ORDER GRANTING PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT
THIS CAUSE came before the Court upon Plaintiffs’ Motion for Summary Judgment (ECF No. 176) and related responses and replies. The motion is now ripe for review. For the reasons that follow, Plaintiffs’ Motion for Summary Judgment is GRANTED.
I. BACKGROUND
Bootleg. Clone. Copycat. Imitation. Knock-off. Palm-Off. However one labels a peddled product that conspicuously capitalizes on another’s intellectual property rights, this case presents the quintessential example.
Plaintiffs Edge Systems LLC (“Edge”) and Axia Medsciences, LLC (“Axia”)
Roger Ignon and William Cohen founded Edge—a California corporation—in 1997. Edge designs and sells skin health devices, including spa and skin treatment products and hydradermabrasion systems. Edge’s premier and bestselling product is its HydraFacial MD® hydradermabrasion system (the “Edge Machine”) pictured below.
The Edge Machine utilizes a “wet system” that exfoliates a patient’s facial skin tissue by using an abrasive tip in combination with the application of serums, followed by a vacuum source to extract dead skin cells from the patient.
The average sales price for the Edge Machinéis $24,000. Sales of the Edge Machine account for over half of Edge’s total sales and revenue from sales of the Edge Machine has totaled over $48 million in the past five years. The machine is well-known in the aesthetic industry and has been recognized with numerous awards. Edge extensively advertises the Edge Machine and related products in consumer and trade magazines, at trade shows, seminars, and on the Internet. In the past five years, Edge has spent over .$5.6 million in advertisement of its products. In addition to Edge’s advertising, several national media outlets have featured profiles of Edge and its various products.
A. Plaintiffs’ Intellectual Property
Edge’s, machine incorporates technology—for exfoliating and moisturizing skin— that is claimed in six U.S. patents
A system for treating surface layers of a patient’s skin, comprising: an instrument body with a distal working end for engaging a skin surface; a skin interface portion of the working end comprising an abrasive fragment composition secured thereto; at least one inflow aperture in said skin interface in fluid communication with a fluid reservoir; and at least one outflow aperture in said skin interface in communication with a negative pressurization source.
ECF No. 1-4.
The ’591 Patent, entitled “Instruments and Techniques for Controlled Removal of Epidermal Layers,” was issued on November 4, 2003. Claim 1 of the ’591 Patent reads:
A system for treating the skin surface of a patient, comprising: an instrument body with a distal working end that defines a skin' interface portion for contacting the skin; a first aperture arrangement in said skin interface consisting of at least one port in communication with a treatment media source; a second aperture arrange in said skin interface consisting of at least one port in communication with a vacuum source for removing treatment media and removed tissue from the skin interface; and wherein the skin interface comprises an abrading structure with substantially sharp edges for abrading tissue.
ECF No. 1-5.
As early as 2005, Edge began to use the names ACTIV-4, ANTIOX-6 and BETA-HD to identify serums used with the Edge Machine. In 2010, Edge began to offer serums under the names DERMABUILDER and GLYSAL, and has continuously used all of the serum marks in interstate commerce since their initial use in connection with the advertisement and sale of Edge’s products. Edge expanded its selection of serums by offering VORTEX-FUSION®, a mark it registered with the USPTO on March 20, 2012.
In addition to the Edge Machine and related serums, Edge offers a skin resurfacing product named HYDROPEEL®. Edge registered the HYDROPEEL® mark with the USPTO in September 2008, and has continuously used this mark in interstate commerce to advertise and sell that product as well. The HYDROPEEL® mark is associated with goods described as “medical apparatus and instruments for resurfacing and nourishing tissue” and has attained “incontestable” status.
Additionally, Edge owns the registered trademark The EDGE SYSTEM®, which was registered in September 2005, and has also attained “incontestable” status. According to the registration, the mark is associated with “medical apparatus, namely, systems comprised primarily of a vacuum source and hand piece used for medical body treatments, microdermabrasion and massage therapy.”
Since its founding in 1997, Edge has continuously operated under the trade name “Edge Systems,” and used the com
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B. Aguila’s Allegedly Infringing Conduct
In October 2014, Edge was surprised to learn that one of its main competitors, Lumenis, was apparently offering a copycat version of the Edge Machine (the “Accused Product”) on the website www. hydradermabrasion.com (“Aguila’s Lumen-is Website”). When Edge contacted Lu-menis, Edge learned that Lumenis was equally surprised at the presence of Agui-la’s Lumenis Website. After further evaluation, Edge and Lumenis discovered that the website was registered to Aguila, who was using the site, Lumenis’ trade name, and Lumenis’ trademarks to advertise a knock-off version of the Edge Machine for his business Hydradermabrasion Systems. The Accused Product was advertised, interchangeably, as the HydraDerm, the Hy-draDermMD, the Hydradermabrasion, and the Hydradermabrasion MD.
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DEFENDANT'S ACCUSED PRODUCT
On October 27, 2014, Edge sent Aguila a cease and desist letter and asked that he stop infringing on Edge’s asserted patents.
