Anthem Sports, LLC v. Under the Weather, LLC
This text of 320 F. Supp. 3d 399 (Anthem Sports, LLC v. Under the Weather, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
Michael P. Shea, District Judge.
Plaintiffs Anthem Sports, LLC ("Anthem"), and Griffin Global Products, LLC, bring this suit against Under the Weather, LLC ("UTW"), and Eric Pescovitz, its principal, for various intellectual property and other claims arising from the marketing and sale of "sportspods," i.e., small tents for viewing outdoor sporting events during inclement weather. The plaintiffs set out eight counts in their amended complaint: (i) a request for a declaratory judgment of non-infringement with regard to various patents owned by UTW (count one); (ii) a request for a declaratory judgment of invalidity with respect to various patents owned by UTW (count two); (iii) a request for a declaratory judgment of non-infringement and invalidity with respect to a trademark asserted by UTW (count three); (iv) various violations of the Lanham Act (count four); (v) common law trademark infringement (count five); (vi) tortious interference with business expectancies (count six); (vii) violation of the Connecticut Unfair Trade Practices Act ("CUTPA") (count seven); and (viii) common law unfair competition (count eight). The defendants move to dismiss all of the plaintiffs' counts save for the third. (ECF No. 41-1 at 2). For the following reasons, *406the defendants' motion is granted in part and denied in part.
I. Factual Allegations
The plaintiffs make the following factual allegations in their amended complaint, which I assume to be true.
Anthem is "a family-owned business and premier nationwide distributor of brand name sporting goods and equipment" that "primarily does business online through its website, through company catalogs, and [through] significant advertising and marketing efforts through its social media accounts." (ECF No. 38 at ¶ 2). UTW is an Ohio company in possession of various patents1 ("Patents-in-Suit") that "purport to claim certain rights in designs for personal enclosures that protect the user from weather while watching sporting events ('UTW Personal Enclosure[s]')." (Id. at ¶¶ 4, 10). When UTW "first began selling the UTW Personal Enclosures, [it] was unable to garner significant interest in the market and struggled to make appreciable sales." (Id. at ¶ 11). Around the fall of 2014, "Anthem became aware of the UTW Personal enclosures and approached UTW to establish an exclusive online distribution relationship." (Id. at 12) Through "Anthem's extensive efforts in early 2015, ... the UTW Personal Enclosures gained traction in the marketplace and became commercially successful...." (Id. at ¶ 13). At this point, "UTW and Anthem entered into an agreement in Connecticut whereby Anthem would be the exclusive online distributor of UTW Personal Enclosures other than UTW, who would continue to sell UTW Personal Enclosures online." (Id. at ¶ 14). The parties discussed forming a partnership, but these discussions dissipated after UTW declined to respond to Anthem's proposed "partnership term outline." (Id. at ¶ 15).
The parties' relationship collapsed shortly thereafter. UTW "raised the prices for the UTW Personal Enclosures sold to Anthem" to the point where Anthem could no longer afford to purchase and sell them. (Id. at ¶ 16). UTW then began selling the enclosures "to major sporting goods retailer DICK's Sporting Goods, [which] in turn" offered them for sale online. (Id. at ¶ 17). Anthem subsequently located a different manufacturer and "began offering all weather personal enclosure products under the trade names UnderCover™ and SportPod™, including SoloPod™, Action Pod™, TeamPod™, and BugPod™ (collectively, the 'Anthem Pods')"; Anthem ensured that none of these products "infringe[d] any valid or enforceable claim of the Patents-in-Suit." (Id. at ¶ 18). Subsequent to "Anthem's adoption and use of the trademark SportPod™," UTW began using "the mark 'Sportspod' to refer to multiple goods" that it offered for sale. (Id. at 19). "Anthem did not authorize UTW to use its SportPod™ mark, and the 'SportsPod' mark is confusingly similar and likely to cause confusion, mistake, or deception as to the source of UTW's goods, and is likely to cause confusion, mistake, or deception as to whether UTW's products are associated, affiliated, or connected with or approved or sponsored by Anthem." (Id. ).
