Defendant-appellant in this trademark infringement suit, ICON Health and Fitness, Inc. (“ICON”), appeals from the order of the United States District Court for the Western District of Washington granting a preliminary injunction in favor of plaintiff-appellee, The Nautilus Group, Inc. (“Nautilus”).
Nautilus Group, Inc. v. ICON Health & Fitness, Inc.,
BACKGROUND
I.
Nautilus and ICON are direct competitors in the market for home exercise equipment. Both produce resistance training systems that use bendable rods. In Nautilus’s product, the Bowflex exerciser, the rods are arranged vertically; when
Nautilus has continuously produced the Bowflex exerciser since 1984, and holds two patents on related technology. 1 Nautilus registered the trademark for the “Bowflex” brand in 1986. 2 Since 1993, when Nautilus began to directly market its Bowflex exerciser to consumers, the company has invested in excess of $233 million in promotion efforts. Nautilus’s advertising has focused on infomercials, the Internet, and print publications. As a result, over 780,000 machines have been sold, with total revenues to Nautilus of $900 million.
In 2002, ICON, another large exercise equipment manufacturer, introduced a competing rod-based resistance training system it called “CrossBow.” In the CrossBow exerciser, the bendable rods are arranged horizontally so that they bend downward, in an inverted U-shape, rather than outward, as in Bowflex’s vertical rod configuration. According to ICON, the product’s resemblance to the medieval crossbow weapon inspired the brand name. In ICON’S two-line logo for the machine, the “o” in “Cross” is replaced by a circular crosshairs. Beneath the mark, in smaller type, appears an additional line, “by Weider,” signaling the machine’s source. 3 Since it introduced the CrossBow exerciser, ICON has spent $13 million on marketing in many of the same advertising channels as Nautilus, including infomercials and the Internet.
II.
Nautilus commenced a suit for patent infringement against ICON on December 3, 2002. Thereafter, in April of 2003, the district court granted Nautilus’s motion for leave to amend its suit to include a claim of trademark infringement. On May 16, 2003, the district court granted ICON’S motion for summary judgment of non-infringement of the Nautilus patents. This order became the subject of Nautilus’s first appeal to this court.
Nautilus Group, Inc. v. ICON Health & Fitness, Inc.,
While its appeal of the patent infringement issue was pending, Nautilus moved for a preliminary injunction to suspend ICON’S use of the CrossBow trademark. The district court, applying pertinent Ninth Circuit law, determined that Nautilus had established likelihood of confusion between the marks such that irreparable injury could be presumed. The preliminary injunction was granted on July 14, 2003. Before Nautilus posted the required bond, ICON moved for reconsideration or
ANALYSIS
I.
Any “word, name, symbol, or device” may be treated as a “trademark” if it is “used by a person” to “identify and distinguish his or her goods, including a unique product, from those manufactured or sold by others and to indicate the source of the goods....” 15 U.S.C. § 1127 (2000). A trademark holder may bring an action for infringement to prevent or recover for the unauthorized use of its mark.
Id.
§ 1114. In a trademark case, we apply the law of the applicable regional circuit, in this case, the Ninth Circuit.
See Payless Shoesource, Inc. v. Reebok Int’l Ltd.,
In the Ninth Circuit, a district court may grant a preliminary injunction in a trademark case when the plaintiff demonstrates “either (1) a combination of ‘probable success on the merits’ and ‘the possibility of irreparable injury’ or (2) the existence of ‘serious questions going to the merits’ and ‘that the balance of hardships tips sharply in his favor.’ ”
GoTo.com, Inc. v. Walt Disney Co.,
In accordance with Ninth Circuit law, “[a] district court’s decision to grant a motion for a preliminary injunction will be upheld unless the court ‘applied the incorrect law, relied on clearly erroneous factual findings, or otherwise abused its discretion.’ ”
Ocean Garden,
II.