Aguila went to great lengths to assume Edge’s identity, including filing his own trademark applications for the Edge Systems trade name and Edge’s Chevron “E” logo by submitting a false declaration claiming a first use of the marks in commerce that predates Edge’s founding. Aguila also started using the website www. edge-systems.com to advertise the Accused Product and had his receptionist greet callers as having called “Edge Systems.” At least one of Aguila’s “Regional Sales Managers” passed himself off as being affiliated with .Edge and even included “Edge Systems” in his e-mail signature line. When a potential customer asked if there was a difference between the Edge Machine and the Accused Product, Agui-la’s “Regional Sales Manager” represented that the product was Edge’s newest upgrade of the Edge Machine.
Aguila’s charade as Edge continued as he lured customers into thinking that the Accused Product was an authentic version of Edge’s Machine. For example, Dr. Elliott Duboys—a plastic surgeon who purchased the Accused Product from Aguila
Another customer, Lealani Irby—a day spa owner—purchased a product she believed was Edge’s Machine from Aguila for $6,000 through eBay. Irby stated that the overall appearance of the machine that she purchased made her believe that it was an Edge Hydrafacial MD® hydradermabrasion system. After receiving the machine, Irby received an e-mail from Aguila listing a phone number for Hydradermabrasion Systems in case she had any questions regarding installation of the product. Irby encountered difficulty during installation, but was unable to obtain any assistance at the number Aguila provided. Shortly after purchasing the Accused Product, Irby attended a convention held by the International Congress of Esthetics where she met with representatives from Edge. Ms. Irby approached Edge seeking training and certification for her recently purchased machine, but was informed by Edge that it was not an authentic product.
After returning home, Irby mailed the Accused Product to Edge to assist with their investigation into Aguila’s activities. At this point, Edge learned that Aguila was selling a hydradermabrasion machine that looked nearly identical to the Edge Machine. The only apparent difference was the names Aguila gave those machines— which were displayed on a translucent blue door cover and monitor screen next to an “E” logo and the words “Edge Systems.” On October 27, 2014, Edge sent Aguila another cease and desist letter demanding that he stop marketing and selling the Accused Product because it infringed on Edge’s intellectual property rights. Aguila responded to the letter by accusing Edge of engaging in fraud and unfair competition, but otherwise did not dispute Edge’s infringement allegations.
C. Procedural History
On November 25, 2014, Edge initiated the instant action against Aguila. See Compl. (ECF No. 1). Shortly thereafter, Edge filed an emergency motion for an ex parte temporary restraining order (“TRO”) and for an order to show cause why a preliminary injunction should not issue against Aguila. See (ECF No. 13). On December 2, 2014, the Court granted the motion for a TRO and referred the remainder of the application for a preliminary injunction to the Honorable Chris M. McAliley, United States Magistrate Judge. See (ECF Nos. 15,16).
Judge McAliley held an evidentiary hearing on the preliminary injunction on December 19, 2014. See (ECF No. 44). At the hearing, Aguila conceded that he uses the same or nearly identical trademarks and trade dress as Edge, and that his machine incorporates technology covered by Edge’s patents. However, Aguila argued that Edge’s motion should be denied because he is the first to use the trademarks and trade dress and any patents that Edge has are invalid.
To support his prior use claim, Aguila testified that in 1996 he informally created a company named “Edge Systems” and designed the Chevron “E” logo at that
Aguila filed an interlocutory appeal of both of the Court’s orders. See Notice of Appeal (ECF No. 97). The Federal Circuit issued a mandate affirming the Court’s orders on the grounds that the Court did not abuse its discretion in granting the preliminary injunction. See Edge Sys. LLC v. Aguila,
The Court is unconvinced that the exhibits Defendant offers in support of the Ninth affirmative defense are authentic. Prior testimony by the Defendant and the Report and Recommendation issued by Judge McAliley only highlight the Court’s grave concerns over Defendant’s willingness to manufacture evidence and abuse the judicial process. Clear and convincing evidence has been presented that Defendant knowingly advanced a document of questionable authenticity and relied upon it in Defendant’s pleadings. Such repeated submissions of fraudulent documents and testimony form a sufficient basis for the Court to strike the Ninth affirmative defense. See Vargas [v. Peltz ], 901 F.Supp. [1572] at 1582 [ (S.D.Fla.1995) ] (“Litigants must know that the courts are not open to persons who would seek justice by fraudulent means.”) (citation omitted).
Id. at 13-14.
On December 4, 2015, both Aguila and Edge moved for summary judgment.
II. LEGAL STANDARD
Summary judgment is appropriate where there is “no genuine issue as to any material fact [such] that the moving party is entitled to judgment as a matter of law.”
The moving party has the initial burden of showing the absence of a genuine issue as to any material fact. Id. (citation omitted). In assessing whether the moving party has met this burden, the court must view the movant’s evidence and all factual inferences arising from it in the light most favorable to the non-moving party. Denney v. City of Albany,
III. DISCUSSION
In the interests of clarity, the Court will take a multi-pronged approach to resolve the issues presented in Edge’s motion for summary judgment and request for permanent injunctive relief. First, the Court will address Edge’s arguments that there is no genuine issue of material fact that Edge has protectable interests in both its common law and registered trademarks. Next, the Court will determine whether summary judgment is appropriate on the issue of infringement and the validity of the ’620 and ’591 patents. The Court will then turn to resolving Edge’s state law claims. Lastly, the Court will analyze whether Edge is entitled to permanent injunctive relief against Aguila’s allegedly infringing activities. The Court now turns to the merits of the motion.
