MEMORANDUM AND OPINION
This is a trademark dispute over a logo consisting of a raised, five-pointed star set within a circle. Amazing Spaces, Inc., a self-storage services company based in Houston, Texas, has used this star logo on its self-storage facilities since 1998 and registered it as a trademark in 2004. Metro Mini Storage, another self-storage company located in Houston, Texas, uses a similar five-pointed star set within a circle logo on its buildings. Amazing Spaces sued Metro and its builder, Landmark Interest Corporation (“Landmark”), alleging trademark infringement, trade dress infringement, copyright infringement, unfair competition, and a violation of the Texas Anti-Dilution Statute. (Docket Entry Nos. 1, 24). Metro and Landmark respond that the star mark is not entitled to trademark protection because it is widely used in Texas and does not identify Amazing Spaces. Metro and Landmark also asserted in a counterclaim that Amazing Spaces falsely represented in its trademark application that it was the first company to use the star mark in connection with rental storage spaces and that the trademark registration is invalid and unen
At the initial conference, this court ordered discovery and motions to occur in stages, with the first stage addressing “issues raised by the ‘trademarkability’ of the Texas star and similar issues affecting copyright and trade dress.” (Docket Entry No. 18). After this discovery, the defendants moved for summary judgment that Amazing Spaces’s star mark cannot be trademarked. (Docket Entry No. 42). Amazing Spaces responded, (Docket Entry No. 44), and the defendants replied, (Docket Entry No. 52). Amazing Spaces mоved for summary judgment on the fraud counterclaim, (Docket Entry No. 41), to which the defendants responded, asserting that the initial discovery phase did not include the fraud claim and seeking a continuance under Federal Rule of Civil Procedure 56(f). (Docket Entry No. 43). Amazing Spaces replied, arguing that the defendants are not entitled to a continuance because they “aggressively pursued discovery on their fraud claims within the initial discovery phase.” (Docket Entry No. 48).
Based on a careful review of the motions, responses, and replies, the evidence in the record, the parties’ submissions, and the applicable law, this court grants the defendants’ motion for summary judgment. The undisputed facts in the summary judgment record show that, as a matter of law, the star mark is not entitled to trademark protection. Amazing Spaces’s motion for summary judgment on the fraud counterclaim is denied as moot.
The reasons for these rulings are explained in detail below.
I. Background
Amazing Spaces provides self-storage services at three locations in the Houston area. (Docket Entry No. 44, Declaration Of Kathy Tautenhahn at ¶ 4). Amazing Spaces was incorporated in 1997 by Scott and Kathy Tautenhahn. The corporate logo is a series of mountain peaks with the star mark on the top of each peak and the words “Amazing Spaces. Self Storage Boxes Moving Supplies” at the base. Amazing Spaces opened its first storage facility on West Road in Northwest Houston in May 1998. Landmark constructed the West Road facility. (Docket Entry No. 44, Declaration of Kathy Tautenhahn, at ¶ 8). Amazing Spaces had Landmark place a five-pointed raised star within a circle on the outside walls beneath the roof peaks of the West Road buildings. (Id.). In 2001, Amazing Spaces opened a storage facility on Louetta Road in Spring, Texas and in 2006 opened a third facility off Interstate 45 in The Woodlands. (Id.). Landmark built both these facilities. Both used the raised star design under the roof peaks. (Docket Entry No. 42, Ex. 2, Deposition of Kathy Tautenhahn at 50:24-25).
Amazing Spaces asserts that it has used the star mark on the facades of its facilities since 1998. The trademark application filed with the USPTO stated that Amazing Spaces first used the mark in commerce “as early as April 1998.” An advertisement for the May 1998 grand opening of the West Road facility used the star mark to show where the complex was located. (Docket Entry No. 42, Ex. 11). Amazing Spaces used advertisements with the star mark indicating the location of its facilities on maps and as a bullet-point graphic to list storage facility amenities. (Docket Entry No. 44, Ex. I). Some of the Amazing Spaces advertisements include pictures of the storage buildings showing the star mark.
(Id.).