In determining that Nautilus had established a likelihood of confusion be
The district court began its analysis by considering together two complementary Sleekcraft factors: the similarity of the Bowflex and CrossBow marks, and the similarity of the associated products. The court observed that aside from the shared use of “bow,” the marks’ respective appearances and meanings were dissimilar. On the other hand, the court viewed the competing products as virtually interchangeable. Because the close similarity in the products was likely to create confusion, the district court reasoned that less similarity between the marks was necessary. Thus, despite acknowledged differences between the marks, Nautilus was deemed to prevail on these two Sleekcraft factors, similarity of marks and relatedness of goods.
The next Sleekcraft factor considered by the district court was the strength of the registered mark. The district court found the Bowflex mark to be “suggestive,” because it “convey[ed] an impression of a good but require[d] the exercise of some imagination and perception to reach a conclusion as to the product’s nature.” Preliminary Injunction Order, slip op. at 5. Although the district court did not view Bowflex as a particularly creative mark, it found that Nautilus had invested significantly in the brand name, so that it was now broadly recognized. For this reason, the district court determined that strength of the registered mark to be a factor weighing in Nautilus’s favor.
The court found that the fourth Sleek-craft factor, similarity of marketing channels, also weighed in favor of Nautilus. Both companies utilize identical marketing channels, including infomercials, print ads, and the Internet, to promote their products. The district court rejected ICON’S suggestion that its use of comparative advertising in these venues prevented any confusion.
Nautilus sought to establish actual confusion, another Sleekcraft factor, by presenting evidence of several telephone calls to Nautilus’s sales center from customers interested in ICON’S product. Although the court noted that these consumers might have been confused by the similarity of the products, the suggestion of any actual confusion was, in the court’s view, sufficient to confirm the possibility of future confusion.
From circumstantial evidence, the court next surmised that this potential confusion might have been intentionally created by ICON: “By naming its product ‘CrossBow,’ Defendant invited comparison and reference to the BowFlex.” Id. at 7. In the court’s opinion, ICON had unfairly capitalized on Nautilus’s successful marketing of “bow” in the context of exercise equipment. Intent to confuse was, then, another Sleekcraft factor that was found to weigh against ICON.
The degree of care in purchasing was the only factor that, in the court’s opinion,
Balancing the seven Sleekcraft factors it had considered, the court determined that a likelihood of confusion existed between the Bowflex and CrossBow marks:
The marks are somewhat similar, and there is evidence of actual confusion. Moreover, BowFlex is a strong mark, and there is circumstantial evidence that CrossBow chose its name, incorporating “bow,” to take advantage of BowFlex’s strong mark. Although consumers may be likely to take some care in buying an exercise machine, the possibility of confusion is increased because of the use of the same advertising channels and the similarity of the products. Analysis of the above factors favors BowFlex, and demonstrates Plaintiffs probable success on the merits.
Id. at 9. Because likelihood of confusion had been found, the court could presume that irreparable injury to Nautilus would result if injunctive relief were not granted. A preliminary injunction against ICON was therefore entered.
III.
On appeal, ICON makes several related arguments for vacating the preliminary injunction. Its primary focus is on the findings made by the district court with respect to its alleged intent to confuse, evidence of actual confusion, the strength of the Bowflex mark, and the similarity between the two marks. ICON also challenges the manner in which the Sleekcraft factors were balanced to find likelihood of confusion in what ICON views as the unique context of this case. We address each of ICON’S arguments in turn.
A.
We first consider ICON’S challenge to the district court’s finding that ICON’S choice of the CrossBow as its brand name evinced an intent to confuse consumers. After considering circumstantial evidence, the court concluded that “[wjhile CrossBow’s intent may predominantly have been to compete,” it was likely that “Defendant chose to incorporate the term ‘bow’ in an attempt to capture some of the market of BowFlex.” Id. at 8.
