ORDER
This cause comes on for consideration upon the magistrate judge’s Report and Recommendation dated September 10, 2009 (Doc. 41). The parties have been furnished a copy of the Report and Recommendation and have been afforded an opportunity to file objections pursuant to Title 28, United States Code, Section 636(b)(1). I have made a de novo determination of all timely filed objections.
Having considered the Report and Recommendation, and any timely filed objections thereto timely filed, I have determined that the Report and Recommendation should be adopted.
Accordingly, it is now ORDERED as follows:
1. The magistrate judge’s Report and Recommendation is adopted and incorporated by reference in this order.
2. Rain Bird’s motion for summary judgment (Doc. 31) is GRANTED.
3. Rain Bird is awarded $40,413.00, pursuant to 15 U.S.C. § 1117(a).
4. Rain Bird is awarded its costs and attorney’s fees incurred in this action in the total amount of $1,087.00.
5. The following permanent injunction is entered:
Patrick Taylor, his agents, servants, employees, and attorneys, and all those acting in concert or participation with any of the foregoing, are hereby permanently restrained and enjoined, effective immediately, from using the term “Rain Bird” or variations thereof, including “AAA Rainbird Connection,” in connection with goods and services covered by Rain bird’s Registered Trademarks, including U.S. Principal Registration Nos. 567442, 771728, 771809, 908921, 962015, 982529, 999325, 984827, and 1638034.
Judgment shall be entered accordingly.
DONE AND ORDERED.
REPORT AND RECOMMENDATION
Plaintiff Rain Bird Corporation (“Rain Bird”) filed this case asserting claims for damages, injunctive relief, costs, and attorney’s fees for willful infringement, unfair competition and dilution of nine of its trademarks by Defendant Patrick Taylor, d/b/a AAA Rainbird Connection (“Taylor”) (Doc. 1). Rain Bird asserts claims under the Lanham Act, 15 U.S.C. § 1114
et seq.,
Florida common law, the Florida Registration and Protection of Trademarks Act (“FRPTA”), Fla. Stat. § 495.151, and the Florida Deceptive and Unfair Trade Practices Act (“FDUTPA”), Fla. Stat. § 501.201
et seq. (id.).
1
Presently before
1. PROCEDURAL BACKGROUND
Rain Bird filed the Complaint in this action on November 7, 2008 (Doc. 1). The case was referred to the undersigned for the issuance of all preliminary orders and any recommendations to the district court regarding dispositive actions.
See
N.D. Fla. Loc. R. 72.2(E); see
also
28 U.S.C. § 636(b)(1)(B)(C); Fed.R.Civ.P. 72(b). Taylor was an inmate at the Okaloosa County Jail at the time he was served with the Summons and Complaint (see Doc. 6). Taylor’s Answer to the Complaint was entered on the record on February 27, 2009,
II. RELEVANT FACTS 2
The following facts are derived from Rain Bird’s statement of facts. Taylor did not file a statement of facts controverting any- of the facts asserted by Rain Bird, therefore, Rain Bird’s facts are deemed admitted by Taylor and undisputed for summary judgment purposes.
See
N.D. Fla. Loc. R. 56.1(A). The facts aré also derived from Taylor’s admissions by virtue of his failure to serve a written answer or objection to the matters included in Rain Bird’s requests for admissions, which were served on Taylor on May 6, 2009 and May 15, 2009
(see
Doc. 33, Declaration of Stephen M. Cozart, ¶¶ 2-5).
See
Fed.R.Civ.P. 36(a)(3), (b);
United States v. 2204 Barbara Lane,
Rain Bird is a very well known and prominent corporation involved in the design, development, manufacture, supply and sale of high quality irrigation-related products, including irrigation sprinkler systems of various designs (Doc. 32, ¶ 2). Rain Bird conducts business in and has customers in Florida (id., ¶ 1). Since at least 1936, Rain Bird has provided goods or services or both in relation to irrigation and has done so using its easily recognized and famous Rain Bird word and design marks (id., ¶ 9). These word and design marks (“Rain Bird Marks”) are owned by Rain Bird and used exclusively in commerce since 1936 (id., ¶¶ 10, 16). The Rain Bird Marks include nine trademarks registered on the Principal Register of the United States Patent and Trademark Office: Registration No. 567,442 for the mark “RAINBIRD,” Registration No. 771,728 for the mark “RAIN BIRD,” Registration No. 771,809 for the mark “RAIN BIRD,” Registration No. 908,921 for the mark “RAIN BIRD,” Registration No. 962,015 for the mark “RAIN BIRD,” Registration No. 982,529 for the mark “RAIN BIRD,” Registration No. 999,325 for the mark “RAIN BIRD,” Registration No. 984,827 for the mark “RAIN BIRD,” and Registration No. 1,638,034 for the word and design mark depicted on page 3, paragraph 11 of Rain Bird’s statement of facts and in Exhibit 9 attached thereto (id., ¶ 11, Exs. 1-9). Rain Bird has developed valuable trademark rights and associated goodwill in the Rain Bird Marks (Doc. 32, ¶ 19). Rain Bird Marks identify Rain Bird as the source of goods and services bearing these marks (id., ¶ 20). Taylor does not own any rights to use the Rain Bird Marks, nor is he authorized to use the Rain Bird Marks (id., ¶¶ 39, 40).
