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Sensient Technologies Corp. v. SensoryEffects Flavor Co.
613 F.3d 754
8th Cir.
2010
Check Treatment
Docket

*1 occurs, objection consent to the Esquivel,

search. United v. See States (8th Cir.2007). 1154, 1159 search,

Garcia consented ok, “ok,

saying, sure.” He was an adult

who English, understood was not under of drugs, prior influence had ar experience.

rest The whole encounter

lasted than 30 less minutes. Hanson made threats, promises,

no misrepresenta

tions, and Garcia was not under arrest.

They busy highway during were on

day. Hanson told they Perez that were go

free to and obtained her consent for the

search. silently Garcia watched during

the search. The properly district court

held that voluntary. Garcia’s consent was

III. judgment of the district court is

affirmed.

SENSIENT TECHNOLOGIES CORPO-

RATION; Flavors, LLC,

Plaintiffs-Appellants,

SENSORYEFFECTS FLAVOR COM-

PANY, formerly SensoryF- known Inc.;

lavors, Performance Chemicals Ingredients Co.;

& Ingre- Diehl Food

dients, Inc.; Highlander Partners,

L.P., Defendants-Appellees.

No. 09-2686.

United States Court Appeals,

Eighth Circuit.

Submitted: March 2010. July

Filed: 2010. Rehearing

Rehearing En Banc Aug.

Denied *4 erroneously

serts the district court held Flavor Company name likely was not to cause confusion to cus- Finally, argues tomers. Sensient Flavors holding erred its mark “relatively weak” and not entitled to protection under the Missouri dilution stat- grant ute. affirm the district We court’s summary judgment. I Technologies Corporation (“Sensient”) systems sells flavor delivery to its customers. Since Sensient has continuously used the trade name Sensient *5 Flavors, among its other trademarks. The mark on appears communications from Flavors, including advertising Sensient materials, cards, marketing and business and letterheads invoices. Nicolais, employee

Charles a former Sensient Flavors’ company sister Sensient Busch, Milwaukee, A. argued, WI, John Inc., Colors, company left the start his Linn, Riederer, Paul F. Monica M. Mil- own business called Performance Chemi- waukee, WI, Weaver, Thomas William M. (“PCI”). Ingredients, cals and LLC In Jr., Corrigan, Mayfield, Andrew B. St. 2006, May purchased substantially PCI all MO, Louis, brief, appellants. on the for of the assets of Ingredients, Diehl Food (“Diehl”). Inc. In November PCI Corwin, argued,

David S. L. Little, Vicki purchased substantially also all of the as- brief, Louis, MO, on the St. appellees. for sets, equipment, trademarks and trade ARNOLD, BYE, Before and SensoryEffects, names of en- business COLLOTON, Judges. Circuit gaged development, manufacture, and lipid-based delivery sales of flavor sys- BYE, Judge. Circuit prior SensoryEffects tems. owners of appeals Sensient Flavors the an application had for registration filed grant summary judgment SensoryEffects court’s1 of the name graphic SensoryEffects favor of Company, July Flavor which formally registered was formerly SensoryFlavors. by known as On Patent United States and Trade- (“PTO”) appeal, Sensient Flavors contends the mark July dis- Office 2007. PCI trict court in concluding operations erred the Senso- further expanded its in Febru- ryFlavors mark ary Flavors, was not “used com- acquiring Givaudan Act, Inc., merce” defined the Lanham dairy systems flavor business § U.S.C. within Sensient Flavors also as- Flavors Corporation. Givaudan As Webber, 1. The Honorable E. Richard United of Missouri. Judge District for the States Eastern District Moreover, instant suit. Sen- prior PCI purchase agreement, part soryFlavors contends no sales were made Flavors to use the Givaudan permitted mark, packages were under new no sixty days more after than trade name mark, with the new bearing sent labels purchase. transported under the new no were Flavors, After of Givaudan purchase SensoryFlavors mark. also constructed responsibility of Nicolais undertook www.sensoryflavors.com, al- the website for the choosing a new name brand though it the website was “under states Ultimately, company decid- business. all and was immedi- construction” at times Inc., SensoryFlavors, name to use the ed ately deactivated when Sensient filed the SensoryEffects trademark building on the instant suit. process, As of this already part in use. Shortly after Sensient filed instant existing Sen- SensoryFlavors modified 10, 2008, the district court suit on March design new Senso- soryEffects a temporary restraining entered order attorneys The company’s mark. ryFlavors SensoryFlavors of the against the use SensoryFlavors informed Nicolais SensoryFlavors subsequently name. registra- use and available for name was changed SensoryEffects name to Fla- a search of PTO records tion based on SensoryEffects Flavor Company, vor d/b/a However, parties names. corporate Systems (“SensoryEffects”), building on knowledge maintained dispute the Nicolais already name prior regarding the existence *6 company with the The has registered PTO. choosing at the time he was Flavors name operate and un- products continued to sell was Although previous- new he the name. change. the der this name since Colors, Nicolais ly employed by Sensient fla- never worked Sensient’s in- complaint asserts he amended its to Sensient was aware group and therefore he not Ac- vor clude the new name. mark Sensient, Flavors before cording companies of to two are Thus, he they lawsuit was filed. contends competitors because both sell direct not cross his systems Sensient Flavors name did food food delivery flavor to choosing SensoryFlavors mind while companies, although prod- their ingredient disputes Flavors Nico- name. Sensient The initial offerings slightly. uct differ assertion, that a noting primarily lais’s document arises contact with customers employees prior calls, one of drafted PCI’s which leads to through telephone unit purchase of the Givaudan business meetings where the appointments SensoryF- as one present lists Sensient Flavors company products is able primary competitors. sense, lavors’ In this the ultimate and services. ongoing of an sale of is result purchase day On Givaudan process. Sensient’s com- collaborative finalized, an- SensoryFlavors sent an counts, including contained six fed- plaint ingre- in the food nouncement contacts trademark unfair com- infringement, eral industry featuring SensoryFla- dients advertising, common law petition, false SensoryFlavors and mark. Givaudan vors infringement compe- and unfair trademark announcing sent media also release tition, infringement and di- trademark acquisition, SensoryF- included the which lution Missouri law. under SensoryFlavors lavors mark. asserts summary granted The district court only gave presentations two customers favor Feb- all counts in of Senso- acquiring judgment after Flavors on on Givaudan the case. The ryEffects both which occurred and dismissed ruary permanent injunction likely on ... held the which to cause confusion ... SensoryFlavors origin, approval mark was not as to the or sponsorship, warranted services, or goods, in commercial activi- because the had been “used 1125(a)(1)(A) § ties.” 15 (emphasis U.S.C. commerce.” The court also held the new added). Under section 45 likely Lanham SensoryEffects name was not Act, “use in commerce” is defined as fol- cause confusion to customers and Sensient lows: protection was not entitled to Mis- under

