Boyd v. Deadwood Tobacco Company

CourtDistrict Court, D. South Dakota
DecidedMarch 6, 2025
Docket5:24-cv-05017
StatusUnknown

This text of Boyd v. Deadwood Tobacco Company (Boyd v. Deadwood Tobacco Company) is published on Counsel Stack Legal Research, covering District Court, D. South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boyd v. Deadwood Tobacco Company, (D.S.D. 2025).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF SOUTH DAKOTA WESTERN DIVISION

VAUGHN BOYD, SWI-DE, LLC, d/b/a 5:24-CV-05017-CCT DREW ESTATE,

Plaintiffs, ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS vs.

DEADWOOD TOBACCO COMPANY, a/k/a DEADWOOD TOBACCO COMPANY CORPORATION, and WILLIAM RECTENWALD,

Defendants.

Defendants Deadwood Tobacco Company, a/k/a Deadwood Tobacco Company Corporation, and William Rectenwald (collectively, “Defendants”) move, pursuant to the doctrine of forum non conveniens and Federal Rule of Civil Procedure 12(b)(6), to dismiss the complaint filed by Plaintiffs Vaughn Boyd and SWI-DE, LLC, d/b/a Drew Estate (collectively, “Plaintiffs”). Docket 11 at 2–3. Alternatively, Defendants request that this Court abstain from exercising jurisdiction, Docket 12 at 4, or stay the proceedings until the pending South Dakota state court action between the parties is resolved, Docket 11 at 4. Plaintiffs oppose the motion to dismiss and alternative requests. Docket 17. BACKGROUND The Court takes the following facts from Plaintiffs’ complaint and accepts them as true for purposes of this order. See Broin & Assocs., Inc. v. Genecor

Intern., Inc., 232 F.R.D. 335, 338 (D.S.D. 2005) (noting that on a motion to dismiss, the court assumes the facts alleged in the complaint are true and views the allegations in a light most favorable to the nonmoving party). Vaughn Boyd is the founder of Deadwood Tobacco Company a/k/a Deadwood Tobacco Company Corporation (DTC). Docket 1 ¶ 11. DTC is a retail store and cigar bar in Deadwood, South Dakota. Id. SWI-DE, LLC, d/b/a Drew Estate (Drew Estate) “is one of the largest premium cigar manufacturers in the world[,]” Id. ¶ 7, and DTC sold cigars manufactured by Drew Estate in its retail

store, Id. ¶ 11. “Starting in or about 2009, Drew Estate agreed with Boyd to create, make, and sell to DTC a shop-exclusive Drew Estate Cigar under the mark DEADWOOD TOBACCO CO. SWEET JANE.” Id. ¶ 12. “[I]n or around 2013 and 2014, respectively, Drew Estate agreed with Boyd to create, manufacture and sell to DTC two additional shop-exclusive cigars under the marks DEADWOOD TOBACCO CO. FAT BOTTOM BETTY and DEADWOOD TOBACCO CO. CRAZY ALICE.” Id. ¶ 13. According to Plaintiffs, the cigar blends for these cigars “were selected

from a unique set of proprietary blends owned by Drew Estate.” Id. ¶ 15. Drew Estate also “created iconic ‘sugar skull’ images of female characters” for the packaging of each above-named cigars. Id. ¶ 16. These female images “together represented the marketing narrative of this DEADWOOD brand line of cigars— strong, heartbreaking women from the brothels and barrooms of the seedy underbelly of the Old West in Deadwood, South Dakota.” Id. And Plaintiffs, “[i]n reference to this brand narrative and the delicious cigar blends used for the

three cigars in this brand,” “marketed and promoted them under the name THE YUMMY BITCHES.” Id. Plaintiffs collectively refer to the marks for the three named cigars and the brand THE YUMMY BITCHES as the “DEADWOOD Marks.” Id. While the three named cigars “remained Drew Estate shop-exclusives sold only to DTC” until 2016, “based on the consumer response to the unique blend profiles, iconic brand imagery, and compelling narrative of the cigars sold under the DEADWOOD Marks, Drew Estate and Boyd agreed that they could

be successful nationwide if released and sold under the DEADWOOD Marks by Drew Estate throughout the country.” Id. ¶¶ 17–18. In approximately July 2016, Drew Estate and DTC “entered into an exclusive license agreement under which DTC granted Drew Estate an exclusive worldwide license to, among other things, the DEADWOOD Marks, granting to Drew Estate the exclusive right to, among other things, make and sell cigars under the DEADWOOD Marks.” Id. ¶ 19. Thereafter, “Drew Estate announced its national release of the DEADWOOD brand cigars” at “the largest trade show in the premium cigar