Despite Anthem's precautions concerning the Patents-in-Suit, UTW subsequently demonstrated "that it believes [that] Anthem ... is allegedly infringing upon *407UTW's rights in the Patents-in-Suit...." (Id. at ¶ 22). "On or about April 7, 2017, one of UTW's principals left a voicemail for one of Anthem's principles" stating as follows:
Hey Mark, it's Rick; just got an email from Anthem with your new products. I shouldn't sound surprised, I assume that's how you work. I just [sic] letting you know, and you can tell your friend Shanghai Eversuccess as well, they will be sued as well as you, I have the patent on that design, so, and if you think I'm kidding, there will be a lawsuit for you next week. Just letting you know.
(Id. at ¶¶ 22-23). UTW has also "made threats against Anthem, its supposed supplier, and customers that the Anthem Pods allegedly infringe one or more claims of the Patents-in-Suit." (Id. at ¶ 26). Further, UTW "recently sued another personal enclosure product supplier ... for infringement of four of the Patents-in-Suit ... in the Southern District of Ohio." (Id. at ¶ 20).
UTW has also waged a campaign against Anthem's products on Facebook.com. "On numerous occasions and without justification, [Defendant] Pescovitz, UTW, or its representatives have responded to customer comments indicating a desire to purchase Anthem Pods" on Anthem's web page on Facebook.com with the following comments: (i) that the "only place to get [Anthem Pods] is undertheweatherpod.com,"; (ii) that the Anthem Pods "are illegal knockoffs and very poor quality," and that the "legal ones are only available at undertheweatherpods.com"; and (iii) that the Anthem Pods were "[Pescovitz's] idea and patent"; (iv) and that the Anthem Pods are "complete knock offs." (Id. at ¶ 25).
II. Legal Standard
Under Fed. R. Civ. P. 12(b)(6), the Court must determine whether plaintiffs have alleged "enough facts to state a claim to relief that is plausible on its face." Bell Atl. Corp. v. Twombly ,
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Michael P. Shea, District Judge.
Plaintiffs Anthem Sports, LLC ("Anthem"), and Griffin Global Products, LLC, bring this suit against Under the Weather, LLC ("UTW"), and Eric Pescovitz, its principal, for various intellectual property and other claims arising from the marketing and sale of "sportspods," i.e., small tents for viewing outdoor sporting events during inclement weather. The plaintiffs set out eight counts in their amended complaint: (i) a request for a declaratory judgment of non-infringement with regard to various patents owned by UTW (count one); (ii) a request for a declaratory judgment of invalidity with respect to various patents owned by UTW (count two); (iii) a request for a declaratory judgment of non-infringement and invalidity with respect to a trademark asserted by UTW (count three); (iv) various violations of the Lanham Act (count four); (v) common law trademark infringement (count five); (vi) tortious interference with business expectancies (count six); (vii) violation of the Connecticut Unfair Trade Practices Act ("CUTPA") (count seven); and (viii) common law unfair competition (count eight). The defendants move to dismiss all of the plaintiffs' counts save for the third. (ECF No. 41-1 at 2). For the following reasons, *406the defendants' motion is granted in part and denied in part.
I. Factual Allegations
The plaintiffs make the following factual allegations in their amended complaint, which I assume to be true.
Anthem is "a family-owned business and premier nationwide distributor of brand name sporting goods and equipment" that "primarily does business online through its website, through company catalogs, and [through] significant advertising and marketing efforts through its social media accounts." (ECF No. 38 at ¶ 2). UTW is an Ohio company in possession of various patents1 ("Patents-in-Suit") that "purport to claim certain rights in designs for personal enclosures that protect the user from weather while watching sporting events ('UTW Personal Enclosure[s]')." (Id. at ¶¶ 4, 10). When UTW "first began selling the UTW Personal Enclosures, [it] was unable to garner significant interest in the market and struggled to make appreciable sales." (Id. at ¶ 11). Around the fall of 2014, "Anthem became aware of the UTW Personal enclosures and approached UTW to establish an exclusive online distribution relationship." (Id. at 12) Through "Anthem's extensive efforts in early 2015, ... the UTW Personal Enclosures gained traction in the marketplace and became commercially successful...." (Id. at ¶ 13). At this point, "UTW and Anthem entered into an agreement in Connecticut whereby Anthem would be the exclusive online distributor of UTW Personal Enclosures other than UTW, who would continue to sell UTW Personal Enclosures online." (Id. at ¶ 14). The parties discussed forming a partnership, but these discussions dissipated after UTW declined to respond to Anthem's proposed "partnership term outline." (Id. at ¶ 15).