souri’s trademark dilution statute. Sen- The term “use in commerce” means timely appeals sient the district court’s the bona fide use of a mark in the trade, order. ordinary course of and not made merely to right reserve a mark. For purposes I a mark chapter, shall deemed to be in use in com- grant summary district court’s merce— novo, judgment de reviewed and we (1) goods on when-— apply the same standards as the district (A) any it is placed manner on the court. Inc. v. Sony Treats Com- goods or their displays containers or the Inc., puter Ent. Am. associated tags therewith or on the or (8th Cir.2005). Summary judgment ap- thereto, labels affixed or if the nature of propriate “if pleadings, depositions, an- goods makes such placement im- interrogatories, swers to and admissions practicable, on then documents associat- file, together affidavits, any, with the if sale, ed goods their genuine show that there is no as to issue (B) are transported sold or fact moving par- material and that the commerce, and ty is entitled to a judgment as a matter of (2) on services when it is used or dis- 56(c). law.” Fed.R.Civ.P. A fact is mate- played or advertising the sale of ser- rial it might when affect the outcome of *7 vices and the services are rendered in the suit under governing law. Anderson commerce, or the services are rendered Inc., 242, 248, v. Liberty Lobby, 477 U.S. in more than one State or in the United 2505, (1986). 106 S.Ct. 91 L.Ed.2d 202 foreign country

States and a and the A. SensoryFlavors person rendering Whether the Name the services is en- in in gaged

Was Used Commerce commerce in connection with the services. First, parties dispute the whether § 15 U.S.C. 1127. section of 45 the Lanham Act applies to infringement brief, cases. The Lanham im Act In its Sensient argues press poses liability “any person release, announcement, civil on ... who presenta- and two without the registrant consent of the ... provided by SensoryFlavors, tions in addi- any reproduction in website, use[s] commerce ... to tion its were sufficient to estab- or of registered colorable imitation a question lish fact regarding in “use 1114(l)(a) mark.” § 15 U.S.C. (emphasis commerce” of under section 45. added). 43(a) of the im however, Section Act also At argument, oral Sensient con- poses liability who, for “[a]ny person on or argument by asserting tradicted its for in goods or-services, connection with any first time that apply section 45 does not in or any cases, goods, infringement container for uses com in and rather is limited in word, name, any term, merce symbol, or application registration its to the of trade- device, ... combination thereof marks. Sensient bases its contention

761 in any type will continue be considered by the Second provided on dicta largely (citing Rescuecom action.” Id. at 138 infringement in an Appeals Court Circuit Inc., Cong, 128-29 100th at 1988 Rep. S. 100-515 Corp. Google, (1988)) (inter- (2d Cir.2009), infringe- an which involved 5607-08 U.S.C.C.A.N. omitted). by a terms used over search nal marks dispute quotation ment engine. Rescue- Internet search popular lan- statutory amended Pursuant offer, and sale display, Google’s held com possible envisioned two guage, Rescuecom advertising cus- plaintiffs mark to infringe- 45 in interpretations of section “use in alleged as sufficiently tomers was interpretation ment cases. The first bars under Rule to avoid dismissal commerce” “use application of the entire definition of 12(b)(6) Pro- Rules of Civil of the Federal infringement in commerce” in the context F.3d at 130-31. cedure. 562 in new the first language as result conclusion, the Res- reaching its After use,” to “bona fide relating sentence appendix lengthy court attached cuecom second, Id. at 140. The discussed above. in analyzing applies whether section interpretation would contin- preferable first context. The court not- infringement in apply ue remainder of “use begins “guarded ed the statute relating definition commerce” that definitions limitation tentative” cases, simply in infringement services apply “unless under the statute provided fide in disregard language “bona use” plainly apparent from the contrary is cases, which would reserved for such (quoting at 15 U.S.C. context.” Id. registration in the con- application only 1127). analyzed court then § Ultimately, text.2 Id. the court noted providing that to the statute amendment was dicta that did not affect the discussion “bona fide “use commerce” means the case, urged Congress result in the and it course of ordinary a mark use of Id. 140- clarify to further the statute. at According to trade.” Id. 132-33. court, made clear sec- the amendment case, express In no view as to we “use in commerce” 45’s tion definition 45’s in commerce” whether section “use marks, registration only to applies properly apply continues to definition cases, it is infringement because McCarthy Compare infringement cases. that the statute could have “inconceivable Competition and Unfair Trademarks liabili- exempt infringers from intended to (4th ed.) (“The Act § Lanham 23:11.50 faith.” Id. ty they acted bad *8 because § 45 definition of what consti- narrowing reading of the stat- The court believed this just in relaxed tutes ‘use commerce’ by Congressional re- ute was confirmed once-hyper- remnant of trademark law’s amendment, 1988 accompanying the port This requirement. technical ‘affixation’ use in “explained that revised which certainly statutory anachronism was never apply to to is intended commerce definition that scope to limit the of ‘uses’ intended registration the trademark aspects all however, infringement”) Mar- use constitute clearly, that of would process, and below, case, we applies in this as discussed 2. The court believed second Rescuecom light prior previously approach preferable interpret- in Sec- has also note this circuit applied the second ond Circuit case law that requiring ed 45 “use in commerce” section definition the "use in commerce” sentence of liability. infringement prerequisite for as a infringement relating goods and services to 932, to Bloom, DaimlerChrysler v. 315 F.3d AG holding we While assume without cases. Cir.2003). (8th 936 similarly the definition second sentence of 762 Barrett, Digital through and market

