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Skydive Arizona, Inc. v. Quattrocchi
673 F.3d 1105
9th Cir.
2012
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Docket

*1 jurisdiction lack of we DISMISS 07-74042, and in No. we for review

petition in No. 10- appeal moot DISMISS 16491. ARIZONA, INC., Plaintiff-

SKYDIVE Counter-Defendant-Appellee,

v. QUATTROCCHI; Butler, Cary Ben

Defendants-Appellants, Inc.; USSO, LLC, 1800SkyR CASC, dba SC, ide, 1800Skyride.com; Atlanta aka Center; Skydiving Inc. aka Atlanta Corporation, IGOVincent, Inc., Georgia ndants-Counter-Claimants-A Defe ppellants,

v. Hill, Third-Party- Larry Defendant-Appellee. Inc., Plaintiff- Counter-Defendant-

Appellant, Butler, Cary Quattrocchi; Ben Defendants-Appellees, Inc.; USSO, 1800SkyR CASC, LLC, dba SC, ide, 1800Skyride.com; aka Atlanta Corporation, Inc.; IGOVincent, Georgia Inc., a nts-Counter-Claimant Defenda s-Appellees,

Larry Hill, Third-Party-Defendant. 10-16099, 10-16196.

Nos. Appeals, Court of United States Ninth Circuit. Argued Jan. 2012. and Submitted March 2012. Filed

OPINION

SMITH, Judge: M. Circuit operates Arizona owns and one largest skydiving centers Butler, Quattrocchi,

world. Defendants SC, CASC, Inc., Inc., Atlanta and IGOVin- SKYRIDE) cent, Inc. (collectively, operate an Internet telephone-based advertis- service, *4 ing arrange- making skydiving customers, for issuing ments and certifi- that can drop cates be redeemed at various country. zones around the Ari- Skydive for advertising, zona sued SKYRIDE false infringement trademark and cybersquat- ting. Following partial summary judg- trial, and a ment Skydive awarded Arizona million actual damages for $1 advertising, false million in actual $2.5 for infringement, trademark $2,500,004 profits resulting from the infringement, $600,000 trademark and for statutory cybersquatting damages. The district court denied SKYRIDE’s motions (argued) Daniel H. Brombert and Timo- verdict, to reduce judgment for thy Butler, A. Quinn Emanuel Urquhart & verdict, remittitur, notwithstanding the for Sullivan, LLP, CA, Shores, Redwood for trial, and for new and instead doubled the defendants-appellants. Skydive Arizona’s million actual dam- $1 Gibbs, Sid Leach (argued), Martha E. ages award for false advertising and $2.5 Limon-Wynn, and Monica A. &Snell Wil- million award for trademark infringement. mer, LLP, Phoenix, AZ, for plaintiff- $600,000 The final totaled appellee. statutory damages, million in enhanced $7 $2,500,004 and in dis-

gorged plus attorney fees. The permanent also entered a injunction against operations in Arizona. appeals SKYRIDE now grant partial district court’s summary JR., NOONAN, Before: JOHN T. and judgment, and SMITH, JR., MILAN D. Judges, Circuit awards, the district court’s RAKOFF, and JED S. Senior District Skydive enhancement. Arizona Judge.* cross-appeals the district court’s limitation Opinion by SMITH, Judge MILAN D. permanent Arizona, injunction JR.; Partial Concurrence and Partial injunction and seeks a against nationwide Dissent Judge NOONAN. jurisdiction SKYRIDE. We have * Rakoff, York, The Honorable Jed S. sitting by Senior District Southern District of New des- Judge for the U.S. District ignation. Court ChandlerSkydiving, MesaSkydiving, as to Glen- and we affirm all 28 U.S.C. claims, doubling daleSkydiving, GilbertSkydiving, for the of actual except PeoriaS- YumaSkydiv- TucsonSkydiving, kydiving, ing, FlagstaffSkydiving. SKYRIDE AND PROCEDURAL