A. The Edge Marks
1. There is no Genuine Issue of Material Fact That Edge Has Valid Common Law Rights in Its Marks.
Under common law, trademark ownership rights “are appropriated only through actual [and continuous] prior use in commerce.” Tally-Ho, Inc. v. Coast Cmty. Coll. Dist.,
Second, the EDGE SYSTEMS mark and the Chevron “E” logo are inherently distinctive.
(1) generic—marks that suggest the basic nature of the product or service; (2) descriptive—marks that identify the characteristic or quality of a product or service; (3) suggestive—marks that suggest characteristics of the product or service and require an effort of the imagination by the consumer in order to be understood as descriptive; and (4) arbitrary or fanciful—marks that bear no relationship to the product or service, and the strongest category of trademarks.
Tana v. Dantanna’s,
The outcome is the same for the Edge Serum Marks
Further buttressing this conclusion is the fact that Aguila applied for— and successfully obtained
Accordingly, viewing the facts in the light most favorable to Aguila as the non-moving party, the Court finds that Edge is entitled to summary judgment on the issue of whether Edge has valid common law rights in the EDGE SYSTEMS mark, the Chevron “E” logo, and the Edge Serum Marks.
2. There is no Genuine Issue of Material Fact that Edge’s Registered Trademarks are Not Invalid.
Edge also moves for summary judgment on the issue that Edge’s Registered Marks are not invalid. The only registered mark that Aguila challenges on the basis of invalidity is The EDGE SYSTEM®. In opposing summary judgment, Aguila appears to argue that Edge has abandoned the trademark The EDGE SYSTEM® by failing to use the trademark on its products.
Registration of a trademark on the principal register of the USPTO is prima facie evidence of validity and establishes a presumption that the mark is protectable or distinct. 15 U.S.C. § 1057(b); see also Forman,
After five years of continuous use, the owner of a registered trademark may file an affidavit and have' the mark declared “incontestable.” Wilhelm Pudenz, GmbH v. Littlefuse, Inc.,
In challenging Edge’s Registered Marks, Aguila offers the Court little more than conclusory allegations of invalidity.
Aguila offers no evidence that Edge has stopped using the registered mark The EDGE SYSTEM® or that Edge has formed the subjective intent not to resume use of the mark. Lacking any supporting evidence on each of these essential elements, Aguila cannot meet the strict burden of proving abandonment of Edge’s mark. At bottom, Aguila’s abandonment claim is a conclusory assertion that is wholly unsupported by the record and such “conclusory allegations without spe
Because there is no conflicting record evidence creating a factual dispute over the validity of Edge’s Registered Marks, Edge is entitled to summary judgment on this claim.
3. Aguila has Infringed Edge’s Registered Trademarks and Common Law Marks and Falsely Designated the Origin of His Goods.
Edge also moves for summary judgment on its trademark infringement claims under the Lanham Act. To prevail on a claim of trademark infringement under Section 32 of the Lanham Act, a plaintiff must demonstrate (1) that the plaintiff owns a valid and enforceable trademark, (2) that the defendant used the trademark in commerce without consent, and (3) ‘“that the unauthorized use was likely to deceive, cause confusion, or result in mistake.’”
The same set of facts that permit a plaintiff to recover under § 1114(l)(a) will also result in recovery for false designation of origin and unfair eom-petition under § 1125.
Courts in the Eleventh Circuit apply the following multi-factor test when determining whether a likelihood of confusion exists:
(1) strength of the mark alleged to have been infringed; (2) similarity of the infringed and infringing marks; (3) similarity between the goods and services offered under the two marks; (4) similarity of the actual sales methods used by the holders of the marks, such as their sales outlets and customer base; (5) similarity of advertising methods; (6) intent of the alleged infringer to misappropriate the proprietor’s good will; and (7) the existence and extent of actual confusion in the consuming public.
Tana,
Of all the factors in the likelihood of confusion analysis, actual confusion is “the most weighty consideration.” Caliber Auto. Liquidators, Inc. v. Premier Chrysler, Jeep, Dodge, LLC,
As an initial matter, Aguila does not dispute whether there is a likelihood of confusion between Edge’s marks and his use of identical and similar marks.
Turning to the multi-factor test used to determine whether a likelihood of confusion exists, it is evident that there are no genuine issues of material fact regarding the likelihood of confusion between Edge’s marks and those Aguila uses to market the Accused Product. Given Agui-la’s palpable efforts to “palm-off’ his products as genuine Edge merchandise, an in-depth analysis of this fact-bound inquiry is unwarranted here.
