Anheuser-Busch, Inc. v. A-B Distributors, Inc.

910 F. Supp. 587, 1995 U.S. Dist. LEXIS 21854, 1995 WL 750325
CourtDistrict Court, M.D. Florida
DecidedNovember 17, 1995
Docket95-241-Civ-J-20
StatusPublished
Cited by8 cases

This text of 910 F. Supp. 587 (Anheuser-Busch, Inc. v. A-B Distributors, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anheuser-Busch, Inc. v. A-B Distributors, Inc., 910 F. Supp. 587, 1995 U.S. Dist. LEXIS 21854, 1995 WL 750325 (M.D. Fla. 1995).

Opinion

ORDER

SCHLESINGER, District Judge.

Before the Court is Motion of Plaintiff Anheuser-Busch, Inc. for Preliminary and Permanent Injunction to Stop Defendant’s Post-Termination Use of Anheuser-Busch Trademarks (Doc. No. 94, filed September 29, 1995). Defendants’ Responsive Brief in Opposition to Motion for Preliminary Injunction (Doc. No. 106) was filed October 16, 1995. A Preliminary Injunction Hearing was held before the undersigned on October 20, 1995.

A preliminary injunction is an “extraordinary and drastic remedy” and should not be granted unless the movant meets its burden of persuasion with respect to each of the following prerequisites: (1) a substantial likelihood of success by the movant on the merits; (2) that the movant will suffer irreparable harm unless the injunction issues; (3) that the threatened injury to the movant outweighs any threatened harm the injunction may cause the opposing party; and (4) that the injunction, if issued, “will not dis-serve the public interest.” Bryan v. Hall Chemical Co., 993 F.2d 831, 835 (11th Cir.1993) (citing United States v. Jefferson County, 720 F.2d 1511, 1519 (11th Cir.1983)).

Plaintiff, Anheuser-Busch, Inc. (AnheuserBusch), has brought this against Defendant, A-B Distributors, Inc. (A-B Distributors), for federal and state trademark infringement and unfair trade practices, in violation of the Trademark Act of 1946 (commonly known as the Lanham Act), 15 U.S.C. § 1051 et seq., specifically §§ 32(1) and 43(a) of the Lanham Act, 15 U.S.C. §§ 1114(1), 1125(a), Florida’s anti-dilution statute, Fla.Stat. § 495.151, and Florida’s deceptive and unfair trade practices act, Fla.Stat. § 501.201; and for breach of the agreement between the parties and of the implied covenant of good faith and fair dealing. 1

*590 For more than 35 years, until July 24, 1995, A-B Distributors was the exclusive authorized Anheuser-Busch wholesaler for the Jacksonville/Lake City, Florida areas. The relationship between the parties was governed by a written contract, the AnheuserBusch, Inc. Wholesaler Equity Agreement (Equity Agreement). 2 On March 31, 1995, Anheuser-Busch notified A-B Distributors that it was terminating the Equity Agreement for engaging in fraudulent conduct. Plaintiff alleged that Defendant was fabricating and falsifying records of sales calls, misrepresenting the accuracy and authenticity of its records to Anheuser-Busch, and repackaging and selling overage Anheuser-Busch beer as fresh beer. The termination was effective on July 24, 1995, following this Court’s denial of Defendant’s second request for a preliminary injunction for failure to establish that it had a substantial likelihood of prevailing on the merits of either Plaintiff’s Complaint or on its Counterclaim (Doc. No. 59, dated July 24, 1995). Defendant stopped selling and distributing AnheuserBusch products at that time.

Plaintiff seeks a preliminary and permanent injunction enjoining A-B Distributors from: (1) displaying any of AnheuserBusch’s trademarks; (2) using the trademark “A-B” in connection with the name of its business; and (3) representing to any person that it is associated with Anheuser-Busch. Motion of Plaintiff for Preliminary and Permanent Injunction (Doc. No. 94) at 2. The specific objects of the requested injunctive relief concern: (1) a billboard located in a local minor-league baseball stadium on which the name “A-B Distributors” is printed along with one of Plaintiffs beer trademarks, Budweiser; (2) forty-plus beer trucks with Anheuser-Bush trademarks on the trailers, which are parked in the now-idle A-B Distributors warehouse; and (3) the use of “AB” in Defendant’s corporate name, A-B Distributors, Inc. At the hearing held on October 20, 1995, the parties stipulated that the stadium sign has been removed; thus, it is not at issue. It is undisputed that Plaintiff owns the trademarks “Budweiser,” “Michelob,” “Busch,” “Bud Light,” and “A B” (the latter trademark does not have a hyphen; however, there is a space between the two initials).

To determine the likelihood of success on the merits, the court looks to the standards proscribed by substantive law.

I. The Equity Agreement

Plaintiff contends that Defendant’s right to use Plaintiffs trademarks ceased upon termination of the Equity Agreement, and that its continued use of the “A-B” name and display of Plaintiffs logos on its trucks is a breach of that agreement. Section 9, entitled “Trademarks of Anheuser-Busch,” provides, in pertinent part:

Wholesaler is hereby granted a limited, nonassignable and nontransferable right to use Anheuser-Busch’s trademarks and trade names in distributing, advertising and promoting the sale of the Products, but only in accordance with AnheuserBusch’s policies regarding the use of its trademarks and trade names. The right conferred herein shall cease and terminate upon termination of this Agreement.
Anheuser-Busch’s trademarks and trade names, however, shall remain the sole and exclusive property of Anheuser-Busch. Anheuser-Busch reserves all rights including the right to license the use of its trade names, designs, brand names, labels, and promotional slogans or trademarks on merchandise, goods, items or services, including but not limited to the Products sold and distributed hereunder.
It is specifically agreed that the Wholesaler, prior to leasing, selling or otherwise transferring to another or putting to a use other than that originally intended any vehicles, warehouse facilities, equipment, office supplies or other property having had affixed temporarily or permanently trademarks or trade names of Anheuser-

*591 Busch, shall remove, obliterate or eliminate said trademarks or trade names. Emphasis added.

Plaintiff is correct that Defendant’s right to use Anheuser-Busch’s trademarks and trade names in distributing, advertising and promoting the sale of Anheuser-Busch beer was terminated upon termination of the Equity Agreement. It is uneontested that A-B Distributors is no longer distributing, advertising, or promoting the sale of Plaintiffs (or anyone else’s) beer. The use of the A-B name, therefore, does not violate the Equity Agreement, since that name is not being used in the beer market.

Likewise, since the parked trucks with Plaintiffs logos are not being leased, sold or otherwise transferred to another or putting to a use other than that originally intended (to distribute Plaintiffs beer), there is no contract violation.

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Bluebook (online)
910 F. Supp. 587, 1995 U.S. Dist. LEXIS 21854, 1995 WL 750325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anheuser-busch-inc-v-a-b-distributors-inc-flmd-1995.