greth goods Trademarks and vertise its two Net, release, Technologies: presentations, “Use” on the 13 No. 11 customer an press (“[T]he (2010) 1, announcement, L. 9 Lanham J. Internet and a website. legislative it clear that history Act’s makes argument Sensient’s the dis- conflates statutory definition Congress intended this pro- tinction between and services apply infringement in section [of 45] vided under section 45. Rescuecom carry context and to forward the 1905/1920 the in- upon other cases Sensient relies general Acts’ ‘affixation other close as- services, an alleged infringer’s volved not ”). requirement.’ sociation’ goods, and applied therefore courts Although Sensient cites the Rescuecom separate provided definition for de- above brief, in case its it confines opening termining whether the services “used were argument SensoryFlavors’ to whether lim- Rescuecom, in commerce.” 562 F.3d at ited uses of the mark meet the definition 129 (“According Complaint, Google in of “use commerce” under section 45. ‘in uses and sells Rescuecom’s mark argument, Prior to oral Sensient failed to Google’s advertising sale of services ren- develop any argument that section 45 did ”) added). (emphasis dered commerce.’ apply to an infringement case such as Even in cases applying services defini- the instant matter. See Cubillos Hold- tion, many courts have held mere advertis- er, (8th Cir.2009) n. 7 565 F.3d 1058 ing enough is not to constitute “use in (citation omitted) (deeming argument an commerce” because “a mark is used petitioner waived where the referenced an only accompanies commerce if services argument brief, opening his but failed to rendered commerce.” Bancorp, Int’l develop argument). contrary, To the LLC v. Societe des de Bains Mer et du explicitly concedes in its reply Monaco, Estrangers Cercle des 329 F.3d that applies infringe- brief the statute (4th Cir.2003). 359, 364 ment cases. See Appellant’s Reply Brief Sensient fails show evidence (“The parties that agree the Lanham transport sale or of any goods bearing the requires Act that a trademark be used in SensoryFlavors mark. While Sensient finding infringement commerce before a suggests did not Nicolais know for certain made.”). can be circum- Under these that no sales from the presen- resulted two stances, holding we assume without tations, this assertion is weak at best be- applies infringement section 45 cases companies cause the two which received we will proceed to determine whether presentations did not become custom- SensoryFlavors’ use of its mark meets the SensoryEffects subsequent ers of to the definition of “use in commerce.” See change. name Binkley Opera- v. Entergy Norris, Flowers v. 416 n. tions, Inc., (8th Cir.2010) (8th Cir.2009) (limiting review under a (“In order to survive a motion for sum- petitioner’s statute based on concessions in mary judgment, non-moving party *9 brief). reply his must be able to show probative sufficient Applying language the of the stat permit evidence that would a finding his ute, SensoryFlavors’ goods must have favor speculation, on more than mere con- (citation omitted). transported commerce,” jecture, been “sold or fantasy”) among requirements. other 15 U.S.C. Because there no is evidence demonstrat- § above, 1127. As noted ing any Sensient at sale or transport goods of under tempts satisfy to requirement by SensoryFlavors name, this the Sensient fails to pointing SensoryFlavors’ to efforts to ad- a establish triable issue of fact as to Co., Seven-TJp (citing SquirtCo. “used com- goods were whether the Cir.1980)). (8th F.2d Marks merce,” affirm the district court’s and we may categories: be characterized four the Senso- summary judgment on grant of descriptive, or arbi- generic, suggestive, mark. ryFlavors trary or fanciful. Id. at 1004. On SensoryEffects the Name B. Whether arbitrary or fanciful mark spectrum, an is to Confusion Likely Cause protection, of highest entitled to the level a mark is afforded no trade- generic while challenges next the dis Sensient News-Tribune, protection. Duluth a mark summary judgment grant trict court’s of Publ’n, Inc. v. Mesabi Pub. Div. Nw. of Systems SensoryEffects Flavor on the (8th Cir.1996). Co., 1093,1096 the The court held Senso mark. ryEffects likely mark not cause was case, In this the district court de to customers.3 confusion termined was a fanciful word Sensient function as a coined to trademark Eighth applies a six- Circuit result, As a company. acknowl a test to determine whether there is factor mark edged Sensient’s was entitled confusion, part of no of which likelihood However, protection. broadest the court standing alone: dispositive not also concluded Sensient could claim an mark; (1) strength of owner’s portion right exclusive to the “Flavors” of (2) owner’s “Fla Flavors name because Sensient mark; alleged infringer’s and the generic Accordingly, vors” a term. (3) degree to which only court determined the Sensient name (4) other; compete alleged each protection. appeal, was entitled to On ‘pass intent off its infringer’s agrees pro “Flavors” alone is not (5) owner; those the trademark as tectable, argues the Sensient Fla but (6) confusion; and, incidents of actual mark must construed as a whole. vors cost, type its and condi- product, SensoryEffects rou courts have asserts purchase. tions tinely protect generic portions refused Treats, 426 at 1008. do We of a trademark. in an- apply any not mathematical formula determination, making In the district “rather, factors; alyzing we use these object did court noted not stage summary judgment them at the as finding name to its that the Sensient guide to whether a reasonable determine we Generally, fanciful. do consider jury could find a likelihood of confusion.” for the first time on arguments raised sepa- each factors Id. We address of these may argu- appeal party and a not assert rately. presented to the district court. ments not Mark Strength 1. The Owner’s Union, Auto., Aero- v. Intern. United Cole Am., factor, analyzing space Agr. Implement In we & Workers first Cir.2008). (8th “strong light In recognized and distinctive 533 F.3d have before greater protection SensoryEffects’ concession trademark is entitled point, we need not commonplace one.” Id. district court on this than weak or competi infringement unfair of confu trademark 3. Sensient must show likelihood claim, (Count statutory trade part claims tion its Missouri of its Lanham Act sion *10 V). I, III), (Counts II, infringement IV and Capital mark claim Count Everest Count WSM, Hilton, 1320, (8th L.L.C., 724 1331 Mgmt., Inc. v. F.2d v. 393 F.3d Ltd. Everest Funds 417.056(1). 755, Cir.2005), 1984); (8th common law Cir. R.S.Mo. 759 its 764 arguments on appeal challeng- analyzed

