MEMORANDUM
I. INTRODUCTION
Kinbook, LLC (“Kinbook”), a small online social networking software company, filed this action against the Microsoft Corporation (“Microsoft”) for unfair competition and reverse trademark infringement under the Lanham Act of 1946, 15 U.S.C. § 1125(a). Kinbook blames Microsoft’s release of “Kineet” (a controller-free motion sensor for its XBOX 360 video gaming console) and “KIN” (a mobile smart telephone) for the largely unsuccessful start of its “Kinbox” Facebook application. Specifically, Kinbook claims that Microsoft’s use of the word “Kin” in conjunction with Microsoft’s XBOX 360 logo (i.e., “Kineet for XBOX”) is confusingly similar to Kin-book’s registered trademark “Kinbox.” Because of Microsoft’s superior marketing power and ability to saturate the market, Kinbook alleges Microsoft usurped its business identity and the value of its trademarks. As a result, Microsoft detrimentally affected the fortunes of Kin-book’s business.
Microsoft filed the instant motion for summary judgment (Doc. No. 28), asserting that there is no likelihood of confusion between the marks of Kinbook and Microsoft. For the reasons set forth below, the Court grants Microsoft’s motion for summary judgment.
II. FACTUAL BACKGROUND
A. Microsoft’s Kineet for XBOX 360 and KIN Phone
Microsoft is a software and consumer technology company that has been in existence since 1975. MS Facts ¶ 1. Microsoft’s most popular video game hardware device is its “XBOX 360” gaming console, the successor to its original “XBOX” console introduced in November 2001. As of June 2011, Microsoft has sold over fifty-five (55) million units of its XBOX 360 console. Id. at 2.
The XBOX 360 brand is much more than just the XBOX 360 console. Under the XBOX 360 umbrella, Microsoft markets the XBOX 360 console, XBOX Live,
In November 2010, Microsoft released the Kinect gaming sensor to the public to great fanfare, and within its first sixty (60) days on the market, Microsoft sold over eight (8) million Kinect units. MS Facts ¶ 7. The Kinect gaming sensor retails for approximately $150 by itself, and between $300 and $500 when bundled with the XBOX 360 console. Id. Consumers may purchase Kinect directly from Microsoft or at most electronics retailers, such as Best Buy or Amazon. Id. at 8.
Microsoft targets its sales of Kinect to consumers who already own an XBOX 360 console or who would be interested in purchasing an XBOX 360 console. Id. But, in public statements and internal documents, Microsoft personnel have expressed the hope that the Kinect sensor would broaden the appeal of XBOX 360, and transform it from merely a gaming console to a “family entertainment center.” Kinbook Facts ¶ 23. Kinect is marketed almost exclusively with the well-known XBOX 360 mark, which is prominently displayed on the Kinect gaming sensor itself, on all packaging for the Kinect, and in all advertisements and marketing materials for the Kinect. MS Facts ¶ 6. As of September 2011, Microsoft had spent over $100 million on promotion, advertising, and marketing of Kinect. Id. at 8.
While Microsoft’s Kinect product has been met with rave reviews, not all of its products have been unbridled successes. In April 2010, Microsoft developed and launched a new line of mobile smart phones exclusively for the Verizon Wireless mobile phone service known as the “KIN ONE” and the “KIN TWO” (collectively, “KIN”). Id. at 9. Microsoft chose the name KIN because it related to the concept of “next of kin” and those around the user with whom the user associates. Kinbook Facts ¶ 40. The KIN phones retailed for $199 or less, and required the purchase of a Verizon Wireless service plan. MS Facts ¶ 10. KIN phones did not connect with the public. Two months after the KIN phone’s debut, Microsoft announced that it would cease production of the KIN phones due to a lackluster demand for the product. Id. at 11.
Other than the KIN phone and the Kinect gaming sensor’s common use of the term “kin” in their names, they are in all other relevant respects completely different products. Id. at 12. Indeed, the products are made by two separate divisions of Microsoft. Moreover, Microsoft has no intention of using the KIN mark on any future products. Id. at 13.
