MEMORANDUM AND ORDER RE; MOTION FOR INJUNCTION
Plaintiff National Grange of the Order of Patrons of Husbandry brought this action against defendant California State Grange for trademark infringement arid unfair competition under the Lanham Act. Presently before the court is plaintiffs motion for an injunction pursuarit to the Lan-ham Act, 15 U.S.C. § 1116(a). (Docket No. 126.) For the reasons explained below, plaintiffs motion is GRANTED in part.
I. Factual and Procedural Background
Plaintiff is a national fraternal organization founded in 1867 to promote the interests of farming and agriculture. (July 14, 2015 Order at 1-2 (Docket No. 60).) Plaintiff has grown to a network of approximately 2,000 local chapters across the country, through which it provides a variety of goods and services to agricultural
Plaintiff chartered defendant as its affiliate California state chapter in 1873. (Id.) As a chartered affiliate, defendant, collected dues from local subordinate granges and turned over a portion of those dues to plaintiff. (Id.) In 1946, defendant registered as a non-profit corporation with the California Secretary of State. (Huber Deck ¶ 8, Mar. 22, 2016 (Docket No. 126-3).)
In 2012, a dispute arose between plaintiff and defendant. (Compl. ¶ 5 (Docket No. 1).) As a result, plaintiff revoked defendant’s charter and the parties disaffiliated. (Id. ¶ 7.) Plaintiffs California-based members subsequently voted to reorganize a California state chapter under the name Grange of the State of California’s Order of Patrons of Husbandry,' Chartered. (Id. ¶ 38.)
Despite the parties’ disaffiliation, defendant continued to use its registered corporate name, California State Grange, and represent itself publically as California State Grange on its website, at events, and in its newsletters. (July 14, 2016 Order at 2.) In March 2014, plaintiff filed this action, bringing claims for (1) federal trademark infringement under Section 32 of the Lanham Act, 15 U.S.C. § 1114; (2) unfair competition and false designation of origin under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); (3) federal trademark dilution under § 43(c) of the Lanham Act, 15 U.S.C. § 1125(c); and (4) federal trademark counterfeiting under § 32(1) of the Lanham Act, 15 U.S.C. § 1114(1). (Compl. ¶¶ 48-101.)
On July 14, 2015, the court granted plaintiffs motion for partial summary judgment on its claims for trademark infringement and unfair competition and false designation of origin. (July 14, 2015 Order at 12, 19.)
On October 28, 2015, defendant filed a notice of appeal from the court’s judgment and its July 14 and September 29 Orders. (Docket No. 87.) Plaintiff cross-appealed the portion of the court’s September 29, 2015 Order limiting injunctive relief, to, the word “Grange.” (Docket No. 90.) The appeals are currently pending before the United States Court of Appeals for the Ninth Circuit. In January 2016, the court denied defendant’s motion to stay the injunction pending appeal, holding, that plaintiff “would be substantially injured by defendant’s continued infringement of its trademark were the court to grant a stay of the injunction.” (Jan, 12, 2016 Order at 4 (Docket No. 108).)
Defendant additionally registered with Sacramento County to do business as “Cal
Plaintiff now moves to enjoin defendant, its agents, affiliates, and any party acting in concert with defendant, from: (1) using “Grange,” “Granger,” or “CSG” in conducting business activities or as part of a business, trade, or domain name; (2) using “Grange” in corporate registrations or other filings with any federal, state, or local government; and (3) representing themselves to be the successor to “California State Grange.” (Docket No. 126-4.) Plaintiff further requests that defendant (4) remove the name “Grange” from all telephone and business directory listings; (5) include a prominent disclaimer on its website and in all future communications that it is “not affiliated with the California State Grange”; (6) include a hyperlink on its website that redirects users to plaintiffs California-based grange website; and (7) pay plaintiff reasonable attorney’s fees in bringing' the pending motion and its previous motion for an order to show cause why defendant should not be held in contempt. (Id.)