consider its The district court the evidence submitted ing strength parties of Sensient Flavors’ related to the sophistication of the name. customer base and the process by prod- collaborative which the Similarly, argument question- Sensient’s industry ucts in the are sold. As a result of ing properly whether district court sophisticated long, customers and the analyzed largely its irrelevant be- interactive purchasing process, the court ultimately cause found in favor of buyers determined it highly unlikely was on the first factor. impor- Sensient More marks, would confuse the and thus the tantly, proceeded the district court to com- likelihood of confusion was diminished. pare the composite Sensient Flavors mark The court also noted was there a distinct SensoryEffects mark to the later its auditory difference between marks. See, analysis, e.g., as demonstrated below. rejected The court SensoryEffects Tech. v. Sensient’s “initial in- Corp. Sensient Co., terest F.Supp.2d argument, 636 confusion” in which it Flavor 900 (E.D.Mo.2009) SensoryEffects contended (“SensoryEffects able use Flavor Sensient’s Systems gain sounds name access to custom- different than Sensient Flavors.”). Thus, begin ers and process collaborative district court did not sales, leading err in even if concluding the first factor the customer’s favors companies’ initial confusion over Sensient. the two dissipates names during process. Similarity 2. The of the Owner’s Mark theory court noted has never been Alleged Infringer’s and the Mark adopted by Circuit, Eighth and even if was, it Sensient would still lose because step, Under the second we must failed to show evidence customers similarity consider the Sen experiencing phenomenon. such a Not SensoryEffects sient Flavors Flavor only Systems did Flavor Systems Treats, marks. auditory have a distinct difference from at 1008. “Rather than consider simi Flavors, held, the court but Sen- component parts larities between the sient failed to showing introduce evidence marks, we must evaluate the impres SensoryEffects attempted away to lure sion that each mark in its entirety likely Sensient’s customer base off passing to have on purchaser exercising the at products as Sensient’s. tention usually given by purchasers of such products.” News-Tribune, Duluth appeal, 84 On Sensient contends the district identical, at F.3d 1097. “The sound, use even court correctly recited the “sight, dominant, words common meaning” does auto test to the simi- determine matically marks, mean that two are larity id., marks simi between the see but it Mills, Co., lar.” Gen. Inc. Kellogg erroneously purchasing considered the (8th Cir.1987). F.2d may “We conditions and evidence of actual confusion visual, aural, consider the marks’ and defi in assessing the the marks. compare nitional attributes and the trade Sensient asserts the court indepen- must dress in determining dently ap- determine whether marks conveyed by whether the total pear effect and sound similar a similar and evoke two marks confusingly similar.” Luigi meaning, separately and then consider no’s, Inc. v. Corp., 170 F.3d whether the purchasing conditions make Stouffer (8th Cir.1999) Mills, (citing Gen. those similarities more less critical. 627). Sensient also urges formally this court to

765 promi- and as well as the typefaces, doc- colors interest confusion” the “initial adopt convey marks display nent of the house trine. prod- between the perceptible distinctions sound, sight, first consider the We ucts.”). have continu argument. We meaning and brief, the reply In its contends identical dominant ally the use of held is appearance the marks irrele- visual automatically equate words does point vant because the of contact between similarity marks. See between general- companies and the customers (distin Treats, Inc., at 1008-09 426 F.3d telephone, thus audi- ly occurs via and “frosty treats” guishing the words priority. tory given should be similarities the plaintiffs from product defendant’s place particular suggestion to Sensient’s the mark and “Frosty mark where Treats” marks emphasis on the verbal effect of the distinct); Luigi visually were trade dress n McCarthy 4 is not without merit. See “Lean no’s, (concluding at 170 F.3d 830-31 (4th ed.) (“Similarity § of sound 23:22 con Tasty” ‘N are not and “Lean Cuisine” may particularly important when News-Tribune, similar); fusingly Duluth type frequently pur- are “Duluth (determining F.3d at 1097 84 order.”). However, we chased verbal “Saturday Daily News and News-Tribune” agree court that the com- with the district distinct, the aural despite were & Tribune” auditory posite marks maintain distinct marks); similarity the two Gen. between News-Tribune, 84 Duluth difference. See Mills, (holding at the district 824 F.2d (“Although the at 1097 [Duluth F.3d finding confusing no court did not err Saturday Daily and News News-Tribune Crisp” Raisin similarity “Oatmeal similar, aurally & marks are Tribune] Crisp” Raisin because the “Apple entirety their pronounced when cus enough avoid marks were different in de- confusion). ‘Saturday’ ampersand word and the case, each In this while tomer distinguish- fendants’ make the two paper begins “flavors” and mark uses the word able.”). prefix, these features are “sens” product names with longer components correctly pur- notes the While Sensient auditory depictions. different visual conditions, cus- chasing among confusion Ltd., at Capital See Everest tomers, marks between the (“Though each mark uses dominant separate are factors considered three ‘Everest,’ longer part that word is word analysis, precedent our court in its employ fonts product names that different impression clear that we evaluate the graphics.”). pur- “on a likely entire mark is to have usually giv- First, exercising visual differ the attention significant are chaser there Id. by purchasers products.” the marks. en of such ences between Sensient’s at Luigino’s, 170 F.3d 830-31 lettering with a See also capital consists of blue ordinary lettering. (analyzing whether an consumer yellow slightly wave above mark, likely other to be confused between on the would be The marks). agree two the ordi- hand, lettering parties in differ utilizes bold black lines, nary sophisti- customer of their typeface on with multicolor ent two particular result the first line. cated and sale symbol swirl to the left of Taking distinctions, long, process. of a collaborative on these visual Based sophistication into sufficiently consideration the marks are differentiated Luigi purchas- and the nature of the prevent confusion. See customers customer (“The correctly no’s, ing process, use of different *12 ordinary 3. The of Degree Competition determined the consumer would Between confusingly not the marks similar un- find the Products sound, “sight, meaning” der test. The third analyzes factor the de argues Sensient further the dis gree competition products. of application trict erred in its of the court Treats, 426 F.3d at 1008. If the Ac “initial interest confusion” doctrine. companies’ products closely two are relat Sensient, most courts now rec cording ed, among confusion customers is more doctrine, ognize which arises when Co., likely. Disney Davis v. Walt 430 F.3d creates an initial customer inter confusion (8th Cir.2005). The district court est, though may even no actual sale be companies’ product determined the mar finally completed due to the confusion. 4 slightly, ultimately kets differ but it held (4th ed.). McCarthy § con 23:6 weighed this factor in favor of Sensient “may applied tends the doctrine be to a parties competitors because are direct purchasing process that is out over drawn selling delivery flavor systems to food and time,” period such as the collaborative food ingredient companies. party Neither process at buying issue here. Id. Howev disputes holding this appeal, and ac er, acknowledging those courts doc cordingly we the district court conclude recognize trine if the marks “[e]ven was correct in its determination under the identical, are almost initial interest confu factor, third which favors Sensient. sion proven by is not assumed must the evidence.” Id. 4. Alleged Infringer’s The Intent We decline Sensient’s invitation to Pass Off its Goods the Trademark adopt the “initial doc interest confusion” Owner’s because, trine in this ease even if the generally circuit, fourth applied analyzes doctrine in this it factor would not apply alleged infringer this case. the whether the Under intended to doctrine, courts look factors such as off its pass goods as the trademark own product Treats, relatedness and the level of care goods. Frosty er’s at 426 F.3d exercised customers to determine proof While bad intent whether initial interest confusion exists. required for infringement success in an Checkpoint Sys., Inc. v. Check Point competition claim, unfair “the absence Soft Techs., Inc., (3d ware such is a intent factor to be considered.” Cir.2001). Here, although “Knowledge Id. product another’s similar, are parties agree the custom an to compete intent with that product ers sophisticated are and exercise a rela equivalent not ... to an intent a new tively high degree of in making care their entrant to a market to mislead purchasing sophistication decisions. This cause consumer Luigino’s, confusion.” likely makes less will experi customers 170 F.3d at 831. confusion, ultimately

