ID AUTO, LLC, Plaintiff, v. IDPARTS LLC, Defendant. IDPARTS LLC, Counterclaim Plaintiff, v. ID AUTO, LLC and ID AUTO, INC., Counterclaim Defendants.
Civil Action No. 20-cv-11253-ADB
UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS
July 1, 2024
BURROUGHS, D.J.
MEMORANDUM AND ORDER
BURROUGHS, D.J.
Plaintiff and Counterclaim Defendants ID Auto, LLC and ID Auto, Inc. (“Plaintiff“) and Defendant and Counterclaim Plaintiff IDParts LLC (“Defendant“) sell parts for automobiles online. See, e.g., [ECF No. 203 at 81:9–15; ECF No. 205 at 126:23–25]. Both parties alleged, among other things, that the other infringed its trademarks. See [ECF No. 202 (“Verdict“)].
I. STANDARD OF REVIEW
“A party seeking to overturn a jury verdict faces an uphill battle.” Marcano Rivera v. Turabo Med. Ctr. P‘ship, 415 F.3d 162, 167 (1st Cir. 2005). “Courts may only grant a judgment contravening a jury‘s determination when the evidence points so strongly and overwhelmingly in favor of the moving party that no reasonable jury could have returned a verdict adverse to that party.” Id. (quoting Rivera Castillo v. Autokirey, Inc., 379 F.3d 4, 9 (1st Cir. 2004)). In evaluating a motion for judgment as a matter of law, the Court must consider “the evidence presented to the jury, and all reasonable inferences that may be drawn from such evidence, in the light most favorable to the jury verdict.” Osorio v. One World Techs. Inc., 659 F.3d 81, 84 (1st Cir. 2011) (quoting Granfield v. CSX Transp., Inc., 597 F.3d 474, 482 (1st Cir. 2010)).
II. BACKGROUND
A. Evidence at Trial
The Court provides a brief summary of the facts that the jury could have found in support of its verdict here, and supplements the facts in the analysis below as necessary.
1. The Parties
Plaintiff runs “CARiD[,] . . . an online automotive parts and accessories store.” [Day 2 at 81:9–15]. It launched as a website in March 2009, [id. at 91:24–25], and sells “over 17 million unique products” for many types of vehicles and vehicle brands, including diesel vehicles, [id. at 146:25–147:23].
Plaintiff was originally run by an operating company called Onyx. See [Day 2 at 121:18–23]. In 2020, Onyx changed its name to PARTS iD. [Id. at 122:16–22]. Antonio Ciappina, Plaintiff‘s former CEO, [id. at 78:17–22], testified that they chose “PARTS iD” because it “aligned with the ID brand that we already have,” [id. at 122:24–25]. He also testified that the name was selected after the inception of this lawsuit and that he and the company were “aware that the company IDParts existed when [they] selected the name PARTS iD.” [Id. at 123:23–25, 163:6–164:1].2 In Ciappina‘s view, use of that name was permissible because they “were the first to use the ID mark back in 2009[, they] had a variety of intellectual property registrations with the Trademark Office[,]” and “[f]or all intents and purposes, [they] owned the mark ‘ID.‘” [Id. at 123:23–124:7].
Defendant IDParts, which specializes in “selling repair parts for diesel-powered vehicles,” is owned by Peter Noble and Corey Evans. [Day 4 at 126:20–25]. It operates the website IDParts.com. [Id. at 127:13–15].
Defendant was originally called TDIParts, [Day 4 at 133:19–21], but changed its name to IDParts in 2009 when it received a letter from Volkswagen complaining that “TDI” was part of the brand name for one of its vehicles, [id. at 135:9–136:3]. At the time, they had not heard of CARiD or Onyx, and “CARiD‘s name or marks play[ed] . . . [a]bsolutely zero” role in the decision to select IDParts as its name. [Id. at 137:4–10].
2. The Parties’ Claimed Trademarks
As relevant here, Plaintiff has two registered trademarks for different versions of “CARID.” The first, Registration No. 3,711,746, was registered on November 17, 2009, and is the following:
CARID
[Ex. 1]; see also [Verdict at 2]. The second, Registration No. 6,100,524, was registered on July 14, 2020, and is the following:
[Ex. 18]; see also [Verdict at 2].
[Exs. 23, 24, 27]. As the images show, “iD” or “ID” was typically a different size, color, and font than the word “car.” See [Exs. 23, 24, 27; Day 2 at 131:1–4 (“the company [was] putting emphasis on ID“); Day 3 at 38:14–17]. Plaintiff claimed at trial that its use of these images as early 2009 entitled it to a trademark in “iD” or “ID” standing alone. See [Verdict at 3].
