Amarte USA Holdings, Inc. v. Kendo Holdings Inc.

District Court, N.D. California·Decided September 4, 2024·No. 3:22-cv-08958·Unknown

Opinion

1 2 3 4 5 IN THE UNITED STATES DISTRICT COURT 6 FOR THE NORTHERN DISTRICT OF CALIFORNIA 7 8 AMARTE USA HOLDINGS, INC., Case No. 22-cv-08958-CRB

9 Plaintiff,

ORDER GRANTING 10 v. DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT AND 11 KENDO HOLDINGS INC., et al., DENYING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT 12 Defendants.

13 Plaintiff Amarte USA Holdings, Inc. (“Plaintiff”) sells high-end skin care, including 14 the EYECONIC eye cream, for which it holds a registered trademark. Defendants1 are the 15 manufacturer and retailers of the MARC JACOBS BEAUTY EYE-CONIC (“MJB EYE- 16 CONIC”) eye shadow. Alleging a likelihood of confusion between the two marks, 17 Plaintiff sued Defendants for trademark infringement under federal and state law. Plaintiff 18 and Defendants now both move for summary judgment. 19 Because there is no likelihood of confusion between Defendants’ MJB EYE- 20 CONIC mark and Plaintiff’s EYECONIC mark, the Court GRANTS Defendants’ motion 21 and DENIES Plaintiff’s motion. 22 I. BACKGROUND 23 A. Plaintiff’s EYECONIC Eye Cream 24 Plaintiff Amarte USA Holdings, Inc. sells high-quality skin care products 25 throughout the United States. See Kraffert Decl. (dkt. 95-53) ¶ 3. In 2012, Plaintiff sold 26

27 1 Kendo Holdings Inc. (“Kendo”), Marc Jacobs International, LLC (“Marc Jacobs”); 1 its first EYECONIC eye cream. Id. In 2013, Plaintiff became the owner of a registered 2 trademark for the standard character mark “EYECONIC” covering “eye cosmetics; eye 3 creams.” Id. 4 According to Plaintiff, it sent samples of its EYECONIC eye cream to Defendants 5 on multiple occasions. Id. ¶ 9. First, on January 31, 2013, Plaintiff sent Sephora USA one 6 free sample. Id. Then, on June 3, 2014, Plaintiff sent Neiman Marcus one free sample. 7 Id. And on June 9, 2014, Plaintiff sent Sephora USA six free samples. Id. 8 On June 24, 2014, Plaintiff met with Sephora Beauty Canada, Inc. (“Sephora 9 Canada”) at Sephora USA’s headquarters in San Francisco to discuss the sales of 10 Plaintiff’s products—including the EYECONIC eye cream—in Sephora Canada’s stores. 2 11 See White Decl., Ex. 25 (dkt. 95-27) at 61:11–20; Harmon Decl., Ex. 87 (dkt. 91-2) at 12 83:1–16. Lori Castagna and Marissa Caruso, two representatives from Sephora Canada, 13 were present. See Third Harmon Decl., Ex. 116 (dkt. 118-4) at 180:20–181:7. The parties 14 dispute whether a representative from Sephora USA was also at the meeting. Defendants 15 say there was not, pointing to deposition testimony from Gabrielle Bridges, Plaintiff’s 16 former Vice President of Sales, stating that she did not remember a Sephora USA buyer 17 being there. See Def. Opp’n (dkt. 118) at 24; Second Harmon Decl., Ex. 112 (dkt. 102-3) 18 at 68:4–9. Plaintiff disagrees, citing the fact that Ms. Bridges was shown an email that she 19 wrote stating that a Sephora USA buyer was present and that she testified she would not 20 have written the email unless it was true. See Pl. Reply (dkt. 120) at 8; Second Harmon 21 Decl., Ex. 112 at 68:4–19. 22 Despite conducting routine searches for third-party infringing uses of the 23 EYECONIC mark on Google, Amazon, and eBay since 2016, Plaintiff did not become 24 aware of Defendants’ MJB EYE-CONIC eye shadow until September 2021. See Kraffert 25 Decl. ¶ 6–8. On October 5, 2021, Plaintiff sent a cease-and-desist letter to Marc Jacobs. 26 See White Decl., Ex. 1 (dkt. 95-3). Marc Jacobs’ general counsel forwarded this email to 27 1 Kendo’s general counsel, who responded to Plaintiff on November 21 stating that Kendo 2 had discontinued its MJB EYE-CONIC eye shadow and would be finished selling its 3 remaining inventory “within the next sixty (60) days.”3 See Loftis Decl., Ex. 24 (dkt. 91- 4 1) at 2–3. Kendo did not sell any MJB EYE-CONIC to retailers after December 31, 2021. 5 See Loftis Decl. ¶ 58. However, Sephora USA continued sales of the product until 6 February 5, 2022. See Abrams Decl. (dkt. 91-5) ¶ 14. Plaintiff continues to sell its 7 EYECONIC eye cream to this day. See, e.g., Harmon Decl., Ex. 52 (dkt. 91-2) (sales from 8 January through December 2023). 9 B. Defendants’ MJB EYE-CONIC Eye Shadow 10 In May 2012, Kendo and Marc Jacobs agreed to develop a line of beauty products 11 to be sold under the MARC JACOBS trademark. See Loftis Decl., Ex. 1 ¶ 6. Kendo sold 12 the cosmetics in this line through luxury retailers, including Sephora USA, Neiman 13 Marcus, and Marc Jacobs. See Loftis Decl. ¶¶ 42–43; Loftis Decl., Ex. 17. Kendo 14 launched the MJB product line in 2013, which included an eye shadow called “MARC 15 JACOBS BEAUTY STYLE EYE-CON.” See Loftis Decl. ¶ 13. The external product 16 packaging for the eye shadow depicted the phrase “EYE-CONIC COLORS.” See Loftis 17 Decl., Ex. 3. Kendo sold the eye shadow from 2013 through 2017. Loftis Decl. ¶ 15. 18 In 2017, Kendo relaunched the eye shadow under the name “EYE-CONIC.” Id. ¶¶ 19 16–18, 23. Kendo chose the name EYE-CONIC as a homage to the iconic status of the 20 fashion designer Marc Jacobs and because it had previously used the phrase on the 21 packaging for the MARC JACOBS BEAUTY STYLE EYE-CON eye shadow. Id. ¶ 17. 22 Kendo’s copy team undertook significant market research prior to selecting the name for 23 Marc Jacob’s new eye shadow. Id. ¶ 20. The team did not find Plaintiff, its EYECONIC 24 eye cream, or its registered trademark. Id. ¶¶ 20, 64. 25 Kendo used significant resources to generate consumer awareness around the MJB 26