B. Kinbook, LLC’s “Kinbox” and “Munchkinbox”
Kinbook is a small company founded by Ms. Cassandra Toroian and Ms. Jacqueline Blue. Kinbook Facts ¶ 2; MS Facts ¶ 18. The mission of the company is to “provide a digital world for family memories and communications, for current and future generations so they won’t forget.” Kin-book Facts ¶ 5. Consistent with that mission, in May 2009, Ms. Toroian and Ms. Blue began development of a software application designed for the sharing of online messages, photos, and videos between and among friends and family members. Id. at 2.
Although Ms. Toroian and Ms. Blue initially sought to develop their own web site to serve as the platform for the Kinbook service, in July 2009, in an effort to conserve costs and attract a user base, they decided to launch the service as an application available on the social-networking web
After consulting with counsel on the trademark application process, Ms. Toroian and Ms. Blue learned that over the past several years, Facebook, Inc. had opposed or threatened to oppose all trademark applications with a “._ Book” mark for companies intending to launch applications for the Facebook service. Id. at 5. After confirming this fact with Facebook, Inc., Ms. Toroian and Ms. Blue decided to change the name of its Facebook application from “Kinbook” to “Kinbox” and “Munchkinbox.”
In spite of their decision to launch a Facebook application instead of a web site, Ms. Toroian and Ms. Blue did not abandon their plans to launch an independent web site. Indeed, Kinbook purchased the web domain names, Kinboxx.com and Kin-box.org. Id. at 10. In addition to their intention to launch the service as a standalone web site, Ms. Toroian and Ms. Blue assert that they also intended to develop a mobile phone application at a later date. Id. at 3-4, 10. Kinbook does not charge users a fee to use Kinbox. Instead, Kin-book’s plan to remain financially solvent is to generate revenue from advertising, selling content (i.e., photo books, calendars), and selling additional storage to users. Id. at 11.
C. Kinect for XBOX 360’s Effect on the Kinbox
Despite Ms. Toroian’s and Ms. Blue’s inspiring aspirations, Kinbook has been largely unsuccessful to date and has been unable to generate any revenues from Kin-box. Id. at 11. Likewise, Kinbook markets Kinbox and Munchkinbox exclusively on the Facebook platform, and, although Ms. Toroian testified that she and Ms. Blue originally intended to spend a minimum of $250,000 marketing Kinbox, to date they have only spent a few thousand dollars on advertising and marketing. Id. at 16; MS Facts ¶¶ 15, 19. As of May 2011, Kinbox had only 16,685 active monthly users out of over 750 million regular Facebook users.
Accordingly, on September 17, 2010, Kinbook filed a Complaint against Microsoft alleging one count of unfair competition and trade dress infringement
III. LEGAL STANDARD
Upon motion of a party, summary judgment is appropriate if, “citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations, ... admissions, interrogatory answers, or other materials,” the moving party persuades the district court that “there exists no genuine issue of material fact that would permit a reasonable jury to find for the nonmoving party.” Fed. R. Civ. P. 56(c); Miller v. Ind. Hosp.,
In evaluating a summary judgment motion, the court “must view the facts in the light most favorable to the non-moving party,” and make every reasonable inference in that party’s favor. Hugh v. Butler Cty. Family YMCA,
The party opposing summary judgment must support each essential element of that party’s opposition by “citing to particular parts of materials in the record.” Fed. R. Civ. P. 56(c)(1). “The Court need consider only the cited materials” when determining whether there exists a genuine issue of material fact for trial. Fed. R. Civ. P. 56(c)(3). If the cited evidence is
IV. DISCUSSION
Kinbook alleges that Microsoft’s use of the marks “Kinect” and “KIN” infringes on its registered trademark and constitute unfair competition under the Lanham Act. The elements for trademark infringement and unfair competition under the Lanham Act are the same. A & H Sportswear, Inc. v. Victoria’s Secret Stores, Inc.,
A defendant’s use of a mark is likely to cause confusion where “an appreciable number of ordinarily prudent consumers” seeing the mark, Everett Labs., Inc. v. Vertical Pharm., Inc.,
(1) the degree of similarity between the owner’s mark and the alleged infringing mark;
(2) the strength of the owner’s mark;
(3) the price of the goods and other factors indicative of the care and attention expected of consumers when making a purchase; ■
(4) the length of time the defendant has used the mark without evidence of actual confusion arising;
(5) the intent of the defendant in adopting the mark;
(6) the evidence of actual confusion;
(7) whether the goods, though not competing, are marketed through the same channels of trade and advertised through the same media;
(8) the extent to which the targets of the parties’ sales efforts are the same;
(9) the relationship of the goods in the minds of consumers because of the similarity of function; and
(10) other facts suggesting that the consuming . public might expect the prior owner to manufacture a product in the defendant’s market, or that he is likely to expand into that market.
