24 Hour Fitness USA, Inc. v. 24/7 Tribeca Fitness, LLC

277 F. Supp. 2d 356, 2003 WL 21976412
CourtDistrict Court, S.D. New York
DecidedAugust 18, 2003
Docket03 CIV. 4069 LTSRLE
StatusPublished
Cited by10 cases

This text of 277 F. Supp. 2d 356 (24 Hour Fitness USA, Inc. v. 24/7 Tribeca Fitness, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
24 Hour Fitness USA, Inc. v. 24/7 Tribeca Fitness, LLC, 277 F. Supp. 2d 356, 2003 WL 21976412 (S.D.N.Y. 2003).

Opinion

MEMORANDUM OPINION AND ORDER

SWAIN, District Judge.

Plaintiff 24 Hour Fitness USA., Inc. (“Plaintiff’ or “24 Hour Fitness”) seeks a preliminary injunction against defendants 24/7 Tribeca Fitness, LLC (“24/7 Fitness”), Peter Williams Enterprise, Inc. and Peter Williams (collectively, “Defendants”) prohibiting their use of a “24/7 Fitness” mark and the use of the domain name “247fitnessclub.com.” Plaintiff alleges that Defendants willfully infringed 24 Hour Fitness’ federally registered trademarks and service marks. Plaintiffs complaint asserts claims for trademark infringement, unfair competition, false advertising, dilution and cybersquatting pursuant to 15 U.S.C. sections 1114, 1125(a), and 1125(c), the Federal Anti-Cybersquatting Consumer Protection Act (ACPA), 15 U.S.C. section 1125(d), New York General Business Laws sections 113, 350 and 360, and New York common law. The Court has jurisdiction of this case pursuant to 28 U.S.C. section 1338(a) and (b).

Plaintiff seeks a preliminary injunction in respect of its federal trademark infringement and cybersquatting claims. 1 The Court has considered thoroughly all of the parties’ submissions and arguments in connection with the instant motion. This Memorandum Opinion and Order constitutes the Court’s findings of fact and conclusions of law for purposes of Rules 52 and 65 of the Federal Rules of Civil Procedure. For the reasons set forth below, Plaintiffs motion for a preliminary injunction is denied.

BACKGROUND

The following facts are undisputed, unless otherwise indicated. Plaintiff 24 Hour Fitness, a California corporation, is a premier chain of health and fitness clubs. 24 Hour Fitness currently operates approximately 300 clubs located throughout the United States. Bakos Dec. ¶ 2. Plaintiff owns and operates numerous facilities in the West Coast and Midwest areas of the United States but does not currently operate any facilities in the New York metropolitan area. Bakos Dec. ¶ 3. 24 Hour Fitness also markets and sells a wide range of merchandise under its “24 Hour Fitness” mark. Bakos Dec. ¶ 3. 24 Hour Fitness has used its 24 Hour Fitness mark since about 1996. The United States Patent and Trademark Office has issued 24 Hour Fitness some 16 registrations covering trademarks and service marks for the words “24 Hour Fitness” in connection with health club and/or other health-related goods and services, with and without a stylized logo incorporating the words “24 Hour.” Bakos Dec. Ex. A; Bakos Dec. ¶ 7. Plaintiffs registered marks include a *360 trademark for the words “24 Hour Fitness” in connection with health club services. That registration disclaims any claim to the exclusive right to use the word “fitness” apart from- the mark. Bakos Dec. Ex. A; Bakos Dec. ¶ 7. 24 Hour Fitness has expended substantial efforts and millions of dollars in promoting and advertising the 24 Hour Fitness mark in newspapers, billboards and magazines, at sporting events, and on television and the Internet. Bakos Dec. ¶¶ 5-6. Since 1996, 24 Hour Fitness has also maintained a website, which is located at www.24hourfitness.com. Bakos Dec. ¶ 12. Plaintiff has partnered with Magic Johnson to open a series of 24 Hour Fitness Magic Johnson Clubs. One such facility may be opened in New York City in the future. Bakos Dec. ¶¶ 9,18.