ICON argues that intent to confuse should not have been found. It asserts that the CrossBow brand name was chosen because the shape of the machine resembled the weapon of the same name, not because ICON wanted to benefit from goodwill associated with the Bowflex mark. ICON contend that this explanation is supported by the dissimilarity of the two marks. Had it intended to capitalize on the recognition of the Bowflex name, ICON states, it would have chosen a more similar term. As additional proof of its lack of intent, ICON relies on the denotation of source, “By Weider,” that appears next to the CrossBow mark on its machines. In ICON’S view, the addition of an explicit designation of source should negate any inference of intent to copy. Nautilus responds that because circumstantial evidence of intent to copy is sufficient to
“The law has long been established that if an infringer ‘adopts his designation with the intent of deriving benefit from the reputation of the trade-mark or trade name, its intent may be sufficient to justify the inference that there are confusing similarities.’ ”
Brookfield Communications, Inc. v. W. Coast Entm’t Corp.,
Recently, however, the Ninth Circuit may have de-emphasized somewhat the role of the intent factor in the likelihood of confusion analysis. In
Brookfield Communications,
the defendant selected an Internet domain name that was similar to the plaintiffs mark. While the defendant was aware of the plaintiffs mark when it chose its domain name, the court found that it was unclear whether the selection had been made with intent to confuse. Because this factor did not favor either the plaintiff or the defendant, the court suggested that it was not of great assistance in determining likelihood of confusion.
Id.
at 1059 (“This factor is only relevant to the extent that it bears upon the likelihood that consumers will be confused by the alleged infringer’s mark (or to the extent that a court wishes to consider it as an equitable consideration).”). Subsequently, in
GoTo.com, Inc. v. Walt Disney Co.,
the Ninth Circuit reiterated the “minimal importance” of the intent factor by suggesting that “even if ... [the defendant] was as innocent as a fawn with no intent to copy
... it would prove nothing
since no intent is necessary to demonstrate a likelihood of confusion.”
We agree with ICON that the district court’s analysis on this point was concluso-ry, and without more, could not justify placing the intent factor in Nautilus’s column for purposes of granting a preliminary injunction. This is not an error, however, that requires reversal of the preliminary injunction. For this reason, we see no need to consider further ICON’S specific intent.
B.
We address next ICON’S challenge to the sufficiency of the evidence presented to demonstrate actual confusion. Nautilus submitted transcripts from four calls to its customer service center to prove that actual confusion had resulted from ICON’S use of the CrossBow brand name. ICON rejoined that any consumer confusion suggested by these calls was a consequence of the virtual identity of the products, not the alleged similarity of the brand names. It further argued that evidence relating to four calls out of thousands received could not be indicative of any broader confusion. The court agreed that it was unclear “where exactly this customer confusion originates.” Preliminary Injunction Order, slip op. at 8. It nevertheless concluded, however, “that Plaintiff has produced evidence of confusion” such that this factor should be weighed in its favor. Id. at 9.
On appeal, ICON raises essentially the same arguments it made in the district court. First, it contends that because the source of the customers’ alleged confusion could not be determined, the evidence
As a general proposition, “a showing of actual confusion among significant numbers of consumers provides strong support for likelihood of confusion.”
Playboy Enters., Inc. v. Netscape Communications Corp.,
We agree with ICON that the relatively small number of calls presented by Nautilus renders this evidence too unreliable to establish actual confusion. We also agree that the ambiguity as to the cause of the confusion — similarity of marks versus similarity of products — detracts from the value of this evidence as an indicator of likelihood of confusion. In fact, a closer look at the call transcripts indicates that, if any confusion existed, it arose out of the similarities in the appearance of the CrossBow exerciser and the BowFlex machine.
6
Such confusion would be expected, given
We agree with ICON that it was improper for the district court to consider this scant and ambiguous evidence of actual confusion in Nautilus’s favor for purposes of granting a preliminary injunction. Accordingly, as with the intent to confuse factor, we merely decline to weigh this factor in favor of Nautilus at this early stage in the proceeding.
C.