Regarding the first factor, the Court has already determined that the marks at issue are entitled to the “widest ambit of protection” under trademark law as each of Edge’s marks are inherently distinctive. See Univ. of Georgia Athletic Ass’n v. Laite,
The second factor—the similarity of marks—is determined by considering “the overall impressions that the marks create, including the sound, appearance, and manner in which they are used.” Frehling Enterps., Inc. v. Int’l Select Grp., Inc.,
The defining characteristics of Edge’s Chevron “E” logo are the three white triangles that form an “E” on a blue square and the word EDGE in the bottom right corner. Aguila’s mark is essentially identical.
Likewise, as shown in the table below, Aguila is using numerous word marks that are identical to the Edge Marks, with a few marks that are nearly identical to the Edge Marks,
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Judge McAliley previously noted how Aguila’s prescient power to name products exactly the same as Edge borders on the phantasmal. See (EOF No. 81) (“On this record, that [Aguila] stumbled upon the same unusual names and logo for the same or highly similar products just before [Edge] did cannot be believed.”). Because Aguila’s marks are identical, if not nearly identical
Next in the analysis comes the similarity of: (1) the products offered; (2) the sales method and customer base; and (3) the advertising methods. Aguila’s advertised product is an identical—albeit cut-rate— version of Edge’s products. Like Edge, Aguila sells the same serums and solutions for use with his infringing machine. Be
A high degree of similarity between sales methods and use of the same advertising media also increases the likelihood of confusion. See Suzuki Motor Corp. v. Jiujiang Hison Motor Boat Mfg. Co., No. 1:12-CV-20626,
The next factor—intent—requires the court to determine whether Aguila “adopted [Edge’s] mark with the, intention of deriving a benefit from [Edge’s] business reputation.” Frehling,
Lastly, the Court revisits the issue of whether there is evidence of actual confusion.
There is therefore no genuine issue of fact sufficient to require a trial on the likelihood of confusion engendered by Aguila’s use of Edge’s marks. Accordingly, Edge’s motion for summary judgment on its Lanham Act claims, comprising Counts II and III of its complaint, is granted.
B. ’620 and ’591 Patents are Infringed and Not Invalid
Edge also moves for summary judgment on its claims that Aguila infringes on both the ’620 and ’591
1. Patent Infringement Legal Framework
A patent is infringed when a person “without authority makes, uses, offers to sell, or sells any patented invention, within the United States... during the term of the patent.” 35 U.S.C. § 271(a). Determining whether an accused device infringes a patent requires a two-step inquiry. See Metabolite Labs., Inc. v. Lab. Corp. of Am. Holdings,
Second, the fact finder compares “the properly construed claims to the allegedly infringing device.” Dynacore Holdings Corp. v. U.S. Philips Corp.,
It is the patentee’s burden to prove infringement by a preponderance of the evidence. Laitram Corp. v. Rexnord, Inc.,
2. ’620 Patent is Infringed
Aguila does not dispute the scope and meaning of Claim 1 of Edge’s ’620 Patent. Accordingly, and consistent with the ordinary and customary meanings of the terms used, the Court construes Claim 1 to mean:
A system for treating surface layers of a patient’s skin, comprising: an instrument body with a distal working end for engaging a skin surface; a skin interface portion of the working end comprising an abrasive fragment composition secured thereto; at least one inflow aperture in said skin interface in fluid communication with a fluid reservoir; and at least one outflow aperture in said skin interface in communication with a negative pressurization source.
ECF No. 1-4.
Edge contends that the Accused Product meets every limitation of Claim 1 of the ’620 Patent, and therefore, the Accused Product literally infringes Claim 1. In opposition, Aguila argues that the Accused Product does not infringe because Aguila’s diamond-encrusted handpiece is not connected to his device’s vacuum source. See Defs Resp. (ECF No. 199) at 10, Additionally, Aguila argues that the plastic tips he sells for use with the Accused Product do not include the “abrasive fragment composition” required by Claim 1 of the ’620 Patent. Id. at 11.
Aguila’s arguments in support of noninfringement of the ’620 Patent are contrary to the record evidence before the Court. As noted in Edge’s infringement expert’s report, the Accused Product is a system for treating the skin surface layers of a patient—which is a limitation contained in the preamble
The Accused Product also has “an instrument body with a distal working end for engaging a skin surface” as limited in element 1 of the claim. Id. at 18. Dr. Loomis also reports that the distal working end of the-Accused Product includes “a skin interface portion of the working end that has an abrading fragment secured to it” as limited in element 2 of the claim. Id. Both these limitations were found to be present in the Duboys Handpiece (pictured below) and the Irby Handpiece. Id.
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This abrading structure, which is present on both the Irby Handpiece and the Duboys Handpiece, is used to abrade and exfoliate the patient’s skin. Id. at 19.
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The third element of Claim 1 of the ’620 Patent is also met by the Accused Product
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According to Dr. Loomis, the Duboys Handpiece “has an aperture in the distal working end, which is communication with the single-use vial” containing a serum. Id. The serum vial is a fluid reservoir that is inserted into the back of the handpiece. Id. “When the distal end of the handpiece is positioned against the skin of the patient, the vacuum creates negative pressure that pulls solution out from -the [serum vial] through the needle in the handpiece.” The solution is then pulled through the needle and out through the aperture, located on the distal working end of the handpiece. This structure is also present on the Irby Handpiece.