Since April 2001, defendant 24/7 Fitness has owned and/or operated three small physical fitness/health clubs in lower Manhattan. Williams Dec. ¶ 3. Plaintiffs facilities are from three to ten times the size of those provided by 24/7 Fitness. Williams Dec. ¶ 4. 24/7 Fitness’ annual membership is $300 — compared to the more than $1,000 fee normally charged by facilities like 24 Hour Fitness. Williams Dec. ¶ 5. Defendants also operated a website located at www.247fitnessclub.com. Franco Dec. ¶ 8. A number of links on Defendants’ site connected to pornographic websites. Franco Dec. ¶ 11. Defendants have taken down the 247fitnessclub.com website. Williams Dec. ¶ 14; Transcript of June 23, 2003 oral argument at 5.

In July 2002, defendant Williams received a cease-and-desist letter from Plaintiffs counsel asserting that 24/7 Fitness was infringing on Plaintiffs marks. Williams Dec. ¶ 8. Defendant Williams asserts that he had never heard of plaintiff 24 Hour Fitness prior to receiving the July 2002 cease-and-desist letter. Williams Dec. ¶ 8. On August 2, 2002, 24 Hour Fitness sent a follow-up letter to Defendants. Franco Dec. ¶ 5. On or about August 9, 2002, defendant Williams contacted Plaintiffs counsel, identifying himself as an owner of the 24/7 Fitness clubs and asserting that the 24/7 Fitness mark did not infringe on Plaintiffs 24 Hour Fitness mark. Franco Dec. ¶ 5. In that phone call, defendant Williams stated that he was aware of at least one instance in which a person had telephoned 24/7 Fitness regarding 24 Hour Fitness. Franco Dec. ¶ 5. In addition, 24 Hour Fitness has proffered evidence of a posting on an internet bulletin board in which a person seeking information regarding 24/7 Fitness states that 24/7 Fitness is “NOT affiliated with 24 Hour Fitness.” Ex. J to Compl.

In litigation not involving Defendants, a federal district court in Louisiana has issued a Judgment and Order for Permanent Injunction by Consent enjoining the defendants in that action from using the mark “24 Hour Fitness.” A federal district court in Michigan has entered a Consent Judgment and Permanent Injunction prohibiting a Michigan entity and related individuals from using the marks “24 Hour Fitness” and “24/7 Fitness.” Ex. C to Complaint.

DISCUSSION

In this Circuit, a grant of preliminary injunctive relief is generally appropriate only upon the movant’s showing:

(a) that it will suffer irreparable harm in the absence of an injunction and (b) either (i) a likelihood of success on the merits or (ii) sufficiently serious questions going to the merits to make them a fair ground for litigation and a balance of hardships tipping decidedly in the movant’s favor.

Tom Doherty Assoc. v. Saban Entertainment, Inc., 60 F.3d 27, 33 (2d Cir.1995) and cases cited therein. A movant must *361 demonstrate that irreparable harm will be suffered in the absence of such an injunction. See id. at 37-39. Where, however, the relief sought by the movant will alter the status quo or will provide “substantially all the relief sought and that relief cannot be undone even if the defendant prevails at a trial on the merits,” a higher standard applies. Id. at 34. Under this standard, an injunction should issue “only upon a clear showing that the moving party is entitled to the relief requested, or where extreme or very serious damage will result from a denial of preliminary relief.” Id. (citation omitted). “The ‘clear’ or ‘substantial’ showing requirement ...

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Bluebook (online)
277 F. Supp. 2d 356, 2003 WL 21976412, Counsel Stack Legal Research, https://law.counselstack.com/opinion/24-hour-fitness-usa-inc-v-247-tribeca-fitness-llc-nysd-2003.