industry[.]” Id. ¶ 20. According to Plaintiffs, they “have spent millions of dollars” since 2009 “promoting the DEADWOOD Marks[,]” Id. ¶ 21, and because of the “extensive promotion and use of the DEADWOOD Marks and their distinctiveness, the purchasing public (including retailers and end users) has come to recognize DEADWOOD TOBACCO CO. SWEET JANE, DEADWOOD TOBACCO CO. FAT BOTTOM BETTY, and DEADWOOD TOBACCO CO. CRAZY ALICE as a family of

products marketed under a family of trademarks with a common origin[,]” Id. ¶ 22. Also, “the DEADWOOD Marks have become one of the most successful and widely sold cigar brands in the United States, and both Drew Estate’s direct customers (such as retailers) as well as the end user consuming public have come to associate the DEADWOOD Marks with Drew Estate, which inures to the benefit of Boyd as licensor.” Id. ¶ 23. Boyd owns various U.S. Trademark Registrations for cigars, namely trademark registrations for DEADWOOD TOBACCO CO. SWEET JANE,

DEADWOOD TOBACCO CO. FAT BOTTOM BETTY, and DEADWOOD TOBACCO CO. CRAZY ALICE. Id. ¶ 24. Plaintiffs refer to these as the “Registered Marks.” Id. According to Plaintiffs, Boyd exclusively licensed to Drew Estate both the Registered Marks and the DEADWOOD Marks (collectively, the “Asserted Marks”). Id. ¶¶ 24, 27. “Based on the exclusive license, Drew Estate has devoted substantial resources to building up goodwill and name recognition in the Asserted Marks for cigars, both individually and as a family[,]” and it “has sold millions of dollars of cigars under the Asserted

Marks.” Id. ¶ 28. On April 1, 2018, Boyd sold DTC to William and Jolene Rectenwald. Id. ¶ 29. The sale excluded the Asserted Marks and Drew Estate’s exclusive license. Id. Plaintiffs’ complaint does not allege additional details regarding the sale. According to Plaintiffs, since Boyd sold DTC to the Rectenwalds, “DTC,

under the direction and control of [William] Rectenwald, has started to promote and sell cigars under trademarks that are confusingly similar to the Asserted Marks,” Id. ¶ 30, and “has started to market its infringing products by trading on the goodwill in the Asserted Marks developed and owned by Plaintiffs[,]” Id. ¶ 32. Plaintiffs further claim that “DTC, under the direction and control of [William] Rectenwald, has been offering for sale and selling the cigars in its retail store and on its website using the Asserted Marks[.]” Id. ¶ 33. Plaintiffs allege that DTC and Rectenwald did not “obtain permission to use any of the

Asserted Marks from either Plaintiff.” Id. ¶ 31. On March 22, 2024, Plaintiffs brought this suit against Defendants, alleging federal trademark infringement (count one), federal unfair competition and false designation of origin (count two), and cancellation of federal trademark registrations (count three). Id. ¶¶ 45–76. Plaintiffs’ complaint lists the alleged “Infringing Marks” used by DTC, some of which DTC has obtained or sought United States trademark registration, as: DTC DEADWOOD TOBACCO COMPANY; DEADWOOD TOBACCO CO. CHASING THE DRAGON;

DEADWOOD TOBACCO CO. CHASING THE DRAGON ZERO; DEADWOOD TOBACCO CO. CHASING THE DRAGON AUNTIE; DEADWOOD TOBACCO CO. CHASING THE DRAGON MIDNIGHT OIL; DEADWOOD TOBACCO CO. ZERO; DEADWOOD TOBACCO CO. AUNTIE; DEADWOOD TOBACCO CO. MIDNIGHT OIL. Id. ¶ 32. According to Plaintiffs, DTC’s continued use of the Infringing Marks “has

created and will continue to create a likelihood of confusion with cigars sold by Drew Estate under the Asserted Marks.” Id. ¶ 35. They further contend that DTC’s continued use of the Infringing Marks has caused “actual confusion as to the source or origin of the goods on which such marks are used both at the retailer and end consumer level.” Id. ¶ 36.

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