Caliber Automotive Liquidators, Inc. v. Premier Chrysler, Jeep, Dodge, LLC

605 F.3d 931, 94 U.S.P.Q. 2d (BNA) 1866, 2010 U.S. App. LEXIS 9373, 2010 WL 1816170
CourtCourt of Appeals for the Eleventh Circuit
DecidedMay 7, 2010
Docket08-16179
StatusPublished
Cited by45 cases

This text of 605 F.3d 931 (Caliber Automotive Liquidators, Inc. v. Premier Chrysler, Jeep, Dodge, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caliber Automotive Liquidators, Inc. v. Premier Chrysler, Jeep, Dodge, LLC, 605 F.3d 931, 94 U.S.P.Q. 2d (BNA) 1866, 2010 U.S. App. LEXIS 9373, 2010 WL 1816170 (11th Cir. 2010).

Opinion

PATRICK E. HIGGINBOTHAM, Circuit Judge:

Caliber Automotive Liquidators, Inc. provides advertising promotions to car dealerships and owns service marks on “Slash-It! Sales Event” and “Slasher Sale.” Premier Automotive Group uses its own marketing — an infomercial called the “Slasher Show” — to sell cars. Caliber sued Premier in the Northern District of Georgia under both federal and state law, claiming infringement. The district court granted Premier summary judgment, holding that no reasonable jury could find a likelihood of confusion between Caliber’s marks and Premier’s advertising. Caliber appealed. Persuaded that the district court erred in its measure of confusion of Caliber’s customers by Premier’s advertising and in the weight it gave an incontestible mark, we reverse and remand.

I.

Daniel Ryan owns and operates Caliber Automotive Liquidators, Inc., offering its services to car dealerships throughout the country. 1 Caliber’s service follows a regimen it developed to reduce quickly a dealer’s existing inventory. Starting two weeks before a dealership’s sale, Caliber assists in a saturation of the local market with radio, television, and print ads. In the days immediately before the sale, its team arrives on-site to prepare the dealership, putting up marketing paraphernalia and energizing the dealership’s sales staff, as Caliber’s staff do not act as floor salespersons. Instead, during the sale, the dealer’s salespersons — performing for the customers — histrionically slash the car prices and seal the deals. Caliber enjoys a demand for its service, as its methods often help dealerships shrink inventory over three-day “blowouts.” 2

Caliber has held a federal registration for “Slash-It! Sales Event” since 1999. The registration 3 provides that the service mark 4 is used for “advertising agency services, namely, promoting the services of automobile dealerships through the distribution of printed and audio promotional materials and by rendering sales promotion advice.” The Slash-It! Sales Event mark, in trademark parlance, is “incontestible,” a status we will come to. 5 Caliber also owns a federal registration 6 for the service mark “Slasher Sale,” which the company purchased in 2005. 7 Daniel *934 Ryan scours the country’s automotive advertisements to ensure that no car dealer uses the slasher marks. Ryan has stopped hundreds of would-be infringers, sells a license to use both Slash-It! Sales Event and Slasher Sale, and has favorably settled several nascent legal actions against alleged infringers.

In the summer of 2006, Ryan learned that Premier Automotive Group, owned by Sam Kazran, was running infomercials called Slasher Shows for its dealerships in greater Atlanta, advertising drastically reduced-priced vehicles. The public could not buy cars through the infomercial, but instead had to come to the showroom. In addition to the Slasher title, the infomercial featured a Slasher Countdown, a Slasher Man complete with slasher jewelry, off-camera voices screaming “slash it,” and on camera uses of the term “slash it.” Premier also highlighted the Slasher Show theme on its website.

To Ryan’s eyes, the Slasher Show infringed Caliber’s marks. More significantly, the infomercial perplexed its customers. Caliber over the years had done business with various Bill Heard Dealerships, each located in Georgia. Mark Henry, general manager of a Heard dealership, saw the Slasher Show and became upset. He was under the impression that Caliber had granted Heard exclusive use of slasher sales in Georgia, that the show for Premier breached that agreement. John Sumner, formerly general manager of a couple of Heard dealerships, was angered by a radio version and a TV episode of the Slasher Show, thinking that Caliber had violated the exclusive license by doing the show for Premier. Responding to the perceived duplicity, Sumner canceled Caliber-run Slash-It! Sales Events at his Union City, Georgia dealership and ordered his workforce not to pay Caliber’s invoices. 8

II.

Ryan called Kazran to work out a licensing agreement. Kazran responded that he commanded an “army of lawyers,” ending the conversation with rude comments. Caliber filed suit in federal court, alleging: (1) infringement under the Lanham Act; 9 (2) false designation of origin under the Lanham Act; 10 (3) deceptive trade practices under Georgia law; 11 (4) unfair competition under Georgia law; 12 and (5) dilution of trademark under Georgia law. 13 Premier moved for summary judgment, arguing that no reasonable jury could find infringement, and the district court agreed.

The court started with a correct observation that: “A successful cause of action for trademark infringement requires the evidence to establish that the infringer 1) used the mark in commerce, without consent; and 2) that the use was likely to cause confusion.” 14 Our focus is upon the element of confusion. The district court properly identified the seven-factor *935 weighted balancing test “to be considered as to the likelihood of confusion: (1) type of mark; (2) similarity of mark; (3) similarity of the products the marks represent; (4) similarity of the parties’ retail outlets and customers; (5) similarity of advertising media; (6) defendant’s intent; and (7) actual confusion. Of these, the type of mark and the evidence of actual confusion are the most important.” 15

The court concluded that: the similarity of the marks and “slight” actual confusion weighed in favor of likelihood of confusion; similarity in advertising did not tip the balance either way; and the strength of mark, similarity of events, similarity of sales method, and defendants’ intent all weighed against likelihood of confusion. Tallying the score, the district court found that no reasonable jury could find likelihood of confusion, and granted summary judgment to Premier on the trademark infringement claim under 15 U.S.C. § 1114.

Because the false designation of origin claim under 15 U.S.C. § 1125 and the Georgia-law claims for deceptive trade practices and unfair competition all pivoted upon the same likelihood of confusion test, the district court also granted summary judgment on those claims. 16

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605 F.3d 931, 94 U.S.P.Q. 2d (BNA) 1866, 2010 U.S. App. LEXIS 9373, 2010 WL 1816170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caliber-automotive-liquidators-inc-v-premier-chrysler-jeep-dodge-llc-ca11-2010.