Am. Auto. Ass'n of N. Cal. v. Gen. Motors LLC

367 F. Supp. 3d 1072
CourtDistrict Court, N.D. California
DecidedMarch 21, 2019
DocketCase No. 17-CV-03874-LHK
StatusPublished
Cited by1 cases

This text of 367 F. Supp. 3d 1072 (Am. Auto. Ass'n of N. Cal. v. Gen. Motors LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Am. Auto. Ass'n of N. Cal. v. Gen. Motors LLC, 367 F. Supp. 3d 1072 (N.D. Cal. 2019).

Opinion

LUCY H. KOH, United States District Judge

Plaintiffs American Automobile Association of Northern California, Nevada & Utah and its affiliate A3 Mobility LLC ("Plaintiffs" or "AAA") bring the instant trademark infringement lawsuit against Defendants General Motors LLC and its affiliate Maven Drive LLC ("Maven") (collectively, "Defendants" or "GM"). Before the Court is GM's motion for summary judgment. Having considered the submissions of the parties, the relevant law, and the record in this case, the Court DENIES IN PART AND GRANTS IN PART GM's motion for summary judgment.

*1078I. BACKGROUND

A. Factual Background

This case concerns two competing car share services with similar names. On April 17, 2017, AAA issued a press release announcing the launch of its "GIG" car share service. GM also developed a car share service called "MAVEN GIG," which AAA asserts AAA did not learn about until May 3, 2017. See Opp'n at 1. Viewing the facts in the light most favorable to AAA, the Court discusses the two car share services below. The Court starts with AAA's GIG car share service.

1. AAA's GIG Car Share Service

In 2016, AAA created its subsidiary, A3 Mobility, to focus on a new business model innovation for AAA. ECF No. 77-1 ("Haight Decl.") ¶ 7; see also ECF No. 77-2 ("Bowler Decl."), Ex. 1 ("Hetke Tr.")1 at 16:19-25, 24:13-18. In September 2016, A3 Mobility began developing an idea for a car share service, and AAA drafted a business case to present to its executives that identified April 2017 as the launch date. Haight Decl. ¶ 8; Hetke Tr. at 46:6-18, 53:19-54:3, 106:5-12; 138:17-23. AAA hired third-party advertising agency Muhtayzik Hoffer, and with Muhtayzik Hoffer's collaboration, AAA settled on the name [redacted] with the tagline "Get In. Go." in January 2017. Haight Decl. ¶¶ 9-12; Hetke Tr. at 79:20-80:25. Soon after, AAA learned that [redacted] was covered by a preexisting third party trademark application, and therefore AAA abandoned [redacted] and proceeded with "GIG" (the acronym of "Get In. Go."), a mark that AAA's Chief Innovation Officer, Mike Hetke, came up with during a January 27, 2017 meeting. Haight Decl. ¶¶ 13-15; Hetke Tr. at 80:1-25, 82:21-83:25, 85:6-25.

After receiving a clean trademark clearance search yielding no conflicting marks, AAA filed a trademark application for the "GIG" mark with the U.S. Patent and Trademark Office on February 3, 2017 (U.S. Trademark Application Serial No. 87323570). Haight Decl. ¶ 16; Hetke Tr. at 136:10-138:3. On February 24, 2017, AAA submitted a formal application to the City of Oakland as "Gig Car Share" for parking permits. Haight Decl. ¶ 17; see also Bowler Decl., Ex. 2. By March 2, 2017, AAA shared the GIG mark with event services vendor Daybreaker, LLC, and Daybreaker, LLC began planning the official GIG launch event and promoted the event through social media, posters, and direct email. Haight Decl. ¶¶ 18-19; see also Bowler Decl., Ex. 3 ("Voges Tr.")2 at 63:8-65:22. By April 12, 2017, there were over 3,600 RSVPs for the GIG launch event. Haight Decl. ¶ 21; see also Bowler Decl., Exs. 4 & 5.

