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 2008: Lawsuit Summary No. 18

  • #18: Sunoco, Inc. (R&M) v. IDK, Inc., No. 8:2008cv00605; filed March 6, 2008; assigned to J. Titus 

     Pennsylvania-based Sunoco, Inc., markets and distributes petroleum products, including motor fuels, to distributors and service stations in Maryland. According to its complaint, Defendants IDK, Inc., and IDK Properties are Maryland entities, and Defendant Kogod is a Maryland resident. Reportedly, Sunoco's predecessor in interest and one or more of the Defendants entered into a reseller agreement that permitted IDK to use certain of Plaintiffs' trade names, trademarks, and trade dress in connection with the sale of motor fuel at Defendants' premises. Plaintiff is alleging, among other things, infringement of the SUNOCO and SUN trademark, and deceptive trade practice in violation of Md. Code Ann., Com. Law §13-301(2)(i):

"Unfair or deceptive trade practices include any: (2) Representation that:
(i) Consumer goods, consumer realty, or consumer services have a sponsorship, approval, accessory, characteristic, ingredient, use, benefit, or quantity which they do not have."  

     Charles Carpenter of Pepper Hamilton LLP (Washington, DC) filed the complaint on behalf of Sunoco.

 


Maryland IP Litigation Cases for the Week of September 17, 2007

     The U.S. District Court for the District of Maryland was chosen as the forum for litigating the following cases, as published by Justia:

According to court papers, Plaintiff Moulin Rouge, S.A., is a Belgian corporation having its principal place of business in Paris, France. It owns the famous French trademark MOULIN ROUGE, which, in English, means "red windmill."  The mark has allegedly been in use in France continuously since 1889 when the famous Parisian cabaret first opened (first use in commerce in the U.S. since 1981). Moulin Rouge reportedly owns several U.S. trademark registrations covering live music stage shows and theater productions.  Defendants are Gaithersburg, MD-based Moulin Rouge Caterers and its owner Mohammad Taghi Yahyavi. Moulin Rouge, S.A., which is represented by Robert Bowie, Jr. of BOWIE & JENSEN LLC, is alleging trademark dilution, infringement, and unfair competition.

In court papers, Plaintiff Hanover, MD-based Allegis Group, Inc., which provide human capital services, alleges it has used the mark "PEOPLE. SERVICE. PERFORMANCE" in commerce before Pittsburgh, PA-based Bizet Human Asset Management began using  its federal trademark "PEOPLE.  PROCESS.  PERFORMANCE."  When Bizet allegedly failed to cease using its trademark on its website, despite canceling its registration, Allegis sued for infringement under 15 U.S.C. § 1051.  Allegis Group is represented by Sherry Flax of Saul Ewing LLP.