Id. at 463. “None of these factors is determinative in the likelihood of confusion analysis and each factor must be weighed and balanced one against the other.” Sabinsa, Corp. v. Creative Compounds, LLC,
There are two types of “likelihood of confusion” claims: “direct confusion” claims and “reverse confusion” claims. Reverse confusion — the type of likelihood of confusion claim applicable to this action
In its motion for summary judgment, Microsoft urges the Court to dismiss Kin-book’s trademark infringement claims as a matter of law because there is no likelihood of confusion between the parties’ marks. For the reasons that follow, the Court agrees that there is no likelihood of confusion between the parties’ marks, and therefore grants Microsoft’s motion for summary judgment.
A. Similarity of the IVIarks (Lapp Factor No. 1)
The single most important factor in determining likelihood of confusion is mark similarity. See Fisons,
Microsoft argues that on the face of the parties’ marks, it is clear that the marks are both visually and phonetically different. To be sure, the fonts and colors used in each mark are wholly distinct, and the marks create entirely different overall impressions when viewed separately. See MS Facts ¶¶ 12,14.
The Kinbox mark is written in an orange bubble-like font with a thin royal blue outline. Behind the small orange “i” in the word “kin” is a larger royal blue “i” that creates the impression of a parent standing behind a child. The “o” in the word “box” is a rectangle that contains what resembles a blue person that occupies two thirds of the box waving to an orange person in the distance who occupies the remaining third of the box.
[[Image here]]
The Munchkinbox mark is depicted in much the same way as the Kinbox mark. The lower case “i” in the word “Munchkin” is identical to the lower case “i” in the “Kinbox” mark. Likewise, the word “box” is written precisely as it is in the Kinbox mark: orange with a royal blue outline, with the same box logo substituted for the lower-case “o.” The primary difference between the “Kinbox” and “Munchkinbox” marks is that the word “Munchkin” is written in royal blue with a thin orange outline.
[[Image here]]
The Kinect mark, on the other hand, is written in a fairly plain font in all capital letters. The word “Kinect” contains no special graphics or design elements of note.
[[Image here]]
However, the word Kinect is almost always prominently accompanied by the famous XBOX 360 mark. The XBOX 360 mark is generally depicted in a lime green and silver color scheme, and frequently is preceded by a silver sphere with a lime green “x” through the upper portion of it.
[[Image here]]
The KIN phone mark is also completely different from the Kinbox mark. The KIN phone’s mark is written in a vertically elongated black font. The “K” in “KIN” is written so that each diagonal line is squared off into a right angle. The resulting effect is that the “K” resembles an upper-case “H” with two horizontal lines, and a gap on the right side of the “H” between the two horizontal lines.
[[Image here]]
Thus, the visual appearances of the these marks are wholly distinct, and the ordinary consumer could not reasonably conclude that the Kinect gaming sensor or the KIN phone are in any way related to the Kinbox Facebook application.