ence initial resulting in a factor, benefit the alleged infringer. considering Id. In the dis result, 296-97. As a the district trict acknowledged court first the tempo correctly rejected application rary restraining previously order it en sum, doctrine under SensoryFlavors, these facts. In against tered in which it district court did not in concluding err noted SensoryF Nicolais’s selection weighs second factor previously favor Senso lavors name he after em ryEffects. ployed by strong Sensient created infer- *13 it the public. Tasty” wanted to avoid word confuse the because of his intent to ence “light,” it the word “low-fat” was the believed However, evidence the court concluded overused, agree and because it did not did not discovery additional produced after recommendation to with the consultant’s Nicolais inference because this support According the word “lean.” Id. to avoid he separate division while for worked court, the the reference to “Lean Cuisine” Sensient, if he employed by and even was compete evinced an to with the only intent Fla- knowledge of the Sensient maintained infringe not an to on the product, intent name, equate knowledge did not vors his result, mark. Id. the court held there As Rather, an to mislead. the with intent re- genuine no issue of material fact was SensoryEffects selected court determined predatory intent. Id. garding already- to capitalize in order its its name goodwill mark the estab- established Mills, Inc., Similarly, General Givaudan Flavors name. under the lished predatory court to find intent on declined part of the owner of the “Oatmeal ignored the court evi- Sensient asserts mark, Crisp” despite Raisin the owner’s demonstrating SensoryEffects was dence compete intent to “Apple with the Raisin competitor was a direct aware Sensient Crisp” mark. 824 F.2d at 627. “Oatmeal prior to Flavors and purchasing Givaudan Crisp” pro- Raisin went so far as to send intentionally it similar marks. In- selected to encouraging motional fliers distributors stead, argues the court relied on Sensient replace “Apple Crisp” them to Raisin Nicolais, who self-serving affidavit However, product. again its Id. court unaware claimed he was Sensient knowledge concluded that of another’s Sen- argues Flavors mark. Sensient also to product compete and an intent with that further soryEffects obligated was to move in- equate predatory to product does Flavors name af- away from the Sensient tent. Id. temporary restraining was ter the order entered, “Effects” was inserting such that alleged We believe the intent Sen- obligation. to meet insufficient allega- sient in this case is similar Mills, Luigino’s Inc. tions General determining SensoryEffects In whether dispute parties strongly the ex- While pass intended to off its as those of knowledge tent Nicolais’s Sen- Sensient’s, analysis we in Lui- believe name, precedent our dem- sient Flavors In gino’s Luigino’s, is instructive. knowledge onstrates maintained mark alleged owners of the “Lean Cuisine” dispositive inquiry Nicolais is not intentionally adopted that a simi- Luigino’s knowledge product of another’s because mark, Tasty,” capitalize “Lean ‘N lar compete and an intent to does not corre- goodwill established under the “Lean Id. spond with an intent to mislead. Sen- Cuisine” mark. Id. The evidence before alleges the inference be drawn sient Luigino’s court demonstrated that re- Nicolais had an from the evidence is that jected advice to avoid the a consultant’s by using a intent to confuse customers Tasty” “Lean ‘N believed Flavors; name to Sensient howev- similar might Tasty” low-fat “Lean ‘N entrees er, in the for support there no record comparable “Lean Cuisine” entrees. speculation. this assertion other than evidence, Despite this this court deter- Id. Rather, similar Luigino’s no the facts of this case are mined there was evidence News-Tribune, strong where capitalize intended to on the “Lean Duluth recognized allegedly infringing name explained mark. Id. The court Cuisine” Tribune” “Saturday Daily the name “Lean ‘N News & was Luigino’s chose logical merger “Daily the names News” Sensient contends it presented evidence “Daily detailing Tribune.” 84 F.3d at 1097. some misguided customers’ be- Here, phone correspondence liefs in calls and prior SensoryEffects owners of thought SensoryFla- the customers application registration the where filed an was, another, way vors July one SensoryEffects graphic name and formally responds Flavors. Ken- registered by which *14 Iwanusa, Manager neth National Sales for July acquired PTO on 2007. After PCI Flavors, Flavors, testified he knew of no it was not permitted Givaudan sales, injury lost no reputa- to Sensient’s use the Givaudan Flavors name more tion, no SensoryEf- incidents in which sixty days purchase. after the As a than any fects from benefitted confusion be- result, company decided to combine companies. tween the two SensoryEffects and Givaudan Flavors SensoryFlavors. to form names After this matter, question As an initial it is filed, company changed lawsuit was able whether statements contained SensoryEffects Systems, name to Flavor interrogatory Sensient’s responses pur incorporating SensoryEffects the full name establishing portedly the customers’ confu already registered was with the PTO. (“In sion are admissible. id. See evaluat circumstances, Under these the district ing the evidence at the summary judgment not in concluding incorrect stage, only we responses consider those SensoryEffects Systems Flavor name was supported by that are admissible evi a logical previously- of combination dence.”). We need not ques answer this SensoryEffects established and Givaudan tion, however, because assuming the state Flavors names. After careful of review admissible, it ments are is clear “even record, jury we conclude no reasonable several isolated incidents of actual confu could find in favor of Sensient on the occur initially upon sion that the creation fourth factor. potentially of a confusing mark are insuffi genuine cient to establish issue of mate 5. Incidents of Actual Confusion rial fact as to the likelihood of confusion.” factor, fifth Under the we ex Instead, Id. we “look to an appre whether amine incidents of actual confusion. ordinary ciable number of purchasers are Treats, Frosty at Although 1008. likely to be so misled.” Id. at 1099. This such proof are incidents the likelihood of here, not the case because the incidents confusion, plaintiff required not only described Sensient show negligible bring forth incidents of actual confusion to confusion after SensoryFlavors was com in an infringement succeed Squirt- case. pleting its transition with Givaudan Fla Co., 628 F.2d at 1091. In analyzing this vors, which is insufficient meet the bur factor, weight given to “the number and den under fifth factor. extent of instances of actual confusion.” importantly, More the district court cor- News-Tribune, Duluth 84 F.3d at 1098. rectly alleged noted the incidents confu- The district court SensoryFlavors held Sensient sion all related produce failed to any name, SensoryEffects evidence actual not the name at is- confusion, telling which noted was since sue here. Sensient concedes this fact on name had been in use appeal, may but notes still there at the time for approximately year. one likelihood confusion. sugges- Sensient’s result, As a record, the court concluded the fifth tion is without support weighed factor of SensoryEffects. result, favor and as a no reasonable factfinder SensoryEf- fifth tween Sensient’s and the factor favors determine could Therefore, Company court did Flavor mark. “As courts the district fects Sensient. noted, factor concluding repeatedly the fifth favors element’ err in have ‘core SensoryEffects. infringement law is whether trademark infringer’s of a alleged an trademark use Product, Cost, Type Its