The parties' relationship collapsed shortly thereafter. UTW "raised the prices for the UTW Personal Enclosures sold to Anthem" to the point where Anthem could no longer afford to purchase and sell them. (Id. at ¶ 16). UTW then began selling the enclosures "to major sporting goods retailer DICK's Sporting Goods, [which] in turn" offered them for sale online. (Id. at ¶ 17). Anthem subsequently located a different manufacturer and "began offering all weather personal enclosure products under the trade names UnderCover™ and SportPod™, including SoloPod™, Action Pod™, TeamPod™, and BugPod™ (collectively, the 'Anthem Pods')"; Anthem ensured that none of these products "infringe[d] any valid or enforceable claim of the Patents-in-Suit." (Id. at ¶ 18). Subsequent to "Anthem's adoption and use of the trademark SportPod™," UTW began using "the mark 'Sportspod' to refer to multiple goods" that it offered for sale. (Id. at 19). "Anthem did not authorize UTW to use its SportPod™ mark, and the 'SportsPod' mark is confusingly similar and likely to cause confusion, mistake, or deception as to the source of UTW's goods, and is likely to cause confusion, mistake, or deception as to whether UTW's products are associated, affiliated, or connected with or approved or sponsored by Anthem." (Id. ).
Despite Anthem's precautions concerning the Patents-in-Suit, UTW subsequently demonstrated "that it believes [that] Anthem ... is allegedly infringing upon *407UTW's rights in the Patents-in-Suit...." (Id. at ¶ 22). "On or about April 7, 2017, one of UTW's principals left a voicemail for one of Anthem's principles" stating as follows:
Hey Mark, it's Rick; just got an email from Anthem with your new products. I shouldn't sound surprised, I assume that's how you work. I just [sic] letting you know, and you can tell your friend Shanghai Eversuccess as well, they will be sued as well as you, I have the patent on that design, so, and if you think I'm kidding, there will be a lawsuit for you next week. Just letting you know.
(Id. at ¶¶ 22-23). UTW has also "made threats against Anthem, its supposed supplier, and customers that the Anthem Pods allegedly infringe one or more claims of the Patents-in-Suit." (Id. at ¶ 26). Further, UTW "recently sued another personal enclosure product supplier ... for infringement of four of the Patents-in-Suit ... in the Southern District of Ohio." (Id. at ¶ 20).
UTW has also waged a campaign against Anthem's products on Facebook.com. "On numerous occasions and without justification, [Defendant] Pescovitz, UTW, or its representatives have responded to customer comments indicating a desire to purchase Anthem Pods" on Anthem's web page on Facebook.com with the following comments: (i) that the "only place to get [Anthem Pods] is undertheweatherpod.com,"; (ii) that the Anthem Pods "are illegal knockoffs and very poor quality," and that the "legal ones are only available at undertheweatherpods.com"; and (iii) that the Anthem Pods were "[Pescovitz's] idea and patent"; (iv) and that the Anthem Pods are "complete knock offs." (Id. at ¶ 25).
II. Legal Standard
Under Fed. R. Civ. P. 12(b)(6), the Court must determine whether plaintiffs have alleged "enough facts to state a claim to relief that is plausible on its face." Bell Atl. Corp. v. Twombly ,
III. Discussion
A. The Patent Claims (Counts One and Two)
The defendants make two arguments with respect to the plaintiffs' patent claims. First, they contend that there is no actual case or controversy for the purposes of the Declaratory Judgment Act with respect to four newly issued UTW patents first mentioned in the plaintiffs' operative amended complaint-the '023 Patent, the '024 Patent, the '025 Patent, and the '26 Patent ("new patents"). (ECF No. 41-1 at 5). Second, they aver that the plaintiffs' second count requesting a declaratory judgment of invalidity as to the Patents-in-Suit fails to set out a plausible claim. (Id. at 7-8). I address each of these contentions in turn.