In her affidavit, corporate representative Kathy Tautenhahn stated that the star mark was omitted from advertisements only when “space concerns or the nature of the advertising media” prevented its use. (Docket Entry No. 44, Declaration of Kathy Tautenhahn at ¶ 21). Amazing Spaces used telephone
Landmark and Metro assert that the star mark cannot be trademarked because it is “immediately recognizable as the Texas Star.” (Docket Entry No. 42, at 2). The defendants assert that the star mark is widely used by businesses, government entities, and individuals across Texas “tо adorn private and public buildings, roadways, signs, business logos, homes, [and] personal property.” (Id., at 5). According to the defendants, a five-pointed star “has been a Texas symbol since the early days of the Texas Republic” and “Texans everywhere seek to preserve and promote their Texas heritage by displaying the Texas star.” (Id., at 3-4). The defendants note that the Texas flag and the seal of the State of Texas each include a five-pointed star. (Id.). The defendants submitted a May 12, 2003 press release by the Texas Secretary of State stating as follows:
As Texans, we take great pride in the symbols of our great state — the Lone Star Flag, the Alamo, the Texas State Seal, and so on. It is a reflection of the esteem in which we hold these symbols that thousands of Tеxas businesses choose to include them in their name or use them as part of their logo.
(Docket Entry No. 42, Ex. 4). The defendants assert that the star mark “is well-recognized in the Lone Star State and beyond.” (Docket Entry No. 42, at 3).
On August 15, 2003, Amazing Spaces applied to register the star mark with the United States Patent and Trademark Office for use in “Personal Storage Services” under International Class 39. Before applying for the trademark registration, Amazing Spaces hired a company to conduct a database search to determine whether any storage-unit companies had registered a similar star mark with the USPTO. The survey found no such registration. (Docket Entry No. 42, Ex. 23). In the application, the Amazing Spaces corporate representative stated under oath as follows:
[T]о the best of her knowledge and belief, no other person, firm, corporation, or association has the right to use said mark in commerce, either in the identical form or in such near resemblance thereto as to be likely, when applied to the goods and services of such other person, to cause confusion, to cause mistake, or to deceive.
(Docket Entry No. 41, Ex. 13). The application was granted on July 6, 2004 as U.S. Trademark Registration No. 2,859, 845 (“the '845 Registration”) under international class 39 for “storage services.” (Docket Entry No. 44, Declaration of Kathy Tautenhahn, at ¶ 15).
On one occasion before the trademark application was granted, Amazing Spaces attempted to enforce its mark within the storage industry. Amazing Spaces threatened legal action against Community Self Storage in 2003 when it learned that Community was using the star mark on its buildings. In response, Community Self Storage removed the mark. (Docket Entry No. 44, Declaration of Kathy Tautenhahn at ¶ 38).
Metro and Landmark argue that not only is the star-within-a-circle used on a wide variety of business and government buildings, structures, and products, it is used by a large number of self-storage companies. Metro and Landmark submitted a list of 28 self-storage businesses that have a star or star-within-a-circle on their buildings. (Docket Entry No. 42, Ex. 8). Metro also submitted the affidavit of John Thompson, the previous owner of a Houston-area storage rental facility. (Docket No. 42, Ex. 14, Affidavit of John Thompson). Thompson stated that in 1997, he and his wife owned Flagship Storage, which is now part of the “Uncle Bob’s” chain of self-storage facilities. Flagship Storage was also built by Landmark.
(Id.,
at ¶ 2-3). According to the defendants, Flagship’s facility incorporated the same raised, five-pointed star-within-a-circle found on the Amazing Spaces buildings.
(Id.,
Exs. A-B). Thompson stated that the stars used on the Flagship Storage buildings were bought in December 1997 and in place no later than March 1998.
(Id.,
at ¶ 7). Flagship Storage did not have these stars designed and fabricated but bought them “off the shelf.” Thompson also stated that when he left the storage industry in 2003, he was aware of other storage facilities that used the same star mark on their buildings.