Rain Bird Marks are famous in the State of Florida
(id.,
¶ 17). Rain Bird advertises, markets, and promotes its goods and services bearing the Rain Bird Marks in commerce in the State of Florida
(id.,
¶ 18). Taylor has done business as AAA Rainbird Connection in the State of Florida
(id.,
¶ 21). Taylor, doing business as AAA Rainbird Connection, promoted, advertised, and offered for sale goods and services relating to irrigation systems in direct competition with Rain Bird and its authorized distributors in the State of Florida
(id.,
¶ 22). Taylor uses business forms, telephone directory listings, and email addresses that imitate the Rain Bird Marks in connection with offering goods and services relating to irrigation systems
(id.,
¶ 23). Taylor, doing business as AAA Rainbird Connection, created the invoices attached to Rain Bird’s Complaint as Exhibit 10
(id.,
¶ 24). According to those invoices, Taylor did at least $13,471.00 of business as AAA Rainbird Connection within a period of three weeks in July of 2008
(id.,
¶ 25). The telephone directory listings attached to Rain Bird’s Complaint as Exhibit 11 report the contact telephone number for AAA Rainbird Connection as corresponding to the telephone number printed on Taylor’s invoices and business cards
(id.,
¶ 26). Customers and prospective customers encountering Taylor’s use of the AAA Rainbird Connection business name are likely to believe that he is associated with and sponsored by Rain Bird
(id.,
¶¶ 27, 29). Customers and prospective customers encountering Taylor’s use of business forms, telephone directory listings, and e-mail addresses that imitate the Rain Bird Marks are likely to believe that Taylor is associated with and sponsored by Rain Bird
(id.,
¶¶ 28, 30). Taylor is aware of instances of consumer confusion between his use of the AAA Rainbird Connection business name, e-mail address,
Rain Bird obtained federal trademark registration of the Rain Bird Marks prior to Taylor’s adopting the AAA Rainbird Connection business name (id., ¶ 38). Taylor knew of Rain Bird’s use of the Rain Bird Marks and Rain Bird’s federal trademark registrations for the Rain Bird Marks prior to his adopting the AAA Rain-bird Connection business name (id., ¶¶ 36, 37). Taylor intentionally selected the AAA Rainbird Connection business name based on its similarity to the Rain Bird Marks (id., ¶ 4 1). Taylor received profits while doing business as AAA Rainbird Connection (id., ¶ 42).
III. LEGAL STANDARDS
A. Summary Judgment Standard
Summary judgment is appropriate where the pleadings, depositions, answers to interrogatories, admissions on file, and affidavits, if any, show that no genuine issue of material fact exists and that the moving party is entitled to judgment as a matter of law.
See Celotex Corp. v. Catrett,
When a motion for summary judgment is made and properly supported by affidavits, depositions, or answers to interrogatories, the adverse party may not rest on the mere allegations or denials of the moving party’s pleadings. Instead, the non-moving party must respond by affidavits or otherwise and present specific allegations showing that there is a genuine issue of disputed fact for trial. Fed.R.Civ.P. 56(e). In assessing the sufficiency of the evidence, the court must view all the evidence, and all factual inferences reasonably drawn therefrom, in the light most favorable to the nonmoving party.
