ORDER re: Defendant’s Motion to Dismiss the Complaint [20]
Currently before the Court is Defendant Lithera, Inc.’s (“Defendant”) Motion to Dismiss the Complaint [20]. Plaintiff Kythera Biopharmaceuticals, Inc. (“Plaintiff”) filed its Opposition on December 17, 2013 [30], Defendant filed a Reply on December 23, 2013 [31]. This matter was taken under submission on January 2, 2014 [32], Having reviewed all papers submitted pertaining to the Motion, and having considered all arguments presented to the Court, the Court NOW FINDS AND RULES AS FOLLOWS:
Defendant’s Motion to Dismiss is hereby DENIED.
I. Background
Plaintiff is a Delaware corporation with its principal place of business in California. Compl. ¶ 2. Defendant is also a Delaware corporation with its principal place of business in California. Id. at ¶ 3.
Plaintiff is a biopharmaceutical company dedicated to researching and developing pharmaceuticals used in aesthetic medicine, including pharmaceuticals to reduce human body fat. Id. at ¶ 6. Plaintiff was founded in 2005. Id. Since 2006, Plaintiff has used the mark KYTHERA for its pharmaceutical research and development, including in connection with its lead product candidate, ATX-101, which is designed to reduce human body fat. Id. at ¶ 7.
Plaintiff owns a federal trademark registration for KYTHERA, U.S. Reg. No. 3357920, registered December 18, 2007.
Plaintiff has invested considerable resources to advertise and promote its goods and services under its KYTHERA marks and trade names. Id. at ¶ 12.
After Plaintiff first used its KYTHERA marks and trade names, Defendant filed an intent to use application in the United States Patent and Trademark Office (“USPTO”) for LITHERA for “pharmaceutical preparations for reducing the size and appearance of adipose deposits in a body.” Id. at ¶ 14. Defendant received a federal trademark registration for LITHERA, U.S. Reg. No. 4067542, registered
The Parties’ goods and services are discussed and presented under the KYTHERA and LITHERA marks and names in the same publications, including investor publications, and at the same conferences. Id. at ¶ 20. Plaintiff has demanded that Defendant cease and desist all use of LITHERA and similar names and marks, but Defendant has refused to do so. Id. at ¶ 23.
Plaintiff filed its Complaint on August 29, 2013 [1], alleging trademark infringement, unfair competition, and false designation of origin under 15 U.S.C. §§ 1114, and 1125, and under California law. Plaintiff also included a claim for trademark cancellation under 15 U.S.C. §§ 1052(d), and 1119 [1].
Defendant filed the instant Motion to Dismiss the Complaint on November 25, 2013 [20].
II. Legal Standard
A. Motion to Dismiss Pursuant to Rule 12(b)(6)
Federal Rule of Civil Procedure 12(b)(6) allows a party to move for dismissal of one or more claims if the pleading fails to state a claim upon which relief can be granted. Dismissal can be based on a lack of cognizable legal theory or lack of sufficient facts alleged under a cognizable legal theory. Balistreri v. Pacifica Police Dep’t,
The question presented by a motion to dismiss is not whether the plaintiff will prevail in the action, but whether the plaintiff is entitled to offer evidence in support of its claim. Swierkiewicz v. Sorema N.A.,
If dismissed, a court must then decide whether to grant leave to amend. The Ninth Circuit has repeatedly held that a district court should grant leave to amend even if no request to amend the pleadings was made, unless it determines that the pleading could not possibly be cured by the allegation of other facts. Lopez v. Smith,
III. Discussion
A. Request for Judicial Notice
Defendant requests that this Court take judicial notice of Plaintiffs federal service
“A court may ... consider certain materials—documents attached to the complaint, documents incorporated by reference in the complaint, or matters of judicial notice—without converting [a] motion to dismiss into a motion for summary judgment.” United States v. Ritchie,
Plaintiffs service mark registrations are attached to its Complaint (Compl. Exs. A-B), and these registrations form the basis of some of Plaintiffs claims of trademark infringement (see e.g., Compl. ¶¶ 31-36). As such, the Court takes judicial notice of the trademark records for Plaintiffs trademark registrations.
Furthermore, “[o]n a motion to dismiss, a court may take judicial notice of matters of public record outside the pleadings.” Plevy v. Haggerty,
B. Trademark Infringement
In its Complaint, Plaintiff has alleged causes of action for: (1) trademark infringement, (2) unfair competition, and (3) false designation of origin under the Lanham Act, 15 U.S.C. §§ 1114 & 1125, and under California law. Compl. ¶¶ 25-36, 40-44.
