MEMORANDUM OPINION
The 2008 Women’s World Cup soccer tournament is currently under way in venues across the United States. The tournament began on September 20 and is scheduled to end on October 12. In connection with this event, its organizer, the Federation Internationale de Football Association (FIFA), sought to register the trademark “USA 2003.” Claiming that Nike’s use of a similar phrase (“USA 03”) in connection with its sponsorship of the U.S. Women’s National Soccer Team has infringed upon that trademark and amounts to unfair competition, tortious interference with contractual relations, and breach of contract, FIFA brought the present action. Plaintiff has now moved for a Temporary Restraining Order enjoining Nike from using the phrase “USA 03” on its websites, or in connection with any soccer-related goods and services, during the duration of the World Cup. Nike has requested that the Court transfer this action to the Southern District of New York, or at least stay its decision until that court rules on a declaratory judgment action that Nike has brought against FIFA. See Nike, Inc. v. FIFA Civ. Act. No. 03-7467 (S.D.N.Y. Sept. 24, 2003). For the reasons that follow, the Court will decline to transfer or stay the case at this time, and on the merits, it will deny plaintiffs request for a TRO.
BACKGROUND
The Women’s World Cup has been played every four years since 1991. The current tournament was originally scheduled for China, but concerns about the recent SARS outbreak caused FIFA to move the matches to the United States, where the successful 1999 tournament had been held. In preparation for this event, as it had for previous World Cups, FIFA sought to register a number of trademarks, including one reflecting the name of the host country and the year. Thus, after the change in venue, three trademark applications for the phrase “USA 2003” were filed with the U.S. Patent and Trademark Office (PTO); these applications are currently pending. Plaintiff has entered into licensing agreements with various sponsors of the World Cup, including the sporting goods manufacturer Adidas, which allow those companies to use FIFA’s trademarks on merchandise and services related to the tournament.
Defendant Nike is not a World Cup sponsor, and has no contract with FIFA to use the latter’s marks in connection with the 2003 event. Nike is, however, the sponsor of the U.S. Women’s National Soccer Team, which won the 1999 World Cup and is playing in the current competition. Nike provides the team’s uniforms, which prominently bear the company’s famous Swoosh logo, as well as other equipment and clothing. Moreover, and of direct relevance here, Nike has designed a logo that combines the Swoosh with the phrase “USA 03.” This logo has been featured in various places, including on a website owned by the company,
www.usasoc-cer.com,
as well as on limited-edition t-shirts and sweatshirts that have now been distributed to approximately 100 stores around the country. (On some of this merchandise, Nike actually uses a different phrase: “United States 2003.”) According to Nike, this website was developed to give fans of the U.S. soccer team a chance to follow the players and the team as they travel and train. (Deck of Elizabeth Valentine ¶ 5.) Although the Nike site only went active shortly before the World
On September 11, 2003, after FIFA learned that Nike had been using the “USA 03” phrase on its website, it sent a cease-and-desist letter accusing Nike of trademark infringement. This triggered several exchanges of correspondence in which the parties set forth their positions in an effort to resolve the dispute short of litigation. These efforts came to an end on September 24, when Nike filed a action in the United States District Court for the Southern District of New York, seeking a declaratory judgment that its use of “USA 03” did not amount to trademark infringement under either federal or state law. (Decl. of Tila Duhaime, Ex. A.) Two days later, on September 26, FIFA filed the present action in this Court. Plaintiffs complaint asserts six counts — including trademark infringement and unfair competition in violation of the Lanham Act, 15 U.S.C. §§ 1114, 1125(a), trademark dilution in violation of the Federal Trademark Dilution Act (FTDA), 15 U.S.C. § 1125(c), tortious interference with contractual and economic relationships, and breach of contract. Plaintiff also moved for a TRO. In response, Nike filed a motion to transfer this case to the Southern District of New York, or, in the alternative, to stay the present action until that court acts on Nike’s complaint. This Court heard oral arguments on these motions on September 29.
