad-faith intent; presumption limited to confusion, not goodwill appropriation)
- Smack Apparel Co. v. University of Pittsburgh, 550 F.3d 490 (5th Cir. 2008) (unclean hands shown where infringer admitted intent to capitalize on goodwill)
- Champion Products, Inc. v. University of Pittsburgh, 686 F.2d 1040 (3d Cir. 1982) (undue prejudice inquiry in laches context; degree of prejudice matters)
- Elvis Presley Enterprises, Inc. v. Capece, 141 F.3d 188 (5th Cir. 1998) (undue prejudice concept discussed in context of balancing equities; not decisive test)
- Westchester Media v. PRL USA Holdings, Inc., 214 F.3d 658 (5th Cir. 2000) (First Amendment considerations in injunctions; preference for disclaimers in some cases)
- eBay, Inc. v. MercExchange, LLC, 547 U.S. 388 (S. Ct. 2006) (permanent injunction standard; four-factor test applied to determine irreparable injury and balance of equities)
- Armco, Inc. v. Armco Burglar Alarm Co., Inc., 693 F.2d 1155 (5th Cir. 1982) (equitable defenses and injunctions interplay in trademark context)
