Vacating Previous Judgment, Maryland Court Finds MENSA Trademark Famous After All

  • American Mensa, Ltd. v. Inpharmatica, Ltd. et al., No. 07-3283 (D. Md filed Dec. 6, 2007); assigned to J. Quarles

     In American Mensa v. Inpharmatic, the U.S. District Court for the District of Maryland, on a motion to vacate, issued an order (July 29, 2009) vacating its earlier final judgment that the MENSA trademark was not famous, finding good cause to do so.

     Previously, the U.S. district court had found that the MENSA trademark was not a household name like marks that have earned dilution protection, such as Hershey’s, Nike, Visa, and American Express. The court had concluded that American Mensa could not prevail on a dilution claim against the defendants under the 2006 Trademark Dilution Revision Act (TDRA).  

     In its motion to vacate, American Mensa argued that recent opinions by other U.S. district courts considering the dilution question under TDRA differed from the Maryland decision. No other court, American Mensa said, has relied on 75% national recognition as a benchmark to help find that a mark is not famous. Other courts have instead rejected challenges to fame where nationwide recognition rates have been as low as 39%. American Mensa noted that due to its efforts over the last 50 years, evidence showed that MENSA has grown from an essentially unknown term to a U.S. trademark known to 55% of all adults, and also 72% of adults with college education, 83% with post-graduate education, and 85% with incomes over $100,000. American Mensa further argued that the mark is a well-known designation of verified high intelligence, and corporations seek American Mensa’s permission to associate MENSA with goods and services.

     Defendants reportedly agreed to abandon their federal trademark application for ADMENSA and refrain from all future use of its trademark in any form on any goods or services, including drug discovery software and services.

Judgment Against American Mensa in Trademark Dispute

  • UPDATE: American Mensa, Ltd. v. Inpharmatica, Ltd. et al., No. 07-3283 (D. Md filed Dec. 6, 2007); assigned to J. Quarles

     As previously reported on this website, the U.S. District Court for the District of Maryland granted in part and denied in part Defendants' motion for summary judgment in the case of American Mensa v. Inpharmatica. In doing so, the court found in favor of Mensa on Defendants' motion for summary judgment of no trademark infringement or unfair competition because genuine issues of fact remained, but granted Defendants' motion for summary judgment of no trademark dilution because there was no evidence that Mensa's mark is famous. Now, after trial, a jury has returned its verdict form, finding in favor of the Defendants including, among other things, a finding that “Defendant’s use of the 'Admensa' and 'ADMEnsa' [marks] was not likely to cause confusion, or cause mistake, or to deceive about the affiliation, connection, or association of the Defendants with American Mensa as to the origin, sponsorship, or approval of their goods or services by American Mensa.” Judgment was entered by Judge Quarles on May 5, 2009.

No Fame In Mensa's Trademark, Court Finds

  • American Mensa, Ltd. v. Inpharmatica, Ltd. et al., No. 07-3283 (D. Md filed Dec. 6, 2007); assigned to J. Quarles

     In American Mensa v. Inpharmatic, the U.S. District Court for the District of Maryland granted in part and denied in part Defendants' motion for summary judgment. In doing so, the court found in favor of Mensa on Defendants' motion for summary judgment of no trademark infringement or unfair competition because genuine issues of fact remained, but granted Defendants' motion for summary judgment of no trademark dilution because there was no evidence that Mensa's mark is famous.

     In June 2004, Inpharmatica applied for use of the ADMENSA mark for a variety of services. After the application was published for opposition, Mensa asked Inpharmatica to withdraw its application because the mark would damage Mensa; Inpharmatica refused. On November 22, 2006, Mensa filed an opposition to Inpharmatica’s application with the PTO’s Trademark Trial and Appeal Board. During discovery in the PTO proceeding, Mensa learned that Inpharmatica had begun using the ADMENSA mark in the U.S. On December 6, 2007, Mensa filed the present suit seeking an injunction and damages. On August 25, 2008, the Defendants moved for summary judgment on Mensa’s claims.

Trademark infringement and unfair competition

     Section 32(1) of the Lanham Act prohibits the use in commerce of a "reproduction, counterfeit, copy, or colorable imitation of a registered mark in connection with the sale. . .or advertising of any goods or services . . . [that] is likely to cause confusion, or . . . mistake." § 1114(1).

     To prove trademark infringement or unfair competition, Mensa must show that (1) it owns a valid trademark; (2) the Defendants use a colorable imitation of the mark in commerce without Mensa’s consent; and (3) such use is likely to cause confusion. As to the issue of confusion, the court examined how the parties use their marks to determine the likelihood of confusion.

     Whether a mark is likely to cause confusion depends on several factors: (1) the strength or distinctiveness of the plaintiff’s mark; (2) the similarity of the marks; (3) the similarity of the goods or services the marks represent; (4) the similarity of the facilities the parties use in their business; (5) the similarity of the parties’ advertising; (6) the defendant’s intent; and (7) actual confusion. Louis Vuitton Malletier S.A. v. Haute Diggity Dog, LLC, 507 F.3d 252, 259-60 (4th Cir. 2007).

