ASPIRE HEALTH PARTNERS, INC., v. ASPIRE MGT LLC,
Case No. 6:24-cv-1578-JSS-EJK
UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA ORLANDO DIVISION
December 19, 2024
ORDER
Plaintiff, Aspire Health Partners, Inc. (Aspire), moves for a preliminary injunction. (Motion, Dkt. 16.) Defendant, Aspire MGT LLC (AML), opposes the Motion. (Dkt. 28.) The court held an evidentiary hearing on the Motion on November 6, 2024. (Dkt. 47.) Upon consideration, and for the reasons outlined below, the Motion is granted in part and denied in part.
FINDINGS OF FACT
Plaintiff is a Florida not-for-profit corporation that has provided various healthcare services within Florida for more than a decade, including “various mental health services, health assessments and screenings, substance detoxification[,] and substance abuse services.” (Dkt. 1-1 at 4.) Plaintiff also provides “clinical and pharmaceutical services” and “coordinates other medical care services for its patients,” which “includes arranging for patients to be placed in nursing homes and assisted
At issue are six Florida trademark registrations held by Plaintiff, which include two separate registrations for each of three related marks. Specifically, Plaintiff holds trademarks for ASPIRE HEALTH PARTNERS (Reg. Nos. T19000000125 and T19000000126), ASPIRE HEALTH (Reg. Nos. T19000000185 and T19000000186), and ASPIRE (Reg. Nos. T21000000273 and T21000000274). (Id. at 26-39; 41-65; 58-66; 68-75; 77-90; 92-108.) For each trademark, Plaintiff holds one registration for use of the mark for “providing case management services,” such as “coordinating medical, behavioral[,] and social services,” and another registration for use of the mark for a broader range of health services, especially those related to substance abuse and mental health treatment. (See id. at 5-10.) However, Plaintiff‘s registrations for ASPIRE HEALTH PARTNERS and ASPIRE HEALTH expressly disclaim any rights in the words “health” and “partners.” (See Dkt. 30-7 at 2, 8; Dkt. 30-8 at 1; Dkt. 30-9 at 2, 9; Dkt. 30-10 at 2, 8.)
Defendant is a Florida limited liability company that was incorporated in July 2023.1 After its incorporation, Defendant began rapidly acquiring dozens of skilled
Plaintiff alleges that Defendant‘s use of a confusingly similar mark and website has resulted in several “documented . . . instances of actual confusion.” (Id.) This includes: (1) several “misdirected e[]mail[s]” regarding employee issues, (id.; Dkt. 1-2 at 39-46), (2) at least one “misdirected phone call from the [OSHA] regarding the
The first documented incident of confusion Plaintiff reported was the email complaining about the quality of the food served at one of Defendant‘s facilities, which was sent on March 4, 2024. (Dkt. 1-2 at 36.) Plaintiff filed a motion for temporary injunction in the Ninth Judicial Circuit Court of Florida on July 30, 2024. See Aspire Health Partners, Inc. v. Aspire MGT LLC, No. 2024-CA-006784-O (Fla. Cir. Ct.), Dkt. 1. On the same day, Plaintiff filed a Verified Complaint, alleging trademark infringement under
CONCLUSIONS OF LAW
A plaintiff is entitled to a preliminary injunction if they can establish “(1) substantial likelihood of success on the merits[,] (2) irreparable injury will be suffered unless the injunction issues[,] (3) the threatened injury to the movant outweighs whatever danger the proposed injunction may cause the opposing party[,] and (4) if issued, the injunction would not be adverse to the public interest.” McDonald‘s Corp. v. Robertson, 147 F.3d 1301, 1306 (11th Cir. 1998). “A preliminary injunction is an extraordinary remedy that should only be entered upon the movant establishing each of the four requisite elements.” Hoop Culture, Inc. v. Gap, Inc., 122 F. Supp. 3d 1338, 1343 (M.D. Fla. 2015) (citing Robertson, 147 F.3d at 1306). Accordingly, “[f]ailure to establish even one of the elements is fatal to a motion for a preliminary injunction.” MC3 Invs. LLC v. Local Brand, Inc., 661 F. Supp. 3d 1145, 1158 (N.D. Fla. 2023) (citing CBS Broad., Inc. v. EchoStar Commc‘ns Corp., 265 F.3d 1193, 1200 (11th Cir. 2001), and Church v. City of Huntsville, 30 F.3d 1332, 1342 (11th Cir. 1994)). “The grant or denial of a preliminary injunction is a decision within the discretion of the district court.” Carillon Importers, Ltd. v. Frank Pesce Int‘l Grp. Ltd., 112 F.3d 1125, 1126 (11th Cir. 1997) (per curiam).
A. Substantial Likelihood of Success on the Merits
Plaintiff seeks to enjoin Defendant from “the acts of trademark infringement” alleged under Florida law and cybersquatting under the Lanham Act. (Dkt. 16 at 1.) The court considers Plaintiff‘s likelihood of success on each claim in turn.