The only common element between the “Munchkinbox” and “Kinbox” marks, and
Although Kinbook asserts that Microsoft’s use of “kin” and “box” together in what it describes as Microsoft’s “Kinect for XBOX” mark is the source of the purported infringement, the Court is not persuaded. First, Microsoft’s mark is not “Kinect for XBOX”; it is simply, “Kinect.” Second, even assuming Microsoft’s mark was “Kinect for XBOX,” a reasonable jury would not find that “Kinect for XBOX” looks, sounds, or means the same as the mark' “Kinbox.” After all, the mark “XBOX” is certainly arbitrary and carries with it significant and pre-existing brand recognition. The word “box” is not so easily spliced from the term “XBOX.” Regardless, Microsoft’s use of “360” with the term “XBOX” makes Microsoft’s mark even more distinctive. Third, considering that the Kinect gaming sensor is always marketed and affixed with Microsoft’s “XBOX 360” mark, the likelihood of confusion with Kinbook’s marks is substantially and further diminished. See A & H Sportswear,
Accordingly, because Kinbook failed to put forth sufficient evidence for a reason
B. Strength of the Owner’s Mark {Lapp Factor No. 2)
The term “strength” in the context of trademarks refers to the distinctiveness of the mark; “its tendency to identify the goods sold under the mark as emanating from a particular, although possibly anonymous, source.” Ritz Hotel, Ltd. v. Shen. Mfg. Co., Inc., No. 05-4730,
1. Conceptual strength
The inquiry into conceptual strength is the same regardless of whether the plaintiff álleges direct or reverse confusion. A & H Sportswear,
Arbitrary or fanciful marks use “terms that neither describe nor suggest anything about the product” [e.g., Kodak], Id. Suggestive marks require consumer “imagination, thought, or perception” to determine what the product is [e.g., Coppertone]. Id. As the Court of Appeals explained in A.J. Canfield, terms that are arbitrary or suggestive are generally treated as distinctive and, therefore, legally protectable. A.J. Canfield Co. v. Honickman,
Descriptive marks “forthwith convey[] an immediate idea of the ingredients, qualities or characteristics of the goods” [e.g., Security Center]. Sabinsa,
Finally, generic marks “function as the common descriptive name of a product class” [e.g., Diet Chocolate Fudge Soda], Id. (internal citations omitted); see also A.J. Canfield,
Microsoft argues that Kinbook’s marks are merely descriptive without secondary meaning, but even if categorized as suggestive, constitute weak marks. Microsoft observes that both Kinbook marks describe a characteristic of Plaintiffs online social-networking services and consist of two words combined — “Kin” (“one’s relatives”) or “Munchkin” (“children”) and “box” (“to enclose in or as if in a box, or something with four sides that holds things inside of it”) — that describe the precise function of its products. MS Opening Brief at 15. Therefore, it argues, the
Kinbook, on the other hand, maintains that Kinbox and Munchkinbox are strong marks that should be categorized as suggestive. It argues that applying the imagination test, the marks “Kinbox” and “Munchkinbox” require imagination, thought or perception to reach the conclusion that the nature of the goods they represent constitute “online, multi-functional Facebook application^] ... that allows friends and family members to interact with one another,” and share various files with one another.
Although the Court declines to classify Kinbook’s marks definitively, even if the Court were to assume that the Kin-box and Munchkinbox marks áre suggestive as Kinbook contends, the Court cannot conclude based on the record evidence that Kinbook’s marks are conceptually strong. Though a “useful guide in assessing strength or weakness of a mark,” a mark’s classification is not dispositive of its conceptual strength or in whose favor the second Lapp factor should be weighted. A & H Sportswear,
Standing alone, the term “kin” is seemingly a descriptive term in this context, and at best, a highly suggestive term. See J. Thomas McCarthy, McCarthy on Trademarks and Unfair Competition § 23:48 (4th ed. 2001) (“If the common element of conflicting marks is a word that is ‘weak’ then this reduces the likelihood of confusion. A portion of a mark may be ‘weak’ in the sense that such portion is-descriptive, highly suggestive, or is in common use by many other sellers in the market.”). Here, as has been recounted at length, Microsoft has presented ample undisputed evidence demonstrating the widespread use of the term “kin” in the marks of a litany of products and services that occupy the “social networking for families and friends” market. See MS Ex. G. Indeed, a great many of these similar “kin” related marks in the online social networking sphere are senior to Kinbook’s marks, further weakening the extent of Kinbook’s protection. Coupled with the term “box,” it is arguable that the Kinbox mark is suggestive. However, even assuming that the “Kinbox” mark is suggestive, the prevalence of marks with the prominent term “kin” in the online social networking service sphere renders the “Kinbox” mark weak in this context.