II. Legal Standards
A. Injunctive Relief Under the Lanham Act
Plaintiff here succeeded on its claims for trademark infringement, 15 U.S.C., § 1114, and unfair competition, 15 U.S.C. § 1125(a), under the Lanham Act. (See July 14, 2015 Order.) Defendant has conceded that its services are identical to those offered by plaintiff and that the use of “Grange” by two California organizations had caused actual confusion among consumers and “great confusion” among local granges. (Id, at 10-11; see also Compl. ¶ 44 (“Defendant’s continued use of GRANGE Marks will likely lead to actual confusion among members of the public, since there are two organizations—one legitimately affiliated with the National Grange and one that is not—using the same or substantially similar Grange name and GRANGE Marks to offer the same goods and services to the same members of the public.”).) The court thus found that “only one inference can be drawn: defendant’s use of ‘Grange’ is likely to cause, and apparently has caused, a reasonably prudent consumer in the marketplace to be confused about the origin of defendant’s services.” (July 14,2015 Order at 12.)
“Injunctive 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.” Century 21 Real Estate Corp. v. Sandlin,
“[I]f a district court finds infringement, it retains the .discretion to
B. Injunctive Relief During a Pending Appeal
“[A]n injunction often requires continuing supervision by the issuing court and always a continuing willingness to apply its powers and processes on behalf of the party who obtained that equitable relief.” Sys. Fed’n No. 91, Ry. Emp. Dep’t, AFL-CIO v. Wright,
Defendant appealed the court’s judgment on October 28, 2015. (Docket No. 87.) Although an appeal.ordinarily divests the district court of jurisdiction over the matters on appeal, Federal Rule of Civil Procedure 62(c) creates an exception to that rule: “While an appeal is pending from an interlocutory order or final judgment that grants, dissolves, or denies an injunction, the court may suspend, modify, restore, or grant an injunction on terms for bond or other terms that secure the opposing party’s rights.” Fed. R. Civ. P. 62(c); see Nat. Res. Def. Council, Inc. v. Sw. Marine, Inc.,
Rule 62(c) confers upon the district court the power “it has always inherently possessed to preserve the status quo during the pendency of an appeal.” Nat. Res. Def. Council,
Defendant makes much of the fact that in its Reply Brief (Docket No. 133) plaintiff stated that it “is not asking the Court to maintain the status quo...” (Id., p. 3). The court remains befuddled by that statement in the Reply Brief, since preserving the status quo is exactly what plaintiff appears to be asking for elsewhere in its moving papers, and it is all the court intends to do by this Order.
Where the court supervises a continuing course of conduct pursuant to an injunction, and new facts develop that require additional action by the court to ensure compliance with its order, an appeal from the original order “does not divest the district court of jurisdiction to continue its supervision, even though in the course of that supervision the court acts upon or modifies the order from which the appeal is taken.” Hoffman v. Beer Drivers & Salesmen’s Local Union No. 888,
The status quo is measured at the time the appeal is filed. In re Delta Smelt
III. Analysis
Plaintiff seeks an order enjoining defendant and its agents, affiliates, and assigns, or any party acting in concert with them, from using the word “Grange,” including “California State Grange” and “California Grange Foundation,” in any business activities or as part of any trademark, service mark, trade name, corporate name, domain name, or e-mail address.
A. Subject Matter Jurisdiction
Defendant argues that enjoining it from using “Grange” as part of its corporate name is impermissible under Rule 62(c) because the requested relief “goes well beyond preserving the status quo” and “seeks to change the status quo” by granting “new relief that plaintiff chose not to pursue during the litigation of this action.” (Opp’n at 2 (Docket No. 132).) On that basis, defendant argues plaintiffs motion “must be denied for lack of jurisdiction.” (Id.) '
Defendant’s contention that the requested relief constitutes “new relief that plaintiff chose not to pursue during the litigation of this action” is not accurate. Plaintiffs Complaint sought to “[p]erma-nently enjoin Defendant, as well as its agents, successors, assigns, and all persons in active concert or participation with Defendant, from using the GRANGE Marks or any other mark, corporate name or trade name that contains the word GRANGE.” (Compl. at 21-22 (emphasis added).) The Complaint also requested that the court “direct that Defendant’s registration of the corporate entity name ‘California State Grange’ be revoked.” (Id. at 22 (emphasis added).)
