Blue Mountain Holdings Ltd. v. Bliss Nutraceticals, LLC

District Court, N.D. Georgia·Decided June 27, 2022·No. 1:20-cv-01837·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION

BLUE MOUNTAIN HOLDINGS LTD. a British Columbia, Canada Corporation, et al.,

Plaintiffs,

v. CIVIL ACTION FILE NO. 1:20-CV-1837-TWT

BLISS NUTRACETICALS, LLC

a Georgia Limited Liability Company, et al.,

Defendants.

OPINION AND ORDER This is an action for trademark infringement. It is before the Court on Defendants Bliss Nutraceticals, LLC, Faruq Patel, Shabana Patel, and Phillip Jones’s Motion for Summary Judgment [Doc. 233], Defendants Natural Vitamins Laboratory Corp., Vivazen Botanicals, LLC, Karan Arora, Rachana Arora, and Shruti Shah’s Motion for Summary Judgment [Doc. 250], Plaintiffs Blue Mountain Holdings Ltd. and Lighthouse Enterprises, Inc.’s Motion for Partial Summary Judgment [Doc. 305], and Plaintiff Blue Mountain Holdings Ltd.’s Motion for Partial Summary Judgment [Doc. 318]. For the reasons set forth below, the Court GRANTS Defendants Bliss Nutraceticals, LLC, Faruq Patel, Shabana Patel, and Phillip Jones’s Motion for Summary Judgment [Doc. 233], DENIES as moot Defendants Natural Vitamins Laboratory Corp., Vivazen Botanicals, LLC, Karan Arora, Rachana Arora, and Shruti Shah’s Motion for Summary Judgment [Doc. 250], DENIES Plaintiffs Blue Mountain Holdings Ltd. and Lighthouse Enterprises, Inc.’s Motion for Partial Summary Judgment [Doc. 305], and DENIES as moot Plaintiff Blue Mountain Holdings

Ltd.’s Motion for Partial Summary Judgment [Doc. 318]. I. Background This case arises from the manufacture and sale of kratom-based powder, capsule, and beverage products that allegedly infringe on the registered trademark “VIVAZEN.” The Plaintiffs Lighthouse Enterprises, Inc. and Blue Mountain Holdings Ltd. (formerly Segment Consulting Management, Ltd.)

claim to hold all equitable and legal interests in the VIVAZEN mark, although that fact is contested in the pending Motions for Summary Judgment. As an initial matter, Defendants Natural Vitamins Laboratory Corp., Vivazen Botanicals, LLC, Karan Arora, Rachana Arora, and Shruti Shah have reached a settlement of all claims, counterclaims, and third-party claims with the Plaintiffs and Third-Party Defendant Steven Curtis Holfeld. Accordingly, the Motions for Summary Judgment involving only those parties are denied as

moot, leaving for resolution the Motions filed by or against Defendants Bliss Nutraceticals, LLC, Faruq Patel, Shabana Patel, and Phillip Jones (collectively, “Bliss Nutra”). Lighthouse is a Barbados holding company with no officers, employees, or customers and no history of selling or marketing VIVAZEN products in its own right. (Bliss Nutra’s Statement of Undisputed Material Facts in Supp. of 2 Bliss Nutra’s Mot. for Summ. J. ¶¶ 2-4.)1 Lighthouse acquired the VIVAZEN brand on or about October 31, 2015, from Simply Marketing, Inc. and successfully registered the mark with the United States Patent and

Trademark Office (the “USPTO”) in early 2017. ( ¶¶ 12-13.) After licensing and attempting to sell the brand for a few years, Lighthouse executed a “Brand Sale Agreement” on January 3, 2019, that purported to sell, or assign, all intellectual property in VIVAZEN to Blue Mountain. (Pls.’ Statement of Additional Undisputed Material Facts in Opp’n to Bliss Nutra’s Mot. for Summ. J. ¶¶ 47-48.) The payment schedule in the original agreement was

extended by the “Amended and Restated Brand Sale Agreement,” executed on December 23, 2020. ( ¶¶ 49-50.) Bliss Nutra asserts, and the Plaintiffs dispute, that the Brand Sale Agreement and the Amended and Restated Brand Sale Agreement were in fact not an assignment, but a license to use the VIVAZEN mark. (Pls.’ Resp. to Bliss Nutra’s Statement of Undisputed Material Facts in Supp. of Bliss Nutra’s Mot. for Summ. J. ¶¶ 16-21.) Under both contracts, Lighthouse retained a security

interest in the mark to secure payment of the purchase price from Blue Mountain. (Pls.’ Br. in Opp’n to Bliss Nutra’s Mot. for Summ. J., Campbell

1 The operative facts on the Motions for Summary Judgment are taken from the parties’ Statements of Undisputed Material Facts and the responses thereto. The Court will deem the parties’ factual assertions, where supported by evidentiary citations, admitted unless the respondent makes a proper objection under Local Rule 56.1(B). 3 Decl., Ex. H at PLTF00591-92 & Ex. I at PLTF00442-43.) To protect the value of its security interest, Lighthouse also held a contractual right to exercise quality control over Blue Mountain’s production, marketing, and sale of