1. The New Patents
The Declaratory Judgment Act provides, in relevant part, as follows:
*408In a case of actual controversy within its jurisdiction ... any court of the United States, upon the filing of an appropriate pleading, may declare the rights and other legal relations of any interested party seeking such declaration, whether or not further relief is or could be sought.
The remedy of the Act is not available in all budding disputes. Article III of the Constitution restricts the scope of the Act to instances involving actual "[c]ases" or "[c]ontroversies", as opposed to "difference[s] or dispute[s] of a hypothetical or abstract character." Matthews Intern. Corp. v. Biosafe Engineering, LLC ,
The Supreme Court's decision in MedImmune " 'lowered the threshold' for establishing the existence of an actual case or controversy in intellectual property-related declaratory judgment cases." Gelmart Indus., Inc. v. Eveready Battery Co. ,
Even when an actual controversy exists, however, a district court's decision to exercise jurisdiction over a declaratory judgment action is discretionary. See Matthews Intern. Corp. ,
(i) whether the judgment will serve a useful purpose in clarifying or settling the legal issues involved; (ii) whether a judgment would finalize the controversy and offer relief from uncertainty; (iii) whether the proposed remedy is being used merely for procedural fencing or a race to res judicata; (iv) whether the use of a declaratory judgment would increase friction between sovereign legal systems or improperly encroach on the domain of a state or foreign court; and (v) whether there is a better or more effective remedy.
The New York Times Co. v. Gonzales ,
The defendants contend that the plaintiffs have failed to demonstrate the existence of a case or controversy with respect to the new patents given that the events asserted in the plaintiffs' complaint took place several months before their issue. (ECF No. 41-1 at 6). But the operative inquiry is whether the newly added patents are likely to fall within the same case or controversy that the defendants concede exists with respect to the other Patents-in-Suit, (see ECF No. 47 at 3). According to the plaintiffs' complaint, all of the Patents-in-Suit pertain to designs for "personal enclosures that protect the user from weather while watching sporting events." (ECF No. 38 at ¶ 10). Further, a principal of UTW has threatened to sue Anthem over, at the very least, more than one of the Patents-in-Suit. (Id. at ¶ 23). It is also apparent from the attachments to the complaint that the dispute between the parties involves the right to market and sell a single type of product-small tents or pods designed for viewing sporting events. The newly issued patents pertain to the same type of product. Thus, given the general threats of litigation defendants have allegedly already made, the plaintiffs have a justifiable concern that the defendants could bring suit for infringement of the new patents, along with the other Patents-in-Suit. This is enough to create an actual case or controversy concerning the new patents at this stage of the litigation, and it also shows that a declaratory judgment would offer relief from uncertainty and serve a useful purpose in clarifying the legal issues involved. See Banff, Ltd. v. Federated Dept. Stores, Inc. ,
The case of In re Dr. Reddy's Labs., Ltd. , No. 01 CIV. 10102 (LAP),
The defendants contend also that there cannot be an actual case or controversy over the new patents because they were approved after the plaintiff filed this suit. (ECF No. 41-1 at 6). While the defendants are correct that a party "seeking to establish declaratory judgment jurisdiction bears the burden of demonstrating that an Article III case or controversy exists at the time the claim for declaratory relief [was] filed," Matthews Intern. Corp. ,
As such, I conclude that a justiciable case or controversy exists with respect to the new patents. Further, I choose to exercise jurisdiction over the plaintiffs' claims to help clarify this controversy and to relieve the plaintiffs from uncertainty over the validity of their continued production and distribution of the Anthem Pods.2 I therefore deny the defendants' motion to dismiss with respect to the new patents.
2. Patent Invalidity
The defendants contend that the plaintiffs' invalidity claim fails because it does not "identify a single fact or ... provide any explanation as to how any of the [fifteen prior art references in the plaintiff's complaint] invalidate any of the fourteen *411Patents-in-Suit." (ECF No. 41-1 at 7 (emphases omitted) ).3 A person is not entitled to a patent if "the claimed invention was described in a patent ..., or in an application for patent published ..., in which the patent or application, as the case may be, names another inventor and was effectively filed before the effective filing date of the claimed invention."