ICON next challenges the district court’s conclusion as to the strength of Nautilus’s “Bowflex” mark. The court found that, as a result of Nautilus’s significant investment in advertising, “Bowflex” has become “a strong mark.” Preliminary Injunction Order, slip op. at 6. According to the court, this strength merited a greater degree of trademark protection. Id.
“The scope of the trademark protection that we give marks depends upon the strength of the mark, with stronger marks receiving greater protection than weak ones.”
Entrepreneur Media,
A mark that is fanciful, arbitrary, or suggestive is considered to be inherently distinctive, and thus automatically qualifies for trademark protection under 15 U.S.C. § 1051.
See KP Permanent Make-Up, Inc. v. Lasting Impression I, Inc.,
These creative marks are distinguished from descriptive marks, which “define qualities or characteristics of a product in a straightforward way that requires no exercise of the imagination to be understood.”
Kendalh-Jackson Winery,
The line between descriptive and suggestive marks can be difficult to draw. The Ninth Circuit has suggested that courts look to “the imaginativeness involved in the suggestion, that is, how immediate and direct is the thought process from the mark to the particular product. If the mental leap between the word and the product’s attribute is not almost instantaneous, this strongly indicates suggestiveness, not direct descriptiveness.”
Self-Realization Fellowship Church v. Ananda Church of Self-Realization,
59
Fanciful, arbitrary, suggestive, and descriptive words are all capable of receiving trademark protection; generic terms, on the other hand, are not.
Filipino Yellow Pages, Inc. v. Asian Journal Publs., Inc.,
In the case at hand, the district court applied these guiding principles to find Bowflex to be suggestive, rather than descriptive. Preliminary Injunction Order, slip op. at 6. Because Nautilus had “made a significant investment” in its mark to ensure that “the public in general associates resilient rod exercise machines with Bowflex,” the court found that the presumption of weakness applied to suggestive marks was overcome in this case. Id.
On appeal, ICON argues that the “bow” component of the “Bowflex” mark is either generic, or descriptive without secondary meaning. According to ICON, the term “bow” describes a fundamental and distinctive characteristic common to the exercise machines that are the focus of this case— the use of resilient rods that bend in a
For its part, Nautilus maintains that its mark, “Bowflex,” is suggestive. First, it contends that the “validity of a trademark is to be determined by viewing the trademark as a whole,”
Cal. Cooler,
[T]he BowFlex mark calls to mind the image of an archer repeatedly bending a bow by pulling the draw string back and forth. This image does not directly describe the BowFlex exercise machine. Rather, the image of an archer drawing a bowstring back and forth is a metaphor for the resistance principle employed by the BowFlex exercise machine, which creates resistance in the manner of a bow resisting the archer’s pull on the bowstring, by providing resilient rods connected to cables, that the user pulls upon, thereby bending the rod which resists the pull on the cable. This metaphor is an intermediate stage of, reasoning between the trademark and the property of the product that it suggests, which the consumer bridges by use of his or her imagination.
In the event that Bowflex is found to be merely “descriptive,” Nautilus submits that there is extensive evidence of secondary meaning, achieved through twenty years of successful marketing.
We begin with ICON’S argument that, in the context of this case, “bow” is generic. The word “bow” could only be found to be generic if its primary significance were “to describe the type of product rather than the producer.”
Anti-Monopoly, Inc. v. General Mills Fun Group,
It is a closer question whether the term “bow,” as applied to this particular class of exercise equipment, is descriptive. Bound by our limited scope of review, we cannot say that the district court’s finding that the mark was suggestive was the result of an incorrect application of the law, was made in reliance on erroneous factual findings, or was an abuse of the court’s discretion.
See Ocean Garden,
To determine if a mark is descriptive or suggestive, we look to “how immediate and direct ... the thought process [is] from
Further, in the context of our review of the district court’s grant of the preliminary injunction, we do not think the court clearly erred in finding that Nautilus has strengthened a presumptively weak suggestive mark through its advertising. Sufficient evidence was presented below to demonstrate that the Bowflex mark enjoys a high level of brand recognition.
D.