FACTUAL numerous registered also domain names BACKGROUND with for use connection the SKYRIDE Arizona, Inc., Skydive Appellee located business, skydivearizona.net, including ari- operated under the Eloy, has skydivingarizo- zonaskydive.com, mark since ARIZONA” “SKYDIVE na.com. Arizona neither adver- the most well known and is now one of with, from, accepted tised nor certificates in the skydiving centers world. SKYRIDE. 160,000 145,000 Arizona hosts between 30, 2005, August On year. It furnishes its skydives each SKYRIDE, complaint against filed a as- events planes personnel skydiving (1) Designation False serting claims in 30 outside of Arizona. states Origin Competition, and Unfair under Sec- *5 widely skydiving in Arizona is known the 43(a) Act, tion of Lanham 15 the U.S.C. sky- hosted community, and has national (false 1115(a) (2) § advertising), Trade- Skydive Arizona has diving competitions. Infringement, mark 15 under U.S.C. multiple on television also been featured 1125(a)(trademark (3) § infringement), and extensively programs, and advertises Designation Origin False of and Unfair Internet, as well as in national and 43(d) of Competition, under Section skydiving magazines, international Phoe- 1125(d) Act, (cybers- Lanham U.S.C. hotels, Pages, Yellow and in nix-area alleged quatting). Arizona University Arizona’s and Arizona wishing to SKYRIDE misled consumers University’s college newspapers. State skydive through in Arizona false advertise- essentially SKYRIDE acts third- misrepresen- on their websites that ments booking service for party advertising ownership skydiving ted SKYRIDE’s advertisers, skydiving centers. As reality, in Arizona. In facilities SKYRIDE pro- and Internet provide phone national operated skydiving owned nor fa- neither individual motional services to various Arizona, strategic in but made a cilities zones, drop exchange in for fee. When represent ownership business decision to booking agent, acts as a cus- it they thought would attract more SKYRIDE, online pay tomers either Skydive Arizona further customers. phone, over the for a certificate can skydiving claimed that SKYRIDE sold at drop be redeemed various zones around by trading upon Skydive Ari- certificates country. Upon redemption, SKYR- misleading customers zona’s expected pay skydiving IDE is facil- believing into Arizona would ity by the used customer. accept SKYRIDE certificates. booking As of their part advertising 2, 2009, February On the district court business, operated SKYRIDE owned and summary in partial judgment entered fa- describing skydiving numerous websites for false vor of adver- locations, multiple opportunities without 43(a) tising claim under section Lan- drop specific zones. Howev- reference 2, 2009, jury ham Act. On October found er, operated SKYRIDE also owned and Skydive Arizona the remain- in favor of referencing specifically numerous websites Specifically, ing claims. awarded PhoenixSkydiving, including false for willful ad- million ScottsdaleSkydiving, TempeSkydiving, $1 43(a) Quinta Corp. the Lan- record. La vertising, under section v. Heart Act, LLC, ham million Props. $2.5 land F.3d infringement, along with Cir.2010). trademark willful $2,500,004 statutory- scope injunc review the of an $100,000 violating each for damages of six tion for abuse of discretion. See Internet 43(d). names, section domain W., Specialties v. Milon-Digiorgio Inc. denying its March order Enters., Inc., Cir. trial, motions for a new re- 2009). remittitur, duction of verdict, notwithstanding judgment DISCUSSION

district court doubled advertising awards for false and trade- Summary Judgment I. Partial resulting mark in million infringement, $5 Advertising False infringement for trademark and million $2 We first consider whether the district advertising. for false It declined to in- erred in granting partial summary profits. crease the Arizona on its false judg- The district court entered final advertising claim. are There five elements April parties ment on 2010. Both time- to a false claim under Section appealed. ly 43(a) Lanham Act: (1) OF STANDARD REVIEW false of fact de- statement *6 AND JURISDICTION fendant in a commercial advertise- ment about own or its another’s summary We rul judgment review product; See, ings e.g., Dynamic, de novo. Fortune Inc. v. Victoria’s Secret Stores Brand (2) the actually statement or deceived (9th Cir.2010). Mgm’t., 1025, 618 F.3d has the to tendency deceive a sub- segment audience; stantial of its equitable