The Ninth Circuit has repeatedly rejected the argument that a district court lacks subject matter jurisdiction to grant additional injunctive relief or modify its existing injunction while an appeal is pending. See McClatchy,
The court may modify or broaden the scope of its injunction under its continuing duty to supervise the relief granted if it is informed of new facts that require additional supervisory action. Hoffman,
The court also has the authority to enforce its orders while an appeal is pending. Sekaquaptewa v. MacDonald,
Granting the requested relief would also not change the status quo or materially alter the status of this case on appeal. In granting the requested relief, the court would not be adjudicating new issues that were “not decided in its original disposition of the case.” McClatchy,
Here, by contrast, granting the requested relief would not change the result of the issues on appeal. The issues on appeal involve whether the court properly (1) granted plaintiffs motion for partial summary judgment on its trademark infringement and unfair competition claims, and (2) entered its September 29, 2015 permanent injunction. (Docket Nos. 87, 90.) Enjoining defendant and its agents and affiliates from using the word “Grange” in conducting any business activities or as part of any corporate name, trademark, service mark, trade name, domain name, or email address would not change the status quo because the questions presented to the Ninth Circuit would remain unaffected. See Nat. Res. Def. Council,
Requiring defendant and its affiliates to remove the word “Grange” from their corporate names would in fact preserve the status quo by ensuring compliance with the court’s summary judgment Order and permanent injunction. See 15 U.S.C. § 1116(a) (district courts may enforce their injunctions granted under the Lanham Act); Nat. Res. Def. Council,
B. Defendant’s Corporate Name
Defendant continues to use “Grange” as part of its 'corporate name. The California Secretary of State website publically displays defendant’s name as “California State Grange” and Robert McFarland as its president. See Business Entity Detail for “CALIFORNIA STATE GRANGE,” , http://kepler.sos.ca.gov (last visited Apr. 14, 2016).
Defendant has also filed its fictitious name statements for “California Guild Foundation” and “CSG” with Sacramento County under its corporate name. (McFarland I Decl. Ex. A.) As a result, the Sacramento County website displays “CALIFORNIA STATE GRANGE” as the entity that owns every one of defendant’s, business names. (Komski Deck Ex. 2, Feb. 1, 2016 (“Komski II Deck”) (Docket No. 109-1); see McFarland II Deck ¶¶4-5.) By continuing to use the word “Grange” in this manner, defendant- continues to infringe plaintiffs registered mark and engage in unfair competition against plaintiff. (See July 14, 2015 Order; Allen Deck ¶ 20 (Docket No. 126-3)) (“[M]any local Grange members are relying on the official records of the California Secretary of State, among other governmental authorities, to ascertain the ‘true’ California State Grange.”.)
The court’s injunction in this case enjoined the defendant and those acting in concert with it from using “marks contain
Upon more than just a cursory analysis, however, defendant’s interpretation of the injunction fails because, under the Lanham Act, the term “mark” includes “words.” See 15 U.S.C. § 1127. The Lanham Act defines a “mark” as any trademark, service mark, collective mark, or certification mark. Id. Each of these is defined, as “any word, name, symbol, or device,, or any combination thereof.” See id. Trademarks and service marks are any words or names used to identify and distinguish goods or services and to indicate the source of those goods or services. Id.
Defendant’s argument therefore amounts to no more than a game of “gott-cha” because the court’s September 29, 2015 injunction prohibiting defendant from using marks containing “Grange” did indeed prohibit defendant from using the word “Grange” or any name containing “Grange” in connection with its goods or services. This includes using a corporate name containing the word “Grange.” It also includes using the word “Grange” or a name containing “Grange” in any articles of incorporation, fictitious business name registrations, lobbying licenses, and public filings.
Numerous courts have held that the unauthorized use of a registered mark in a corporate name constitutes trademark infringement. See Accuride Int’l, Inc. v. Accuride Corp.,
In addition, the Lanham Act also protects trade names. A trade name is “any name used by a person [or entity] to identify [its] business or vocation.” 15 U.S.C. § 1127. Trademarks and service marks distinguish goods and services, while trade names distinguish companies and their goodwill. Am. Steel Foundries v. Robertson,
Trade names are accorded the same protection as trademarks and service marks because they serve the same fundamental purpose: “to identify a business and its products or services, to create demand for those products or services, and to protect the company’s good will.” Accuride,
The Supreme Court has emphasized that the distinction between trademarks, service marks, and trade names is often immaterial because “the law affords protection against [their] appropriation in either view, upon the same fundamental principles.” Robertson,
Accordingly, defendant’s use of a corporate name containing the word “Grange” is a use of a mark containing the word “Grange” within the definition of the Lan-ham Act. Defendant’s use of “California State Grange” as its corporate name therefore infringes plaintiffs registered mark and constitutes unfair competition against plaintiff. See Sahati,
C. “California Grange Foundation”
California Grange Foundation (the “Foundation”) is a corporation that was created by defendant in 1992 and is currently operated by defendant’s president, Robert McFarland. (See Komski Decl. ¶ 33, Ex. 22, Dec. 28, 2015 (“Komski I Decl.”) (Docket Nos. 99-2 to 99-43); McFarland Decl. Ex. C; Keel Decl. ¶¶ 3, 6, Apr. 1, 2016 (Docket No. 132-2).) The California Secretary of State lists the same corporate address for both defendant and the Foundation, and both entities list McFarland as their agent for service of process. Compare Business Entity Detail for “CALIFORNIA GRANGE FOUNDATION,” with Business Entity Detail for “CALIFORNIA STATE GRANGE,” http://kepler.sos.ca.gov (last visited Apr. 14, 2016).