6. that the mark creates likelihood consum- of Purchase Conditions ing confused as to who public will be Davis, Finally, the sixth factor exam at product.” what 430 F.3d makes purchase and the (citation ines the conditions of marks quotation and internal expected degree omitted). of care of customers. circumstances, Sen- Under Treats, “In con of its mark does not cre- soryEffects’s use *15 factor, in the sidering this we must stand sophisticated ate a likelihood that the cus- ordinary purchaser, buying shoes of will be confused as to who tomer base normally prevalent conditions of under result, a af- product. makes what As we such the attention giving market and summary grant firm the court’s of district usually buying in that purchasers give judgment. 170 F.3d at goods.” Luigino’s, of

class important “more in This factor is 831. Anti-Dilution Missouri’s Statute C. where the de cases confusion-of-source purchaser that exercises gree of care granted The court also can eliminate the purchasing product in a summary judgment SensoryEf favor of might otherwise exist.” confusion that complaint on of fects Count Six Sensient’s Treats, Inc., 426 at 1010. Frosty F.3d trademark dilution under Missouri alleging injunctive provides law. The statute for case, con In the district court this a of relief where there exists “[l]ikelihood parties cluded it was well-established injury reputation or of dilution business sophisticated custom their sell ... quality of the of a mark distinctive process. As a after a collaborative ers notwithstanding competi of absence this the court held the process, result of or of parties tion between the the absence diminished, likelihood of confusion confusion as the source of SensoryEffects. this factor favored The 417.061(1). § services.” Mo.Rev.Stat. parties dispute the conditions of do gravamen complaint is “The of dilution they purchase appeal, on as each concedes continuing that use of defendant’s sophisticated custom competitors are mark will plaintiffs mark similar to the above, analysis this noted ers. As upon the inexorably have an adverse effect in this important factor is case because mark, plaintiffs value of the and that mitigate any potential confusion. tends to plaintiffs eventually mark deprived will be parties’ agreement, Id. As a result of the Inc., Treats, Frosty of all distinctiveness.” factor could not form the basis this (citation omitted). To F.3d at 1011 Sensient, of and the dis verdict favor statute, prevail Sensient “must under the in concluding court not err this trict did its valid at show mark or trademark was SensoryEffects. of weighs factor in favor distinctive, law, its mark common that Judgment Summary of Appropriateness name creat that defendants’ use of its ed a likelihood of dilution of the distinctive foregoing factors Our evaluation mark.” quality plaintiffs Cmty. jury no reasonable leads us conclude v. Devon Park Copyright Corp. Christ of confusion be- could find likelihood Restoration, 683 F.Supp.2d 1017 concluded above. 323 F.Supp.2d at 994- (W.D.Mo.2010). began analysis by The district court distinction, Regardless above, noting, as discussed Sensient is a prevail Sensient is unable to on its trade proceeded