Because discre (3) material, deception in tion that that it is district courts mon exercise over etary Act, likely relief Lanham we influence the de- purchasing cision; review such rulings abuse of discretion. See, Watch, U.S.A., e.g., Rolex Inc. v. Mi (4) the defendant caused its false state- Co., (9th Cir.1999). chel 179 F.3d commerce; ment to enter interstate we Correspondingly, uphold review orders ing jury damages denying awards and new (5) plaintiff been likely has or is trials for abuse discretion. Las Tortu injured be as a result of the false Vegas Metro. Dep’t, Police 556 F.3d statement, either direct diversion (9th Cir.2009). 1086-87 A ruling consti of sales from itself to defendant or

tutes an abuse of discretion if the record by a lessening associ- contains no rationally supporting evidence products. ated with its See, Co., e.g., conclusion. Lindy Pen 1125(a)(1)(B); 15 U.S.C. Southland Sod Inc. v. Bic Corp., Pen Co., Farms Stover Seed reviewing In a dis whether (9th Cir.1997). Although materiality trict court its denying abused discretion in false trial, “typically” claims is motion for remittitur or new we proven through surveys, nothing consumer jury’s decide whether the sup award was ported by Act, reasonable the Lanham under our prece- inferences and as nor sessments, dents, on requires based substantial evidence plaintiff to use such sur- Farms, materiality district court’s F.3d at tations. The Sod veys. Southland finding by Skydive was further supported 1140. Arizona’s evidence numerous consumers disputes appeal, On SKYRIDE telephoned Ari- who came to materiality finding. court’s only the district facility having zona’s after been deceived contends that the Specifically, believing into there was an affiliation'be- granting partial erred district court Skydive Arizona and SKYRIDE. tween Skydive Arizona summary judgment to Accordingly, we hold that district advertising claims because its false finding materiality did not err in court materiality, namely evidence admitted declaration, upon Flynn’s and evi- based Flynn, of consumer James the declaration consumers, from af- grant dence other we disagree. ambiguous. was summary grant partial the district court’s ing partial firm found district court summary judgment. evi Flynn constituted direct declaration were statements Damages

dence that SKYRIDE’s II. purchasing consumers’ likely influence gravamen appeal of this turns on declaration, Flynn In his stated decisions. district court abused its dis- whether the bought SKYRIDE personally he had in upholding, enhancing, cretion and later on on the SKYRIDE’s certificates based Arizona’s award. representations line and advertisements SKYRIDE contends that at redeem the certificates that he could regard its with dam- abused discretion upon Flynn’s Skydive Arizona. Based (1) following ages grounds: on the four declaration, held upholding ma contained advertisements award, Arizona did SKYR indicating false statements terial concerning sufficient evidence present in the loca skydiving IDE facilities “had (2) damages; upholding amount not, when in fact did tions advertised because the *7 that consumers could re alternatively, or expenses failed to deduct SKYRIDE’s and certificates at loca deem [SKYRIDE’s] tes- “clearly costs based on the erroneous” they in could not.” tions where fact (3) timony expert; Skydive of Arizona’s proffer Skydive Arizona’s decision to enhancing jury’s damages award to the testimony of instead consumer declaration (4) SKYRIDE; upholding punish and surveys materiality not un- prove to does damages, enhancing the entire actual and summary partial for dermine its motion award, damages profits, statutory and survey Although a judgment. consumer grossly the was exces- proven materiality in this could also have of SKYRIDE’s sive. We address each case, to hold that it the we decline was turn, affirm district arguments and Indeed, as way materiality. prove to award, except to the court each Sod, consumer sur- we held in Southland of the actual award. enhancement used veys powerful tend to be most when advertising that dealing deceptive with Damages A. Actual 108 misleading.” true but “literally is Act, the Lanham Under Here, at 1140. Defendants’ adver- F.3d “(1) court, discretion,” may award “in misleading both tisements were and its false. (2) any damages sus defendant’s proved that consumers Flynn’s declaration (3) the by plaintiff, costs of tained and actually by had been confused SKYR- any right of action” a “violation of advertising represen- IDE’s websites 1112 registered mark in the draw make a registrant’ of a reasonable inferences Office, a violation and Trademark Patent and reasonable assessment. La fair (d) 43(a) ..., or a willful under section Quinta Corp., (emphasis at 603 F.3d 43(c)----” section