This Court analyzes these claims together for the purposes of this Motion. “[T]he courts have uniformly held that common law and statutory trademark infringement are merely specific aspects of unfair competition.” Hokto Kinoko Co. v. Concord Farms, Inc.,
To prove a claim of trademark infringement, a plaintiff must show: (1) that it has a valid, protectable trademark, and (2) that defendant’s use of the mark is likely to cause confusion. Applied Info. Scis. Corp. v. eBay, Inc.,
1. Validity of the Trademarks
Defendant contends that Plaintiff has no protectable interest in the KYTHERA marks because Plaintiff does not use those marks in connection with performing services for the benefit of others. Mot. SA-IS; Reply 13:19-21. Plaintiff avers that its federal trademark registrations show the incontestible status and validity of its rights in the KYTHERA marks. Opp’n 8:2-13.
The Lanham Act defines a trademark as:
any word, name, symbol, or device, or any combination thereof—
(1) used by a person, or
(2) which a person has a bona fide intention to use in commerce and applies to register on the principal register established by this chapter, to identify and distinguish his or her goods, including a unique product, from those manufactured or sold by others and to indicate the source of the goods, even if that source is unknown.
15 U.S.C. § 1127. Service marks are similarly defined; in fact “the only difference between a trademark and a service mark is that a trademark identifies goods while a service mark identifies services.... Service marks and trademarks are identified by identical standards.” Chance v. Pac-Tel Teletrac, Inc.,
Typically, “Registration of a mark ‘on the Principal Register in the Patent and Trademark Office constitutes prima facie evidence of the validity of the registered mark and of [the registrant’s] exclusive right to use the mark on the goods and services, specified in the registration.’ ” Applied Info. Scis. Corp. v. eBay, Inc.,
To acquire ownership of a trademark, “[i]t is not enough to have invented the mark first or even to have registered it first; the party claiming ownership must have been the first to actually use the mark in the sale of goods or services.” Halicki Films, LLC v. Sanderson Sales & Mktg.,
As a preliminary matter, Plaintiff has alleged that it has used its KYTHERA marks both in connection with goods and with services. In this respect, it is crucial to determine whether Plaintiff has plausibly alleged that it has used the KYTHERA marks in commerce in connection with both its goods and its services.
The Court first finds that Plaintiff has alleged sufficient facts to show that it has a protectable trademark interest. Shipments of drugs for clinical testing may be a sufficient use in commerce to show a protectable interest. See G.D. Searle & Co. v. Nutrapharm, Inc., No. 98 Civ. 6890 TPG,
It is less clear whether Plaintiff has sufficiently alleged facts showing that it has a valid, protectable interest in its service marks.
Defendant cites to In re Canadian Pacific Ltd.,
However, the Ninth Circuit has held that “trademark rights can vest even before any goods or services are actually sold.” Brookfield Commc’ns,
Actually rendering a service to third parties is not necessarily required to acquire a protectable interest. Rearden LLC,
Here, Plaintiff has alleged that it has engaged in some activities to identify its research services. For example, Plaintiff alleges that doctors writing a letter to the editor in the Aesthetic Surgery Journal reference both Plaintiff and Defendant by their KYTHERA and LITHERA names, as well as the Parties’ current research. Compl. ¶ 19 Ex. C. Moreover, a presenter at the “AAD annual conference” mixed up KYTHERA and LITHERA when referencing the Parties’ goods and services. Id. at ¶20. In short, Plaintiff has alleged instances where individuals have actually identified the KYTHERA mark with certain research services Plaintiff rendered.
Moreover, the very public records Defendant presents show that Plaintiff actually offers its research services to others. For example, the excerpt from the trademark records for U.S. Trademark Registration No. 4,012,388-U.S. Application Ser. No. 85/225,218 specifically states that “[i]n August 2010, KYTHERA announced a licensing and development agreement worth up to $373 million granting Intendis, Bayer HealthCare’s dermatology business, commercialization rights to ATX-101 outside of the U.S. and Canada.” Sauter Decl. Ex. 2 p. 42 (emphasis added). The application further states that “KYTHERA and Intendis are collaborating on the development of ATX-101 in Europe.” Id. (emphasis added). The excerpt from the trademark records for U.S. Trademark Registration No. 3,357,920 similarly indicates that Plaintiff and Bayer are collaborating on research for ATX-101. Id. Ex. 3 p. 57. Such statements indicate that Plaintiff plausibly provides research services to Intendis and Bayer in connection with ATX-101. It is plausible that Plaintiff renders its research services to such partners un
2. Likelihood of Confusion
Defendant also argues that the Court should dismiss the Complaint because Plaintiff has not alleged any facts that could plausibly suggest a likelihood of confusion by the relevant consuming public. Mot. 7:20-25; Reply 5:18-22. Plaintiff avers that not only has it alleged substantial facts supporting its claims of likelihood of confusion, but also that consumer confusion is not the only relevant type of confusion. Opp’n 12:1-16.