Lastly, the Irby and Duboys Handpieces both have “at least one outflow aperture in said skin interface in communication with a negative pressurization source” as required by the fourth element of Claim 1 of the ’620 Patent.
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Based on the essentially uncontradicted testimony of Dr. Loomis, the Court finds that Edge has proved that Aguila’s infringing products meet all of the limitations of Claim 1 of the ’620 Patent. No reasonable jury could find that each limitation of Claim 1 of the ’620 Patent is not literally present in Aguila’s accused products. Sum
3. ’591 Patent is Infringed
Aguila’s claim of noninfringement of Claim 1 of the ’591 Patent fares no better. Aguila once again makes an unsupported assertion that the Accused Product does not infringe Claim 1 of the ’591 Patent because the “handpieces with vacuum do not have a feature or method” that meets the fourth element of Claim 1 which requires that “the skin interface comprised an abrading structure with substantially sharp edges for abrading tissue.” See Def.’s Motion (ECF No. 179) at 7. Additionally, Aguila claims that his handpieces with vacuum do not have anything in common with any of the other elements of Claim 1 of the ’591 Patent. Id. However, the record evidence establishes unequivocally that the Late-Produced Handpiece infringes every element of Claim 1 of the ’591 Patent.
The first element of Claim 1 is “an instrument body with a distal working end that defines a skin interface portion for contacting the skin.” As explained in Loomis’ Supplemental Expert Report, the Late-Produced Handpiece pictured below includes these features. See Loomis Supp. Expert Report (ECF No. 194-4) at 4.
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The second and third elements of Claim 1 of the ’591 Patent are also present in the Late-Produced Handpiece. Id. at 5-6. The second element of Claim 1 is “a first aperture arrangement in said skin interface consisting of at least one port in communication with a treatment media source.” The third element requires a “second aperture arrangement in said skin interface consisting of at least one port in communication with a vacuum source for removing treatment media and removed tissue from the skin interface.” This “second aperture” is the relatively small hole pictured below in the Late-Produced Handpiece, immediately above the “first aperture” previously mentioned.
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Accordingly, summary judgment of literal infringement of the ’591 patent in favor of Edge is also appropriate.
4. ’591 and ’620 Patents are Not Invalid
All issued patents are entitled to a presumption of validity. 35 U.S.C. § 282; see also Novo Nordisk A/S v. Caraco Pharm. Labs., Ltd.,
This standard requires that “a moving party seeking to invalidate a patent at summary judgment must submit such clear and convincing evidence of invalidity so that no reasonable jury could find otherwise.” Eli Lilly & Co. v. Barr Labs., Inc.,
Under 35 U.S.C. § 102 a claim will be “invalid for anticipation when the same device or method, having all of the elements contained in the claim limitations, is described in a single prior art reference.” Crown Operations Int'l, Ltd. v. Solutia Inc.,
A patent is invalid for obviousness “if the differences between the subject matter sought to be patented and the prior art are such that the subject matter as a whole would have been obvious at the time the invention was made to a person having ordinary skill in the art.” Harmonic Inc. v. Avid Tech., Inc.,
The Federal Circuit notes that “testimony concerning anticipation must be testimony from one skilled in the art and must identify each claim element, state the witnesses’ interpretation of the claim element, and explain in detail how each claim element is disclosed in the prior art reference.” Schumer v. Lab. Computer Sys., Inc.,
Turning to Aguila’s arguments of invalidity, there is substantial evidence to support a finding that Aguila did not present clear and convincing evidence that either Claim 1 of the ’591 Patent or Claim 1 of the ’620 Patent are anticipated or obvious due to the alleged prior art of U.S. Patent No. 6,241,739 (the “’739 Patent”).
As both the ’591 Patent and the ’620 Patent are presumed to be valid, Aguila must offer something more than concluso-ry statements to show clear and convincing evidence of anticipation or obviousness. Aguila has failed to meet that high burden, and the Court cannot find either patent invalid on the current record. Rather, the opposite conclusion is warranted. Accordingly, Edge is entitled to summary judgment on its claims that both the ’591 Patent and the ’620 Patent are not invalid.
Edge also moves for summary judgment on Counts IV (Florida Common Law Unfair Competition) and VI (Florida Deceptive and Unfair Trade Practices Act). The legal standards for Florida statutory arid common law' claims of trademark infringement and unfair competition “are the same as those for federal claims of trademark infringement and unfair competition,” Rain Bird Corp. v. Taylor,
Because the Court has already determined Edge is entitled to summary judgment on the Lanham Act claims, summary judgment is equally appropriate on the Florida statutory and common law claims. Accordingly, Edge’s motion for summary judgment as to Counts IV and VI is GRANTED.
D. Edge is Entitled to a Permanent Injunction
Edge now seeks permanent injunctive relief for Aguila’s infringement of the ’620 Patent as well as for Aguila’s trademark infringement. Aguila’s argument against a permanent injunction seems to be one primarily based on the doctrine of laches.