1. Trademark Infringement
The question at the heart of the likelihood-of-confusion inquiry “is whether there is a likelihood that consumers will be confused about the relationship or affiliation between [the] plaintiff‘s products or services and the defendant‘s products or services.” Popular Bank of Fla. v. Banco Popular de P.R., 9 F. Supp. 2d 1347, 1358 (S.D. Fla. 1998). The analysis is broken into two steps. FCOA LLC v. Foremost Title & Escrow Servs. LLC, 57 F.4th 939, 947 (11th Cir. 2023). “At step one, the court considers several factors which can provide circumstantial evidence of likelihood of confusion.” Id. The factors are:
(1) the strength of the plaintiff‘s mark[,] (2) the similarity between the plaintiff‘s mark and the allegedly infringing mark[,] (3) the similarity between the products and services offered by the plaintiff and defendant[,] (4) the similarity of the sales methods[,] (5) the similarity of the advertising methods[,] (6) the defendant‘s intent, e.g., does the defendant hope to gain competitive advantage by associating his product with the plaintiff‘s established mark[,] and (7) actual confusion.
N. Am. Med. Corp. v. Axiom Worldwide, Inc., 522 F.3d 1211, 1220 (11th Cir. 2008). The Eleventh Circuit has further noted “that consumer sophistication may also be relevant to assessing likelihood of confusion.” FCOA, 57 F.4th at 957.
a) Actual Confusion
“Actual confusion asks whether there is evidence in fact of confusion.” FCOA, 57 F.4th at 956. While not a prerequisite for finding a likelihood of confusion, “[i]t is undisputed that evidence of actual confusion is the best evidence of a likelihood of confusion.” Frehling Enters., Inc. v. Int‘l Select Grp., Inc., 192 F.3d 1330, 1335 (11th Cir. 1999). “[T]he quantum of evidence needed to show actual confusion is relatively small,” Wreal, LLC v. Amazon.com, Inc., 38 F.4th 114, 139 (11th Cir. 2022) (quotation omitted), and so “even ‘very little’ evidence of actual confusion ‘is highly probative,‘” MC3 Invs., 661 F. Supp. 3d at 1165-66 (quoting Sovereign Mil. Hospitaller Order of Saint John of Jerusalem of Rhodes & of Malta v. Fla. Priory of the Knights Hospitallers of the Sovereign Order of Saint John of Jerusalem, Knights of Malta, the Ecumenical Order (“Sovereign Mil.“), 809 F.3d 1171, 1189 (11th Cir. 2015)); see also PlayNation Sys., Inc. v. Velex Corp., 924 F.3d 1159, 1167 (11th Cir. 2019) (“While numerous instances of actual confusion add greater weight in favor of confusion, the quantum of evidence needed to show actual confusion is relatively small.” (quotation omitted)).
“In assessing the weight of evidence of actual confusion, [the court] must consider who was confused and how they were confused: ‘Short-lived confusion or confusion of individuals casually acquainted with a business is worthy of little weight, . . . while confusion of actual customers of a business is worthy of substantial weight.‘” Fla. Int‘l Univ. Bd. of Trs. v. Fla. Nat‘l Univ., Inc. (“FIU II“), 830 F.3d 1242, 1264 (11th Cir. 2016) (emphasis omitted) (quoting Safeway Stores, Inc. v. Safeway Disc. Drugs, Inc., 675 F.2d 1160, 1167 (11th Cir. 1982), abrogated on other grounds by Tobinick v. Novella, 884 F.3d 1110 (11th Cir. 2018)). That is, the weight afforded evidence of actual confusion “depends on the number of instances of confusion, the kinds of persons confused, and the degree of confusion.” Sovereign Mil., 809 F.3d at 1189 (quotation omitted); see Safeway, 675 F.2d at 1167 (“Perhaps as important as . . . the number of instances of confusion are the kinds of persons confused and degree of confusion.“).
While courts speak of “consumer confusion,” courts consider confusion on the part of the “consuming public” more broadly. FCOA, 57 F.4th at 947. Specifically, courts have also considered confusion among suppliers, distributors, and prospective employees. Conagra, Inc. v. Singleton, 743. F.2d 1508, 1515 n.10 (11th Cir. 1984); see
In its briefing and at the evidentiary hearing, Plaintiff presented evidence of misdirected emails and a misdirected phone call (that is, communications allegedly intended for Defendant but that Plaintiff received) as evidence of actual confusion. (Dkt. 17 at 4-7; Hr‘g Tr. 63-65.) One of the emails appears to have been sent by one of Defendant‘s residents of “about 2 years,” who wrote to complain about the quality of the food served at the facility. (Dkt. 17-5 at 1-2 (“Lately the food here is dis[g]usting. The food is either undercooked or just terrible . . . [and is] almost always cold.“).) In the same vein, Jeremy Maxwell, Plaintiff‘s Vice President of Risk Management, described a phone call he received from “a woman who wanted to make a complaint regarding the death of her spouse.” (Dkt. 48-16; Hr‘g Tr. 59, 63-65.)3
Upon review of other emails Plaintiff provided, three emails appear to have come from Defendant‘s own employees; one was sent to complain about understaffing, (Dkt. 17-8), while the other two were regarding administrative requests,
Plaintiff also received an email seeking to garnish one of Defendant‘s employee‘s wages, (Dkt. 17-9), and a phone call from the United States Department of Labor that indicated that Defendant was “out of compliance with OSHA reports,” (Dkt. 18-1 at 3). The email from the erstwhile wage garnisher might be classified as the sort of “[s]hort-lived confusion or confusion of individuals only casually acquainted with a business” that is “worthy of little weight.” Safeway, 675 F.2d at 1167; but see Tortoise Island Homeowners Assoc., 790 So. 2d at 534. However, the phone call from the Department of Labor carries greater weight. See JPMorgan Chase & Co. v. Chase Fin. Grp., No. 1:06-cv-2159, 2007 WL 9702856, at *2 (N.D. Ga. May 14, 2007) (considering confusion among “government agencies” in finding actual confusion). This is because a government agency is not likely to be only casually acquainted with the businesses it is created to monitor, especially where, as Plaintiff reports, penalties might attach for failure to comply with reporting requirements. (See Dkt. 18-1 at 3.)