McFarland exercises control over both entities, including the contents of the Foundation’s website. (Komski I Decl. ¶ 33; Keel Decl. ¶¶ 3, 6.) The Foundation’s board of directors is also composed of members who sit on defendant’s executive committee. (McFarland I Decl. ¶ 22; Kom-ski I Decl. Ex. 24 at 1.)
The court thus finds that the Foundation is defendant’s agent, affiliate, assign, or an entity acting in concert with defendant. Cf. In re Gottheiner,
The Foundation has registered fictitious business names with Sacramento County to do business as “California Guild Foundation.” See Fictitious Business Name Search for “CALIFORNIA GRANGE FOUNDATION,” Sacramento County OnLine Servs., https://actonline.saccounty. net/CitizenAccess/SACCO_FBNSearch. aspx (last visited Apr. 14, 2016). The Sacramento County website lists “California Grange Foundation” as the owner of that fictitious business name, however, and the Foundation continues to retain “California Grange Foundation” as its corporate name registered with the California Secretary of State.
Accordingly, for the reasons discussed above, supra Part III.B, California Grange Foundation is ordered to remove the word “Grange” from all corporate registrations and other documents filed with any federal, state, or local government. These include articles of incorporation and lobbying licenses on file with the California Secretary of State and all fictitious business names on file with Sacramento County under its corporate name “California Grange Foundation.” The Foundation is advised that non-parties may be held liable in contempt for violating the court’s injunction. Peterson v. Highland Music, Inc.,
D. Use of “Granger” and “CSG”
Plaintiff also requests the court to enjoin defendant’s use of the words “Granger” and “CSG.” As discussed in detail in the court’s Order of September 29, 2015, plaintiffs Complaint did not seek trademark protection for “Granger” or “CSG.” (Sept. 29, 2015 Order at 3-4.) All of the allegations in plaintiffs Complaint were limited to ten registered trademarks: “NATIONAL GRANGE,” “THE GRANGE FOUNDATION,” “NATIONAL GRANGE OF THE ORDER OF PATRONS OF HUSBANDRY,” two trademarks for “P OF H GRANGE,” and five trademarks for “GRANGE.” (Compl. ¶20.) Plaintiff neither alleged that defendant used “Gran-ger” or “CSG” nor requested the court to enjoin defendant from using “Granger” or “CSG.” Because summary judgment was limited to the use of “Grange,” whether “Granger” or “CSG” are protected trademarks was never litigated or before the court.
Enjoining defendant’s use of “Granger” or “CSG” would be improper because it would require the court to adjudicate new issues that were “not decided in its original disposition of the case.” McClatchy,
E. Use of “Grange” in Business Activities
Plaintiff requests the court to enjoin defendant and its agents and affiliates from conducting any business activities using the name “Grange.” Defendant acknowledges that it currently uses two bank accounts opened under the name “California State Grange.” (McFarland I Deck ¶ 19.) Defendant states it has removed the word “Grange” from its checks. (McFarland II Decl. ¶ 21.) But there is no indication that defendant has removed the word “Grange” from the actual names of its bank accounts. (See Docket No. 114 at 12 (“Defendant’s bank accounts remain in its corporate name.”).)
