Amoco Oil Company v. Rainbow Snow, Inc. And Scott G. Van Leeuwan

809 F.2d 656
CourtCourt of Appeals for the Tenth Circuit
DecidedJanuary 20, 1987
Docket85-2686
StatusPublished
Cited by26 cases

This text of 809 F.2d 656 (Amoco Oil Company v. Rainbow Snow, Inc. And Scott G. Van Leeuwan) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amoco Oil Company v. Rainbow Snow, Inc. And Scott G. Van Leeuwan, 809 F.2d 656 (10th Cir. 1987).

Opinions

BARRETT, Circuit Judge.

This is the second appeal taken by Amoco Oil Company (Amoco) from the district court’s denial of Amoco’s motion for a preliminary injunction in this trademark infringement case. In Amoco Oil Co. v. Rainbow Snow, 748 F.2d 556 (10th Cir.1984), we reversed the order denying Amoco’s motion for a preliminary injunction and remanded for further proceedings.

In remanding, we observed that the district court did not have the benefit of the guidelines we announced relating to the issue of likelihood of confusion in the use of trademarks. We placed particular emphasis on whether the use of the allegedly infringing mark of Rainbow Snow created the mistaken belief that Rainbo Oil and Rainbow Snow were business affiliates or that the products sold by both were of [658]*658common sponsorship. Thus, this ingredient was, on remand, to be considered by the district court, in addition to others set forth in Restatement of Torts § 729 (1938). The issue to be decided is whether defendant Rainbow Snow had, without the consent of Amoco, used a colorable imitation of Amoco’s registered mark in the sale of goods, resulting in confusion and false representation in violation of the Lanham Act, 15 U.S.C. § 1114(1) and § 1125(a).

We shall not repeat in detail the factual background giving rise to this litigation. It is set forth in Amoco Oil Co. v. Rainbo Snow, supra. Upon remand the parties stipulated that no new evidence would be offered. The district court considered only the evidence admitted during the hearing on the motion for preliminary injunction held May 31 and June 1, 1983. (R., Vol. IV). The hearing on remand, consisting of arguments of counsel, was held on March 21, 1985. We thus conclude that the status of the parties remained unchanged since the initiation of this suit by Amoco on December 6, 1982.

Amoco’s complaint alleged, inter alia, that: by reason of the long use and extensive sales and advertising under its registered mark, it has built up a valuable goodwill which is symbolized by the “Rainbo” mark; Rainbow Snow’s mark has been used in direct competition with Amoco’s “Rainbo” service stations, selling similar refreshments; Rainbow Snow had full knowledge of Amoco’s “Rainbo” mark before using its mark; Rainbow Snow’s use of its mark has caused and is likely to cause further mistake, deception and confusion with Amoco’s mark, and is likely to result in the mistaken belief by purchasers and others that Rainbow Snow, or its products or services, are in some way legitimately connected with, sponsored or approved by Rainbo Oil; and Rainbow Snow has adopted and used its mark knowing and intending that its imitation of Amoeo’s “Rainbo” mark would cause confusion, mistake and deception for the express purpose of creating a mistaken public identification and confusion of Rainbow Snow’s business with that of Amoco’s (R., Vol. I, pp. 1-8).

The defendant, Rainbow Snow, in its Amended Answer to Complaint, demanded a jury. Thus, the infringement issue presented to the district court in relation to the motion seeking preliminary injunctive relief shall be decided by a jury upon trial on the merits.

We are not dealing in this case with products manufactured or marketed with registered marks upon them or their packages. Cases involving such products or purchases raise questions of confusing similarity of marks and products. The products arguably in competition between the parties in this case are the “snow cone” sold from Rainbow Snow’s eighteen stands which operate for about four months through the summer and a carbonated “slush” drink sold from Amoco’s “Rainbo” stations. The “snow cone” consists of shaved ice with some thirty-six kinds of flavored syrups.

Under the Lanham Act, the term “trademark” is defined as including “[a]ny word, name, symbol, or device or any combination thereof adopted and used by a manufacturer or merchant to identify, and distinguish his goods, including a unique product, from those manufactured or sold by others and to indicate the source of the goods, even if that source is unknown.” 15 U.S.C. § 1127 (as amended Nov. 8, 1984, P.L. 98-620, Title I, § 103, 98 Stat. 3335). Liability for trademark infringement is imposed under 15 U.S.C. § 1114(1) for the “[u]se in commerce [of] any reproduction, counterfeit, copy or colorable imitation of a registered mark ... likely to cause confusion, or to cause mistake, or to deceive____”

It is well established that the basis for trademark rights is the association in the public mind of the mark with goods. Thus, one of the main goals of the Lanham Act is to protect the public from deception, such as occurs when, for example, an alleged infringer, by imitating or closely copying the plaintiff’s mark, intends to deceive the public as to the source of the goods. In order to establish infringement, a plaintiff must establish the distinctive[659]*659ness of his trademark. This element is all-important in determining whether, under the Lanham Act, there exists such confusion as to service, affiliation or sponsorship, that the right of the federally registered mark should be enforced.

The testimony and other evidence admitted at the May 31 and June 1, 1983, hearings disclosed that Amoco obtained the “Rainbo” Oil Company trademark in October, 1976, and business expanded rapidly. By 1982, there were twenty-four Rainbo service stations consisting of standard buildings where gasoline was sold on the self-service basis and convenient food items and soft drinks were available, including an “ice slush” drink similar to Rainbo Snow’s “snow cone.” (R., VoL IV, pp. 15-28). Rainbo Oil also sells fountain drinks. Id. at 28. Four of the Rainbow Snow structures are located in close proximity to Rainbo Oil Company’s buildings.

Several witnesses at the 1983 hearings testified about the likelihood of confusion between the Rainbo Oil and Rainbow Snow trademarks. Mr. Frank Sida, general manager of Rainbo Oil, testified that he and his employees had received about fifteen contacts involving problems of confusion between the two businesses. Id. at 40.

Mr. Richard Q. Bailey, an expert designer, testified that the visual impact of the Rainbo Oil Company and Rainbo Snow marks is “confusingly similar.” Id. at 54. He stated that although the rainbow design is a very common property, the similarity impact was not such as to create confusion between Rainbo Oil’s trademark and that of such “rainbow” signs used by Hilton Hotels and others in the Salt Lake City area. Id. at 54-55.

Ms. Ann Marie Boyden, an advertising executive, believed that the Rainbo Oil trademark-logo was a strong mark and “very memorable.” Id. at 64. On the assumption that the logos used by Rainbo Oil and Rainbow Snow are confusingly similar, Ms. Boyden testified that the business impact of such confusion could involve two problems:

One of them would be the quality control which is extremely important in the long-term reputation of any business. Quality control in that we have a similar looking stand over which Rainbo Oil people have no control whether it’s good or bad or clear or dirty or if it makes people sick, if it’s open or closed and so forth.

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Bluebook (online)
809 F.2d 656, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amoco-oil-company-v-rainbow-snow-inc-and-scott-g-van-leeuwan-ca10-1987.