Ultimately, given the evidence of actual confusion adduced by Plaintiff, the court is persuaded that it has demonstrated actual confusion, and that this most important factor weighs in its favor. See Caliber Auto. Liquidators, Inc. v. Premier Chrysler, Jeep, Dodge, LLC, 605 F.3d 931, 937 (11th Cir. 2010) (“[T]he quantum of evidence needed to show actual confusion is relatively small.“). This conclusion is supported by Todd Dixon‘s deposition testimony that he continues to receive misdirected emails and phone calls weekly. (Hr‘g Tr. 99-100); see Breakers of Palm Beach, Inc. v. Int‘l Beach Hotel Dev., Inc., 824 F. Supp. 1576, 1586 (S.D. Fla. 1993) (“[T]he incidents of
b) Strength of the Marks
“Strength or ‘distinctiveness’ describes a mark‘s ability to allow consumers to identify the source of a good or service.” Id. The overall strength of a mark depends upon both its conceptual strength and commercial strength. Id. “Conceptual strength describes the potential of a mark to aid consumer recognition, which [is] evaluate[d] through an abstract linguistic analysis.” Id. at 949; see also Frehling, 192 F.3d at 1335 (noting that the conceptual strength of a mark is essentially a measure of the “relationship between the name and the service or good it describes“). “Courts determine this potential by placing a mark on the sliding scale of trademark strength, from weakest to strongest: (1) generic, (2) descriptive, (3) suggestive, and (4) fanciful or arbitrary.” FCOA, 57 F.4th at 949.
Generic marks are the weakest and not entitled to protection—they refer to a class of which an individual service is a member (e.g., “liquor store” used in connection with the sale of liquor). Descriptive marks describe a characteristic or quality of an article or service (e.g., “vision center” denoting a place where glasses are sold). Suggestive terms suggest characteristics of the goods and services and require an effort of the imagination by the consumer in order to be understood as descriptive. For instance, “penguin” would be suggestive of refrigerators. An arbitrary mark is a word or phrase that bears no relationship to the product (e.g., “Sun Bank” is arbitrary when applied to banking services).
Turning now to Plaintiff‘s Aspire trademarks, the court finds that they are laudatorily descriptive, and thus relatively weak. “A descriptive mark identifies a characteristic or quality of a product or service, such as its . . . desirable features.” Popular Bank, 9 F. Supp. at 1356. These include laudatory terms, which claim to be “descriptive of the alleged merit of a product.” DuoProSS Meditech Corp. v. Inviro Med. Devices, Ltd., 695 F.3d 1247, 1256 (11th Cir. 2012). “Self-laudatory or puffing marks are regarded as a condensed form of describing the character or quality of the goods.” Id. The Aspire trademarks operate primarily in this vein, connecting the medical services offered by Plaintiff with the word “aspire,” which, in this context, most likely means “to seek to attain or accomplish a particular goal,” and “[to] ascend, [to] soar.”