In addition, as relevant here, Plaintiff has three registered trademarks for different versions of “ID,” standing alone, which are the following:4
| Mark | Image in original document— ID logo version 1 | Image in original document— ID logo version 2 | Image in original document— ID logo version 3 |
| Registration No. | 5,658,672 | 5,804,750 | 6,096,254 |
| Registration Date | January 22, 2019 | July 16, 2019 | July 07, 2020 |
Plaintiff‘s marketing expert, Frank Buscemi, testified that both “car” and “ID” are, or at least can be, generic terms. [Day 3 at 57:21–59:11]. He also testified, however, that “CARiD” and ID are different marks” and are visually distinct. [Id. at 60:4–6, 61:12–14, 62:14–15].
Defendant claims that it has a common law trademark for its logo,
3. The Verdict
Three of the jury‘s findings are relevant for this motion. First, the jury found that neither Defendant‘s use of “IDParts” or its
B. Procedural History
The jury reached its Verdict on November 20, 2023. [Verdict]. Plaintiff filed the instant motion for JMOL on March 8, 2024. [ECF No. 219]. Defendant opposed the motion on March 22, 2024, [ECF No. 221], Plaintiff replied on April 3, 2024, [ECF No. 225], and Defendant filed a sur-reply on April 11, 2024, [ECF No. 232].
III. DISCUSSION
A. Plaintiff‘s CARiD Marks
Plaintiff first argues that the Court should grant JMOL on its claims that Defendant infringed its CARiD marks because, as relevant here, “[n]o reasonable jury could . . . not reach the conclusion that it [had] established a likelihood of confusion” between Defendant‘s “IDParts” name or
[i]n assessing likelihood of confusion, courts have commonly looked to the following factors: the similarity of the marks; the similarity of the goods; the relationship between the parties’ channels of trade; the relationship between the parties’ advertising; the classes of prospective purchasers; evidence of actual confusion; the defendants’ intent in adopting its mark; and the strength of the plaintiff‘s mark.
Pignons S.A. de Mecanique de Precision v. Polaroid Corp., 657 F.2d 482, 487 (1st Cir. 1981). The Court‘s instruction to the jury regarding likelihood of confusion, which Plaintiff does not take issue with, included the following language:
You must consider all of these factors and you may also consider any other factors that you might think of to determine whether ordinary consumers would likely be confused as to the source, sponsorship, affiliation, or approval of the services being sold by the alleged infringer to decide whether there has been infringement and unfair competition or not.
[Day 6 at 63:25–64:5].
Viewing the facts “in the light most favorable to the jury verdict” and drawing “all reasonable inferences” in favor of the same, Osorio, 659 F.3d at 84, the Court finds that the jury could have applied the Pignons factors and reached the conclusion that there was not a likelihood of confusion between Plaintiff‘s CARiD marks and Defendant‘s “IDParts” name or
B. Whether Plaintiff Owned a Valid “iD” Mark Prior to Defendant‘s Image in original document— IDParts circular iD logo
“The right to trademark and service mark rights is based on prior use, or the one who first uses the marks in connection with a peculiar line of business.” Volkswagenwerk Aktiengesellschaft v. Wheeler, 814 F.2d 812, 815 (1st Cir. 1987). Here, although Plaintiff did not register its stand-alone “ID” marks until 2019, see supra, it argues that “[t]here is no dispute that Plaintiff used the ID mark as part of the CarID mark starting in 2009,” and that Defendant‘s
With respect to the first argument, Plaintiff cites In re Chemical Dynamics, Inc., 839 F.2d 1569, 1571 (Fed. Cir. 1988) for the proposition that “[a] part of a mark is independently protectable where it creates a ‘separate and distinct commercial impression, which thereby performs the trademark function of identifying the source of the merchandise to the customers.‘” [ECF No. 220 at 15 (quoting Chem. Dynamics, 839 F.2d at 1571)]. On this issue, the Court provided the following instruction, which Plaintiff does not take issue with:
A party may own rights and a portion of a mark as a portion of the CARiD mark if it creates a separate and distinct commercial impression. That is, the portion of the mark alone identifies the source of the services to customers. In other words, a party that registers a mark may claim separate ownership of a part of a mark but only if that portion of the mark performs the function of a service[ ]mark in and of itself, meaning that it comprises a separate and distinct mark in and of itself.
[Day 6 at 59:25–60:8].