2. Commercial strength
In a reverse confusion case, “the lack of commercial strength of the smaller senior user’s mark is to be given less weight in the analysis because it is the strength of the larger, junior user’s mark which results in reverse confusion.” A & H Sportswear,
Kinbook has failed to provide any evidence that its Kinbox and Munchkinbox marks have any sort of marketplace recognition. Kinbook admits that its mark is not well-known by consumers. Indeed, Kinbox has, at most, only 16,752 active monthly users out of over 750 million regular Facebook users. Kinbook Facts ¶ 11. Additionally, Kinbook acknowledges that it has not dedicated any significant time, money, or effort to advertise, promote, or market its marks or services. In fact, Kinbook admits that it affirmatively scaled down its advertising and marketing activities from aspirations of $250,000 to just a few thousand dollars following Microsoft’s release of Kinect. Id. at 16, 17.
In Freedom Card, the Third Circuit agreed with the district court that because the plaintiffs mark was conceptually weak and it failed to produce any evidence of the commercial strength of its mark, the second Lapp factor weighed in favor of the defendants. Freedom Card,
C. The Price of the Goods and Sophistication of Consumers (Lapp Factor No. 3)
“Different price points make confusion less likely, because the parties’ goods will be purchased by different classes of consumers.” Ritz Hotel,
The Kinect gaming sensor costs $150, or $300-$500 when bundled with an XBOX 360 console. MS Facts ¶ 7. At that price point, the Kinect gaming sensor is sufficiently expensive so as not to constitute an impulse-purchase for the vast majority of its customers. Likewise, the KIN mobile phones were priced at approximately $199 when they were available, and consumers were required to sign up for a Verizon Wireless service plan along with it that locked the customer into a multimonth commitment and costed hundreds of additional dollars per year. MS Facts ¶ 10. Consumers exercise a great degree of care when purchasing both a phone and a wireless service plan. Kinbox and Munchkinbox, on the other hand, are free services for their users that only require a Facebook account to use. These patently different price points suggest that a likelihood of confusion is remote at best.
Kinbook responds that other XBOX 360 items — subscriptions, content, and games — can be purchased for much less than Kinect or the XBOX 360 gaming console. Although that may be accurate, Kin-book’s focus on the XBOX 360 platform as a whole is misplaced. The product at issue is “Kinect,” not every product associated with the XBOX 360 platform. Nevertheless, even the XBOX 360 products “that have a much lower cost ... typically under $60,” still attract a vastly different class of consumers than those who are using the free Kinbox application. Kinbook Response at 41.
Kinbook’s argument regarding the least sophisticated consumer is equally without
Accordingly, the Court concludes as a matter of law that based on the record evidence no reasonable jury could find that this Lapp factor weighs in favor of finding a likelihood of confusion.
D. Actual Confusion (Lapp Factors Nos. 4 and 6)
“Evidence of actual confusion is not required to prove likelihood of confusion.” Checkpoint,
Here, neither the Kinect gaming sensor, the KIN phone, nor the Kinbox application have been sold for a particularly long period of time. However, in that limited period of time, Kinbook asserts that there have been four instances of actual confusion: (1) a third-party web site, www.socialbakers.com identified Kin-box as a “related application” to Kinect for XBOX 360, Kinbook Ex. EE; (2) another third-party web site www.overclock.net, contained a blog post noting the potential for integrating the names for Kinect and XBOX 360 into “Kinbox,” Kinbook Ex. FF, (3) www.kinboards.com contained a user comment on a message board that “Kinect is the bridge between Kin and XBOX 360,” Kinbook Ex. GG; and (4) an online PC Magazine article described the cylindrical box that the KIN phone was packaged in as a “Kin box.” Kinbook Ex. HH.
Kinbook has not presented any evidence of actual confusion. Accordingly, the Court finds that this Lapp factor merits little, if any, weight in the likelihood of confusion inquiry.