Plaintiff offers no contrary definition, but instead asserts that the “Aspire Trademarks are considered arbitrary because they bear no relationship to the healthcare services being offered (i.e., the word ‘Aspire’ has nothing to do with medical services).” (Dkt. 16 at 10.) The court disagrees—the Aspire trademarks would appear to fit the definition of laudatory marks. See Uber Promotions, Inc. v. Uber Techs., Inc., 162 F. Supp. 3d 1253, 1267 (N.D. Fla. 2016) (“[The self-laudatory mark] principle is simply the idea that, generally speaking, a term such as ‘best’ or ‘super’ that ‘extol[s] some feature or attribute of . . . goods or services’ is descriptive in nature and likely to be too weak to be trademarked.” (quoting 2 McCarthy on Trademarks and Unfair Competition § 11:17, Westlaw (4th ed., database updated Dec. 2015))). For example, the terms “pinnacle,” “foremost,” and “popular” have been found to be laudatorily descriptive. See Pinnacle Advert. & Mktg. Grp., Inc. v. Pinnacle Advert. & Mktg. Grp., LLC, No. 18-CV-81606-MIDDLEBROOKS, 2019 WL 7838303, at *2 (S.D. Fla. Oct. 2, 2019) (“[T]he term ‘Pinnacle’ appears to be a merely laudatory term describing the quality of advertising and marketing services provided by the Parties.“); FCOA, 57 F.4th at 951 (“Here, ‘Foremost’ is a descriptive mark, a self-laudatory term meaning the best.“); Popular Bank, 9 F. Supp. at 1357 (“[T]he [c]ourt finds that the trademark Popular Bank of Florida consists of the laudatory word ‘Popular’ joined with the
That Plaintiff‘s trademarks are merely descriptive is not fatal because a descriptive mark, “though not inherently distinctive, can acquire distinctiveness or ‘secondary meaning’ by becoming associated with the proprietor‘s product or service.” Welding Servs., Inc. v. Forman, 509 F.3d 1351, 1358 (11th Cir. 2007); see Popular Bank, 9 F. Supp. at 1357 (“Thus, taken as a whole, ‘Popular Bank of Florida’ is a descriptive mark. It is entitled to protection only if the plaintiff shows that the mark has acquired secondary meaning.“). This is, however, a high bar. “In order to establish secondary meaning the plaintiff must show that the primary significance of the term in the minds of the consumer public is not the product but the producer.” Am. Television & Commc‘ns Corp. v. Am. Commc‘ns & Television, Inc., 810 F.2d 1546, 1549 (11th Cir. 1987) (quoting Vision Ctr. v. Opticks, Inc., 596 F.2d 111, 118 (5th Cir. 1979)). “Establishing secondary meaning is best accomplished by surveys or other quantitative evidence.” Lanard Toys Ltd. v. Toys “R” Us-Del., Inc., No. 3:15-cv-849-J-34PDB, 2019 WL 1304290, at *24 (M.D. Fla. Mar. 21, 2019) (quoting Olem Shoe Corp. v. Wash. Shoe Corp., No. 09-23494-CIV, 2011 WL 6202282, at *20 (S.D. Fla. Dec. 1, 2011)).
Absent consumer survey evidence, four factors can be considered in determining whether a particular mark has acquired a secondary meaning: (1) the length and manner of its use, (2) the nature and extent of advertising and promotion, (3) the efforts made by the plaintiff to promote a conscious connection in the public‘s mind between the name and the plaintiff‘s business, and (4) the extent to which the public actually identifies the name with the plaintiff‘s service.
Here, Plaintiff has shown through its trademark registrations that it has been using the Aspire trademarks for more than eleven years. (See Dkt. 16 at 4.) As Todd Dixon stated in his declaration, Plaintiff advertises its marks on its website, through social media, via the “outdoor signage of its facilities” and “on indoor signage, at tradeshow kiosks, and in promotional flyers,” and, finally, with “various promotional items, such as pens, t-shirts, sunglasses, and business cards.” (Dkt. 17 ¶¶ 10-13.) At the hearing, Dixon estimated that Plaintiff has spent several million dollars in advertising. (Hr‘g Tr. 83.) However, “the question is not the extent of the promotional efforts, but their effectiveness in altering the meaning of [the word] to the consuming public,” and Plaintiff provides no evidence on this front. FN Herstal SA v. Clyde Armory, Inc., 838 F.3d 1071, 1085 (11th Cir. 2016).
In support of its contention that it has developed secondary meaning in its marks, Plaintiff cites to the News Coverage Overview attached to Todd Dixon‘s declaration, highlighting 113 instances of Aspire receiving some form of media coverage. (Dkt. 17-1.) The court notes first that a number of these articles appear unrelated, or only tangentially related, to Plaintiff‘s services. (See, e.g., id. at 1 (“Central Florida‘s 2024 Women Who Mean Business winners announced“); id. at 4 (“Orlando company goes green with fresh, custom salads straight from vending machines“); id. at 5 (“PEARLS OF WISDOM: How OBJ‘s 2021 Women Who Mean Business
Further still, Defendant points to evidence of third-party use of the ASPIRE mark. The Eleventh Circuit has noted that third-party use of a mark can “significantly diminish the public‘s perception that the mark identifies items connected with the owner of the mark.” FCOA, 57 F.4th at 950. In its response, Defendant notes three other entities employing the ASPIRE mark “in the Florida healthcare industry“: ASPIRE DIRECT PRIMARY CARE, ASPIRE HEALTH SCIENCE, and ASPIRE HEALTH PHARMACY SERVICES. (Dkt. 28 at 11.) According to the Florida Department of State‘s records, it appears that ASPIRE HEALTH SCIENCE has been rendered inactive for failure to file its most recent annual report, though the others are
Ultimately, the court does not find that Plaintiff has met its “heavy burden of proof” in demonstrating that it “has achieved the recognition for its name that it has sought,” Gulf Coast, 2006 WL 1382072, at *10, especially given its “fail[ure] to produce survey or other quantitative evidence,” which “renders Plaintiff‘s uphill battle even steeper,” Habersham Plantation Corp. v. Art & Frame Direct, Inc., No. 10-61532-CIV, 2011 WL 4005454, at *7 (S.D. Fla. Sept. 8, 2011). Thus, the court concludes that the marks at issue are merely descriptive without secondary meaning, and thus, this factor weighs in Defendant‘s favor.