fanciful mark. court The mark dilution claim. in a Inherent dilution usage consider evidence of third party action under showing Missouri law a similar marks similar goods. Accord- marks, which re court, ing to the intro- Treats, sults the dilution. See showing duced evidence competi- another (“Plaintiffs’ Inc., 426 F.3d at 1011 Mis tor in the market does business under the Flavors,” souri-law dilution claim fails name because the “Sensus while another cor- marks poration “Symrise.” uses the name and trade dress at issue are so concluded, while the clearly dissimilar that it would errone fanciful, these third party uses demon- ous to hold there was a likelihood strate the mark is relatively dilution.”). weak. The Inc., Luigino’s, See also court determined Sensient failed to intro- (“To support an action for duce showing evidence its mark is distinc- by blurring, dilution the marks must at *16 tive, and as a result the mark was not enough least be similar significant that a to protection entitled under the dilution segment target group of the of customers statute. sees the essentially two marks as same.”). above, Sensient As discussed required asserts it was not the Sensient to introduce evidence Flavors showing Sys its mark and Flavor was distinctive because its mark already was tems marks are not sufficiently similar established as fanciful. points sound, Sensient to under “sight, meaning” its open and continuous use of mark sound, “sight, test. While the and mean cards, since 2000 on its business advertis- ing” test determined pur ing marketing materials, and website. poses of assessing whether a likelihood Sensient also contends the court erred be- existed, confusion dissimilarity the same nothing cause in the statute or case law prevents finding of dilution under Mis requires courts to consider party third us- souri law. Luigino’s, See 170 F.3d 832- age part determination, as of the dilution (holding 33 the marks were dissimilar un especially where the mark at issue is fanci- sound, der the “sight, meaning” test ful. Even if this inquiry required, were such that dilution did not occur because argues, Sensient finding the court’s the customers did not see the marks as “relatively weak” was sup- same); essentially the Astra Pharm. ported evidence the record. Prod., Instruments, Inc., Inc. v. Beckman (1st Cir.1983) (“We F.2d matter, As an initial we acknowledge that, already have this is noted while the distinguishable case from Beck- Steak n man analyzer Co. and Astra Burger products may Shake King Corp., 323 (E.D.Mo.2004), field, F.Supp.2d 983 the same broad health care which the there dissimilarity prevent district court cited in sufficient support for to its hold- confu Co., ing. reasons, In Steak n Shake sion. For the “steakbur- same there is suffi dilution.”). ger” generic mark was a cient dissimilarity prevent term not entitled protection, result, in contrast to the As a “Sensient” Sensient’s dilution claim under mark, which the already district court de- Missouri law fails because the marks are mark, strong termined was a sufficiently similar, as we also not and therefore there alleged in- question whether On the dilution no likelihood good pass off its as the fringer intends marks. goods, the circum- trademark owner’s reasons, we affirm foregoing For the support reasonable case stances district court. of the judgment presi- in favor Sensient. The inference infringer, alleged Charles Nico- dent lais, president of Sensient Col- a former COLLOTON, concurring Judge, Circuit Inc., ors, company of Sensient sister dissenting judgment part in the Shortly after Nicolais moved Flavors. part. defendant, the new from Sensient identified multiple factors Applying “SensoryFla- company selected the name bearing on the like- precedent in circuit “Sensient Flavors.” compete vors” to in- in a trademark lihood of confusion “strong to find a This led the district court case, competition unfair see fringement or confuse of Defendant’s intent to inference Treats, Sony Computer Inc. v. R. at 7. After the public.” Doc. (8th Am., Inc., 1001, 1008 Entm’t preliminarily enjoined genu- Cir.2005), that there are I conclude using from the name “Senso- defendant preclude that of material fact ine issues company retreated to the ryFlavors,” ground. Be- summary judgment on Company,” Flavor name “SensientEffects dismissed claims the district court cause rejecting suggestion company vice Technologies Corpo- advanced “Flavor” from president omit the word (“Sensient”) the Lanham Act ration under parent Appel- logo. the official name and (Counts 1-3), common law the Missouri in an App. lants’ 275-76. Nicolais denied *17 417.056(1) (Count § 4), Mo.Rev.Stat. that he was aware that brand affidavit (Count 5), that its conclusion based on “Sensient Flavors” even ex- or trademark a of confusion as is no likelihood there isted, from the but Sensient discovered law, I would reverse the matter of an internal document dated defendant and remand judgment part court’s Fla- “Sensient February 2008 that listed proceedings.4 further competitor” a “primary vors” as “SensoryFlavors, Inc.” Id. at newly-named a the court that reasonable agree I of Nicolais is credibility The Mr. 270. that has a fanciful find Sensient jury could jury. a obviously disputed a issue for the name Flavors trademark in Sensient evi- proved is circumstantial highest level Intent entitled to that is circumstances, dence, a and from these that Sensient Flavors protection, and jury that the defen- reasonable could find Company are direct SensoryEffects Flavor dant, to its efforts delivery sys- having been rebuffed flavor competitors who sell SensoryFlavors generate to use the name companies. disagree, I how- to food tems Flavors, in- still with Sensient ever, jury could find confusion that no reasonable shifting to public by to favor tended confuse analysis factors in the that other Flavor Com- the name of SensientEffects Sensient. goods. competitors who sell similar affirming dis- tween judgment I concur in the relating to Corp., claims Luigino's, trict court's decision Inc. v. 170 F.3d See Stouffer Ante, SensoryFlavors I Viacom, at 760-63. (8th 1999); mark. 827, In- Inc. v. 833 Cir. affirming judgment in the also concur Inc., 886, Enters., (8th n. gram 891 9 141 F.3d the Mis- claim under dismissal Sensient’s Cir.1998); McCarthy, Trademarks and 4 J. statute, Mo.Rev.Stat. anti-dilution souri (4th ed.2010). Competition § 24:74 Unfair 417.061(1), dispute be- § is because this 772 sure,