Defendant further contends that, at least since the court’s judgment of September 29, 2015, it has not solicited any membership dues using the name “Grange.” (Opp’n at 6; McFarland II Deck ¶ 22.) These statements do not appear to be true. Until at least February 4, 2016, defendant issued billing statements titled “Grange Dues.” (Hoag Deck ¶¶ 1, 4 (Docket No. 132-1); e.g., Docket No. 99-29.) During that time, defendant collected membership dues paid by cheeks that were addressed to “California State Grange,” and it endorsed those checks under the name “California State Grange” and deposited them into its bank accounts. (Hoag Deck ¶ 5; McFarland I Deck ¶ 19; Wallis Deck ¶ 8 (Docket No. 114-12).)
These actions amount to- a blatant disregard for and violation of the court’s Sep
Accordingly, the court will enjoin defendant and its agents, affiliates, and assigns, and any. party acting in concert with them, from conducting any business activities using the name “Grange,” including, but not limited to, soliciting dues using the name “Grange,” collecting checks addressed to any entity that contains the word “Grange” in its name, endorsing checks using any ñame that contains the word “Grange,” using bank accounts or other financial accounts under any name containing the word “Grange,” and endorsing, signing, or executing any document, lease, instruction, or financial instrument using any name containing the word “Grange.”
F. Use of “Grange” in Domain Names and Email Addresses
The court has previously expressed that the permanent injunction prohibits defendant from using “Grange” in any domain name or email address. (See Sept. 29, 2015 Order at 5.) Defendant and McFarland currently list their email address on the California Secretary of State website as “president@california grange.org.” See Lobbying Activity for “C.S.G.,” http://cal-access.ss.ca.gov/Lobbying/Employers/ Detail.aspx?id=1146807&session=2015 (last visited Apr. 14, 2016); Lobbying Activity for “MC FARLAND, BOB' E.,” http://eal-access.ss.ca.gov/Lobbying/ Lobbyists/Detail.aspx?id=1326773& session=2015 (last visited Apr. 14, 2016). Accordingly, the court will grant plaintiffs request to enjoin defendant and its agents and affiliates from using the word “Grange” in- any domain name or email address.
G. Reference to Past Affiliation
Plaintiff seeks to enjoin defendant from making certain references, discussed below, pertaining to defendant’s past affiliation with plaintiff. After the parties disaffiliated in 2013, plaintiffs California-based members reorganized a state chapter under the name “Grange of the State of California’s Order of Patrons of Husbandry, Chartered.” (July 14, 2015 Order at 11.) The court previously found it “foreseeable that a prospective or current member [of plaintiff] would be uncertain as to which California Grange originates from [plaintiffs] organization.” (Id.)
Defendant conceded that the use of “Grange” by two separate California organizations had caused actual confusion among consumers regarding the origin of defendant’s services. (Id. at 11-12; see also id. at 9 (finding the record “replete with evidence that a reasonably prudent Grange member, prospective member, or other person contemplating doing business with [plaintiff] is likely to be confused as to the origin of defendant’s services due to its use of ’Grange’”).) In enjoining defendant from using the word “Grange” or any name containing “Grange,” the court’s September 29, 2015 injunction aimed to protect consumers from being misled or confused about the source of defendant’s services or its association with plaintiff.
This is not to say that defendant can never make reference to the history of its organization. But that is not what defendant is doing here. Since the court’s injunction; defendant has referred to itself as the legal successor to the former California State Grange. (Allen Decl. ¶¶ 10-11.) Defendant also identifies itself publically as CSG, formerly known as California
It appears that these references to defendant’s past affiliation with plaintiff are an attempt to do an “end-run” around the court’s permanent injunction prohibiting defendant from using the word “Grange” in connection with its goods or services. Cf. TrafficSchool.com, Inc. v. Edriver, Inc.,
These references, including representations that defendant is the “former California State Grange,” have also caused actual confusion among at least fifty of plaintiffs members since September 2015 regarding the origin of defendant’s services and defendant’s association with plaintiff. (Allen Deck ¶¶ 3, 10.) In addition, the first sentence of defendant’s homepage states: “The CSG (formerly California State Grange) is the oldest agricultural organization in California, started in 1870.” Id.