c) Similarity of the Marks
To determine the degree of similarity between the Aspire trademarks and Defendant‘s purportedly infringing mark, the court is required to “compare[] the marks and consider[] the overall impressions that the marks create, including the sound, appearance, and manner in which they are used.” Frehling, 192 F.3d at 1337. “Of course, the marks don‘t need to be identical to support a finding of similarity, because the key is to determine if the similarities are sufficient to deceive the public.” FCOA, 57 F.4th at 952. “Because of its malleability, [the Eleventh Circuit] ha[s]
described this analysis as a “subjective eyeball test.” Id. (quoting AmBrit, Inc. v. Kraft, Inc., 812 F.2d 1531, 1540 (11th Cir. 1986)).Here, there is no question that the marks are similar—as used, the most prominent feature is the mark itself, ASPIRE, and the presentation of the mark in the parties” logos, prominently displayed on their websites and in their marketing materials, are also similar. (See Dkt. 1-1 at 12 (comparing the landing pages of the parties” websites); Dkt. 16 at 11 (comparing the parties” logos); Dkts. 17-3 & 17-4 (collecting examples of Plaintiff“s use of the mark in its promotional materials).) And while the parties use different fonts, both employ a blue color scheme.
Indeed, minor differences like “fonts and colors” are “less important because consumers are unlikely to confront [the logos] side-by-side in the real-world where they could be discerning about those differences.” FCOA, 57 F.4th at 953. The court in FCOA, for example, found the following logos sufficiently similar to weigh in favor of a likelihood of confusion under this factor:
The court determines that this factor weighs in favor of Plaintiff.
d) Similarity of the Services
Plaintiff“s and Defendant“s services are both related to the provision of healthcare. As Defendant notes, it offers nursing home and post-acute care services while Plaintiff offers services related to mental health and substance abuse, health assessments and screenings, “and the delivery and coordination of primary medical care services,” among other things. (Dkt. 28 at 14.) As the Eleventh Circuit has noted, this factor concerns “whether the products are of a kind the public could think originate from a single source.” FCOA, 57 F.4th at 953. It need only be shown that the parties” products or services are “related in some manner” or that “the circumstances surrounding their marketing are such that they could give rise to the mistaken belief that [the goods or services] emanate from the same source.” Wreal, 38 F.4th at 132 (quoting Coach Servs., Inc. v. Triumph Learning LLC, 668 F.3d 1356, 1369 (Fed. Cir. 2012)). Accordingly, the FCOA court found that the insurance products the competing parties offered were similar, even though they were, at a technical level, distinct, because “consumers [we]re unlikely to know that and, even if they did, could potentially assume that [the defendant] was a subsidiary or affiliate of [the plaintiff].” Id. The Eleventh Circuit has elsewhere determined that wine was sufficiently similar to cognac or brandy to support a finding of a “high degree of similarity.” E. Remy Martin & Co., S.A. v. Shaw-Ross Int“l Imports, Inc., 756 F.2d 1525, 1530 (11th Cir. 1985).
The court finds that the parties” services are similar. Although Defendant draws technical distinctions between the range of services it and Plaintiff offers, noting that
e) Similarity of the Sales and Advertising Methods
With regard to the similarity of the sales methods, or “trade channels,” the “primary focus . . . is on the overlap of the customer bases, because the greater the overlap, the greater the likelihood that consumers will be exposed to both marks and
f) Defendant“s Intent
Under this factor, the court considers whether “defendant adopted [the] plaintiff“s mark with the intention of deriving a benefit from the plaintiff“s business reputation.” Frehling, 192 F.3d at 1340. Plaintiff argues that Defendant“s intent can be inferred “given AML“s adoption of the identical trademark on a website that is
g) Consumer Sophistication
Courts also look to the sophistication of the consumers in assessing likelihood of confusion. See FCOA, 57 F.4th at 957 (“[W]e have recognized that consumer sophistication may also be relevant to assessing likelihood of confusion.“). This is because “sophisticated consumers [of complex goods or services] . . . are less likely to be confused than casual purchasers of small items.” FIU II, 830 F.3d at 1256 (alterations in original) (quoting Welding Servs., Inc. v. Forman, 509 F.3d 1351, 1361 (11th Cir. 2007)); see Freedom Sav. & Loan, 757 F.2d at 1185 (“The sophistication of a
Here, while the parties provide medical services, it is not clear to what extent the ultimate consumers of the product are involved in the selection of the services. Defendant“s Chief Operating Officer, Amitai Dagan, testified that Defendant receives most of its customers as referrals from hospitals. (Hr“g Tr. 119, 121.) Indeed, he emphasized that, for this reason, Defendant primarily gears its marketing toward referral sources rather than individual consumers. (Hr“g Tr. 126.) While it is true, as Defendant noted in its brief, that “even ordinary consumers tend to exercise some sophistication when it comes to decisions relating to healthcare,” (Dkt. 28 at 13–14
While it is not clear whether Plaintiff“s business also operates primarily based on referrals, it stands to reason that those suffering from substance abuse or mental health disorders, like many of Plaintiff“s patients, may temporarily lack the sophistication contemplated under this factor, especially when seeking treatment. (Hr“g Tr. 113.) In its Motion, Plaintiff noted that its “patients are individuals that may be in distress, suffering from mental health challenges, and possibly addiction,” and thus, are not likely to “take time or have the capacity to carefully review respective advertising materials.” (Dkt. 16 at 12–13.) For both of these reasons, the court finds that this factor weighs in favor of a likelihood of confusion. See FCOA, 57 F.4th at 957-58 (determining that, because they were largely uninvolved in the selection of title insurance, “title insurance purchasers are unsophisticated and thus may be confused by similar marks“).