violation added). added). 1117(a) § (emphasis U.S.C. Skydive awarding In Arizona ac “any damages assesses sus- tual an jury considered ar plaintiff’ the same manner tained ray of customer evidence and three differ reasonably tort damages: as in fore- ent affirming financial record exhibits. In wrong. seeable harms caused See the district court noted Int’l, Nahum, Inc. DSPT (9th Cir.2010) significant Co., and “voluminous” evidence (citing Lindy Pen 1407; Skydive F.2d at see also Restatement concerning Arizona’s “stellar busi (Third) 36(1) Competition reputation,” ness and the hundreds of of Unfair (1995)). reviewing a award of Skydive of thousands dollars Arizona infringe- actual intentional spent in developing its ment, accept we “crude” measures dam- argues business. that this evi ages upon based reasonable inferences so dence was insufficient because long as those inferences are neither “inex- not provide specific Arizona did mathe ... orable fanciful.” Intel Corp. [nor] See jury matical formula for the use in Int’l, Inc., Terabyte F.3d calculating actual harm to Ari goodwill. disagree. zona’s is true It action, that,

In a trademark closing, the na at counsel for Ari proof required support ture jury zona asked the “fill in” the amount jury depends on the circumstances of damages that it found reasonable “subject of the case and is principles to the compensate Skydive Arizona for its Int’l, Inc., of equity.” See DSPT However, damages. counsel’s comment at 1223. The distinguish trier fact must was not an for the invitation con proof between fact jure the amount of out of -the the amount of because a mark vapor. contrary, To the throughout holder held to a lower in prov standard trial, Skydive presented to the ing the exact amount jury ample original evidence proving the Quinta Corp., See La at 342. In value of Arizona’s goodwill and measuring goodwill, harm to may scope depth of SKYRIDE’s harm plaintiffs expenditures consider in build *8 reputation. Skydive to Arizona’s reputation ing its in order to estimate the began by presenting jury to the harm to its reputation after a defendant’s three showing different exhibits its adver bad acts. See Corp. Smith Corona v. Peli tising expenditures period for a of ten kan, Inc., (M.D.Tenn. 452, F.Supp. 784 476 (from 2007), years expenditures 1997 to it 1992) (“[I]n to damage order calculate to a up reputa made to build the corporation’s goodwill due a competi to tion significant of its mark over a of period advertising, false tor’s one must take into time. presented Arizona then to account the amount of money expended by the jury multiple declarations and witness injured the corporation in promotion the of testimony proving that were customers trademark.”). Upon its causation, proving with, very Ari angry and blamed the plaintiffs evidentiary burden relaxes for, zona considerably. problems caused SKYRIDE. support To jury’s a only testimony variety there This came from a of need be sub permit stantial evidence to jury away to witnesses located as far as North

1113 building repu- costs of its Dakota, thereby demonstrating geo- evidence of the by tation, widespread of the harm caused harm to its reach of the graphic directed the Counsel also SKYRIDE. corrective goodwill, and of need for Skydive Arizona’s jury need to consider evidence, upon advertising. Based advertising, due to corrective undertake jury found the district court extremely harmful ramifications its damages could arrived at award have misrepresentations. SKYRIDE’s upon variety of ratio- based a different nales, including great value that section 1117 emphasize We reputation, costly Arizona’s the' original scope upon a wide of discretion “confers confusion, harm customer judge fashioning remedy.” a the district potential and the extent of geographic Brewing v. Fleischmann See Maier Co. grievances. Accordingly, customer we Distilling Corp., Cir.1968). hold not'abuse that the district court did 1117 demands neither Section quantification expert nor testi its empirical upholding discretion monetary a award of mony support award of actual it was provide can damages; many sources supported by reasonable inferences and upon information which a requisite assessments, upon evi- based substantial jury may calculate reasonable dence record. Spencer Hand Louis Vuitton S.A. Cf. (2d Cir.1985) bags 765 F.2d Corp., Disgorgement B. ofProñts based (upholding calculation reviewing an award of lost videotape on a statements made not ask the sub profits, we do whether “[r]ecovery under section 1117