See Hairston,
B. Trademark Infringement under Lanham Act, 15 U.S.C. § 1114 (Count I)
Trademark infringement is proscribed by 15 U.S.C. § 1114(1)(a), which prohibits any person from the “use in commerce [of] any reproduction, counterfeit, copy, or colorable imitation of a registered mark in connection with the sale, offering for sale, distribution, or advertising of any goods or services on or in connection with which such use is likely to cause confusion, or to cause mistake, or to deceive.” To prevail on a trademark infringement claim
C. Unfair Competition under Lanham Act, 15 U.S.C. § 1125(a) (Count II)
The Lanham Act further provides civil liability for any person who uses in commerce any word, term, name, symbol, or any combination thereof, which “is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or association of such person with another person, or as to the origin, sponsorship, or approval of his or her goods, services, or commercial activities by another person, ...” 15 U.S.C. § 1125(a). To prove a violation of Section 1125(a), a plaintiff must prove (1) that it had a valid trademark and (2) that the defendant adopted an identical or similar mark such that consumers were likely to confuse the two.
Gift of Learning Foundation, Inc. v. TGC, Inc.,
D. Dilution under Lanham Act, 15 U.S.C. § 1125(c) (Count III)
The antidilution provision of the Lanham Act provides:
Subject to the principles of equity, the owner of a famous mark that is distinctive, inherently or through acquired distinctiveness, shall be entitled to an injunction against another person who, at any time after the owner’s mark has become famous, commences use of a mark or trade name in commerce that is likely to cause dilution by blurring or dilution by tarnishment of the famous mark, regardless of the presence or absence of actual or likely confusion, of competition, or of actual economic injury.
15 U.S.C. § 1125(c)(1). To prevail on a federal dilution claim, the plaintiff must demonstrate that: (1) the plaintiffs mark is famous; (2) the defendant used the plaintiffs mark after the plaintiffs mark became famous; (3) the defendant’s use
(i) The degree of similarity between the mark or trade name and the famous mark.
(ii) The degree of inherent or acquired distinctiveness of the famous mark.
(iii) The extent to which the owner of the famous mark is engaging in substantially exclusive use of the mark.
(iv) The degree of recognition of the famous mark.
(v) Whether the user of the mark or trade name intended to create an association with the famous mark.
(vi) Any actual association between the mark or trade name and the famous mark.
Id.
E. Trademark Infringement and Unfair Competition under Florida Common Law (Counts IV and V)
Common law owners of marks that are unregistered under the Florida Trademark Act are limited to common law remedies in infringement actions.
See Tally-Ho, Inc.,
F. Dilution under Florida Statutes (Counts VI and VII)
The FRPTA and FDUTPA also permit an antidilution claim under Florida Statutes § 495.151 and § 501.204, respectively. These provisions permit any trademark owner, whether registered or unregistered, to prohibit either a non-competitor’s or competitor’s use of a similar mark if there is a likelihood of injury to business reputation or dilution of the mark’s distinctive quality. Upon its amendment, effective January 1, 2007, the language of the FRPTA antidilution provision tracks the federal antidilution statute. The legal standards under the federal and Florida antidilution statutes are the same.
See Great Southern Bank v. First Southern Bank,
IV. DISCUSSION
A. Trademark Infringement under LanhamAct (Count I)
The undisputed facts establish the three elements that establish a claim of
B. Unfair Competition under Lanham Act (Count II)
The undisputed facts also establish that Taylor engaged in unfair competition in violation of the Lanham Act, 15 U.S.C. § 1125(a). It is undisputed that Rain Bird has a protectable
3
interest in
Additionally, the undisputed facts establish that Taylor adopted a mark or business name that was the same or confusingly similar to the Rain Bird Marks, such that Taylor’s use of the AAA Rainbird Connection name in his business created a likelihood of consumer confusion as to the proper origin of Taylor’s goods and services. As previously discussed, Taylor admitted that customers and prospective customers encountering his use of AAA Rainbird Connection and his use of business forms, telephone directory listings, and an e-mail address that imitate the Rain Bird Marks are likely to believe that he is associated with or sponsored by Rain Bird. Taylor also admitted he is aware of instances of actual confusion between the Rain Bird Marks and his business name AAA Rainbird Connection and use of the imitation mark on his business forms and in telephone directory listings and an email address. Therefore, both elements of an unfair competition claim are satisfied, and Rain Bird is entitled to summary judgment on its federal unfair competition claim, Count II.