1. Legal Framework for Determining Appropriateness of a Permanent Injunction
Under the Lanham Act, a district court is authorized to issue an injunction “according to the principles of equity and upon such terms as the court may deem reasonable” to prevent a defendant’s continuing trademark infringement. See 15 U.S.C. § 1116(a). In fact, “[ijnjunctive relief is the remedy of choice for trademark and unfair competition cases, since there is no adequate remedy at law for the injury caused by a defendant’s continuing infringement.” Burger King Corp. v. Agad,
2. Permanent Injunctive Relief Against Aguila’s Infringement of the ’620 Patent is Appropriate
To demonstrate irreparable harm in a patent infringement suit, a patentee must establish: “1) that absent an injunction, it will suffer irreparable harm, and 2) that a sufficiently strong causal nexus relates the alleged harm to the alleged infringement.” Apple Inc. v. Samsung Elecs. Co.,
Both requirements are met in this case. Aguila’s infringement of the ’620 patent has already damaged Edge’s market exclusivity and goodwill. For example, Edge has repeatedly received complaints stemming from potential customers’ purchases of the Accused Product, which they believed to be Edge’s product. Additionally, by selling the Accused Product at one-fourth the price of the Edge Machine, Aguila threatens to irreversibly erode the price the market will bear for Edge’s products. The fact that Aguila is in direct competition with Edge only reinforces the irreparable harm Edge now faces. See Douglas Dynamics,
Because the harm to be avoided is the sale of infringing products, patent owners—like Edge—must show that consumers purchase the infringing products for their patented features. The purpose of the
Here, there is ample evidence oí a causal nexus between the harm to Edge and Aguila’s infringement of the ’620 Patent. Consumer demand for Aguila’s product is driven by the same patented features that drive consumer demand for Edge’s products. As Aguila’s products are a blatant knock-off of Edge’s Machine, Aguila could not faithfully argue—nor does the evidence show—that the infringing products might include other popular features that contribute to their demand. The Court finds that Edge has shown irreparable harm that is causally related to Aguila’s infringement of the ’620 patent,' which weighs in favor of a permanent injunction. The Court now turns to the remaining factors.
The balance of hardships clearly favors Edge. As explained throughout the course of this Order, Edge has invested significant time, capital and other resources to promote and sell its patented products. Absent an injunction, Aguila can continue to ride Edge’s coattails, while simultaneously undermining Edge’s efforts at quality control and product marketing. Aguila’s only potential harm is that he will not be able to sell his already dwindling stock of infringing machines and the loss of income from those potential sales. However, “[o]ne who elects to build a business on a product found to infringe cannot be heard to complain if an injunction against continuing infringement destroys the business so elected.” Windsurfing Int’l, Inc. v. AMF, Inc.,
“[T]he touchstone of the public interest factor is whether an injunction, both in scope and effect, strikes a workable balance between protecting the patentee’s rights and protecting the public from the injunction’s adverse effects.” Id. (citation omitted). The Federal Circuit has “long acknowledged the importance of the patent system in encouraging innovation.” Sanofi-Synthelabo v. Apotex, Inc.,
While the general public certainly enjoys lower prices, cheap copies of patented inventions have the effect of inhibiting innovation and incentive. This detrimental effect, coupled with the public’s general interest in the judicial protection of property rights in inventivetechnology, outweighs any interest the public has in purchasing cheaper infringing products. In sum, the public has a greater interest in acquiring new technology through the protections provided by the Patent Act than it has in buying “cheaper knock-offs.”
Douglas Dynamics,
Having reviewed the four factors necessary to obtain permanent injunctive relief, the Court finds that all the factors weigh in favor of a permanent injunction to prevent Aguila from further infringement of Edge’s ’620 patent through the sale of his Accused Product.
3. Permanent Injunctive Relief Against Aguila’s use of Edge’s Marks is Appropriate
Edge also seeks permanent in-junctive relief from Aguila’s further infringement of the Edge Marks. As Edge has carried its burden on each of the four factors, permanent injunctive relief is appropriate.
First, in cases involving trademark infringement, “a sufficiently strong showing of likelihood of confusion.. .may by itself constitute a showing of a substantial threat of irreparable harm.” Under Armour,
Edge has no adequate remedy at law so long as Aguila is able to continue his use of Edge’s marks in commerce because such activity necessarily constrains Edge’s ability to “control the quality of what appears to be its products in the marketplace.” Under Armour,
The balance of hardships also unequivocally tips in Edge’s favor. See e.g., Tiramisu Int’l LLC v. Clever Imports LLC,
Lastly, the public interest supports the issuance of a permanent injunction in order to prevent consumers from being milled by Aguila’s products in the marketplace. Angel Flight of Georgia, Inc. v. Angel Flight Am., Inc.,
Accordingly, all four ■ factors' favor the grant of a permanent injunction against Agüila’s use of the Edge Marks in violation of the Lanham Act.
IV. CONCLUSION
Yogi Berra famously quipped, “it ain’t over ‘til it’s over.” Although various issues remain before the Court in this matter
For the foregoing reasons, it is hereby ORDERED AND ADJUDGED that Plaintiffs’ Motion for Summary Judgment (ECF No. 176) is GRANTED.