h) Balancing the Factors
To briefly summarize the court“s findings under the foregoing factors, six weigh in favor of a finding of a likelihood of confusion: actual confusion, the similarity of the
“Because the bottom line is the likelihood of consumer confusion, application of the Frehling factors entails more than the mechanistic summation of the number of factors on each side; it involves an evaluation of the “overall balance.“” Custom Mfg. & Eng“g, Inc. v. Midway Servs., Inc., 508 F.3d 641, 649 (11th Cir. 2007). While the strength of the mark, the second most important factor, weighs in Defendant“s favor, there is extensive evidence of actual, ongoing confusion, the most important factor. See FCOA, 57 F.4th at 956. “The ultimate question remains whether relevant consumers are likely to believe that the products or services offered by the parties are affiliated in some way.” Custom Mfg., 508 F.3d at 650 (quoting Homeowners Grp., Inc. v. Home Mktg. Specialists, Inc., 931 F.2d 1100, 1107 (6th Cir. 1991)). Accordingly, because Plaintiff has produced evidence that consumers—and many others—are actually confused, the court finds that Plaintiff has satisfied its burden of demonstrating a substantial likelihood of success on the merits. See Frehling, 192 F.3d at 1340 (“It is undisputed that evidence of actual confusion is the best evidence of a likelihood of confusion.“). This result is supported by the court“s findings as to the remaining factors, all but one of which weighs in Plaintiff“s favor.
2. Cybersquatting
In passing the Anticybersquatting Consumer Protection Act (ACPA),
Because the court has already determined that the Aspire trademarks are weak—they are laudatorily descriptive—this weighs against a finding that Plaintiff enjoys a substantial likelihood of success on the merits. See Royal Palm, 2010 WL 1524720, at *7 (determining that, because the court had already determined that the mark at issue was not distinctive, “Plaintiff ha[d] failed to show a substantial likelihood of success” on its cybersquatting claim). The court finds further that many of the bad-faith factors also weigh against Plaintiff. Defendant has used the domain name in connection with the bona fide offering of its services, has not been shown to possess any intent to divert consumers from Plaintiff“s website to its own or to transfer or sell the domain name for financial gain, has not been shown to have provided misleading contact information in registering the domain name, or to have acquired multiple domain names identical or confusingly similar to Plaintiff“s. Indeed, as has already been noted, Plaintiff effectively concedes that there is no evidence that Defendant is operating in bad faith. (See Dkt. 16 at 14.)
Because Plaintiff has failed to demonstrate a substantial likelihood of success on the merits with regard to its cybersquatting claim, the court must deny its Motion as to that claim. See Royal Palm, 2010 WL 1524720, at *7 (“Because Plaintiff has failed to show a substantial likelihood of success on the merits of its claims, the [c]ourt need not discuss the remaining elements of a preliminary injunction.“). However, the court proceeds under the remaining elements as to Plaintiff“s claims of trademark infringement.
B. Irreparable Injury
In addition to a substantial likelihood of success on the merits, a party seeking a preliminary injunction must demonstrate that absent the injunction, they would be
The Eleventh Circuit has not addressed the effect of eBay on the presumption that previously attached in trademark infringement cases, although it has noted that the Lanham Act employs language similar to the Patent Act. See N. Am. Med., 522 F.3d at 1228 (“Similar to the Patent Act, the Lanham Act grants federal courts the “power to grant injunctions, according to the principles of equity and upon such terms as the court may deem reasonable.“” (quoting
while it was perhaps inappropriate in the past to presume irreparable harm, that practice was grounded upon the sound principle that the harm associated with trademark infringement is typically irreparable in nature. So while a court must, in each trademark infringement case, make a finding of irreparable harm before an injunction may issue, that finding will often be made due to the nature of the harm.
Uber Promotions, 162 F. Supp. 3d at 1262.