Even accepting that Chemical Dynamics applies here, see 839 F.2d at 1571 (considering whether “a single unified design” that constitutes a “unitary mark” can be “mutilate[ed]“), it does not support Plaintiff‘s position. There, the Federal Circuit affirmed the Trademark Trial and Appeal Board‘s refusal to register a portion of a registered composite mark. Id. at 1570. The court found that “[t]here [we]re no facts from which it could be inferred that customers or the trade generally so view” the relevant portions of the registered mark as separate, and testimony that the company had used the relevant portion of the mark “for five years” did not establish that it had been “used separately rather than as part of the entire” mark. Id. at 1571.
Second, Plaintiff argues in the alternative that it “demonstrated ownership of the ID mark based on the doctrine of tacking.” [ECF No. 220 at 18–20]. Under the doctrine of tacking, two marks may be tacked, or in other words, a later mark can adopt the use date of an earlier mark, where the two marks are “‘legal equivalents,’ or in other words, ‘create the same, continuing commercial impression’ so that consumers ‘consider both as the same mark.‘” Hana Fin., Inc. v. Hana Bank, 574 U.S. 418, 422 (2015) (quoting Van Dyne-Crotty, Inc. v. Wear-Guard Corp., 926 F.2d 1156, 1159 (Fed. Cir. 1991), abrogated on other grounds by Hana Fin., 574 U.S. 418). “The commercial impression that a mark conveys must be viewed through the eyes of a consumer.” Id. (quoting DuoProSS Meditech Corp. v. Inviro Med. Devices, Ltd., 695 F.3d 1247, 1253 (Fed. Cir. 2012)). The Supreme Court has held that “[a]pplication of a test that relies upon
On this issue the Court instructed the jury as follows, which Plaintiff does not take issue with:
[T]acking . . . allows a party to claim priority in a mark based on the first use date of a similar but technically distinct mark when the previously used mark is the legal equivalent of the mark in question or indistinguishable therefrom, such that consumers consider both as the same mark. If [Plaintiff] proves by a preponderance of the evidence that its ID mark has the same continuing commercial impression as the ID portion used in its CARiD logo beginning in 2009, then you can use the first date of its use of its CARiD mark as the priority date for the ID mark too. If however [Plaintiff] has not shown by a preponderance of the evidence that its ID mark has the same continuing commercial impression as the ID portion used in the CARiD logo used in 2009, then you cannot conclude that it can use the date it started using its CARiD mark as the date to claim priority for the ID mark. The priority date of ID will be when it was first used in the marketplace by whichever party used it first.
[Day 6 at 59:2–19].
For many of the same reasons that the jury could have found that Plaintiff did not have rights in “ID” as a separate portion of CARiD in 2009, see supra, the jury could have found that Plaintiff‘s later use of “ID” does not tack to any use of “ID” in 2009. Specifically, both car and ID are, or at least can be, generic terms, [id. at 57:21–59:11], such that consumers may have only considered CARiD as a whole. Moreover, there was very little, if any, evidence that “ID” was used by itself in 2009, see [Day 2 at 103:16–22], such that consumers would have considered it as legally equivalent to the later use of “ID.” Accordingly, given the evidence at trial and the fact that whether to find tacking “falls comfortably within the ken of a jury,” Hana Fin., 574 U.S. at 422, the Court concludes that the jury could have found that Plaintiff did not own a valid “iD”
C. Plaintiff‘s Willful Infringement of the IDParts Mark
Lastly, Plaintiff argues in less than a paragraph that “the Court should also grant judgment as a matter of law that Plaintiff‘s use of the name PARTS iD [sic] did not infringe on Defendant‘s IDParts mark.” [ECF No. 220 at 20]. The only explicit argument it makes in support of this position is that “[i]n order to succeed on its claim of infringement, IDParts was required to prove that it owned enforceable rights in the IDParts mark,” and that “IDParts cannot have ownership rights in the common law IDParts mark if that mark is confusingly similar to Plaintiff‘s CarID mark.” [Id.].
As an initial matter, as discussed above, the jury could have found that Defendant‘s use of “IDParts” or its
Second, the jury could have found a likelihood of confusion between “IDParts” and “PartsID.” Specifically, the jury could have found, as testified to by Plaintiff‘s expert, that the two names are confusingly similar. [Day 3 at 74:25–75:2]; see also Pignons, 657 F.2d at 487 (first factor: “similarity of the marks“). In addition, it could have found actual confusion
IV. CONCLUSION
Accordingly, Plaintiff‘s motion for judgment as a matter of law, [ECF No. 219], is DENIED.10
SO ORDERED.
July 1, 2024
/s/ Allison D. Burroughs
ALLISON D. BURROUGHS
U.S. DISTRICT JUDGE