It is further ORDERED AND ADJUDGED that:
1. Aguila’s Motion in Limine (ECF No. 181), Motion to Strike Expert Report (ECF No. 182), and Motion for Sanctions (ECF No. 184) are DENIED.
2. Edge’s Third Request to Continue Pretrial Conference and Trial Dates (ECF No. 223) is DENIED. Should Edge determine that a further continuance is necessary after reviewing this Order, the Court will re-entertain. that issue upon a timely filed motion.
3. Defendant Rafael Newton Aguila a/k/a Ralph Aguila, d/b/a Hydradermabrasion Systems, his/its officers, directors, servants, employees, agents, subsidiaries, affiliates and all persons in active concert or participation with him/it having actual notice of this Order are hereby permanently enjoined from:
a. Using, copying, simulating, or in any way infringing the trademarks EDGE SYSTEMS, THE EDGE SYSTEM®, HYDROPEEL®, VORTEX-FUSION®, ACTIV-4, ANTIOX-6, BETA-HD, DER-MABUILDER, GLYSAL, ANTIOX+ and the chevron-styled “E” logo formed by three triangles (the “Edge Marks”); and
b. Making, using, offering for sale, selling within the United States, or importing into the United States, any product that infringes on U.S. Patent No. 6,299,-620 (the “’620 Patent”), including but not limited to the “HydraDerm MD” or “Hydradermabrasion MD” product.
4. Defendant Rafael Newton Aguila is hereby ORDERED to pay Plaintiffs costs
DONE AND ORDERED in Chambers at Miami, Florida, this 9th day of May, 2016.
Notes
. The facts of this case have been previously set out in a number of the Court's prior orders. See (ECF Nos. 15, 89, 110, 158). For brevity’s sake, the Court will only reiterate the facts most pertinent to the instant motion. The facts presented here are undisputed and supported by the record before the Court.
. For ease of reference, the Court will collectively refer to Plaintiffs as Edge throughout the remainder of this order as Plaintiff Axia’s interest in this matter is confined to its claim of patent infringement (as the patent owner), whereas Plaintiff Edge has claims of both patent and trademark infringement (as the exclusive licensee of Axia’s patents).
. The patents at issue are: (1) U.S. Patent No. 6,299,620 (“the '620 Patent”); (2) U.S. Patent No. 6,641,591 ("the ’591 Patent”); (3) U.S. Patent No. 7,678,120 ("the T20 Patent”); (4) U.S, Patent No. 7,789,886 ("the '886 Patent”); (5) U.S. Patent No. 8,066,716 ("the ’716 Patent”); and (6) U.S. Patent No. 8,337,513 ("the '513 Patent”). As Edge only moved for summary judgment of infringement and no invalidity of the ’620 Patent and the '591 Patent, the remainder of the Court’s analysis will focus solely on those two patents.
. The Court takes judicial notice of U.S. Trademark Registration No. 4,114,466 for the mark VORTEX-FUSION (“the ’466 Registration”). See Fed. R. Evid. 201. Additionally, the Court will refer to the serum marks collectively as the Edge Serum Marks unless an individual distinction is necessary.
. As will be discussed supra, a mark gains “incontestable” status when it has been registered on the Principal Registry for more than five (5) years and is the subject of certain filings with the USPTO as required under the Section 15 of the Lanham Act. See 15 U.S.C. § 1065.
. This was not the first time Edge dealt with Aguila’s infringing activity. On two prior occasions—October 2006 and January 2010— Edge became aware that Aguila, through a company he operated named DiamondSkin Systems, Inc. was selling a potentially infringing device. After determining that the 2006 device did not infringe Edge's patents, Edge took no further action. However, in January 2010, Edge sent Aguila a cease and desist letter demanding that DiamondSkin Systems stop using the marks GLYSAL, ACTIV-4, DERMABUILDER and ANTIOX-6 in connection with treatment topicals, because Edge possessed common law rights in these marks. Aguila did not respond to the letter, but less than two months later, he filed Articles of Dissolution with the Florida Secretary of State dissolving DiamondSkin. Aware of the company's dissolution, Edge believed Aguila's company ceased selling the infringing products and considered the matter closed.
. The Court noted that Aguila's "proposed amendment not only exhibits bad faith, but also appears to demonstrate a continuous disregard for the judicial process which threatens the integrity of the judicial system.” See (ECF No. 154), The Court further cautioned Aguila that “further dilatory, tactics and bad faith filings before this Court could lead to sanctions for abusive practices.” Id.
. On April 25, 2016, the Court denied Aguila’s summary judgment motion on the grounds that—without a supporting statement of material facts—the Court had no basis to entertain Aguila’s motion. See (ECF No. 224). The Court also determined that Aguila's motion was "full of nothing but conclusory assertions” which the Court found "wholly lacking in probative value” at the summary judgment stage. Id. .