E. Intent of the Defendant in Adopting the Mark (Lapp Factor No. 5)
Intent to confuse is relevant both in direct and reverse confusion cases. A & H Sportswear,
Kinbook has not presented any evidence from which a reasonable fact finder could conclude that Microsoft (1) was aware of Kinbook or its marks before naming its KIN and Kinect products, (2) intended to push Kinbook out of the market, or (3) named these products in an attempt to prey on Kinbook’s reputation. The only evidence Kinbook presented in support of this Lapp factor is that Microsoft conducted only one trademark search in October 2009 before filing its trademark application with the United States Patent and Trademark Office in April 2010. Kin-book notes that it filed its trademark application in December 2009, two months after Microsoft conducted its trademark search. Although it would have been prudent for Microsoft to have conducted a trademark search closer to the date of filing its application, if anything, this indicates that Microsoft did not act with the intent to prey on Kinbook, and likely was unaware of Kinbook’s very existence. Further, Microsoft notes that it filed its first trademark registration for Kinect in South Africa in October 2009, over one month before Kin-book began using the marks in December 2009. MS Reply at 16. This does not evidence a predatory intent on the part of Microsoft.
Kinbook argues that the Third Circuit Court of Appeals has adopted a “carelessness” standard for reverse confusion cases, and that all that is needed for this Lapp factor to weigh in its favor is for Microsoft to have acted with carelessness in deciding to use the purportedly infringing mark. However, the Third Circuit Court of Appeals has not adopted a “carelessness” standard for such cases. To the contrary, the Court of Appeals considered and declined to adopt such a test in Freedom
Kinbook has failed to present any evidence of predatory intent on the part of Microsoft. Accordingly, the Court concludes as a matter of law that no reasonable juror could find that this Lapp factor weighs in favor of finding a likelihood of confusion.
F. Similarity of Channels of Marketing and Advertising (Lapp Factor No. 7)
The Third Circuit Court of Appeals has recognized that “the greater the similarity in advertising and marketing campaigns, the greater the likelihood of confusion.” Checkpoint,
The evidence is undisputed that Kinbook’s advertising is limited to “banner advertisements” on Facebook. In addition, Kinbox is available on and compatible only with Facebook. Kinect, on the other hand, is used exclusively with Microsoft’s XBOX 360 console and is marketed and sold in electronics retail stores and on the Microsoft web site. Microsoft advertises its XBOX 360 products through a variety of media such as television and the internet. The KIN phone could only be used with Verizon phones and was marketed and sold exclusively through Verizon Wireless online and retail stores. In other words, the evidence makes clear that the products are marketed and sold through completely different, non-intersecting channels of trade.
Kinbook asserts that both parties market their products on Facebook. Indeed, Facebook is the only medium through which Kinbook has advertised its Kinbox application. However, as Microsoft points out, advertising on the internet and, more specifically, on Facebook has become vast and indiscriminate, and “virtually every business today” uses the internet and Facebook for marketing purposes. See, e.g., Entrepreneur Media, Inc. v. Smith,
G. Similarity of Targets of Parties’ Sales Efforts (Lapp Factor No. 8)
When parties target their sales efforts at the same consumers, there is a greater likelihood of confusion. Checkpoint,
Kinbook takes an expansive view of this Lapp factor and argues that Microsoft is undergoing a massive re-launch of its XBOX 360 platform with the release of Kinect and is now also targeting Kinbook’s primary demographics: (1) Facebook users, (2) women, and (3) families. Kin Response at 49. However, if that were enough to satisfy this Lapp factor, the target audiences of Kinect and Kinbox would overlap with practically every product and service in every industry on the market today. Evidence that Microsoft is “targeting” what amounts to virtually every consumer in the world does not constitute meaningful evidence that it is targeting the same consumers as Kinbook.
Accordingly, the Court concludes that Kinbook has failed to present any record evidence from which a reasonable jury could conclude that this Lapp factor weighs in favor of a finding of likelihood of confusion.
H. Similarity of Function Between the Products (Lapp Factor No. 9)
As has been detailed at length, the Kinect gaming sensor, KIN phone, and Kinbox Facebook application all perform entirely different functions. The Kinect is a hardware gaming sensor used primarily in playing video games. The KIN was a telephone used primarily for making telephone calls. Kinbox and Munchkinbox on the other hand are online social-media networking applications for Facebook.