Plaintiff has presented significant evidence of actual—and ongoing—confusion among the consuming public, and the Eleventh Circuit “recognizes such confusion as an injury that ordinarily warrants injunctive relief.” Boulan S. Beach Master Ass“n, Inc. v. Think Props., LLC, 617 F. App“x 931, 934 (11th Cir. 2015). Such confusion constitutes a harm to the victim in a trademark-infringement suit in part because it imperils their reputation and goodwill. See Ferrellgas Partners, L.P. v. Barrow, 143 F. App“x 180, 190–91 (11th Cir. 2005) (“The most corrosive and irreparable harm attributable to trademark infringement is the inability of the victim to control the nature and quality of the defendants” goods. Even if the infringer“s products are of high quality, the plaintiff can properly insist that its reputation should not be imperiled by the acts of another.“). Moreover, on the record before the court, it appears that Defendant“s business is subject to criticism in the press, (see Dkts. 17-12 & 17-13), and even government penalty, (see Dkt. 17-11). Accordingly, this would not seem to be the rare case in which alleged trademark infringement did not produce an irreparable harm. Compare Hoop Culture, 648 F. App“x at 985–86 (affirming the district court“s finding of no irreparable harm where the defendant had already sold out of all allegedly
However, because Plaintiff delayed in seeking an injunction, the court“s analysis must proceed. “A preliminary injunction requires showing “imminent” irreparable harm,” and so “[a] delay in seeking a preliminary injunction of . . . only a few months—though not necessarily fatal—militates against a finding of irreparable harm.” Wreal, LLC v. Amazon.com, Inc., 840 F.3d 1244, 1248 (11th Cir. 2016). “[T]wo time periods are relevant in determining whether a plaintiff acts promptly in seeking judicial relief: (1) a plaintiff cannot delay in filing a complaint after discovering a potential infringer, and (2) a plaintiff must move quickly in filing a motion for a preliminary injunction once a complaint has been filed.” Menudo Int“l, LLC v. In Mia. Prod., LLC, No. 17-21559-Civ-TORRES, 2017 WL 4919222, at *5 (S.D. Fla. Oct. 31, 2017). “If either is unreasonably delayed, a finding of irreparable harm is significantly weakened.” Id.
Plaintiff was aware of the existence of the alleged confusion at least as early as March 4, 2024, but did not seek an injunction until July 30, 2024, nearly five months later. (See Dkt. 17-5 at 2–3); Aspire Health Partners, No. 2024-CA-006784-O, Dkt. 1. This militates against a finding of irreparable harm—indeed, the Eleventh Circuit in Wreal discerned no abuse of discretion where a “district court concluded that [the
Plaintiff“s delay is not unexplained, however. At the hearing, Dixon testified that, although the confusion Plaintiff reported began with a few relatively innocent misdirected calls and emails, these “ramp[ed] up in . . . frequency and seriousness” between March and June 2024. (Hr“g Tr. 100.) This period culminated in the phone call from the Department of Labor, at which point Plaintiff understood the gravity of the confusion at issue. (Id.; see also Dkt. 17-11 at 3.) This phone call was reported to Plaintiff“s management on June 24, 2024, and Plaintiff moved the state court below to enjoin Defendant just over a month later. (See Dkt. 17-11.) The court finds both that Plaintiff has provided a sufficient explanation for its delay in seeking an injunction and has demonstrated that it is indeed facing an irreparable injury as discussed above. See Car Body Lab Inc. v. Lithia Motors, Inc., No. 21-cv-21484-MORENO/GOODMAN, 2021 WL 2652774, at *11 (S.D. Fla. June 21, 2021) (“An explanation, in and of itself, will not automatically and necessarily justify a significant delay; it must be a good explanation” (emphasis omitted) (citing High Tech Med. Instrumentation, Inc. v. New Image Indus., Inc., 49 F.3d 1551, 1557 (Fed. Cir. 1995))); Advanced Commc“n Design, Inc. v. Premier Retail Networks, Inc., 46 F. App“x 964, 984 (Fed. Cir. 2002) (“[W]e excuse delayed requests for Rule 65 relief when . . . the movant has offered a good explanation for the delay.” (quotation omitted)).
C. Balance of Hardships
In addition to a substantial likelihood of success on the merits and irreparable injury, a plaintiff seeking injunctive relief must also show that “the threatened injury to the movant outweighs whatever danger the proposed injunction may cause the opposing party.” McDonald“s, 147 F.3d at 1306. Such a showing is generally easily made in trademark infringement claims once the first two elements have been satisfied. See Parsons v. Regna, No. 6:20-cv-123-Orl-37LRH, 2020 WL 3266555, at *9 (M.D. Fla. Mar. 20, 2020) (“In trademark cases, courts have frequently found the balance of hardships favors plaintiffs.” (collecting cases)). This is because the party opposing the injunction “would suffer no legitimate harm since the preliminary injunction would only prevent them from using marks which they are not entitled to use.” Clayton v. Howard Johnson Franchise Sys., Inc., 730 F. Supp. 1553, 1561–62 (M.D. Fla. 1988).
