Carefree Trading, Inc. v. Life Corp.

83 F. Supp. 2d 1111, 2000 U.S. Dist. LEXIS 4006, 2000 WL 132783
CourtDistrict Court, D. Arizona
DecidedJanuary 28, 2000
DocketCIV A 98-1581 PHXRGS
StatusPublished
Cited by1 cases

This text of 83 F. Supp. 2d 1111 (Carefree Trading, Inc. v. Life Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carefree Trading, Inc. v. Life Corp., 83 F. Supp. 2d 1111, 2000 U.S. Dist. LEXIS 4006, 2000 WL 132783 (D. Ariz. 2000).

Opinion

MEMORANDUM AND ORDER

YOUNG, District Judge. 1

I.Introduction

This case presents an intellectual property dispute between two manufacturers of surgical masks used in emergency resuscitation. It grew out of a trademark proceeding originally instituted by Life Corp. (“Life”) against Carefree Trading, Inc. (“Carefree”), challenging Carefree’s use of the trademark LIFE MASK. The Trademark Trial and Appeal Board (the “Board”) agreed with Life and ordered that Carefree’s mark be canceled. See Life Corp. v. Carefree Trading Corp., 47 U.S.P.Q.2d 1151, 1154, 1998 WL 377040 (Trademark Tr. & App. Bd.1998).

Carefree then filed this federal district court action appealing the Board’s decision. 2 Carefree also brings a claim alleging that Life is infringing one of Carefree’s patents. Life counterclaims for trademark infringement and unfair competition by Carefree, seeking declaratory, injunctive, and compensatory relief. Life here moves for summary judgment in its favor on all claims.'

II. Factual Background

Life has been using LIFE as its house mark and trade name since 1986. LIFE is used alone and in combination with descriptive words and model numbers. See Kirchgeorg Decl. Exs. 1-3, 7-11, 13A, 14, 17-28, 38-41, 51; Life Corp., 47 U.S.P.Q.2d at 1152, 1153, 1998 WL 377040. LIFE is registered in combination with descriptive terms like CORPORATION and 02. See Kirchgeorg Decl. Exs. 9-11.

Carefree uses and had registered LIFE MASK for its resuscitation masks. See Gibson Decl. Ex. 24. Both parties sell resuscitation-inhalation masks. Life sells an entire oxygen unit which includes such masks. See id. Ex. 25. It also sells the masks separately. See id. A number of other companies in the business of making medical devices either competitive with, or closely related to, Life’s products use the mark LIFE in combination with other words, such as LIFECARE, LIFEKIT, LIFELINE, LIFESAVER, LIFE SUPPORT, AND LIF-O-GEN. See id. Ex. 26.

For the purposes of this motion, Life is willing to assume that there is no evidence of actual confusion, that Carefree selected LIFE in good faith, that the purchasers are largely sophisticated about emergency resuscitation equipment, and that the evidence of third party LIFE marks and names is admissible. See Life Mem. at 2.

III. Discussion

A. Carefree’s Appeal and Its Trademark Infringement Claim Against Life

1. Standard of Review

Until quite recently, the standard of review from Patent and Trademark Office *1113 decisions was thought to be an issue settled long ago by the Supreme Court in Morgan v. Daniels, 153 U.S. 120, 125, 14 S.Ct. 772, 38 L.Ed. 657 (1894) (“[Pjatent [0]ffice [decisions] must be accepted as controlling upon ... questions] of fact ... unless the contrary is established by testimony which ... carries thorough conviction”). This standard has been in force in the Ninth Circuit throughout most of this century: “Upon principle and authority, therefore, it must be laid down as a rule that where the question decided in the Patent Office is one between contesting parties as to priority of invention, the decision there made must be accepted as controlling upon that question of fact in any subsequent suit between the same parties, unless the contrary is established by testimony which in character and amount carries thorough conviction.” Safeway Stores v. Dunnell, 172 F.2d 649, 652 (9th Cir.1949) (quoting Morgan, 153 U.S. at 125, 14 S.Ct. 772), cert. denied, 337 U.S. 907, 69 S.Ct. 1049, 93 L.Ed. 1719 (1949). The Ninth Circuit also extended this rule to trademark infringement decisions by the Board: “We have also ruled that the civil action permitted by 15 U.S.C. § 1071 is to be a trial de novo, but that the decision of the Board must be accepted as controlling on fact issues unless overcome under the [“thorough conviction”] standard.” Wells Fargo & Co. v. Stagecoach Properties, Inc., 685 F.2d 302, 306 (9th Cir.1982) (citing Redken Laboratories, Inc. v. Clairol, Inc., 501 F.2d 1403, 1404 [9th Cir.1974] ). In other words, “[t]he 'trial is de novo [only] to the extent that the parties are permitted to introduce additional evidence relevant to the issues raised before the Board.” Id.

The Supreme Court dismantled this standard of review in Dickinson v. Zurko, 527 U.S. 150, 119 S.Ct. 1816, 144 L.Ed.2d 143 (1999), 3 a case involving the Federal Circuit’s application of a “clearly erroneous” standard of review to factual findings made by the Patent and Trademark Office (the “Patent Office”). These respondents had argued that the “substantial evidence” standard of the Administrative Procedure Act, 5 U.S.C. § 706(2)(E) (1994), (the “Act”) should apply instead, but the Federal Circuit concluded that Morgan v. Daniels, with its 1894 date of issuance, established a rather impressive historical pedigree for the practice of granting wide deference to the factfinding function of the Patent Office. See In re Zurko, 142 F.3d 1447, 1449 (Fed.Cir.1998), rev’d, 527 U.S. 150, 119 S.Ct. 1816, 144 L.Ed.2d 143 (1999). The Federal Circuit held that section 559 of the Administrative Procedure Act- — which states that the Act does “not limit or repeal additional requirements ... recognized by law” — recognized an exception for the type of pre-existing narrow review compelled by Morgan v. Daniels. See id. at 1457.

The Supreme Court rejected this view of Morgan v. Daniels:

We concede that the Court ... used language that could be read as setting forth a [strict] court/court standard of review.... But the Court did not use the' emphasized words today; it used those words more than 100 years ago. And.its reasoning makes clear that it meant those words to stand for a court/agency review standard, a standard weaker than the standard used by “an appellate court in reviewing findings of fact made by the trial court.”

Dickinson, 119 S.Ct. at 1821-22 (citing Morgan, 153 U.S. at 123, 14 S.Ct. 772). *1114

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Related

Carefree Trading, Inc. v. Life Corp.
19 F. App'x 841 (Federal Circuit, 2001)

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Bluebook (online)
83 F. Supp. 2d 1111, 2000 U.S. Dist. LEXIS 4006, 2000 WL 132783, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carefree-trading-inc-v-life-corp-azd-2000.