On April 17, 2017, AAA issued a formal press release regarding the GIG launch; launched the GIG website, www.gigcarshare.com; began social media advertising and street team/field marketing; and opened up a GIG early enrollment period that included a targeted e-mail campaign to sign up GIG users. Haight Decl. ¶¶ 22-23; Hetke Tr. at 138:17-140:14, 149:15-25; Voges Tr. at 31:19-33:12, 36:10-37:16, 40:14-25, 41:11-42:9: 90:21-91:3.

*1079AAA launched the GIG mobile phone application in app stores on April 17, 2017, and immediately began receiving hundreds of downloads. Haight Decl. ¶ 25. San Francisco-based public media outlet KQED aired a radio interview about GIG with AAA's GIG Car Share President, Jason Haight. Id. ¶ 24; see also Bowler Decl., Exs. 6 & 7. Between April 17, 2017 and April 30, 2017, dozens of AAA employees drove GIG branded cars in public. Id. ¶ 26; see also Voges Tr. at 68:8-18. By April 28, 2017, there were over 7,000 RSVPs for the GIG launch event. Haight Decl. ¶ 27. When the GIG launch event was ultimately held on April 30, 2017, it was heavily branded with the GIG mark, and there were thousands of attendees. Id. ¶ 28; Voges Tr. at 66:20-22; 68:19-70:9.

Within one year of operation, GIG doubled in size from 250 to 500 cars and expanded to serve four cities, including Berkeley, Oakland, Alameda, and Albany. Haight Decl. ¶ 32. AAA publicly announced GIG's expansion into Sacramento in 2019. Id. ¶ 34.

2. GM's MAVEN GIG Car Share Service

a. GM's "Maven" Mark

Maven is an affiliate of GM that provides vehicle-sharing services under its "Maven" mark. ECF No. 1 ("Compl") ¶ 29. GM developed its "Maven" mark in January of 2016. GM offers rental services through Maven that are labeled with the word "Maven" and another identifying word. For instance, GM offers rental services targeted toward personal use called "MAVEN HOME" and "MAVEN CITY" under its Maven mark. Bowler Decl., Ex. 8 ("Bhattacharya Tr.")3 at 33:11-12; id. , Ex. 9 ("Stooke Tr.")4 at 26:21-28:16.

b. GM's EXPRESS DRIVE Relationship with Lyft

Around the same time that GM developed its Maven mark, GM had a program with Lyft called "EXPRESS DRIVE" for the use of GM vehicles in providing Lyft services. Bhattacharya Tr. at 33:19-34:8; Bowler Decl., Ex. 8 ("Steyn Tr.")5 at 20:11-25:9. Specifically, EXPRESS DRIVE is a program branded by Lyft whereby Lyft "offers cars through their partners, like Maven to the drivers exclusively for them to earn money on the Lyft platform." Steyn Tr. at 21:9-12. In other words, Lyft serves as the direct contact to the drivers. Id. at 22:21-25, 52:18-23.

Before the fall of 2016, however, GM's relationship with Lyft and EXPRESS DRIVE became strained due to unprofitability and unaligned incentives. Bhattacharya Tr. at 50:10-51:6; Steyn Tr. at 24:16-25:10; 53:18-23. In particular, GM wanted direct contact with the drivers. Steyn Tr. at 53:18-23. Therefore, in the *1080summer of 2016, GM began exploring an alternative "platform-agnostic" model where GM would maintain a direct relationship with drivers regardless of the business partnership. Id. ; Stooke Tr. at 37:13-38:22.

c. GM Brainstorms the MAVEN GIG Mark

GM came up with the MAVEN GIG mark idea in early August 2016, when a team of GM employees brainstormed names for a car rental service for individuals to drive for companies like Uber or Lyft, who do not own cars or do not want to use their own cars for commercial purposes. ECF No. 75-1 ("Bhattacharya Decl.") ¶ 4; Stooke Tr. at 46:3-5, 48:8-22; Adkisson Decl., Ex. 2 ("5th Resp. to AAA's 1st Interrogs.") at 3-5.

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367 F. Supp. 3d 1072, Counsel Stack Legal Research, https://law.counselstack.com/opinion/am-auto-assn-of-n-cal-v-gen-motors-llc-cand-2019.