27 3 Marc Jacobs had already stopped selling the MJB EYE-CONIC eye shadow. See Perrin 1 EYE-CONIC eye shadow. Id. ¶ 24. The product’s launch included billboards, supermodel 2 spokespersons, and heavy social media promotion through celebrities with millions of 3 followers on social media platforms. See id. ¶¶ 25–41. 4 Kendo sold units of MJB EYE-CONIC, including in 2017 alone. 5 Id. ¶¶ 46, 51. However, the product was costly to manufacture because it used high quality 6 materials and Kendo to Marc Jacobs for the use of the “MARC 7 JACOBS” trademark. Id. ¶ 55. As a result, the product line, including MJB EYE-CONIC, 8 was not profitable. Id. Kendo and Marc Jacobs terminated the licensing agreement and 9 discontinued the product line on September 30, 2021. Id. ¶¶ 56, 57. 10 As part of the termination of the licensing agreement, Kendo and Marc Jacobs 11 12 Id. ¶ 58. Kendo did not sell any MJB 13 EYE-CONIC to retailers after December 31, 2021. Id. 14 15 Id. ¶ 59. 16 Id. ¶ 60. Kendo says it has no 17 intention to revive the Marc Jacobs Beauty line or to use the name “EYE-CONIC” on any 18 future product. Id. ¶¶ 62–63. 19 C. Procedural History 20 On December 19, 2022, Plaintiff sued Defendants for federal trademark 21 infringement under 15 U.S.C. § 1114, federal unfair competition under 15 U.S.C. 22 § 1125(a), common law trademark infringement, common law passing off and unfair 23 competition, and unfair competition under the California Business & Professions Code 24 § 17200. See Compl. (dkt. 1). Plaintiff named the following defendants: Kendo, Marc 25 Jacobs, Sephora USA, Walmart Inc., Neiman Marcus, and Nordstrom Inc. See id. 26 Thereafter, Plaintiff voluntarily dismissed Nordstrom and settled with Walmart. See 27 Notice (dkt. 33); Order of Dismissal (dkt. 65). On December 4, 2023, this Court permitted 1 registration. See Order Gr. Leave to Amend (dkt. 96). 2 Plaintiff and Defendants both move for summary judgment. See Pl. MSJ (dkt. 106); 3 Def. MSJ (dkt. 91). In addition, Defendants move to strike both Plaintiff’s and 4 Defendants’ jury demand. See Mot. to Strike (dkt. 113). And Plaintiff moves to exclude 5 Defendants’ experts Brian M. Daniel, see Mot. to Exclude Daniel (dkt. 134), and John R. 6 Hauser, see Mot. to Exclude Hauser (dkt. 135).

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Amarte USA Holdings, Inc. v. Kendo Holdings Inc., (N.D. Cal. 2024).

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