The court previously held that similar references to defendant’s historical affiliation with plaintiff strongly suggested to consumers that defendant was presently affiliated with plaintiff. (July 14, 2015 Order at 9-10 (finding that “defendant recounts plaintiffs history, and not its own” and that this is likely to cause plaintiffs members or prospective members to believe that defendant is affiliated with plaintiff).); cf. FTC v. Algoma Lumber Co.,
Most importantly, by identifying itself as “formerly the California State Grange,” defendant is effectively using a name containing the word “Grange” in violation of the court’s permanent injunction. Precluding defendant, from referencing its past affiliation with plaintiff in a manner that causes consumers to be misled or confused about the origin of defendant’s services or its association with plaintiff serves the key objective of the Lanham Act. See Park ’N Fly, Inc. v. Dollar Park & Fly, Inc.,
H. Business Directory Listings
Plaintiff requests that the court order defendant to “cancel and discontinue use of all telephone number[ ] listings containing the name ’Grange’ and delete all appearances of the name ’Grange’ from Defendant’s business directory listings with Google and those appearing at Zoomlnfo and similar internet websites.” Defendant ar
Defendant’s address and telephone number appear in response to a Google • search for “California State Grange.” (Komski I Decl. ¶ 10.) The Google result is a business listing for “California State Grange” in the Google Maps database. See “California State Grange,” Google Search, https://www.google.com/ search?q'= California+State + Grange (last visited Apr. 14, 2016). Immediately under the listed information, there is a link titled “Suggest an edit.” That link allows users who “see something wrong with a business [they] don’t own or manage” to report wrong business information or remove their own information from an unrelated business that appears on a Google search result. Add or Edit Business Information on Maps, Google.com, https://support. google.com/business/answer/6174435 (last visited Apr. 14, 2016).
Defendant’s company profile on Zoomln-fo.com lists its name as “CSG” and its website as www.californiagrange.org. See “CSG” Company Profile, www.zoominfo. com/c/California-State-Grange/353967545 (last visited Apr, 14, 2016). Its company description states:
The CSG (formerly California State Grange) is the oldest agricultural organization in California, started in 1870. Cities and townships have grown up around our rural halls and the CSG has evolved into a community service organization with 10,000 members and 206 chapters across California. CSG community halls are often the center of their community, providing opportunities, culture and education, entertainment, emergency shelter, and a meeting place where new friends are made and old friends are cherished. Everyone is welcome to apply for membership in the CSG.-Each member contributes at their own pace and level of participation. Each chapter decides how to best serve the community.
Id. The court has previously found that similar language posted on defendant’s website strongly suggested that defendant was affiliated with plaintiff. (July 14, 2015 Order at 9-10.)
Like Google, Zoomlnfo also allows users to notify it if a company profile in their name is inaccurate or out-of-date and to correct that information. See Contact Us, Zoomlnfo, http://www.zoominfo.com/ business/contact (last visited Apr. 14, 2016). Users may also remove their business profile completely from the directory. See FAQ, Zoomlnfo, http://subscriber. zoominfo.com/usercenter/index.php/pro-faq#removal (last visited Apr. 14, 2016).
Defendant’s assertions that it has no control over the contents of its listings on
I. Disclaimer on Defendant’s Website
Plaintiff requests an injunction ordering defendant to include a prominent disclaimer on its website'that it is “not affiliated with the California State Grange.” Plaintiff also requests that defendant include a hyperlink on its website that redirects users to plaintiffs website. That is something more than what the court enjoined or intended to compel in its original injunction, and would go beyond merely preserving the status quo. Accordingly, the court will deny plaintiffs request to expand the injunction to require defendant to provide a disclaimer on its website or include a hyperlink that redirects users to plaintiffs website.
J. Attorney’s Fees
Plaintiff requests that the court order defendant to pay its reasonable attorney’s fees in bringing this motion and its previous motion for an order to show cause why defendant should not be held in contempt for violating the court’s original injunction, including the declarations of Ed Komski. Defendant argues that plaintiff voluntarily abandoned its claim for fees when it moved to voluntarily dismiss its monetary claims on September 4, 2015. (Opp’n at 9 (citing Docket No. 75).) In that motion, however, plaintiff sought to dismiss its. claims for damages or fees without prejudice “to any claims that it may make in the future.” (Docket No. 75 at 1.)
The parties later filed a stipulated motion to dismiss plaintiffs claims for dam: ages with prejudice. (Docket No. 80.) The parties stipulated “that nothing in the Order sought by this [stipulated] Motion shall be understood to preclude Plaintiff for making a claim for damages in the event of a future violation of any permanent injunction that is ultimately issued in this case.” (Id. ¶ 3; Docket No, 80-1 at 2.) The court granted the parties’ stipulated motion on September 29, 2015. (Sept. 29, 2015 Order at 1-2, 6.)