Kinbook goes to great lengths to try to equate the functions of the Kinect with those of the XBOX 360 platform. The “XBOX 360 Platform,” as Kinbook defines it, includes the Kinect sensor, the XBOX 360 console, and an internet connection, whereby the user can access XBOX Live, and Facebook. All of the articles, reports, and testimony Kinbook relies on for its argument relate to the functions of the “XBOX 360 Platform,” not Kinect specifically.
Indeed, collectively, the “XBOX 360 Platform” has some functional overlap with the Kinbox application. For example, as a secondary feature, the Kinect gaming sen
Although Kinbook tries to equate the functions of Kinect and Kinbox with elaborate diagrams, see Kinbook Ex. K, it ignores that Kinect, and the “XBOX 360 Platform” are not the same product. The Kinect gaming sensor is merely one small part of the “XBOX 360 Platform,” and the primary function of Kinect is to complement the XBOX 360 console with controller-less gaming. While Microsoft has expressed the sentiment that Kinect has transformed the XBOX 360 into a “family entertainment center” that permits users to socialize, watch television and movies, and play games, Kinbox, by virtue of its trademark registration, does not have a monopoly on all uses of the term “kin” related to products that appeal to the family. Simply because the larger “XBOX 360 Platform” overlaps in function with Kinbox to some degree, does not mean that there exists any likelihood of confusing Kinect with Kinbox.
Accordingly, the Court concludes that Kinbook has failed to present evidence from which a reasonable jury could conclude that this Lapp factor weighs in favor of a finding of likelihood of confusion.
I. Likelihood of Expansion into Other Party’s Market (Lapp Factor No. 10)
The record evidence is undisputed that Kinbook has no intention to expand its Munchkinbox or Kinbox marks into the mobile phone or video gaming arena. Although Kinbook asserts that in “future phases the product would be accessible through a mobile phone device,” it has not presented any evidence that it intends to expand its operations into the manufacture and sale of mobile phones. See Kinbook Facts ¶¶ 3-4, 10. The market for mobile phones and for mobile phone software applications are entirely distinct. Regardless, Microsoft has discontinued production and sale of mobile phones carrying the KIN mark and has represented to the Court that it has no intention of reviving the KIN mobile phone product. Likewise, Kinbook has not presented any evidence to show that Microsoft has any intention of expanding the use of the KIN mark outside of the mobile phone area, or the Kinect mark outside of the gaming sensor area. MS Facts ¶ 13.
Accordingly, the Court concludes that Kinbook has failed to present evidence from which a reasonable jury could con-
V. CONCLUSION
For the foregoing reasons, the Court concludes that Kinbook has failed to raise any issue of material fact that could permit a reasonable jury to find in its favor. Accordingly, the Court will grant Microsoft’s motion for summary judgment.
An appropriate Order consistent with this Memorandum follows.
ORDER
AND NOW, this 24th day of January, 2012, upon consideration of Defendant Microsoft Corporation’s Motion for Summary Judgment (Doc. No. 28), its Memorandum in support thereof, and all responses thereto, it is hereby ORDERED that Microsoft’s Motion for Summary Judgment is GRANTED.
Notes
. XBOX Live is the online subscription service for XBOX 360 that enables users to share content, play video games with other XBOX Live subscribers, and enjoy a wide array of entertainment options on their televisions by way of their XBOX 360 console.
. Microsoft did not publically reveal the name "Kineet" for its soon-to-be-released gaming sensor until June 2010. In the interim, Microsoft ran a trademark search in October 2009, and on April 26, 2010 filed its application for trademark registration with the United States Patent and Trademark Office for its "Kineet” product. Kinbook Facts ¶ 46. Previously, on October 29, 2009, Microsoft filed its first trademark registration for the Kineet mark in South Africa. See MS Reply at 16.
. Facebook is a social networking service and web site where users can create a personal profile, add other users as friends, and exchange messages, photos, or videos. A "Facebook application” is a software application designed to enhance users’ experience on Facebook by allowing them to interact with online friends in various ways. See MS Facts ¶ 16.
. "Munchkinbox” was intended to be a counterpart on-line social networking service to Kinbox for use among children and their extended family. MS Facts ¶ 6.
. Microsoft contends that Kinbox had only 14 active users as of May 2011. MS Facts ¶ 18. As of September 2011, Kinbook asserts that Kinbox has 16,752 monthly active users. Kinbook Facts ¶ 11.