ANALYSIS
Before turning to FIFA’s motion, the Court must first consider Nike’s argument that the Court should transfer this case to the Southern District of New York, where Nike has filed its declaratory judgment action. It is true that when parties sue each other in different federal courts, one for trademark infringement and the other for a declaratory judgment, the so-called ‘first-to-file rule’ generally dictates that “the first-filed declaratory judgment suit be given priority and [be] allowed to continue.” MoCabthy on Trademarks and Unfair Competition § 32.46 (4th ed.). When this rule is heeded, the later-filed infringement action will typically either be dismissed or transferred to the forum hearing the declaratory judgment.
See, e.g., 800-Flowers, Inc. v. Intercontinental Florist, Inc.,
Such circumstances include where the first-filing plaintiff has launched a “preemptive strike” declaratory judgment action in the face of an impending infringement suit.
See Al-Or Int’l Ltd. v. Paul Morelli Design Inc.,
Each of these considerations leads this Court to deny defendant’s motion for a transfer or a stay, at least for the time being, and act upon plaintiffs request for a TRO. There can be little doubt that Nike filed its suit in immediate anticipation of being sued by FIFA. In its last letter to Nike before the race to the courthouse began, FIFA’s counsel wrote: “my client feels that it has no alternative but to seek the protection of the courts to protect its rights from further damage, unless we can find an immediate solution.” (Nike’s Mot. to Transfer, Ex. 7.) That letter closed with a warning: “If we do not receive the relevant information from Nike within that deadline [24 hours], my client has instructed me to inform you that it will initiate formal proceedings against Nike without further notice.” (Id.) This letter was sent on September 23; the very next morning, Nike filed its declaratory judgment action in New York. Given FIFA’s looming deadline, this plainly appears to have been a “preemptive strike.” Moreover, the New York action is in its earliest stages; there is no indication that FIFA has filed an answer or responded in any other way to Nike’s complaint. Finally, given that the World Cup has but less than two weeks to go, and that this action could largely become moot once the final whistle is heard, FIFA’s motion for a TRO is extremely time-sensitive. Thus, granting Nike’s motion would result only in unnecessary, and possibly prejudicial, delay.
Accordingly, the Court will now address the merits of FIFA’s motion. A TRO is an extraordinary remedy and should not be granted lightly.
See Experience Works, Inc. v. Chao,
In most trademark actions, the most important factor is the likelihood of success, and this case is no exception. Given plaintiffs acknowledgment at the TRO hearing that its strongest legal arguments arise from its Lanham Act claims for trademark infringement and unfair competition, the Court addresses those claims first.
1
The threshold question in any infringement action is whether the plaintiff has a “valid mark entitled to protection.”
Gruner + Jahr USA Publ’g v. Meredith Corp.,
As a descriptive mark, “USA 2003” is “not inherently distinctive,”
Two Pesos, Inc. v. Taco Cabana, Inc.,
The burden falls on plaintiff to establish secondary meaning.
See Secular Orgs. For Sobriety, Inc. v. Ullrich,
Here, FIFA has offered essentially no competent evidence that would tend to demonstrate that the “USA 2003” has acquired the kind of secondary meaning that is a prerequisite to its protection as a valid trademark.
2
There has been no evidence as to the amount of advertising done, or the quantity of goods and services sold, under the mark, and thus no circumstantial evidence to reveal how familiar the public has become with the mark and how likely they are to draw connections between the mark and FIFA’s World Cup
Finally, while plaintiff has submitted exhibits showing how the mark has appeared on various merchandise offered for sale to the public, these exhibits do not help plaintiff’s case, because they reveal that FIFA does not use the phrase “USA 2003,” in isolation, to refer to the 2003 Women’s World Cup. Rather, in each of these examples, the phrase appears as part of a composite logo, which usually includes the words “FIFA Women’s World Cup,” and
always
includes the same graphic element, which is a stylized depiction of the tournament trophy. (Pl.’s Mot. for TRO, Ex. 4.)