We next address ICON’S challenge to the district court’s finding of similarity between the marks. Acknowledging that the meaning, appearance, and sound of the marks differed, the district court found that “Bowflex” and “CrossBow” were only “somewhat similar” marks. Preliminary Injunction Order, slip op. at 4. Because Nautilus’s and ICON’S products were identical, however, this lesser showing was considered nonetheless sufficient for a finding of likelihood of confusion.
On appeal, ICON’S first argument goes to the analysis required under Sleekcraft and its progeny for similarity of the marks at issue. Relying on Ocean Garden, Inc. v. Marktrade Co., ICON asserts that in addition to considering the Sleekcraft factors, a court must ascertain whether any resulting likelihood of confusion was directly caused by the similarity of the marks. To fulfill this requirement, ICON would have a court make an explicit “determination” finding a “causal link” between the similarity of two marks and any ensuing confusion. The failure of the district court in this case to make such a specific finding amounts to reversible error, ICON asserts.
Second, ICON argues that, setting aside the marks’ shared component, “bow,” the remainder of the marks, “flex” and
Finally, ICON argues that if any likelihood of confusion does exist, it stems from (i) the similarity of the machines and/or (ii) Nautilus’s longstanding dominance in this particular industry — not from any closeness of the “Crossbow” and “Bowflex” marks. In ICON’S view, confusion based predominantly on similar functionality cannot be protected through trademark law.
To the extent that ICON contends that the district court erred because it failed to perform a separate causation analysis, its position does not find support in the law. The Ninth Circuit has never held that, in addition to considering the
Sleekcraft
factors, a court must satisfy itself that a separate causal relationship exists between the similarity of the marks and consumer confusion. The statement made by the
Ocean Garden
court, upon which ICON heavily relies, does not indicate otherwise. In
Ocean Garden,
the court required the plaintiff to “prove probable success on the claim that there is a likelihood of confusion as to the source or origin of the goods
caused by the similarity of the marks.”
On the other hand, ICON is correct to the extent it argues that the marks must be similar for a likelihood of confusion to be found. Indeed, “[t]he core element of trademark infringement is the likelihood of confusion,
i.e.,
whether the similarity of the marks is likely to confuse customers about the source of the products.”
E. & J. Gallo Winery v. Gallo Cattle Co.,
The similarity of two marks is assessed through a comparison of their sight, sound, and meaning.
Official Airline Guides,
We disagree with ICON that the court’s balancing was clearly erroneous or an incorrect application of the law. Because the marks share the term “bow,” they are at least somewhat similar. ICON takes the view that because “bow” is a common term, any comparison of the marks should focus more on the distinctive “flex” and “cross” components.
8
Like the district court, we decline to compare the marks in parts, rather than in their entirety. In judging similarity, “marks must be considered in their entirety and as they appear in the marketplace.”
Official Airline Guides,
We turn now to ICON’S final argument, that a finding of trademark infringement is not proper where likelihood of confusion is premised on a combination of identical functionality of products and only somewhat similar marks. That relatedness of goods or services is itself an “important”
Sleekcraft
factor,
see Brookfield Communications,
E.
Finally, we consider ICON’S broader challenge to the “likelihood of confusion” finding made by the district court. ICON argues that the district court did not appropriately balance the totality of the Sleekcraft factors to find likelihood of confusion.
Our review at this stage in the proceeding is limited.
See Ocean Garden,
CONCLUSION
For the foregoing reasons, the decision of the district court granting a preliminary injunction in favor of Nautilus is
AFFIRMED.
COSTS
Each party shall bear its own costs.
Notes
. U.S. Patent No. 4,620,704, "Universal Exercising Machine,” and its continuation, U.S. Patent No. 4,725,057, of the same name.
. The original trademark registration received by Nautilus is for the term "BOW-FLEX,” but Nautilus has since procured additional trademarks on this term including "Bowflex,” "BowFlex,” and "BOW FLEX.”