Although the exact requirements for a properly pled invalidity claim vary based on the nature of the case, they generally include a description of the prior art that the allegation is based on, along with a statement of the grounds for the asserted invalidity. See Helferich Patent Licensing, LLC v. J.C. Penney Corp. , No. 11 CV 9143,
The plaintiffs' invalidity claim, albeit brief, presents enough of a factual basis to "nudge [the claim] across the line from conceivable to plausible." In re Fosamax Products Liab. Litig. , No. 09-cv-1412,
Thus, the defendants' motion to dismiss the invalidity claim is denied.
B. Lanham Act Claims (Count Four)
The Lanham Act provides, in relevant part, that:
Any person who, on or in connection with any goods or services, or any container for goods, uses in commerce any word, term, name, symbol, or device, or any combination thereof, or any false designation of origin, false or misleading description of fact, or false or misleading representation of fact, which-
(A) is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or association of such person with another person, or as to the origin, sponsorship, or approval of his or her goods, services, or commercial activities by another person, or
(B) in commercial advertising or promotion, misrepresents the nature, characteristics, qualities, or geographic origin of his or her or another person's goods, services, or commercial activities
shall be liable in a civil action by any person who believes that he or she is or is likely to be damaged by such conduct.
1. False Designation of Origin Claim
A false designation of origin claim under the Lanham Act generally applies to three types of activities: "(1) false advertising;" "(2) passing off' (also called palming off) in which A sells its product under B's name;" and (3) "reverse passing off, in which A sells B's product under A's name." Waldman Pub. Corp. v. Landoll, Inc. ,
The plaintiffs' reverse passing off claim does not meet this standard. As an initial matter, the plaintiffs' claim that Mr. Pescovitz misrepresented himself as the inventor of the Anthem Pods is a nonstarter as the Lanham Act applies to misrepresentations concerning the "origin of goods," not ideas. See Dastar Corp. v. Twentieth Century Fox Film Corp. ,
Mr. Pescovitz's remarks that the Anthem Pods could only be purchased from UTW fares little better. The remarks in question, which were made on Anthem's Facebook Page and which the plaintiffs include as attachments to their complaint (see ECF No. 38, Exhibit F), do not actually hold out UTW as the origin of the Anthem Pods. Rather, the majority of Mr. Pescovitz's comments state that the Anthem Pods are "knockoffs" or of "inferior quality," and that the only place to get legal "pods" is from UTW's website. (See ECF No. 38, Exhibit F at 3) ("You saw undertheweatherpods.com the ones you see here are patent infringing knockoffs"), 4 ("these are illegal knockoffs-only place to get them is undertheweatherpods.com"), 6 ("[t]hese are illegal knockoffs and very poor quality. The legal ones are only available at undertheweatherpods.com"), 8 ("these are illegal knockoffs-only place to purchase is underthweatherpods.com"). Especially when considered together, these comments cannot plausibly be interpreted to suggest that UTW sells Anthem Pods. Rather, they imply that Anthem sells inferior and illegal copies of UTW's pods.
The only comment mentioned in the plaintiffs' complaint that could possibly be construed as conflating UTW with Anthem instructs a commenter on Anthem's Facebook page as follows: "[Commenter name] only [p]lace to get them is undertheweatherpods.com (patent holder and inventor)." (Id. at 2). The context in which this comment was made, however, does not suggest that UTW is the manufacturer of Anthem Pods. Rather, Mr. Pescovitz's identification of himself as the "patent holder and inventor" implies that the Anthem Pods are being illicitly marketed, and that the only place to purchase a legal pod is UTW's website. Also, the comment in question-which, as noted, is set forth on Anthem's Facebook page-includes a hyperlink to UTW's website which clearly states "Under the Weather Pods" and contains UTW's logo. (Id. ). Thus, at best, Mr. Pescovitz's comment presents the consumer with an alternative to the Anthem Pods, as opposed to holding out UTW as the producer of the Anthem pods. See FragranceNet.com, Inc. v. FragranceX.com, Inc. ,
*414Thus, the plaintiffs' false designation of origin claim must be dismissed.