. On November 1, 2014, Aguila submitted a trademark application for the word mark "Edge Systems.” See (EOF No. 50-30). Around that same time, Aguila applied for a Fictitious Business Name with the Florida Department of State for the name Edge Systems. Aguila also acquired the domain name, www.edge-systems.com, where he established a website which displays the "E" logo and states "Welcome to Edge Systems' new website.” See (ECF No. 50-32).
. As previously noted, Aguila only offered documents of an unquestionably fraudulent nature in support of his stricken defense of prior use dating back to 1996. See Edge Sys. LLC v. Aguila, No. 1:14-CV-24517-KMM,
.[Missing text]
. Edge has been continuously using the trademarks ACTIV-4, ANTIOX-6, and BETA-HD since 2005, DERMABUILDER since 2009, GLYSAL since 2010, and ANTIOX+ since 2014. See Pis.' Statement of Material Facts (ECF No. 177) ¶¶ 13-16, Although Agui-la asserts that he has been using four of these marks since June 2003, his mendacious claim is belied by the record.
. Whether Aguila committed fraud on the USPTO in applying for and obtaining trademark registration for these four serum marks is an issue that is not currently before the Court as the operative complaint was filed on November 26, 2014 and Aguila's trademark applications were filed on December 1, 2014. See (ECF Nos. 137-27, 137-28, 137-29, 137-30).
. The enumerated defenses of 15 U.S.C. § 1115(b) only "rebut the conclusive presumption of validity that comes with incontestability,” Sovereign Military Hospitaller Order of Saint John of Jerusalem of Rhodes & of Malta v. Florida Priory of the Knights Hospi-tallers of the Sovereign Order of Saint John of Jerusalem, Knights of Malta, The Ecumenical Order,
. Specifically, Aguila alleges that Edge’s trademarks were wrongfully issued by the USPTO. See (ECF No, 128) at 14. Yet, he offers no evidence to support this assertion; without factual support Aguila’s claims are insufficient to preclude summary judgment. See Leigh v. Warner Bros.,
. Because the Court finds that Edge’s Marks are valid, and that Aguila used them without Edge’s consent, the Court must next determine whether Aguila’s use of the disputed trademarks creates a likelihood of confusion to resolve Edge's trademark infringement and false designation of origin claims.
. "This is because Section 1125(a) is broader than Section 1114 in that it covers false advertising or description whether or not it involves trademark infringement.” Babbit,
. Instead, Aguila rests his claim of nonin-fringement upon the previously stricken affirmative defense of prior use that the Court has already discussed at great length.
. "The similarity of the marks is determined by focusing on the marks in their entireties as to appearance, sound, connotation, and commercial impression.” Stone Lion Capital Partners, L.P. v. Lion Capital LLP,
. The Court previously determined there was evidence of actual confusion when adopting Judge McAliley’s report and recommendation. See (ECF No. 89). As Judge McAliley noted, "[t]o state the obvious, the use of the same names and trade dress on what is essentially the same product is without doubt confusing.” See (ECF No. 81) at 14.
. Edge filed a • cross-motion for summary judgment on its claims- for infringement and no invalidity of the 'S91 patent in response to Aguila’s motion for summary judgment. See (ECF No. 194). Aguila contends that in doing so, Edge not only -violated Local - Rule 7.1(c)(2)'s prohibition on multiple motions for partial summary judgment; but also failed to comply with the Court's scheduling order requiring summary judgment motions to be filed no later than eighty (80) days prior to the trial date. See Def.’s Reply (ECF No. 206). However, Edge's claims for infringement and no invalidity of the '591 patent originated from a handpiece (the "Late-Produced Hand-piece”) that Aguila disclosed well after the discovery window closed and the parties’ summary judgment motions had been filed. Aguila's failure to disclose this evidence before the discovery deadline indicates a complete misunderstanding of the discovery process and rings of bad faith. Additionally, Aguila's untimeliness argument is without merit as the cross-motion was filed in conjunction with Edge’s response to Aguila's
. "Literal infringement of a claim exists when every limitation recited in the claim is found in the accused device." Kahn v. Gen. Motors Corp.,
. Generally, courts do not treat preamble language "as limiting the scope of the claim.” Bicon, Inc. v. Straumann Co.,
. Nor does Aguila present clear and convincing evidence that Claim 1 of the '591 and '620 patents are indefinite in violation of 35 U.S.C, § 112. The statute requires that a patent specification "conclude with one or more claims particularly pointing out and distinctly claiming the subject matter which the applicant regards as his invention.” UltimatePointer, L.L.C. v. Nintendo Co.,
. Aguila's laches argument has been previously rejected by this Court as well as the Federal Circuit. See Edge Sys. LLC v. Aguila,
. Nor does the fact that Edge has already obtained preliminary relief in this matter necessitate the issuance of a permanent injunction. See In re Dixie Broad., Inc.,
. A review of the Complaint shows that Count I is partially resolved as’ four utility patents-^the T20 patent, the '886 patent, the '716 patent, and the '513 patent—remain at issue. Nor has Edge sought relief on its claim for Fraud on the USPTO for the '086 Trademark Application (Count V).
. After reviewing the motions and their respective responses and replies, the Court finds that Aguila’s Motions (ECF Nos. 181, ,182, 184) are without merit.