4
The phrase is always in the same font, an horizontally elongated sans serif. Moreover, on those occasions where the country name and year appear alone with the
Even assuming arguendo that plaintiff could somehow overcome this secondary meaning hurdle, the next obstacle would be likelihood of confusion, which is a key element of any infringement or § 43 unfair competition claim.
5
See Bird v. Parsons,
The standard test for likelihood of confusion is the one articulated by Judge Friendly in
Polaroid Corp. v. Polarad Elecs. Corp.,
First, as to strength, even if it is assumed that “USA 2003” has taken on secondary meaning, there is little to suggest that the mark is a particularly strong one. As discussed above, plaintiff has adduced virtually no evidence, direct or otherwise, indicating the degree of consumer association between that mark and the 2003 Women’s World Cup. Moreover, as a general matter, descriptive marks are weaker — and “command[ ] a lesser degree of protection” — than arbitrary or fanciful marks.
Haar,
The next factor is similarity. While the words used by both plaintiff and defendant are obviously quite similar, the marks actually presented to consumers differ in significant ways, as the attachment hereto demonstrates. “In assessing similarity, courts look to the overall impression created by the logos and the context in which they are found.”
Gruner
+
Jahr,
As discussed above, FIFA has only used “USA 2003” as part of a composite logo, with a distinct font and graphical element. Moreover, the phrase usually appears next to the words “FIFA Women’s World Cup.” Thus, because FIFA has not used its “USA 2003” mark in a way that would lead consumers to associate those words alone with this year’s World Cup, the organization is in a much weaker position to stop others from using similar words (either on their own or in graphical arrangements different from those used by FIFA) to sell soccer-related merchandise. And Nike’s “USA 03” mark is indeed used differently; it appears in a different font (usually a vertically elongated sans serif) and always adjacent to the company’s famous Swoosh. (Nike’s Mot. to Transfer, Ex. 2.) It has not been displayed with any graphic other than the Swoosh, except the logo of the U.S. Women’s National Soccer Team, which is not owned by or connected with FIFA. Moreover, the evidence before the Court indicates that “USA 03” has been used only in connection with images of players on that team, and not in ways that would directly link that phrase with either FIFA or with the 2003 World Cup. These dissimilarities cut substantially against FIFA’s infringement claims. 6
Several of the remaining factors also benefit Nike. Plaintiff has presented no evidence to suggest any actual consumer confusion. Nor has there been any suggestion that Nike’s products are inferior. This leaves the question of good faith. Nike argues that its use of “USA 03” (or “United States 2003”) is innocent, given the company’s sponsorship of the Women’s National Team. After all, the team that Nike is backing is the United States team for the year 2003, and therefore, “USA 03”
To be sure, other factors do lean in FIFA’s favor. The products being sold under the two marks are quite similar (all are items connected to soccer or of primary appear to soccer fans). And plaintiff has already bridged the gap between its primary product (the World Cup itself) and the products sold by Nike (sports-related merchandise). Nevertheless, in the context of the overall Polaroid analysis, these factors are significantly outweighed by those suggesting that no serious confusion will result from Nike’s use of the “USA 03” mark. Based on its weighing of these elements, the Court concludes that FIFA is unlikely to prevail on those claims that depend upon a likelihood of consumer confusion. 8 And because plaintiffs one trademark cause of action that does not turn on this issue seems destined to fail for different reasons (see supra, note 5), the Court concludes that plaintiffs Lanham Act claims are not likely to succeed. There is thus no basis on which to impose a Temporary Restraining Order. 9
CONCLUSION
For the reasons stated above, the Court has denied without prejudice to being renewed later, defendant’s Motion to Transfer, or in the Aternative, to Stay.
ORDER
For the reasons stated in the Court’s Memorandum Opinion, it is hereby
ORDERED that defendant Nike’s Incorporated Motion to Transfer or, in the Alternative, to Stay is DENIED WITHOUT PREJUDICE; and it is
FURTHER ORDERED that plaintiff FIFA’s Motion for a Temporary Restraining Order is DENIED.