(Id.,
at ¶ 8). Nancy Thompson, John’s wife, also submitted an affidavit, corroborating his statements. (Docket No. 42, Ex. 15, Affidavit of Nancy Thompson). Amazing Spaces responded thаt 11 of these 28 storage facilities the defendants identified as using a star-within-a-circle were built by Landmark after it built the Amazing Spaces West Road facility incorporating the star mark in early 1998. Amazing Spaces notes that one of the 28 businesses was Community Self Storage, which removed its stars in 2003 after Amazing Spaces threatened to sue for infringement. (Docket Entry No. 44, Declaration of Kathy Tautenhahn at ¶¶ 34-35). Amazing Spaces points to the deposition testimony of Morris David Booth, Landmark’s owner, and Carl Ray Drake, a Metro employee, that although other storage companies, including Lakeside Landing, Private Mini Storage, Southwest Storage, and Uncle Bob’s Storage, used the star mark before Amazing Spaces did, these storage companies were using the design for merely decorative purposes, not to denote any connection with the self-storage business. (Docket No. 44, Declaration of Gregory M. Luck, Ex. 1, at 59:6-21; Ex. 2, at 84:12-24; 90:1-25). According to Amazing Spaces, this means that any prior users were not using the star mark as a trademark — a source identifier for their business — but merely as a decoration. (Docket No. 44, Declaration of Kathy Tautenhahn, at ¶ 32). Amazing Spaces asserts that the record evidence shows that it was the first to use the star mark as a source identifier for its business and not
The parties’ summary judgment evidence and arguments are analyzed against the applicable law.
II. The Summary Judgment Standard
Summary judgment is appropriate if no genuine issue of material fact exists and the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(c). “The movant bears the burden of identifying those portions of the record it believes demonstrate the absence of a genuine issue of material fact.”
Triple Tee Golf, Inc. v. Nike, Inc.,
If the burden of proof at trial lies with the nonmoving party, the movant may satisfy its initial burden by “ ‘showing’ — that is, pointing out to the district court — that there is an absence of evidence to support the nonmoving party’s case.”
See Celotex,
When the moving party has met its Rule 56(c) burden, the nonmoving party cannot survive a summary judgment motion by resting on the mere allegations of its pleadings. The nonmovant must identify specific evidence in the record and articulate how that evidence supports that party’s claim.
Baranowski v. Hart,
III. Analysis
A. Is the Star Mark Entitled to Trademark Protection?
A trademark is “any word, name, symbol, or device or any combination thereof’ used by any person “to identify and distinguish his or her goods, including a unique product, from those manufactured or sold by others and to indicate the source of the goods, even if that source is unknown.” 15 U.S.C. § 1127. A trademark registration by the Patent and Trademark Office (PTO) is “prima facie evidence of the validity of the registered mark .... ” 15 U.S.C. § 1115(a);
see also Elvis Presley Enters., Inc. v. Ca
A plaintiff seeking to establish that it is entitled to protection from infringement by junior users must demonstrate that its mark is protectable, a threshold requirement that “must be satisfied before infringement can be actionable.”
Elvis Presley Enters.,
A mark is inherently distinctive if its “intrinsic nature serves to identify a particular source.”
Wal-Mart Stores, Inc. v. Samara Bros., Inc.,
“Generic marks are not inherently distinctive and receive no trademark protection.”
Xtreme Lashes,
Descriptive marks are not inherently distinctive, but may become protectable by proof of secondary meaning.
Zatarains, Inc. v. Oak Grove Smokehouse, Inc.,
“[M]arks that are ‘arbitrary’ (‘Camel’ cigarettes), ‘fanciful’ (‘Kodak’ film), or ‘suggestive’ (‘Tide’ laundry detergent) are held to be inherently distinctive,”
Wal-Mart,
The “word spectrum of marks”— generic, descriptive, suggestive, arbitrary, fanciful — does not always “translate into the world of shapes and images.”