      After analyzing each factor, the court found that the Mensa Mark is strong. However, the court also found that the parties’ services are not related (Mensa is an organization for intelligent individuals, and the Defendants are in pharmaceutical research). Mensa’s support of scientific colloquia and some research does not make it sufficiently similar to the Defendants research. The court found that Mensa had provided no evidence of actual confusion. And, the relevant consumers are generally highly sophisticated.

     The court also found that there existed a genuine dispute about the aesthetic similarity of the marks, as well as the Defendants’ intent in creating the ADMENSA mark. Although Mensa’s inability to show actual confusion weighed strongly against infringement (the court found that the evidence of record "falls woefully short of showing actual confusion among consumers, and at best, it shows that some of Inpharmatica’s consumers draw a similarity between the names but fails to show any actual confusion as to whether Mensa and Inpharmatica are linked"), confusion is not required. Viewing the facts in Mensa’s favor, summary judgment was denied on the Lanham Act infringement and unfair competition claims and the Maryland common law infringement claim.

Dilution of Trademark

     Under 15 U.S.C. § 1125(c)(1), "the owner of a famous mark that is distinctive . . .shall be entitled to an injunction against another person who . . . [uses] a mark or trade name in commerce that is likely to cause dilution by blurring or dilution by tarnishment of the famous mark, regardless of . . . actual or likely confusion, of competition, or of actual economic injury."

     To be famous for dilution purposes, the court said that a mark must be more distinctive and stronger than that required in an infringement claim. To prove a dilution claim, Mensa had to show that (1) the Mensa mark is famous and distinctive; (2) the Defendants use a mark in commerce that is diluting the Mensa mark; (3) similarity between the ADMENSA mark and the Mensa mark gives rise to an association between them; and (4) the association is likely to impair the distinctiveness of the Mensa mark or likely to harm its reputation. Louis Vuitton, 507 F.3d at 264-65.

     In this case, the court noted that the Trademark Dilution Revision Act (TDRA) significantly increased the difficulty of proving a dilution claim by requiring a mark to be famous to the general public. Unless a mark is a "household name" whose fame is not at all in doubt, it cannot support a dilution claim, the court wrote. Although Mensa has been mentioned in the media, it has spent little money on advertising and receives little revenue. The court said it is not a household name like those marks that have earned dilution protection, such as Hershey’s, Nike, Visa, and American Express. Judgment was granted to the Defendants on Mensa’s dilution claim.

    This case is set for an April 2009 trial.

Maryland IP Litigation Cases for the Week of Dec. 3, 2007

     Below is a summary of the two IP-related cases filed in the the U.S. District Court for the District of Maryland last week (source: Justia). Both lawsuits involve allegations of trademark infringement.

     SAGE Dining, a Delaware entity based in Towson, MD, is "one of the premier providers of dining services and gourmet catering to private schools, colleges, and corporations in the United States" (SAGE reportedly stands for "setting a good example"). Morrison Mgmt. Specialists, an Atlanta, GA, entity, is "the nation's only specialist dedicated exclusively to healthcare and senior dining food services."

     SAGE owns the federally-registered THE SPICE OF LIFE, SAGE, and SAGE DINING SERVICES service marks. It contends that Morrison has used the mark THE SPICE OF LIFE in commerce in an infringing manner that creates a likelihood of confusion, its actions amount to unfair competiton, and it is liable for infringement under Maryland common law.

     Steven Hollman and Robert Wolinsky of Hogan & Hartson (Washington, D.C.) filed the complaing on behalf of SAGE. 

     Plaintiff American Mensa is a New York limited liability company based in Arlington, TX (aside: does TX recognize the "Ltd." designation as short-hand for LLC?). Mensa claims to own several federally-registered trademarks for MENSA that are used in connection with various goods and services. Mensa, of course, is a membership organization open to "persons who have attained a score within the top two percent of the general population on approved intelligence tests."

     Defendant Inpharmatica, Ltd. is a UK entity with a London address. According to a search, the company is related to defendant BioFocus DPI (they share the same URL, for example). BioFocus, which is also a UK entity, provides drug discovery services.

     Mensa and Inpharmatica are battling before the PTO Trademark Trial and Appeal Board in an opposition proceeding involving Inpharmatica's ADMENSA trademark application, which Inpharmatica filed in 2004.

     Mensa alleges in its complaint that it has used its mark in connection with the dissemination of biological information and research. It contends that Inpharmatica has traded on the goodwill established by Mensa in the MENSA mark. It states that Inpharmatica has allegedly continued to use the ADMENSA mark in commerce despite the opposition proceedings, which caused Mensa to file the present lawsuit.  In its complaint, Mensa is alleging trademark infringement, unfair competition based on false association/sponsorship, dilution of the MENSA mark, and common law trademark infringement.

      In case you're wondering, Mensa is asserting personal jurisdiction in Maryland based on statements Inpharmatica made during the opposition regarding the geographical use of its mark in the U.S. (it apparently included Maryland in its contentions of geographical use). Personal jurisdiction over BioFocus is based on alleged contacts by BioFocus with Cystic Fibrosis Foundation Therapeutics, Inc., which is a Bethesda, MD, entity (its URL has an .edu domain). BioFocus allegedly has sold ADMENSA software in Maryland.

     Michelle Marcus of Venable LLP (Washington, D.C.) filed the complaint on behalf of Mensa.