noting that presented stance of the evidence to the quan is limited to in which the cases credible; jury only was correct or even we demonstrated”). tum actual is ascertain whether award was based willingness accept our “crude” Given reasonable inferences fair assessments damages in of intention measures of cases Quinta of the evidence in the record. La we infringement, al hold Corp., Questions F.3d at 342. of evi reasonable in upon calculation was based dentiary admissibility credibility are represented fair a assess ferences Skydive properly challenged either or dur ment of suffered before Corp., 16(c)(2)(D); at 621. Arizona. Intel see ing trial. Fed.R.Civ.P. Pharms., 509 v. Merrell Dow Daubert upheld court has Where 579, 597, 125 L.Ed.2d U.S. S.Ct. a motion for a denying (1993) (emphasizing “gatekeeping” trial, “virtually ruling such a is unas new evaluating function of the courts Carlson, Kode v. sailable.” expert testimony). Failure admissibility of invade the prov challenge to raise Daubert at trial causes “if the verdict ince right objec party waive the to raise weight contrary to clear the evi testimony of expert tions the substance *9 dence, upon pernicious is based false or Marbled Murrelet v. Bab post-trial. See prevent miscarriage or to evidence Cir.1996) bitt, 83 F.3d Cable, Inc., justice.” v. M.J. See Molski (“[T]he time to raise appropriate Daubert (9th Cir.2007). This is By object challenges failing is at trial. plausi The fact that no such case. mere ruling on request to evidence at trial arguments ble be made that could right objection, party an waives the such is too not warrant jury’s high verdict does admissibility appeal.”). on proffered Arizona to raise issues reversal. Id. request damages, of its support ability waived its challenge the sub- proffered testimony stance of testimony by Freed’s failing to expert, and rebuttal its Mr. object before, at, or trial. Gary profits analysis, In his lost Freed.

Freed estimated SKYRIDE’s revenues Damages C. Enhancement by calculating from Arizona the number of plain language The of the Lanham Arizona residents identified permits court, Act a district in its discre increasing records and then that number tion, to enter any “for sum above by missing 2.131 to account for files resi- the amount found as He multiplied dence information. then exceeding three times such amount.” 15 an average that number transaction 1117(a). U.S.C. “If the court shall find amount, adjusted and then for resulting that the amount of recovery based on from out-of-state revenue residents who profits is inadequate either or excessive Lastly, in Arizona. jumped Freed may the court in it's discretion judg enter 10%, added an interest factor of using the ment for such sum as the court shall find prejudgment applicable interest rate just, to be according to the circumstances Arizona law. Freed also rebutted the tes- timony case. Such sum in of SKYRIDE’s either expert, Dejesus, Lillian opined alleged who on above circumstances shall constitute com profits. deductions to SKYRIDE’s At no pensation (em penalty.” and not a Id. point during before or the trial did SKYR- added). phasis Thus, although judge IDE challenge the admissibility of Freed’s jury may up triple award the amount of testimony under Federal Rule of Evidence lost and costs to 702. compensate holder, a mark the Lanham Act has been construed to expressly forbid

SKYRIDE now contends that the award of to punish an infring district court abused its up discretion in Id.; er. Corp. BASF v. Old holding $2,500,004 World Trad jury’s award of Co., ing profits lost because the was based erroneous Spe calculations Freed. inquiry before us is not whether cifically, alleges that Freed’s SKYRIDE’s infringement justified willful clearly calculations were erroneous be the district court’s enhancement Sky- cause he did not properly deduct vendor dive Rather, Arizona’s actual damages. payments costs, or overhead ap he we must decide whether the district court plied improper an interest rate. When abused its discretion in enhancing Skydive SKYRIDE first raised arguments these Arizona’s actual punish SKYR- post-trial, rejected the district court them case, IDE. In a Lanham Act penalize grounds untimely, were “opprobrious defendants for conduct” is an and fell within province of a Daubert abuse of discretion. Jurgens v. McKasy, challenge. agree with the district (Fed.Cir.1991) (finding court. SKYRIDE’s claims challenging the the district court abused its discretion un- profits award all turn upon on der the Act Lanham when it cited both the substance credibility of Freed’s deterrence penalizing rationales for testimony; they fail to any assert basis for trebling damages against a willful infring- challenging the lost award based er). Indeed, upon “enhancement damages] [of record as it Accordingly, exists. we hold available to ensure that plaintiff did not abuse its discretion in upholding compensation.” receives Corp., BASF *10 award because SKYRIDE’s F.3d at 1096.