See
J. Thomas McCarthy, McCarthy on Trademarks and Unfair Competition § 8:13 (4th ed.2002). Courts have used the factors set forth in
Seabrook Foods, Inc. v. Bar-Well Foods, Ltd.,
1. The Star Mark is not Inherently Distinctive
The defendants argue that the star mark is not trademarkable because it is a generic, common geometric shape. The defendants point to numerous uses of the five-point star within a circle as a decoration on businesses, homes, and buildings in the State of Texas. The defendants argue that the use is so ubiquitous that as a matter of law, the symbol is generic and not entitled to trademark protection. The defendants contend that the ubiquity of the star mark means that it cannot be a source identifier for the Amazing Spaces facilities or services. Amazing Spaces responds that its star mark is not simply a star, but a stylized version of a star set within a circle. Amazing Spaces argues that the evidence submitted by the defendants of widespread use of a similar star is irrelevant because most of the evidence is not about the self-storage industry. Amazing Spaces also argues that the five-pointed star within a circle is “an inherently distinctive trademark which bears no relationship to the products and services with which it is used, and is thus by definition arbitrary or fanciful.” (Docket Entry No. 44, at 15).
The star mark is not a plain five-pointed star; it is shaded and set within a circle. The shape and shading are sufficient stylization to make the mark more than a common geometric shape. The star mark Amazing Spaces registered for use in the self-storage industry is not generic. A mark is generic when it “refers to a particular genus or class of which an individual article or service is but a member.”
Amstar Corp. v. Domino’s Pizza, Inc.,
The star mark is not descriptive. It does not identify a characteristic or quality of self-storage service, such as its function or quality. Amazing Spaces concedes that the star mark is not suggestive. (Docket Entry No. 44, at 18). There is no basis to conclude that a five-pointed star set within a circle suggests an attribute of self-storage services.
Although there is no connection between the star mark and the self-storage industry, the star mark cannot be classified as arbitrary or fanciful unless it is inherently distinctive so as to serve as a source identifier for Amazing Spaces. The factors set out in
Seabrook
are instructive. The question is whether the star mark is “so unique, unusual or unexpected” in the self-storage industry that “one can assume without proof that it will automatically be perceived by customers as an indicator of origin.” J. Thomas McCarthy, McCarthy on Trademarks and Unfair Competition § 8:13 (4th ed.2002). A common symbol may be a valid trademark if it is uncommon within an industry and can identify the source.
Compare Star Industries, Inc. v. Bacardi & Co. Ltd.,
The parties dispute whether Amazing Spaces was the first company to use the star mark in the self-storage industry. The Thompsons’ affidavits state that they bought five-pointed stars set within a circle “off the shelf’ in December 1997 and that these stars were placed on the buildings at Flagship Storage no later than March 1998. (Docket No. 42, Exs. 14, 15, Thompson Affidavits). Landmark’s president and a Metro employee both testified that four other self-storage companies— Lakeside Landing, Private Mini Storage, Southwest Storage, and Uncle Bob’s Storage — used the star mark on their buildings before Amazing Spaces. (Docket No. 44, Declaration of Gregory Luck, Ex. 2 at 90:1-25). Amazing Spаces submitted the affidavit of its owner, Kathy Tautenhahn, stating that Amazing Spaces began using the star mark on its buildings in April 1998. (Docket No. 44, Declaration of Kathy Tautenhahn at ¶ 33). Tautenhahn also stated that of these self-storage companies, only Lakeside Landing used -the star mark before Amazing Spaces built its first facility in early 1998. (Id.). This factual dispute as to prior use in the self-storage business in Houston does not preclude summary judgment. Regardless of whether Amazing Spaces was the first self-storage business to use the star mark- — at least in the Houston area — the mark is not inherently distinctive and does not act as an indicator of origin for any self-storage business, including Amazing Spaces.
A five-pointed star set within a circle is a common symbol long associated with Texas. A drive on a highway, a walk along a downtown street, or a visit to a shopping center drives home just how common the five-point star within a circle design is. Examples abound. The Texas Rangers badge is a “star in the wheel” design. Texas is known as the “Lone Star” state. The star set within a circle is used as a decoration or ornamentation on innumerable buildings, signs, roads, and products. (Docket Entry No. 42, Exs. 6-8, 12, 16-19, 31-32). The summary judgment record includes evidence that a five-pointed star set within a circle is currently used in commerce in at least 63 different industries and businesses on buildings, property, and as part of logos. (Id., Exs. 6, 7). The evidence also shows that at least 28 other self-storage locations use a five-pointed star set within a circle on their buildings. (Id., Ex. 8). The ubiquitous nature of the five-pointed star set within a circle precludes a finding that it is inherently distinctive or that it can serve as an indicator of origin for a particular business.
