Audio-Technica Corporation v. Music Tribe Commercial NV Inc.

CourtDistrict Court, C.D. California
DecidedMay 5, 2022
Docket2:21-cv-09009
StatusUnknown

This text of Audio-Technica Corporation v. Music Tribe Commercial NV Inc. (Audio-Technica Corporation v. Music Tribe Commercial NV Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Audio-Technica Corporation v. Music Tribe Commercial NV Inc., (C.D. Cal. 2022).

Opinion

Case 2:21-cv-09009-ODW-AS Document 52 Filed 05/05/22 Page 1 of 14 Page ID #:1002

1 O 2 3 4 5 6 7 United States District Court 8 9 Central District of California 10

11 AUDIO-TECHNICA CORP., et al., Case № 2:21-cv-09009-ODW (ASx)

12 Plaintiffs, ORDER DENYING PLAINTIFF’S 13 v. MOTION FOR PRELIMINARY INJUNCTION [27] 14 MUSIC TRIBE COMMERCIAL MY 15 SDN. BHD., 16 Defendant. 17 18 I. INTRODUCTION 19 This is a trademark infringement case. Plaintiffs Audio-Technica Corporation 20 and Audio-Technica U.S., Inc. (together, “Audio-Technica”) manufacture the AT2020 21 microphone, an entry-level professional studio microphone. Defendant Music Tribe 22 Commercial MY Sdn. Bhd. (“Music Tribe”) introduced a competing microphone, the 23 BX2020, into the United States consumer market. Audio-Technica alleges that Music 24 Tribe’s microphone is a knockoff and asserts claims for federal trademark and trade 25 dress infringement along with state common-law and statutory claims for unfair 26 competition. Audio-Technica now moves for a preliminary injunction prohibiting 27 Music Tribe from distributing or selling any more units of its allegedly infringing 28 Case 2:21-cv-09009-ODW-AS Document 52 Filed 05/05/22 Page 2 of 14 Page ID #:1003

1 microphone pending trial. (Mot. Prelim. Inj. (“Motion” or “Mot.”), ECF Nos. 27–28; 2 see also Opp’n, ECF No. 32; Reply, ECF No. 38.) 3 On March 14, 2022, the Court held a hearing on the Motion. Having carefully 4 considered the arguments presented at the hearing and in the papers filed in connection 5 with the Motion, the Court now DENIES Audio-Technica’s Motion. 6 II. BACKGROUND 7 Audio-Technica developed the AT2020 microphone and introduced it to 8 consumers in 2004. (Decl. Gary Boss (“Boss Decl.”) ¶ 10, ECF No. 30.) Since then, 9 Audio-Technica has marketed and sold the AT2020 continuously in the United States 10 and elsewhere. (Id.) The AT2020’s design incorporates two vertical bars on either side 11 of the microphone with two circular enclosures near the top and bottom, a small portion 12 of the microphone’s mesh protruding above the top circular enclosure, and a threaded 13 adapter with rounded hinges and a tapered bottom containing the microphone’s cord 14 port. 15 The “AT” in the product name stands for Audio-Technica. (See id. ¶¶ 4–5.) The 16 “2020” has no connection to the product’s functionality or release date. Instead, the 17 first two numbers refer to the Audio-Technica series of which the model is a part (the 18 50 Series, 40 Series, or 20 Series), and the next two digits are essentially arbitrary. (See 19 id. ¶¶ 5–6.) The AT2020 is available from the standard retailers microphone consumers 20 would expect, including big-box stores such as Best Buy and online retailers such as 21 Sweetwater and Amazon.com. (Decl. Kristina S. Azlin (“Azlin Decl.”) ¶¶ 3, 25, ECF 22 No. 29; id. Exs. 2, 21, ECF Nos. 29-2, 29-21; Boss Decl. ¶ 19.) 23 The AT2020 typically sells in the United States for $99. (Boss Decl. ¶¶ 10–11.) 24 It is widely used in the United States by entry-level and professional content creators, 25 including musicians, video streamers, and podcasters. (Id. ¶ 13.) Sales of the AT2020 26 have grown steadily since 2004 and have “skyrocketed” in recent years, due in part to 27 its popularity among those creating content from their own homes or small studios. (Id. 28 ¶¶ 13–14.) Online reviewers and commentators have variously remarked that the

