Accuride International, Inc. Standard Precision, Inc. v. Accuride Corporation

871 F.2d 1531, 10 U.S.P.Q. 2d (BNA) 1589, 1989 U.S. App. LEXIS 4979, 1989 WL 34566
CourtCourt of Appeals for the Ninth Circuit
DecidedApril 14, 1989
Docket87-6734
StatusPublished
Cited by96 cases

This text of 871 F.2d 1531 (Accuride International, Inc. Standard Precision, Inc. v. Accuride Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Accuride International, Inc. Standard Precision, Inc. v. Accuride Corporation, 871 F.2d 1531, 10 U.S.P.Q. 2d (BNA) 1589, 1989 U.S. App. LEXIS 4979, 1989 WL 34566 (9th Cir. 1989).

Opinion

FLETCHER, Circuit Judge:

This is an action for trade name infringement, dilution, unfair competition and false designation of origin brought by Accuride International, Inc. against Accuride Corporation. After a bench trial based upon a stipulated trial record, the district court found on all counts for the defendant-appel-lee, Accuride Corporation. We affirm.

FACTS

Accuride International, Inc., (All) a California corporation, is a wholly-owned subsidiary of Standard Precision, Inc., also a California corporation. Standard Precision is a leading producer of drawer slide mechanisms, which it has sold under the “AC-CURIDE” trademark since 1962. Yearly sales of “ACCURIDE” slides are approximately $90 million. In 1972, All was formed to market “ACCURIDE” drawer slides overseas. Plaintiffs have identified themselves in their business literature *1533 merely as “Accuride: for a number of years.

Defendant Aecuride Corporation (Aecuride or Aecuride Corporation) is the successor corporation to the Steel Products Division of the Firestone Tire and Rubber Company. Aecuride and its predecessor have used the trademark “ACCU-RIDE” or “ACCURIDE” on truck wheels and rims since 1959. Accuride’s predecessor was the leading manufacturer of heavy truck wheels and rims in the world, with sales of $213 million in fiscal 1986. In 1986, an investor group acquired Firestone’s Steel Products Division, and adopted “ACCURIDE” as the new trade name for its company.

In December of 1986, All objected to appellee’s adoption of “ACCURIDE” as its trade name. Appellee informed All that it intended to continue using the “ACCURIDE” trade name, and All filed this action in an effort to prevent appellee’s use of “ACCURIDE” as a trade name. All does not challenge appellee’s continued use of “ACCURIDE” as a trademark for its wheels and rims.

All’s suit alleges that appellee’s use of “ACCURIDE” as its trade name constitutes: (1) a false designation of origin under section 43(a) of the Lanham Act; (2) trade name dilution under section 14330 of the California Business and Professions Code; (3) trade name infringement under sections 14400-14416 of the California Business and Professions Code; and (4) an unfair business practice under section 17200 of the California Business and Professions Code, as well as unfair competition under California common law.

On February 12, 1987, after considering live testimony and documentary evidence, the district court denied All’s request for a preliminary injunction against appellee’s use of the “ACCURIDE” trade name. On June 22,1987, after considering the parties’ declarations, documentary evidence and deposition transcripts, the court denied All’s motion for summary judgment on its statutory unfair competition and trade name dilution claims.

Subsequently, the parties agreed to submit the case for decision without further live testimony. After the parties submitted the evidentiary materials comprising the stipulated trial record, the court reviewed the materials and entered judgment in favor of defendant Aecuride Corporation on all counts. All timely appeals. We have jurisdiction over the appeal under 28 U.S.C. § 1291.

I. All’s Lanham Act Claim

Plaintiffs first assert that appellee's adoption of the “ACCURIDE” trade name constitutes a false designation of origin under section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a). That section provides in relevant part:

Any person who shall ... use in connection with any goods or services ... any false description or representation, including words or symbols tending falsely to describe or represent the same ... shall be liable to a civil action by any person ... who believes that he is or is likely to be damaged by the use of any such false description or representation.

As in an action for trademark infringement under 15 U.S.C. § 1114(l)(a), the key question under section 43(a) is “whether the public is likely to be deceived or confused by the similarity of the marks.” Century 21 Real Estate Corp. v. Sandlin, 846 F.2d 1175, 1178 (9th Cir.1988) (quoting New West Corp. v. NYM Co., 595 F.2d 1194, 1201 (9th Cir.1979)) (citations omitted). See also J. McCarthy, Trademarks and Unfair Competition, § 9:1 at 301 (2d ed. 1984) (“As in general trademark law, the test for infringement of the names of corporate, professional and business organizations is ‘likelihood of confusion.’ ”).

The district court applied the eight factor test for likelihood of confusion enunciated in AMF, Inc. v. Sleekcraft Boats, 599 F.2d 341, 348-49 (9th Cir.1979). 1 Those factors *1534 are: (1) strength of the plaintiff’s mark/name; (2) proximity of the parties’ goods; (3) similarity of the marks/names; (4) evidence of actual confusion; (5) marketing channels used; (6) likely degree of purchaser care; (7) defendant’s intent in selecting the mark/name; and (8) likelihood of expansion of product lines. The district court concluded that there was no likelihood of confusion and therefore no section 43(a) violation. We review de novo the district court’s rulings on matters of law. We review the district court’s finding that there is no likelihood of confusion under the clearly erroneous standard. Levi Strauss & Co. v. Blue Bell, Inc., 778 F.2d 1352, 1355 (9th Cir.1985) (en bane).

All attacks the district court’s finding of no likelihood of confusion on two grounds. First, All argues that the court erred as a matter of law by applying a test used to determine likelihood of confusion in actions involving trademarks rather than trade names. According to All, there is a fundamental distinction between trademarks and trade names which renders four of the eight Sleekcraft factors irrelevant in a section 43(a) action based upon trade name usage. Second, All argues that the district court made a number of errors in analyzing the particular factors in the Sleekcraft test, and that these errors undermine its conclusion that there is no likelihood of confusion. We address these arguments in turn.

A. Trademarks Versus Trade Names

Trademarks and trade names are technically distinct. Trade names are symbols used to distinguish companies, partnerships and businesses. 2 Trade names symbolize the reputation of a business as a whole.

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871 F.2d 1531, 10 U.S.P.Q. 2d (BNA) 1589, 1989 U.S. App. LEXIS 4979, 1989 WL 34566, Counsel Stack Legal Research, https://law.counselstack.com/opinion/accuride-international-inc-standard-precision-inc-v-accuride-ca9-1989.