Amazing Spaces argues that the prevalence of the star mark in Texas does not affect whether it is protectable. Amazing Spaces cites
Qualitex Co. v. Jacobson Products Co.,
The facts of this case are also distinguishable from the facts in
Xtreme Lashes, LLC v. Xtended Beauty, Inc.,
2. The Summary Judgment Evidence Does Not Establish a Fact Issue as to Secondary Meaning
To show secondary meaning, or acquired distinctiveness, the party claiming infringement must show that the primary significance of the mark is to identify the source of the product rather than the product itself.
Wal-Mart Stores,
In considering the evidence, a court focuses on how it demonstrates that the meaning of the mark or trade dress has been altered in the consumers’ minds.
See id.
For example, substantial spending on advertising does not itself cause a mark to acquire secondary meaning, but advertisements may emphasize “the source significance of the designation through prominent use of the [mark]” and are likely to alter the mark’s meaning in the minds of consumers.
See
Restatement (Third) of Unfair Competition § 13 cmt. c, at 110 (1995). Determining secondary meаning is based on empirical information about consumer association of the product design to its manufacturing source.
Sunbeam Products,
The defendants argue that there is no evidence in the summary judgment record of secondary meaning. The defendants assert that the only relevant record evidence shows that the star mark has not acquired secondary meaning that identifies Amazing Spaces. They point to Landmark’s president’s deposition testimony that “I don’t know of anybody in the industry that recognizes that star as being Amazing Spaces.” (Docket Entry No. 42, Ex. 15, at 85:18-20). Amazing Spaces responds that the record contains ample evidence of secondary meaning. Amazing Spaces points to evidence that it has used the star mark for over ten years, during which it has invested resources into аdvertising and promoting this mark. According to the declaration of Kathy Tautenhahn, Amazing Spaces has spent $723,138.75 in advertising and promoting the star mark. (Docket Entry No. 44, Declaration of Kathy Tautenhahn, at ¶ 22). Tautenhahn’s declaration states that Amazing Spaces has realized $11,539,638.95 in revenue since it began using the star mark.
(Id.
at ¶ 19). Amazing Spaces cites
L.A. Gear, Inc. v. Thom McAn Shoe Co.,
Amazing Spaces’s reliance on L.A.
Gear, Harlequin Enters.,
and
Imperial Toy
is misplaced. In the Fifth Circuit, all of the relevant factors are considered to
By contrast, the Fifth Circuit found insufficient evidence of secondary meaning in
Sunbeam Products,
The evidence submitted by Amazing Spaces is more like the evidence in
Sunbeam Products
and
Natural Polymer
than in
Zatarains.
Amazing Spaces did not present survey evidence, which the Fifth Circuit has recognized as the “most direct and persuasive way of establishing second
The evidence as to actual confusion does not raise a fact issue as to secondary meaning. The two customers who provided declarations, Glen Gilmore and Shane Flores, each stated that the use of the star mark “in conjunction with the similarity in the architectural features and designs” of Metro’s building led them to believe that it was operated by Amazing Spaces. (Docket Entry No. 44, Declaration of Glen Gilmore, Declaration of Shane Flores). There is no evidence that the star mark itself “denote[s] to the consumer ‘a single thing coming from a single source.’ ”
Zatarains,
Weighing the relevant factors, this court conсludes that the record does not raise a fact issue material to determining whether the star mark has acquired distinctiveness through a secondary meaning. The defendants’ motion for summary judgment is granted.
B. The Defendants’ Counterclaim for Fraud in Procurement of the Mark
Amazing Spaces moved for summary judgment on the defendants’ affirmative defense and counterclaim of fraud in the procurement of the federally registered star mark. (Docket Entry No. 41). Because this court grants the defendants’ motion for summary judgment that the star mark is not entitled to trademark protection, the motion for summary judgment on the affirmative defense and counterclaim is denied as moot.
IV. Conclusion
The defendants’ motion for summary judgment that the Amazing Spaces star mark is not entitled to trademark protection is granted. The motion for summary judgment filed by Amazing Spaces on the fraud affirmative defense and counterclaim is denied as moot. Final judgment is entered by separate order.