pany. telephone, To be we have said that similarity so is the sound (not “Knowledge product an another’s logo) trade dress or that is relevant. compete product” intent with that not is argues SensoryEffects that the same intent to cause consumer con likely to “initial cause interest confusion” Mills, Co., fusion, Kellogg Gen. Inc. v. 824 when it similar-sounding uses name to (8th 622, Cir.1987), 627 but this market its customers “cold” garden-variety compete” “intent to case. telephone calls. The doctrine of “initial that Sensient’s contention is the defendant “infringement interest based confusion”— knew of the “Sensient Flavors” mark and upon confusion that creates initial custom intentionally very selected a similar interest, er though even no actual sale first, SensoryFlavors and then Sen mark — finally completed aas result of the confu Company sientEffects Flavor order to —in widely accepted, sion”—is 4see J. McCar benefit from confusion that arise would thy, Competition Trademarks and Unfair from similarity Particularly names. (4th ed.2010), § 23:6 given the initial effort a former Sen offers no convincing why reason this court sient executive to use SensoryF the name adopt context, should not In it. lavors, a jury reasonably could infer that similarity aural of SENSient Flavors and the defendant’s choice of the fallback name (with SENSoryEffects Flavor “Company” part by was still motivated an intent to add-on) anas immaterial is sufficient for Nuts, confuse See consumers. Beer Inc. v. jury weigh this factor in favor of the Co., Clover Club Foods 805 F.2d course, plaintiff. Of “the use of identical (10th Cir.1986) (“[Djeliberate adoption of a dominant automatically words does not may similar mark lead an inference of equate marks,” ante, pass intent to off as those anoth added), (emphasis but unlike the er,” and “[t]he inference of intent is espe court, authorities cited by cially strong parties when the have had a Treats, Inc., 1008-09; 426 F.3d at Luigi prior relationship.”). permissible in no’s, Stoujfer Inc. v. Corp., 170 F.3d ferences about the defendant’s intent (8th Cir.1999); Duluth News-Tribune weigh strongly against summary judg Co., Publ’g Mesabi *18 ment. Lilly See Eli & Co. v. Natural (8th Cir.1996); Mills, Inc., Gen. F.2d 824 Answers, Inc., (7th 456, 233 F.3d 465 Cir. 627, at visual distinctions in trade dress do 2000) (“The fact that one actively pursues not the harm ameliorate caused confus objective an greatly increases the chances ingly auditory similar names where simi objective achieved,” that will be and larity key ante, is the issue. at 765 Cf. reason, “[f]or this a defendant’s intent is (“Sensient’s suggestion place particular factor, an important can weighed and be emphasis on the verbal effect of the marks factors.”) (internal heavily more than other merit.”). not without quotations omitted); and citations Mobil Corp. Pegasus Oil v. Corp., Petroleum That company’s a customers sophis- are (2d Cir.1987) (“Intentional ticated does not establish as a matter of copying gives rise to a presumption of a law that there is no likelihood of confusion. confusion.”). likelihood of sophisticated If the oil traders Mobil Oil question Corp., On the “might of the 818 F.2d listen a own- to cold mark, alleged phone er’s mark call infringer’s Pegasus and from Petroleum ... not, a jury might reasonable also could when find favor otherwise he because of of Sensient possibility Pegasus Flavors. The evidence that shows Petroleum is that Mobil,” at issue are marketed related to at though id. even Lilly, See Eli 233 F.3d at 465- relationship those en- confuse. possible (holding although that there was on knowl- 66 based required inferences tities no confusion, actual “the other my- evidence of mark and Greek edge both Mobil’s similarity of the especially reach jury could then a reasonable thology, factors — marks, [plaintiffs] strength sophisticated A conclusion here. a similar mark, intent to con- systems might [the defendant’s] and delivery of flavor purchaser supported] the district fast-talking strongly a sales- a cold call from take fuse— grant pre- on court’s ultimate conclusion” pitch customer attempting person liminary injunction under the Lanham Compa- “SENSoryeffects Flavor behalf Act). with, argu- The court makes reasonable buyer is familiar ny” when the with, likelihood of confu- ment that there no dealing “SENSient accustomed sion, jury may or not a and a reach conclusion [Company].” Flavors Whether credibility weighing eventually evaluating would after sophisticated customer evidence, difference, but record does not dem- the doctrine sort out law in- as a matter of that the court’s prevents confusion an onstrate interest initial only is the reasonable out- gain mark to determination using from another’s fringer come. credibility during phas- the initial “crucial added). (emphasis of a Id.

es deal.” reasons, I For these would reverse the Systems, Checkpoint grant summary judgment court relies on on Counts 1-5 Technologies, proceedings. v. Point remand for further Inc. Check Software (3d Cir.2001), Inc., for the sophisticated careful and proposition that confusion make initial interest

customers ante, 765-66, Checkpoint but likely,

less findings by a made

Systems considered trial, held that after finding of no likelihood

the district court’s clearly not erroneous. of confusion was HIRMAN, Appellant, Jeremiah Allen Systems Checkpoint did Id. at sophistication justified that customer hold against claims of initial

summary judgment America, UNITED STATES discussion confusion. The court’s interest Appellee. signif- that “[i]ts of initial interest resolved No. 09-3065. vary, must determined

icance will *19 case-by-case basis.” Id. at 297. Appeals, States United Court Eighth Circuit. sev- surrounding issues of fact Given the analysis, the absence eral elements May Submitted: rec- confusion on this of evidence of actual 21, 2010. July Filed: justify summary judgment. ord does not strength of the The other factors —the mark, high degree Flavors auditory competition,

direct in a market characterized

of the marks sales,

telephone evidence of intent and the support

to confuse—are sufficient likely that the mark is

finding defendant’s

Case Details

Case Name: Sensient Technologies Corp. v. SensoryEffects Flavor Co.
Court Name: Court of Appeals for the Eighth Circuit
Date Published: Jul 21, 2010
Citation: 613 F.3d 754
Docket Number: 09-2686
Court Abbreviation: 8th Cir.
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