While this is true of trademark-infringement plaintiffs generally, it is true of Plaintiff specifically because of the goodwill it has developed in its mark over the past decade, which will be harmed if Defendant is permitted to use its confusingly similar mark. See Mont. Pro. Sports, LLC v. Leisure Sports Mgmt., 422 F. Supp. 2d 1271, 1282 (M.D. Fla. 2006) (“The balance of hardships favors [the plaintiff] because of the goodwill associated with the Outlaws Marks. The Outlaws Marks have been extensively sued, promoted[,] and advertised since 2001 . . . .“). Though Defendant argues to the contrary, it offers no caselaw in support, and thus has effectively waived the issue. See Hamilton, 680 F.3d at 1319.
D. Public Interest
Finally, Plaintiff must prove that the injunction sought would not be adverse to the public interest. McDonald“s, 147 F.3d at 1306. In trademark cases, an injunction “to enjoin infringing behavior serves the public interest in protecting consumers from such behavior.” Parsons, 2020 WL 3266555, at *9 (quoting Nike, Inc. v. Leslie, No. 85-960 CIV-T-15, 1985 WL 5251, at *1 (M.D. Fla. June 24, 1985)). The Eleventh Circuit, in reaffirming the notion that “in “ordinary trademark infringement actions . . . complete injunctions against the infringing party are the order of the day,“” reasoned that “the public deserves not to be led astray by the use of inevitably confusing marks—even in cases in which more than one entity has a legal right to use the mark.” Angel Flight of Ga., Inc. v. Angel Flight Am., Inc., 522 F.3d 1200, 1209 (11th Cir. 2008) (quoting SunAmerica Corp. v. Sun Life Assur. Co. of Can., 77 F.3d 1325, 1336 (11th Cir. 1996)). While Defendant argues that the public would be “disserved” by an injunction that would “restrain[] the lawful business practices of a well-established company,” to enjoin its infringing use of Plaintiff“s trademark is not to enjoin its otherwise lawful business activities. (Dkt. 28 at 18.) Were an injunction to issue, Defendant would still be free to offer its services—it would only be enjoined from violating Plaintiff“s rights in its trademarks. See Buffets, Inc. v. LVDC II Inc., No. 8:11-cv-00035-T-30MAP, 2011 WL 13302716, at *7 (M.D. Fla. Feb. 15, 2011) (“In this instance, the issuance of a preliminary injunction would serve the public interest by enforcing and upholding the value of Plaintiff“s trademark rights, ensuring fair
Plaintiff has satisfied the four prerequisites, and the court will grant its Motion as to its trademark infringement claims. See Carillon Importers, 112 F.3d at 1126.
E. Bond
The parties disagree concerning whether the court should impose a bond upon the issuance of the injunction. While Plaintiff contends that no bond is necessary, Defendant seeks a $5 million bond. (See Dkt. 16 at 19; Dkt. 28 at 18–19.)
Given the lack of briefing on this issue and the wide divergence on the proposed bond amounts, the court will order the parties to confer to see if they can agree to a reasonable bond amount. See BellSouth Telecomms., 425 F.3d at 971 (discerning no abuse of discretion where a district court declined to set a bond amount at the time it entered a preliminary injunction but instead ordered the parties to confer “regarding the “bond issue““).
CONCLUSION
Accordingly:
- Plaintiff“s Motion for Preliminary Injunction (Dkt. 16) is GRANTED in part and DENIED in part. Plaintiff“s Motion is granted as to its claims of trademark infringement. Otherwise, Plaintiff“s Motion is denied.
- Defendant and its agents, employees, servants, privies, successors and assigns, and all persons acting in concert, participation, or combination with them, are preliminarily enjoined from:
- Using the ASPIRE mark or any colorable imitation thereof upon any signage, awnings, billboards, products, product containers, advertising or promotional materials, either in print, broadcast, or electronic form or other forms, either separately or compositely with other words, symbols, or devices, as a corporate or trading name or as a trademark, in connection with any healthcare, nursing home, and post-acute care services;
- Imitating in any way the ASPIRE mark for the purpose of acquiring Plaintiff“s trade and goodwill by imitation, fraud, mistake, or deception;
- Using the domain name www.aspirehealthgrp.com or any other domain name that includes the word “Aspire.”
- Further infringing the rights of Plaintiff to the ASPIRE mark or name, or otherwise damaging Plaintiff“s goodwill or business reputation.
Within thirty (30) days of the date of this Order, Defendant is DIRECTED to file with the court and serve on Plaintiff a written report, under oath, setting forth in detail the manner and form in which Plaintiff has complied with these directives, as provided by 15 U.S.C. § 1116(a) .- On or before January 10, 2025, the parties shall confer regarding the bond issue. If the parties are able to reach an agreement regarding the amount of the bond to be imposed, the parties shall notify the court in a writing on the docket of the agreed amount on or before January 13, 2025. If the parties cannot agree, each party shall file briefs not to exceed 5 pages regarding the bond issue on or before January 17, 2025.
ORDERED in Orlando, Florida, on December 19, 2024.
JULIE S. SNEED
UNITED STATES DISTRICT JUDGE
Copies furnished to: Counsel of Record