1115 However, damages assessing whether a doubling the actual excessive, fact grossly actual the award is that “[t]he as SKYRIDE’s well jury “emphasize[d] purpose may agreed plain have with [the rejected of Defendants’ con fully expert] nature tiffs and the defendant’s deceitful on The district court’s focus the ver duct.” contentions ... does not render ” “seeming disregard for the SKYRIDE’s monstrous.’ ‘grossly dict excessive or reputation Inc., people they harmed and Tidyman’s, 285 Hemmings v. F.3d Cir.2002). it suggests 1174, 1191(9th enhanced the sullied” damages response award in to en contends that the SKYRIDE See Skydive SKYRIDE’s base willfulness. (actual damages, profits, tire Quattrocchi, al, Arizona, Inc. v. et No. damages cybers statutory award for (D.Ariz. 2:05-cv-02656-DGC, 21 Mar. at it quatting) should be vacated because is 2010). discussing appro Instead of punitive. dis grossly excessive and We to Ari priate compensate award agree. SKYRIDE claims that because SKYRIDE, to deter district zona or company” not a big “SKYRIDE is need for court focused SKYRIDE nationwide gross because its revenues “accept wrongful “appreciate” “only since million” that 2003 are it $23 Although Id. ness of their conduct.” should not be held accountable for a final may have considered a sec district award over million. $10 it briefly rationale when ondary deterrent present any SKYRIDE fails to us with knowing discussed SKYRIDE’s refusal however, authority, a allowing defendant acts, infringing we hold that such cease its escape liability infringe for trademark possible considerations do overcome ment by and false apparent court’s intent to pun district claiming, essentially, small that it is too (Fed. at 1564 Jurgens, ish. See justify end, large such a award. To that Cir.1991). The context of the broader authority completely inap court’s enhancement discussion reveals its posite. & Union Plumbers Steamfitters punitive Accordingly, motivation. because against involved a breach of contract claim court’s to enhance the decision jury upon a labor union which the relied hinged upon punishing conspiracy evidence award excessive SKYRIDE, we reverse willful conduct only who had against defendant court’s the district en months. been business three hancement. conspira at F.2d 824. Baldwin involved drugging cy plaintiff by to defraud a him Damages “Grossly Excessive” D. gambling while was to induce losses. he Profíts 213 F.3d at 485. bias, A on the verdict based Here, argues that the dam- sympathy jury cannot be passion, or because, grossly ages award is excessive & permitted to stand. Plumbers Steamfit gross small given SKYRIDE’s size Union, Dillion, Local ters No. 598 revenues, have been could (9th Cir.1958) (citing Ford F.2d desire to or unbri- punish motivated Mahone, 205 F.2d 267 Motor Co. v. speculation. rejected dled the same Guthrie, Cir.1953); Pac. F.2d S. Co. v. type argument Hemmings, which (9th Cir.1951)); see also Baldwin v. trial appellant claimed a new should Warwick, Be “the granted size of dam- be yond passion, bias or verdict will obvious ages meant must awards appeal if it is not be sustained or sheer sympathy have been motivated “grossly or “monstrous.” Id. excessive” *11 operate F.3d at 1191. such guesswork.” 285 SKYR- centers.” district court booking IDE injunc- is national denied the motion for nationwide years for using that operated service has tion because Arizona failed to names, and domain plethora of websites prove that SKYRIDE’s conduct outside directly targeted portion of custom- which agree Arizona was illegal. with the They persuade fail to ers in Arizona. us court, district hold that it did not of the in the size by refusing abuse its discretion to award a and revenue of the relation the size injunction. limiting nationwide jury’s company, that the proves scope injunction objectively excessive or shock- award was complied precedent with our Moreover, ing to the conscience. was injunction that an must be “tailored to Hemmings, the case in SKYRIDE’s at- only specific eliminate harm alleged.” experts Arizona’s tacks on Winery, E. & J. Gallo 967 F.2d at 1297. evidence do not demonstrate that a Accordingly, we affirm the district court’s grossly damages award was excessive. injunction limitation of permanent Accordingly, that the district we hold court Arizona. did not discretion in denying abuse its for a new