As discussed in this Order, , defendant violated the court’s permanent injunction by continuing to use “Grange” in- its corporate name, business activities, email address on the California Secretary of State website, and business directory listings that it had the opportunity to correct or remove. Plaintiffs fee request here is thus for “a future violation of any permanent injunction” as contemplated by the parties and stipulated in their motion. (Docket No. 80 ¶ 3.) Accordingly, plaintiff did not abandon its claim for attorney’s fees here.
Under 15 U.S.C. § 1117(a), the court may award reasonable attorney’s fees to the prevailing party in an exceptional case, “which includes cases in which the act is fraudulent, deliberate, or willful.” Horphag Research Ltd. v. Garcia,
1. Prevailing Party
“A party is a prevailing party for purposes of an attorneys’ fee award if it ’achieved a- material alteration in the legal relationship of the parties that is judicially sanctioned.’” Fifty-Six Hope Rd. Music, Ltd. v. A.V.E.L.A., Inc., 778 F.3d
As for the pending motion, the court has granted a large part of plaintiffs requested relief. Plaintiff has thus obtained a material alteration in the legal relationship of the parties that is judicially sanctioned. See id. at 1078; Klamath,
Plaintiffs contempt motion also sought much of the relief the court has granted here. (See Docket Nos. 109, 109-2 (seeking to enjoin defendant and California Grange Foundation from using “Grange” in their corporate names; seeking to enjoin defendant from conducting business using the name “Grange” or representing- its email address using the word “Grange”; and requesting the court to order defendant to remove the word “Grange” from its business directory listings on Google and Zoomlnfo).) Plaintiff has therefore obtained the relief it sought in its motion for an order to show cause why defendant should not be held in contempt. Because plaintiff has obtained the relief it sought in both of its motions, it is the prevailing party on both motions for purposes of a fee award.
2. Exceptional Case
A case is considered exceptional “when the infringement is malicious, fraudulent, deliberate, or willful.” A.V.E.L.A.,
In its Order of July 14, 2015, the court found significant evidence of representations made by defendant on its website, in its newsletters, and in public media strongly suggesting it was still affiliated with plaintiff. (July 14, 2015 Order at 9-10; e.g., Turrill Deck Exs. 7, 23-24 (Docket Nos. 43-4 to 43-11).) Based on that evidence, the court concluded that a reasonable current or prospective member of plaintiffs national organization, or any other person contemplating doing business with plaintiff, would likely believe defendant is affiliated with plaintiff and be confused as to the origin of its services. (July 14, 2015 Order at 9-10.)
Defendant’s membership brochures and its current website’s format, layout, and content are almost identical to those it used when it was affiliated with plaintiff. (Komski I Decl. ¶¶ 7-8, 28-29, Exs. 1-2, 16-17.) After its disaffiliation, defendant listed the names of plaintiffs members on its new website, and it displayed links to historical publications made by plaintiffs organization in its website’s “News Archive” section. (Id. ¶¶ 19, 30, Exs. 9-10,18.)
Despite this court’s permanent injunction barring defendant from using “Grange,” defendant uses the name “Grange” in public filings and registrations with the California Secretary of State and the County of Sacramento. See Stover v. Farmers’ Educ. & Co-op. Union of Am.,
Until at least February 4, 2016, defendant issued billing statements titled “Grange Dues” and endorsed and deposited checks addressed to “California State Grange.” Its public business profiles on Google.com and Zoomlnfo listed it as “California State Grange” and its website as www.californiagrange.org, even though defendant was free to correct or remove that information any time it wished. Defendant’s agents have continued to represent that defendant is the “California State Grange.” In December 2015, one of plaintiffs members called defendant’s business number and asked if he had reached the “California State Grange”; the receptionist answered, ‘Tes.” (Komski I Decl. ¶ 11.)
There is also evidence that defendant’s conduct has caused actual confusion among at least fifty of plaintiffs members regarding defendant’s affiliation with plaintiff and the origin of its services. (E.g., Allen Decl. ¶¶ 3, 10-11.) Ample evidence of actual confusion is the most important support for a finding of willfulness. TrafficSchool.com,
Accordingly, the court grants plaintiffs request for attorney’s fees incurred in bringing this motion and its motion for an order to show cause why defendant should not be held in contempt. Within twenty-one (21) days from the date of this Order, plaintiff shall file a declaration detailing its attorney’s fees for bringing these two motions. The court will review the accounting and will thereafter issue an Order directing defendant to pay such of it as the court approves.