VIVAZEN products, but it is undisputed that Lighthouse never exercised this right at any time. (Pls.’ Resp. to Bliss Nutra’s Statement of Undisputed Material Facts in Supp. of Bliss Nutra’s Mot. for Summ. J. ¶¶ 25-28.) In January 2018, almost a year after Lighthouse registered the VIVAZEN mark with the USPTO, Bliss Nutra began selling herbal dietary supplements under the name “Vivazen Botanicals.” (Pls.’ Statement of

Material Facts in Supp. of Pls.’ Mot. for Partial Summ. J. ¶ 3.) Those products were manufactured and bottled exclusively for Bliss Nutra by Natural Vitamins. ( ¶ 4.) On October 22, 2018, Natural Vitamins applied with the USPTO to register the VIVAZEN mark in its name and, as a specimen, attached a photograph of a Vivazen Botanicals powder supplement that was produced for Bliss Nutra. ( ¶¶ 5-9.) Natural Vitamins then initiated a trademark cancellation action against Lighthouse in the USPTO’s Trademark

Trial and Appeal Board (the “TTAB”), claiming abandonment as the sole grounds for cancelling Lighthouse’s registration of the mark. ( ¶¶ 11-12.) But on February 25, 2020, the TTAB dismissed the cancellation proceeding with prejudice in accordance with a Stipulation of Dismissal filed by Natural Vitamins. ( ¶¶ 14-15.)

4 Shortly thereafter, on March 9, 2020, Bliss Nutra submitted an application to register the mark “VIVAZEN BOTANICALS” with the USPTO. ( ¶ 16.) Bliss Nutra’s specimen included some of the same products depicted

in Natural Vitamins’ registration application. ( ¶ 18.) Less than three months later, the USPTO issued a non-final office action in which it refused to register VIVAZEN BOTANICALS because it viewed the word BOTANICALS as merely descriptive. ( ¶ 20.) Bliss Nutra declined to respond to the USPTO’s correspondence, abandoning its registration attempt, and stopped selling Vivazen Botanicals products in March or April 2020. ( ¶¶ 19, 21.)

II. Legal Standard Summary judgment is appropriate only when the pleadings, depositions, and affidavits submitted by the parties show that no genuine issue of material fact exists, and that the movant is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a), (c). The court should view the evidence and draw any inferences in the light most favorable to the nonmovant. , 398 U.S. 144, 158-59 (1970). The party seeking summary

judgment must first identify grounds that show the absence of a genuine issue of material fact. , 477 U.S. 317, 323-24 (1986). The burden then shifts to the nonmovant, who must go beyond the pleadings and present affirmative evidence to show that a genuine issue of material fact exists. , 477 U.S. 242, 257 (1986).

5 III. Discussion Bliss Nutra moves for summary judgment on its affirmative defense that the Plaintiffs abandoned and thus cannot assert any rights in the

VIVAZEN mark.

Free access — add to your briefcase to read the full text and ask questions with AI

Blue Mountain Holdings Ltd. v. Bliss Nutraceticals, LLC, (N.D. Ga. 2022).

Blue Mountain Holdings Ltd. v. Bliss Nutraceticals, LLC (Blue Mountain Holdings Ltd. v. Bliss Nutraceticals, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Icee Distributors, Inc. v. J&J Snack Foods Corp.
325 F.3d 586 (Fifth Circuit, 2003)
Cumulus Media, Inc. v. Clear Channel Communications, Inc.
304 F.3d 1167 (Eleventh Circuit, 2002)
Natural Answers, Inc. v. SmithKline Beecham Corp.
529 F.3d 1325 (Eleventh Circuit, 2008)
Waterman v. MacKenzie
138 U.S. 252 (Supreme Court, 1891)
Adickes v. S. H. Kress & Co.
398 U.S. 144 (Supreme Court, 1970)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Taylor v. Sturgell
553 U.S. 880 (Supreme Court, 2008)
FreecycleSunnyvale v. Freecycle Network
626 F.3d 509 (Ninth Circuit, 2010)
Aspex Eyewear, Inc. v. Miracle Optics, Inc.
434 F.3d 1336 (Federal Circuit, 2006)
Eva's Bridal Ltd. v. Halanick Enterprises, Inc.
639 F.3d 788 (Seventh Circuit, 2011)
Taco Cabana International, Inc. v. Two Pesos, Inc.
932 F.2d 1113 (Fifth Circuit, 1991)
Maldonado v. U.S. Attorney General
664 F.3d 1369 (Eleventh Circuit, 2011)
Yellowbook Inc. v. Steven Brandeberry
708 F.3d 837 (Sixth Circuit, 2013)
Axiom Worldwide, Inc. v. Excite Medical Corp.
591 F. App'x 767 (Eleventh Circuit, 2014)
Peter Coppola Beauty, LLC v. Casaro Labs, Ltd.
108 F. Supp. 3d 1323 (S.D. Florida, 2015)