C. Dilution under Lanha/m Act (Count HI)
The undisputed facts establish a violation of the antidilution provision of the Lanham Act, 15 U.S.C. § 1125(c). First, it is undisputed that the Rain Bird Marks are famous in the State of Florida. Second, Taylor adopted and used the business name “AAA Rainbird Connection” and imitated the Rain Bird Marks on his business forms after the Rain Bird Marks became famous. The undisputed facts show that Taylor knew of Rain Bird’s use of the Rain Bird Marks prior to adopting the AAA Rainbird Connection business name; and he knew of Rain Bird’s federal trademark registrations for the Rain Bird Marks prior to adopting his business name. Rain Bird’s word mark is part of Taylor’s business name, which he uses in his telephone directory listings, e-mail address, and on business forms and cards; and Rain Bird’s symbol or design mark is exactly the same as the mark used by Taylor on his business forms and business cards. Most importantly, Taylor admitted he intentionally selected his business name based on its similarity to the Rain Bird Marks. The only reasonable inference from these facts is that Taylor selected “AAA Rainbird Connection” and his logo to commercially benefit from the fame and goodwill enjoyed by the Rain Bird Marks.
Third, Taylor’s doing business as AAA Rainbird Connection and use of the Rain Bird Marks was commercial. Taylor admitted he has done business as AAA Rain-bird Connection in Florida, promoting, advertising, and offering for sale goods and services relating to irrigation systems in direct competition with Rain Bird and its authorized distributors in Florida. Furthermore, he admitted he received profits while doing business as AAA Rainbird Connection.
D. Florida Common Law Trademark Infringement and Unfair Competition (Counts IV and V) and Trademark Dilution under Florida Statutes §§ 195.15, 501.201 (Counts VI and VII)
The same facts and legal analysis giving rise to a finding that Rain Bird has established its entitlement to summary judgment on its federal trademark infringement, unfair competition, and dilution claims impel the conclusion and merit of finding of intentional trademark infringement, unfair competition, and dilution under Florida statutes and common law.
See Victoria’s Cyber Secret Ltd. Partnership,
V. RELIEF 4
A. Profits, Damages, Attorney Fees
The damages provision of the Lanham Act provides:
(a) Profits; damages and costs; attorney fees
When a violation of any right of the registrant of a mark registered in the Patent and Trademark Office, a violation under section 1125(a) or (d) of this title, or a willful violation under section 1125(c) of this title, shall have been established in any civil action arising under this chapter, the plaintiff shall be entitled, subject to the provisions of sections 1111 and 1114 of this title, and subject to the principles of equity, to recover (1) defendant’s profits, (2) any damages sustained by the plaintiff, and (3) the costs of the action. The court shall assess such profits and damages or cause the same to be assessed under its direction. In assessing profits the plaintiff shall be required to prove defendant’s sales only; defendant must prove all elements of cost or deduction claimed. In assessing damages the court may enter judgment, according to the circumstances of the case, for any sum above the amount found as actual damages, not exceeding three times such amount. If the court shall find that the amount of the recovery based on profits is either inadequate or excessive the court may in its discretion enter judgment for such sum as the court shall find to be just, according to the circumstances of the case. Such sum in either of the above circumstances shall constitute compensation and not a penalty. The court in exceptional cases may award reasonable attorney fees to the prevailing party.
15 U.S.C. § 1117(a).
As recognized by the Eleventh Circuit, Section 1117(a) vests considerable discretion in the district court.
See Burger King, Corp.,
In the instant case, Taylor admitted that he intentionally selected his business name based on its similarity to the Rain Bird Marks. Furthermore, Taylor admitted that his use of the Rain Bird Marks caused actual consumer confusion. This is sufficient to satisfy the undersigned that Taylor’s infringement was intentional and thus qualifies this case as exceptional. Therefore, Rain Bird is entitled to an award of attorney’s fees.
Additionally, Taylor does not dispute that he received profits while doing business as AAA Rainbird Connection. Rainbird submitted evidence that Taylor earned profits of $13,471.00 while doing business as AAA Rainbird Connection and using an imitation of the Rain Bird Marks on his business forms during the three week period of July 11-30, 2008
(see
Doc. 32, Ex. 10). Taylor has failed to produce any evidence to refute Rain Bird’s evidence of his profits from the use of the Rain Bird Marks; nor has he claimed en
B. Punitive Damages
Punitive damages are not available under the Lanham Act.
See Babbit Electronics, Inc. v. Dynascan Corp.,
C. Injunctive Relief
Under the Lanham Act, this court has the power to grant injunctions, their form and enforcement being provided for in the statute. 15 U.S.C. § 1116. Under the antidilution provision of the Act, Section 1125(c), an injunction may be issued to enjoin the unlawful use of a trademark or tradename without a showing that the public is actually or likely to confuse the defendant’s product or service with that of the plaintiff, and without a showing of actual economic injury. Id.