IT IS SO ORDERED.
Notes
. At the hearing, plaintiff essentially abandoned its breach of contract claim as a basis for obtaining a TRO. (Tr. 9/29/03, at 37.)
. As plaintiff's counsel conceded during oral argument: "Secondary meaning is not something we can prove to you today.” (Tr. 9/29/2003, at 34.)
. FIFA relies heavily on a 1999 decision of the PTO’s Trademark Trial and Appeal Board (TTAB) in which the Board refused to register the trademark "SYDNEY 2000” to an individual not affiliated with the Olympic Games scheduled to take place in Sydney, Australia in 2000.
See In re Urbano,
. In contrast, likelihood of confusion is not an element of a dilution claim under the FTDA.
See Moseley v. V. Secret Catalogue, Inc.,
Even were the Court to assume that the mark had acquired sufficient distinctiveness for purposes of an infringement action, this is certainly not enough under the FTDA.
See Avery Dennison Corp. v. Sumpton,
The Court therefore has little trouble concluding that plaintiff has minimal hope of succeeding on its dilution claim. There is ultimately nothing in FIFA's submission that "would enable a court to determine the extent or dimension of public recognition of the mark and whether it has fame sufficient to meet the requirement of the Act.”
Haar,
. A typical example of FIFA’s use of “USA 2003” and Nike’s use of "USA 03” is attached to this Memorandum Opinion.
. On September 30, 2003, plaintiff faxed pictures to the Court of the t-shirts and sweatshirts that Nike has now begun selling featuring the "USA 03” and "United States 2003" marks. This was the first time that the Court had seen these images; at the hearing, defendant’s counsel could only describe the shirts verbally. (Tr. 9/29/03, at 57-58.) While they do not ultimately change the Court’s decision, the Court is troubled by what appears to be Nike's gamesmanship in designing some of this merchandise. The graphic used on these shirts is not the simple "USA 03" displayed on the company’s website. Indeed, the font used for the word "2003” on certain of the shirts now appears quite similar to the distinctive font that FIFA has used. Moreover, the shirts that include the similar font also seem to have excised the National Team logo, and indeed any other reference to the team itself. Given Nike’s representation that its sponsorship of the team is what lead it to produce these items in the first place, the Court finds this absence striking, and somewhat troubling. This problem is not helped by the fact that Nike has superimposed its new mark upon what appears to be a soccer ball. While FIFA still has secondary meaning and strength of mark problems that preclude it from receiving a TRO, it is certainly the case that plaintiff's position is stronger with respect to some of the shirts that the company has now offered for sale.
. That said, the ultimate conclusion may be different as to those items of clothing sold by Nike that use a font similar to FIFA’s and lack any references to the U.S. Women's Team. These more misleading shirts seem to deliberately create ambiguity about their origin, rather than merely to exploit certain connections between the team and the World Cup that may already exist. As such, Nike's distribution of these items could suggest a lack of good faith on its part.
. Included among the claims dependent upon a showing of confusion is plaintiff's allegation that Nike's use of “USA 03” falsely suggests a connection with FIFA as an "institution.” See Lanham Act § 2(a), 15 U.S.C. § 1052(a).
. While the Court has not previously discussed FIFA’s tortuous interference claim, this claim also provides no basis for temporary injunctive relief, as plaintiff has not demonstrated that it would suffer any irreparable harm from Nike’s alleged misdeeds. The harm to which plaintiff alludes in this context is entirely speculative, based as it is on the suppositions (for which no evidentiary foundation has been provided) either that FIFA's current sponsors will refuse to pay off the balance of their contracts because of Nike’s actions or that those actions will make it more difficult for FIFA to attract paying sponsors in the future. (Pl.’s Mot. for TRO, at 13.) The Court sees no reason why these harms, should they arise, would not be fully compen-sable with monetary damages. As such, a TRO is not the appropriate mechanism with which to address the harms identified by plaintiff.
See Davenport v. International B'hood of Teamsters, AFL-CIO,