2 Casq@ 2:21-cv-09009-ODW-AS Document 52 Filed 05/05/22 Page3of14 Page ID #:1004

1 || AT2020 is “iconic,” is one of “The Top 10 Best Condenser Microphones on Earth,” and 2 || is “probably the most famous condenser microphone among home studios and creators 3 || in general.” (Mot. 5.) 4 In the summer of 2021, Music Tribe, through its brand Behringer, began 5 || advertising its BX2020 microphone. The BX2020 is similar in design and appearance 6 | to the AT2020, as follows: 10 11 12 13 14 □□ 15 16 17 || Both the AT2020 and BX2020 are packaged in boxes with minimalist packaging design, 18 || containing a photograph of the microphone against a stark white background. 19 Audio-Technica now asserts the following trademark rights: (1) product design 20 || and packaging trade dress rights in the design and packaging of the AT2020; and 21 |} (2) trademark rights in the name “AT2020.” Nothing in the record indicates that either 22 || party has a USPTO trademark registration for any of their respective marks used in 23 || connection with these microphones. 24 After this dispute arose, Music Tribe agreed to rename the BX2020 to the BM1. 25 || (Azlin Decl. 29.) It sold only thirty units of the BX2020 in the United States before 26 || changing the product name. (Decl. Uli Behringer (“Behringer Decl.’’) 4 5, ECF No. 35.) 27 || Moreover, although at some point the BM1 page of Behringer’s website displayed a 28 || link to a promotional video identifying its microphone as the “BX2020,” Music Tribe

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1 has since removed that link from Behringer’s website. (Opp’n 22.) Music Tribe now 2 sells its microphone under the “BM1” designation exclusively, and it has no intention, 3 regardless of the outcome of this litigation, of using the name “BX2020” in the United 4 States any time in the future. (Behringer Decl. ¶ 6.) 5 On November 17, 2021, Audio-Technica brought suit against Music Tribe, 6 setting forth claims for (1) federal trademark infringement, trade dress infringement, 7 and unfair competition (15 U.S.C. § 1125(a)); (2) common law unfair competition; and 8 (3) unfair competition under California law (Cal. Bus. & Prof. Code § 17200). Audio- 9 Technica moved for a preliminary injunction shortly thereafter. 10 III. LEGAL STANDARD 11 A preliminary injunction is an “extraordinary remedy” courts may grant to 12 preserve the status quo pending trial in order to prevent immediate and irreparable 13 injury. Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 22 (2008); Fed. R. Civ. 14 P. 65(a). To obtain a preliminary injunction, the plaintiff must clearly establish: (1) a 15 likelihood of success on the merits; (2) a likelihood that he will suffer irreparable harm 16 if the preliminary relief is not granted; (3) that the balance of equities tips in his favor; 17 and (4) that the injunction is in the public interest. See Winter, 555 U.S. at 20. Under 18 15 U.S.C. § 1116(a) as modified by the Trademark Modernization Act of 2020, a 19 plaintiff seeking an injunction to prevent trademark infringement is entitled to a 20 rebuttable presumption of irreparable harm upon a finding of likelihood of success on 21 the merits. Cisco Sys. v. Wuhan Wolon Commc’n Tech. Co., No. 5:21-cv-04272-EJD, 22 2021 WL 4962661, at *7 (N.D. Cal. July 23, 2021) (quoting Pub. L. No. 116-260 23 (2020)); cf. Vision Sports, Inc. v. Melville Corp., 888 F.2d 609, 612 n.3 (9th Cir. 1989) 24 (“In trademark infringement or unfair competition actions, once the plaintiff establishes 25 a likelihood of confusion, it is ordinarily presumed that the plaintiff will suffer 26 irreparable harm if injunctive relief is not granted.”). 27 “The purpose of a preliminary injunction is merely to preserve the relative 28 positions of the parties until a trial on the merits can be held.” Univ. of Tex. v.

4 Case 2:21-cv-09009-ODW-AS Document 52 Filed 05/05/22 Page 5 of 14 Page ID #:1006

1 Camenisch, 451 U.S. 390, 395 (1981).

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Audio-Technica Corporation v. Music Tribe Commercial NV Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/audio-technica-corporation-v-music-tribe-commercial-nv-inc-cacd-2022.