In the instant case, the undisputed facts establish that Taylor’s use of the business name AAA Rainbird Connection and the imitation Rain Bird Marks on his business forms is likely to mislead the public to believe that his business is associated with or sponsored by Rain Bird. The goods and services offered by Taylor doing business as AAA Rainbird Connection are offered in the same channels of trade as the goods and services offered by Rain Bird and its authorized dealers; and they are targeted toward the same customers. Taylor admitted that he intentionally selected the AAA Rainbird Connection business name based on its similarity to the Rain Bird Mark. Taylor also admitted that customers and prospective customers encountering his use of the AAA Rainbird Connection business name, as well as his use of the imitation mark on his business forms, are likely to believe that he is associated with and sponsored by Rain Bird. Additionally, Taylor admitted he is aware of instances of actual confusion between his business name and the Rain Bird Marks, and he is aware of instances of actual confusion between the marks he uses on business forms and the actual Rain Bird Marks. Therefore, Rain Bird is entitled to a permanent injunction enjoining Taylor from future acts of infringement, unfair competition, and dilution. See 15 U.S.C. §§ 1116(a), 1125(c)(1). An injunction including the following language is no broader than necessary to prevent public deception:
Taylor, Taylor’s agents, servants, employees, and attorneys, and all those acting in concert or participation with any of the foregoing, are hereby permanently restrained and enjoined, effective immediately, from using the term “Rain Bird” or variations thereof, including “AAA Rainbird Connection,” in connection with goods and services covered by Rain Bird’s Registered Trademarks, including U.S. Principal Registration Nos. 567442, 771728, 771809, 908921, 962015, 982529, 999325, 984827, and 1638034.
D. Costs
Having found in favor of Rain Bird on its Lanham Act claims, the undersigned concludes that Rain Bird is entitled to recover the costs of this action, to be taxed by the clerk of the court. See 15 U.S.C. § 1117(a).
VI. CONCLUSION
There is no genuine issue of material fact as to any of Rain Bird’s claims for relief and, based upon the undisputed facts, Rain Bird is entitled to judgment as a matter of law as to each claim. Therefore, Rain Bird is entitled to summary judgment on all claims.
Accordingly, it is respectfully RECOMMENDED:
1. That Rain Bird’s motion for summary judgment (Doc. 31) be GRANTED.
2. That Rain Bird be awarded $40,413.00, pursuant to 15 U.S.C. § 1117(a).
3. That Rain Bird be awarded its costs and attorney’s fees incurred in this action in an amount to be determined by the court
4. That Rain Bird be directed to file a motion for attorney’s fees within FOURTEEN (14) DAYS from the date of docketing of this order.
That the following permanent injunction be entered:
Taylor, Taylor’s agents, servants, employees, and attorneys, and all those acting in concert or participation with any of the foregoing, are hereby permanently restrained and enjoined, effective immediately, from using the term “Rain Bird” or variations thereof, including “AAA Rainbird Connection,” in connection with goods and services covered by Rain bird’s Registered Trademarks, including U.S. Principal Registration Nos. 567442, 771728, 771809, 908921, 962015, 982529, 999325, 984827, and 1638034.
6. That judgment be entered accordingly.
At Pensacola, Florida this 10th day of September 2009.
Notes
. The court exercises subject matter jurisdiction over this action pursuant to 15 U.S.C.
. As this case comes before the court on Rain Bird's motion for summary judgment, the court views the facts in the light most favorable to Taylor as the non-moving party,
see Hairston v. Gainesville Sun Publ’g Co.,
. Eleventh Circuit cases differ in their spelling of the word denoting a mark that is entitled to protection: "protectable” or "protectible.”
Compare Gift of Learning Foundation, Inc. v. TGC, Inc.,
. In the interest of brevity, and in light of the court's conclusion that the facts show that Rain Bird is entitled to judgment as a matter of law on its claims under the Lanham Act, the court will address Rain Bird's entitlement to profits, damages, attorney's fees, and injunctive relief only under the Lanham Act. Because the Lanham Act does not provide for punitive damages, and in light of the court’s conclusion that the facts show that Rain Bird is entitled to judgment as a matter of law on its claims under Florida common law, the court will address Rain Bird’s entitlement to punitive damages under Florida common law.