2. False Advertising Claim
The Lanham Act "makes actionable 'false or misleading descriptions or false or misleading representations of fact made about one's own or another's goods or services.' " Boule v. Hutton ,
The plaintiffs fail to allege a plausible false advertising claim. "[S]tatements of opinion are generally not the basis for Lanham Act liability." Groden v. Random House, Inc. ,
Here, Mr. Pescovitz's statements that Anthem's products were knockoffs of inferior quality are statements of opinion and therefore do not give rise to liability under the Lanham Act. His claims that the Anthem Pods are of poor quality or of inferior quality compared to the UTW pods are classic opinions in that they cannot be proven false. See ONY, Inc. v. Cornerstone Therapeutics, Inc. ,
The use of the term "knockoff" is itself suggestive of a legal opinion. A "knockoff" is generally defined as an unauthorized copy of something that is of inferior quality and that is sold at a lower price than the original. See Dictionary.com, http://www.dictionary.com/browse/knockoff?s=t (last visited Feb. 21, 2018) (defining "knockoff" as "an unlicensed copy of something ... intended to be sold at a lower price than the original"); Black's Law Dictionary 950 (9th ed. 2009) (defining "knockoff" as "[a]n unauthorized counterfeit and [usually] inferior copy of another's product, [especially] one protected by patent, trademark, trade dress, or copyright, [usually] passed off at a substantially lower price than the original). Mr. Pescovitz's assertion that the Anthem Pods were unlicensed or unauthorized copies, and "illegal" or "patent infringing" ones at that, is ultimately his lay opinion about the finding this Court or some other court might make about infringement when the issue is litigated. The case of Freecycle Network, Inc. v. Oey ,
The plaintiff's complaint also contains a statement by Mr. Pescovitz-which is not contained in Exhibit F-averring that the Anthem pods "are complete knockoffs." (See ECF No. 38 at ¶ 25). This statement is an opinion for the same reasons as the statements listed above. It is also non-actionable puffery. The Second Circuit has defined "puffery" as "[s]ubjective claims about products which cannot be proven either true or false." Time Warner Cable, Inc. ,
Because the offending comments about Anthem's products constitute opinion and puffery, they are not "false or misleading *416representation[s] of fact,"
3. Trademark Infringement Claim
That leaves the plaintiffs' trademark infringement claim concerning UTW's use of the mark, "SportsPod," which they contend to be confusingly similar to Anthem's trademark, "SportPod™." (ECF No. 38 at ¶ 58). "[T]he elements of a trademark infringement claim under the Lanham Act are: (1) that the plaintiff holds a valid mark entitled to protection; (2) that the defendant used the mark; (3) in commerce; (4) in connection with the sale or advertising of goods or services; (5) without plaintiff's consent; and (6) that the defendant's use of a similar mark is likely to cause confusion." Gym Door Repairs, Inc. v. Young Equip. Sales, Inc. ,
"An unregistered mark, such as [Anthem's "SportPod™" mark],4 can be protected under the Lanham Act if it would qualify for registration as a trademark." Lopez v. Gap, Inc. ,
The plaintiffs allege in their complaint that Anthem "began offering" products under the trade name "SportPod™" before UTW's alleged infringement. (ECF No. 38 at ¶ 1). Thus, they have alleged that *417Anthem used the mark in commerce. Contrast Pub. Free Will Corp. v. Verizon Commc'ns Inc. , No. 15CV6354RRMJO,
The defendants' remaining contention that the plaintiffs have failed to include sufficient allegations concerning the alleged infringement, (ECF No. 41-1 at 15), also lacks merit. The plaintiffs have alleged that UTW used their "SportPod™" mark and or a confusingly similar mark in commerce in connection with the sale of its goods without the plaintiffs' consent. (ECF No. 38 at ¶ 19). Nothing else is required at this point of the litigation. Thus, the defendants' motion to dismiss is denied with respect to the plaintiffs' trademark infringement claim under the Lanham Act concerning the "SportPod™" mark.