IT IS THEREFORE ORDERED that plaintiff National Grange of the Order of Patrons of Husbandry’s motion for an injunction (Docket No. 126) be, and the same hereby is, GRANTED IN PART as follows:
(1) defendant California State Grange and its agents, affiliates, and assigns, and any party acting in concert with defendant or its agents, affiliates, and assigns, including the California Grange Foundation, shall remove the word “Grange” from all corporate registrations and other documents filed with any federal, state, or local government, including, but not limited to, articles of incorporation and lobbying licenses on file with the California Secretary of State and all fictitious business name registrations with the County of Sacramento;
(2) within five (5) days from the date of this Order, defendant shall serve upon California Grange Foundation a copy of this
(3) defendant and its agents, affiliates, and assigns, and any party acting in concert with defendant or its agents, affiliates, and assigns shall remove the word “Grange” from all public telephone and business directory listings, on the internet or otherwise, including, but not -limited to, online business directory listings on www. Google.com and www.ZoomInfo.com, to the extent they can do so;
(4) defendant and its agents, affiliates, and assigns, and any party acting in concert with defendant or its agents, affiliates, and assigns are permanently enjoined from:
(a) conducting business using the name “Grange,” including, but not limited to, soliciting dues using the name “Grange,” collecting checks addressed to any entity whose name contains the word “Grange,” endorsing checks using any name containing the word “Grange,” using bank accounts or other financial accounts under any name containing the word “Grange,” and endorsing, signing, or executing any document, lease, instruction, or financial instrument using any name containing the word “Grange”;
(b) using “Grange” in any domain name or email address or otherwise representing their domain name or email address as containing the word “Grange!’; and
(c) referencing their past affiliation with plaintiff or any other entity whose name contains the word “Grange,” including representing themselves to be the former California State Grange; successor to the California State Grange; or formerly known as-, trading as, or doing business as the California State Grange;
(5) within fifteen (15) days from the date of this Order, defendant shall file with the court and serve on plaintiff a report in writing under oath setting forth in detail the manner and form in which defendant, its officers, agents, servants, employees, representatives, partners, and all parties acting in concert with defendant have complied with the terms of this Order;
(6) within twenty-one (21) days from the date of this Order, plaintiff shall file an accounting of its attorney’s fees associated with its motion for an injunction (Docket No. 126), its motion for an order to show cause why defendant should not be held in contempt (Docket No. 109), and the declarations of Ed Komski dated December 28, 2015 (Docket Nos. 99-2 to 99-43) and February 1, 2016 (Docket No. 109-1). Defendant may file an opposition to plaintiffs fee motion within fourteen (14) days from the date plaintiffs fee motion is filed. The court will review the accounting and will thereafter issue an Order directing defendant to pay some or all of it; and
(7) defendant shall pay plaintiff these attorney’s fees and file an affidavit with the court confirming payment within five (5) business days after the court issues its Order regarding the attorney’s fees.
IT IS SO ORDERED.
Notes
. This case is-related to another action presently pending before this court, National Grange of the Order of Patrons of Husbandry v. California State Grange, Civ. No. 2:16-201 WBS AC. (Docket No. 112,) Plaintiff also filed an action in California state court seeking a declaration of the parties' rights and duties following the revocation of defendant's charter. National Grange v. California State Grange, Civ. No. 34-2012-130434 (Cal. Sup. Ct. filed Oct. 1, 2013).
. Plaintiff voluntarily dismissed its remaining claims with prejudice. (Docket No. 64.)
. The court takes judicial notice of filings with the California Secretary of State and County of Sacramento because they are matters of public record whose accuracy is not subject to reasonable dispute. See Fed. R. Evid. 201; Lee v. City of Los Angeles,
. Section 1127 of the Lanham Act provides in relevant part:
The term "trademark” includes 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.
The term "service mark” means 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 the services of one person, including a unique service, from the services of others and to indicate the source of the services, even if that source is unknown.
Id. § 1127 (emphases added).
. To the extent some of the descriptions about Google and Zoomlnfo’s websites aré not in the record, the court takes judicial notice of www.Google.com and www.ZoomInfo.com and the information contained therein pursuant to Federal Rule of Evidence 201. See Knievel v. ESPN,