. In actuality, ICON, not Weider, is the manufacturer and source of the CrossBow machine. It licenses the "Weider” mark, which has been in use in the exercise equipment industry since 1936.
. In a non-precedential opinion, this court reversed the judgment of non-infringement after concluding that it was based on an erroneous claim construction. The case was remanded to the district court for a determination of infringement under the correct claim construction.
. As noted above, the preliminary injunction has been stayed pending this appeal.
. We think it unlikely that any of the four calls submitted by Nautilus reflect evidence of actual confusion resulting from the alleged closeness of the marks. In each case, the customer was either confused by the similar machinery, or indicated that he or she was aware of the distinctions between the companies.
In Exhibit A, Call No. 18, for example, it is obvious that the consumer’s confusion is rooted in the similarity of the equipment mechanism; in fact, he does not even know the name of ICON'S product until prompted by the Nautilus Representative:
[Nautilus Representative ("NR”) ]: The Bowflex is the one machine on TV with that leg attachment. It’s going to be $34.00 a month. The total price on that would be 999 plus 129 shipping and handling.
[Caller ("C”) ]: I saw the same thing a year ago about 499.
[NR]: I wouldn’t say the same thing.
[C]: Well, it's Bowflex 8 240 pounds and everything just like this one.
[NR]: It's not the Bowflex, though ... it's the crossbow.
[C]: Well that’s the better one than the Bowflex, right?
[NR]: No.
[C]: Sure looks like it. All right, thanks.
[NR]: Whatever.
A similar conversation occurred with the customer in Call No. 49, Exhibit D. In that call, the customer thought that she had seen the BowFlex machine at Sears; evidently, Sears sells only the CrossBow exerciser. After the Nautilus representative pointed this out to her, she stated, "Oh that makes sense.” The Nautilus representative proceeded to
Exhibit B also does not suggest confusion over the marks. In Call No. 23, the Nautilus representative placed a follow-up sales call to a customer who had received some information on Bowflex. The customer demonstrated that she was aware of the difference between CrossBow and Bowflex by explaining that she had already ordered CrossBow. Before the call was terminated, the customer casually asked the Nautilus representative whether the company was "connected with the Cross Bow.” When the Nautilus representative replied in the negative, the customer stated, "Oh, I thought it was the same maker!,] Wider or Weider,” and admitted that she did not know these were two different companies. This admission shows only that the customer was confused by the source designation and the relationship of the companies, not by the closeness of the "Bowflex” and "CrossBow” marks.
The same is true of Call No. 24, Exhibit C. The customer called in reference to a CrossBow offer:
[C]: I almost bought from Sears an advantage you know that model?
[NR]: No, unfortunately I don't, sir.
[C]: How come you don't know? Do you work for Bowflex or do you work for them? It’s a Bowflex product.... Sears must be sanctioned because you guys allowed them to sell it.
Midway through the call, the customer independently realized he had erroneously called Bowflex instead of CrossBow, and explained, "Oh, I’m sorry. You know what it is I thought this was Cross Bow. I'm sorry.... Cross Bow’s the one that I'm pissed off at.... I’m sorry, I'm sorry to bother you. I’ll call the wrong people [sic].” This call also does not prove actual confusion because this customer knew of and understood the distinction between the companies and their respective marks.
. Secondary meaning can be established through "direct consumer testimony; survey evidence; exclusivity, manner, and length of use of a mark; amount and manner of advertising; amount of sales and number of customers; established place in the market; and proof of intentional copying by the defendant.”
Filipino Yellow Pages, Inc. v. Asian Journal Publs., Inc.,
. ICON’S position is that because "bow” is either generic, or descriptive without secondary meaning, for these types of exercise machines, it must be freely available for use by Nautilus's competitors to describe their machines. For this reason, ICON argues that any analysis of similarity must not rely on that shared term. As explained above, we do not accept ICON'S argument that, in the context of this case, "bow” is generic or descriptive; we therefore conclude that the import of "bow” cannot be discounted in a comparison of the two marks.