SKYRIDE’s motion trial. CONCLUSION reasons, For foregoing we reverse Injunction Cross-Ap- III. Permanent regard with to the district court’s doubling peal actual and reinstate the An injunction should be “tai original actual award of mil- $1 specific lored to eliminate harm advertising, lion for false million $2.5 alleged,” Winery E. Gallo & J. Gallo for infringement. trademark We affirm Co., Cattle Cir. the district on all court other claims. 1992), not be “so but it should narrow as to Thus, as our by opinion, Skydive modified easy invite McComb v. evasion.” Jackson Arizona is awarded million $1 Co., 187, 193, ville U.S. Paper 69 S.Ct. advertising, for false million $2.5 (1949). 93 L.Ed. 599 Courts should trademark infringe- enjoin conduct has not been found ment, $2,500,004 in lost for trade- See, to violate any e.g., law. Penthouse $600,000 mark infringement, and in statu- Int’l, Barnes, Ltd. v. tory damages cybersquatting. Injunctive relief under party Each shall bear its own costs on narrowly Lanham Act be must tailored to appeal. the scope of the tried in issues the case. Converse, Inc., See Starter Corp. AFFIRMED IN PART and MODI- Cir.1999) (further (2d tailor FIED IN PART. ing original injunction an issued a dis NOONAN, Judge, concurring Circuit trict court under the Lanham Act where it and dissenting: beyond scope “went of issues tried case”). I concur opinion in the of the court except as to ap- some On this On cross-appeal, Arizona con- peal, we review a record on which the tends that the district court abused its at actual damages looked discretion to issue a fading nationwide using primarily injunction a standard intended to prohibiting SKYRIDE from “falsely injury reputation measure stating they per- own or to the operate skydiving anywhere injury sons rather than to the the United of a centers States where do not fact own difficult quantify or business. Goodwill is *12 by accountants in regularly assessed is but SHARROCK; Richard M. of a business. A. Christina purchase of the

the course fragile Sharrock, nor as as Plaintiffs-Appellants, as nebulous It is neither reviewing reputation. personal 912 of the Restate- under section Torts, Second, the district court America,

ment UNITED STATES a matter of law. erred as Defendant-Appellee. is accounting purposes, For 10-16425. No. between the fair the difference

typically company and its un value market of Appeals, United Court States See, e.g., liabilities. derlying assets and Circuit. Ninth Harris, Memorial, Inc. v. Feb. 2012.* Submitted J.). (9th Cir.1980) (East, ac This Sky counting calculation is difficult since Filed March 2012. com publicly Arizona is not a traded dive Nonetheless, variety are a there pany. might employed be calcu

methods and the harm that asset lating goodwill by the Defendants. See Robert F. caused Reilly, Implica Nos. SFAS by M Acquired & tions Goodwill A (2006). Am. Bankr.Inst. J. 48 25-FEB of the actual dam- components As to the thousands dol- “the hundreds of ages, Arizona on spent adver- lars” considering are relevant in the value tising nothing to goodwill, but do establish of its They damage goodwill. to that not measure harm. The do are not a measure of the Defendants The business plaintiffs by Skydive is relevant. Its done figures own no diminution dives showed Nothing in the sup- in fact record sold. ports the assessment these dam- $2,500,000. ages amounting The dis- trict court needed to determine them Co., Inc. Bic Lindy See Pen evidence. Corp., 982 F.2d 1404-05 Pen Cir.1993) (Roll, J.)

* 34(a)(2). R.App. Fed. P. panel unanimously See concludes this case argument. without oral suitable decision

Case Details

Case Name: Skydive Arizona, Inc. v. Quattrocchi
Court Name: Court of Appeals for the Ninth Circuit
Date Published: Mar 12, 2012
Citation: 673 F.3d 1105
Docket Number: 10-16099, 10-16196
Court Abbreviation: 9th Cir.
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