. Ms. Toroian testified that "a company the size of Microsoft could afford to spend hundreds of millions of dollars in a marketing campaign so that it would envelop anything that [Kinbook] was trying to do.” Kinbook Facts ¶ 17.
. Microsoft maintains, and the record reflects, that it does not market its Kinect product as "Kinect for XBOX.” Instead, it either markets its product as "Kinect” or "Kinect for XBOX 360.”
. Kinbook's claim, in reality, sounds in reverse trademark infringement and unfair competition.
. Because the Court finds that there is no likelihood of confusion between the parties’ marks, it will decline to reach a conclusion as to whether Kinbook's marks are valid and legally protectable. However, even if Kin-book’s marks are, in fact, legally protectable, Microsoft is entitled to judgment as a matter of law because no reasonable jury could conclude, based on the evidence before the Court, that there is a likelihood of confusion between the parties’ marks. While the Court acknowledges that "[fjailure to strictly observe the principles governing summary judgment becomes particularly significant in a trademark or tradename action, where summary judgments are the exception,” Doebler’s Pa. Hybrids, Inc. v. Doebler,
. Microsoft argues at length in its reply brief that Kinbook alleges reverse confusion for the first time in its opposition brief to Microsoft’s motion for summary judgment, and failed to allege reverse confusion in its Complaint. However, Kinbook is correct that " 'reverse confusion' is not a new claim, but rather an alternative theory of liability for infringement under the Lanham Act.” Birmingham v. Mizuno USA, Inc., No. 09-566,
. These include, but are not limited to, “Kin-cafe,” an online social network for families to connect; “Kin Valley,” a secure online social network for the family; “Kinzin,” an online social publishing service to allow groups to privately share photos; "Kinnect.Us,” an online social networking service to stay connected with family and friends; "Kinector,” an online service to help users stay connected with relatives through a private web site where family can share information; "Connect 2 Kin,” an online service for families to stay in touch and share photos, share documents, schedule events, etc.; "Kindle,” an e-book reader with social networking capabilities; and many others. MS Facts ¶ 21. The list is long enough to call to mind Shakespeare's observation, "One touch of nature makes the whole world kin.” William Shakespeare, Troilus and Cressida, act 3, sc. 3 (1602).
. At oral argument, counsel for Kinbook represented that Microsoft's motion for summary judgment is premature because Kinbook has not yet completed discovery. Specifically, counsel noted that Kinbook has not yet received e-mails between Microsoft’s Rule 30(b)(6) witness, Eli Friedman, and two consulting firms Lexicon and Interbrand, related to the naming of Kinect. Although the Court recognizes that the parties' dispute whether the Kinect gaming sensor was named for its “Kinetic” motion-related qualities, or for its function of aiding users in "connecting” with "kin” or family, considering the overwhelming evidence in favor of Microsoft, this one disputed fact is not ultimately material to whether the parties' marks are confusingly similar, and additional discovery related to this issue will not materially affect the Court’s determination that a reasonable jury could not conclude that the marks are confusingly similar.
. Of course, these observations do not include any assumptions as to the facility of a young 21st century child to use these electronic items or a comparison of the ease of use by a 5 year-old as compared to the other outer-edge of the "target” group, i.e., someone in his or her 80’s.
. "The argument that the goods are ‘related’ in a trademark infringement sense because
. As noted in footnote 12 supra, at oral argument, counsel for Kinbook represented that Microsoft’s motion for summary judgment is premature because Kinbook has not yet completed discovery. Specifically, counsel noted that Kinbook has not yet deposed Microsoft CEO Steve Ballmer on statements he made in a January 20, 2011 interview with USA Today. The Court is not convinced that this additional discovery would have any effect on the resolution of this motion. Mr. Ballmer’s statements in the USA Today interview related to the XBOX 360 platform as a multifunctional "family entertainment center” and are largely immaterial. Microsoft never suggested that the only function of XBOX 360 is gaming, and no reasonable jury could conclude that an overlap in some functions between the XBOX 360 platform and Kinbox is likely to cause confusion between Kinect and Kinbox.