“The likelihood of confusion is the central element of trademark infringement.” GoTo.com, Inc. v. Walt Disney Co.,
Plaintiff has alleged facts supporting its allegations of a likelihood of confusion. For example, Plaintiff has alleged that the Parties’ marks are similar, are used on the same types of goods and services, and that them goods will be marketed through the same channels of trade, advertised in the same mediums, target the same customers, and serve similar functions. Compl. ¶¶ 16-18. Plaintiff has also alleged instances of actual confusion. Id. at ¶¶ 19-20. These alleged facts tend to show a likelihood of confusion and therefore plausibly support Plaintiffs claims.
Nevertheless, Defendant avers that Plaintiffs claims fail because Plaintiff simply cannot show that consumers will be confused because there are no actual consumers at this time. Reply 2:22-3:11, 3:21-25, 4:4-5, 4:14-16.
Defendant is correct that the Ninth Circuit’s likelihood of confusion analysis focuses on “whether a ‘reasonably prudent consumer’ in the marketplace is likely to be confused as to the origin of the good or service bearing one of the marks.” Rearden LLC,
However, Plaintiff is also correct that “nonconsumer confusion may also be relevant to the ‘likelihood of confusion’ inquiry.” Rearden LLC,
confusion on the part of at least certain non-consumers could either: (1) turn into actual consumer confusion (i.e., potential consumers); (2) serve as an adequate proxy or substitute for evidence of actual consumer confusion (i.e., non-consumers whose confusion could create an inference of consumer confusion); or (3) otherwise contribute to confusion on the part of the consumers themselves (i.e., non-consumers whose confusion could influence consumer perceptions and decision-making).
Id. at 1216. In other words, while the focus of the Court’s inquiry is on whether actual consumers are confused, that does not necessarily mean that evidence of confusion amongst non-consumers is irrelevant.
In any event, as indicated, supra, it appears that Plaintiff has used its KYTHERA marks in commerce by engaging in clinical trials and thereby likely shipping ATX-101 under its KYTHERA mark (Comply 1), and by rendering its research and development services to its strategic partners (see Sauter Decl. Ex. 2 p. 42, Ex. 3 p. 57). Contrary to Defendant’s assertions (see Mot. 9:23-27; Reply 6:3-8), Plaintiff has alleged commercial use of its marks. At this stage of the litigation, the Court finds that it cannot categorically conclude that there are no consumers to be confused, especially given that Plaintiff has plausibly alleged that it has used its marks in commerce. As such, the Court finds that Plaintiff has sufficiently and plausibly alleged its claims for trademark infringement.
3. Whether Plaintiff’s Claims are Premature
Defendant contends, however, that Plaintiffs claims are premature because a likelihood of confusion analysis cannot be performed at this time. Mot. 9:18-10:28; Reply 5:23-10:7. Furthermore, Defendant contends that Plaintiffs claims are not ripe for adjudication because they rest “upon contingent future events that may not occur as anticipated, or indeed may not occur at all.” Reply 5:24-6:3 (quoting Texas v. United States,
Defendant’s contentions are misplaced. Simply because some of the Sleekcraft factors are not ripe for disposition at this time does not mean that the Court cannot conduct a Sleekcraft analysis. See Chesebrough-Pond’s, Inc. v. Faberge, Inc.,
Moreover, it is clear that Plaintiff has alleged facts pertaining to the likelihood of confusion analysis that are ripe for disposition. For example, Plaintiff has alleged that the marks are similar “in sight, sound, meaning and overall visual impression.”
At this point, Plaintiff has sufficiently alleged that it is currently using its marks in commerce and that Defendant’s use of its mark is likely to cause confusion. Such is enough to state a claim for trademark infringement. See Network Automation, Inc. v. Advanced Sys. Concepts, Inc.,
In any event, to the extent Defendant contests the justiciability of this Action, such an argument is more properly presented as a challenge to this Court’s subject matter jurisdiction. See Gemtel Corp. v. Cmty. Redevelopment Agency,
IV. Conclusion
For the foregoing reasons, the Court hereby DENIES Defendant’s Motion to Dismiss the Complaint [20].
IT IS SO ORDERED.
Notes
. Specifically, the service mark registration was granted for: “Chemical research; Chemical, biochemical, biological and bacteriological research and analysis; Conducting early evaluations in the field of new pharmaceuticals; Development and test of chemical production methods; Development of new technology for others in the field of biotechnology; Development of pharmaceutical preparations and medicines; Medical and scientific research in the field of biotechnology; medical and scientific research, namely, conducting clinical trials; Pharmaceutical drug development services; Pharmaceutical product evaluation; Pharmaceutical research and development; Pharmaceutical research services; Research on the subject of pharmaceuticals; Testing, inspection or research of pharmaceuticals, cosmetics or foodstuff.” Compl. Ex. A.
. Specifically, a service mark was granted for: “Research and development of pharmaceutical preparations and aesthetic preparations; medical and scientific research information in the fields of pharmaceutical preparations, aesthetic preparations and clinical trials; and providing a website featuring information about investigational pharmaceutical preparations and aesthetic preparations.” Compl. Ex. A.