C. Common Law Trademark Infringement Claim (Count Five)
The parties are in agreement that the test for trademark infringement under Connecticut law is identical to the test under the Lanham Act. (ECF No. 41-1 at 15-16; ECF No. 46 at 12). I agree. See Verilux, Inc. v. Hahn , No. 3:05CV254(PCD),
D. Tortious Interference with Business Expectancies Claim (Count Six)
The Connecticut Supreme Court "has recognized that the legal theory of tortious interference with a business expectancy encompasses a broad range of behavior." American Diamond Exchange, Inc. v. Alpert ,
The defendants contend that the plaintiffs' claim fails because it is based on non-tortious conduct, (ECF No. 41-1 at 21), but this assertion appears to be based on an unduly narrow reading of Connecticut law. The plaintiffs' tortious interference claim avers that the defendants have interfered with Anthem's business relationships with customers through Mr. Pescovitz's Facebook comments disparaging the Anthem Pods. (ECF No. 38 at ¶¶ 66-69). In addition, the plaintiffs allege that Mr. Pescovitz made these comments with full knowledge of the lack of "any legitimate basis" for them and in "bad faith to unlawfully stifle competition." (Id. at ¶¶ 68-69). Such allegations sufficiently allege the type of wrongful conduct that Connecticut courts have found to be actionable tortious interference with business expectancies under Connecticut law. See American Diamond Exchange, Inc. ,
The defendants' contention that the plaintiffs have failed to "identify any potential customers of [Anthem's products] who viewed [Mr. Pescovitz's Facebook comments] and then decided not to purchase [Anthem's products]," (ECF No. 41-1 at 21-22), also does not set forth a basis for dismissal. To set out a plausible tortious interference claim, a plaintiff must plead facts demonstrating "that, except for the tortious interference of the defendant, there was a reasonable probability that the plaintiff would have entered into a contract or made a profit."
*419Dreamcatcher Software Dev., LLC v. Pop Warner Little Scholars, Inc. ,
Finally, the defendants' argument that the plaintiffs did not sufficiently allege "actual loss" is a nonstarter. (ECF No. 41-1 at 22). The plaintiffs alleged in their tortious interference count that "[a]s a direct and proximate result of UTW's tortious interference, Anthem has suffered and will suffer substantial irreparable harm and damages." (ECF No. 38 at ¶ 70). Such an allegation satisfies the plaintiffs' minimal burden at this stage of the litigation.
I therefore deny the defendants' motion to dismiss the plaintiffs' tortious interference with business expectancies claim.
E. CUTPA Claim (Count Seven)
CUTPA provides that "[n]o person shall engage in unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce."
(1) [W]hether the practice, without necessarily having been previously considered unlawful, offends public policy as it has been established by statutes, the common law, or otherwise-in other words, it is within at least the penumbra of some common law, statutory, or other established concept of unfairness; (2) whether it is immoral, unethical, oppressive, or unscrupulous; (3) whether it causes substantial injury to consumers, [competitors or other businesspersons]....
Ulbrich v. Groth ,
As an initial matter, the plaintiffs' trademark infringement claim sets out a viable CUTPA claim inasmuch as it states a viable claim under the Lanham Act. See Pfizer, Inc. v. Miles, Inc. ,
The plaintiffs' allegations concerning UTW's alleged false promises to Anthem presents a closer question. The defendants contend that these allegations are insufficiently pled and, even if accepted, establish little more than a breach of contract, which "is not sufficient to establish a violation of CUTPA." (See ECF No. 47 at 10 (quoting Boulevard Assocs. v. Sovereign Hotels, Inc. ,
The plaintiffs' CUTPA claim may therefore move forward with respect to UTW's alleged breach of contract and trademark infringement.
F. Common Law Unfair Competition Claim (Count Eight)
The Connecticut Supreme Court has recognized "under the umbrella term of 'unfair competition' such causes of action as tortious interference with business expectancy; and unjustifiable interference with any [person's] right to pursue his [or her] lawful business or occupation." Larsen Chelsey Realty Co. v. Larsen ,
I therefore deny the defendants' motion to dismiss with regard to the plaintiff's common law unfair competition claim.
IV. Conclusion
For the reasons set forth above, the defendants' motion to dismiss (ECF No. 41) is hereby GRANTED IN PART AND DENIED IN PART. The plaintiffs' false designation of origin and false advertising claims under the Lanham Act are dismissed. The plaintiffs' CUTPA claim may *421move forward only with respect to UTW's alleged breach of contract and trademark infringement. The defendants' motion to dismiss is otherwise denied.
IT IS SO ORDERED.
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