CFE Racing Products, Inc. v. BMF Wheels, Inc.

2 F. Supp. 3d 1029, 2014 U.S. Dist. LEXIS 22529, 2014 WL 700476
CourtDistrict Court, E.D. Michigan
DecidedFebruary 24, 2014
DocketCase No. 11-13744
StatusPublished
Cited by2 cases

This text of 2 F. Supp. 3d 1029 (CFE Racing Products, Inc. v. BMF Wheels, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CFE Racing Products, Inc. v. BMF Wheels, Inc., 2 F. Supp. 3d 1029, 2014 U.S. Dist. LEXIS 22529, 2014 WL 700476 (E.D. Mich. 2014).

Opinion

OPINION AFTER JURY VERDICT REGARDING INJUNCTIVE RELIEF

DAVID M. LAWSON, District Judge.

This matter is before the Court on the plaintiffs request for injunctive relief after a trial in which the jury found that there was confusion between the plaintiffs and defendant’s trademarks, but awarded no damages. On June 6, 2013, the jury in this case returned a verdict in favor of plaintiff CFE Racing Products, Inc., finding that the defendants had infringed CFE’s registered and unregistered trademarks by the use of their BMF Wheels logos. The jury also found that the infringement was not intentional and that the plaintiff had not suffered any damages as a result of the infringement. The Court then ordered the parties to submit supplemental briefs on the question of the plaintiffs entitlement to a permanent injunction and an order canceling the defendants’ BMF Wheels trademark registration. The parties briefed and argued their respective positions.

I.

The evidence at trial established that CFE holds registered trademarks for the letters “BMF,” without claim to any particular font, style, size, or color, as a mark used on automotive cylinder heads and on clothing. CFE has used several versions of the BMF logo over the years, all of which feature black block letters that are slanted to the right, outlined in white and red on a black field. CFE has used the BMF logo on products such as valve covers for its cylinder heads; on its website; and on clothing used to promote its cylinder heads. The plaintiffs BMF line of cylinder heads is a less expensive product intended for the amateur automotive enthusiast, whereas its principal lines are produced for professional racers. In some advertisements, CFE included the CFE Racing logo along with the “BMF” brand logo in order to convince customers that an established company was behind the new brand. CFE has never used the brand or logo on wheels, rims, or tires.

In 2006, defendant Brock Weld started his company BMF Wheels, Inc. to make and sell machined aluminum wheels intended for “lifted” trucks and SUVs. Brock Weld came up with the idea for the “BMF” brand in the summer of 2006, while talking to an associate, Blake Ramthun, who now works as a vice president for BMF. Weld told Ramthun that they should form a company to make “some bad mother-fucking wheels.” Weld had a wallet his wife had given him around 2001 that had the letters BMF on it, which Weld took to mean “bad mother fucker,” and his wallet was on the desk while he was talking to Ramthun, which prompted his comment. The two agreed to call their new company “BMF Wheels” until they could come up with a better name, but they never did. When customers ask Weld what “BMF” stands for, he just asks what they think it means, and the company does not promote a particular meaning for the acronym, but chooses to let customers interpret it however they want. Similarly, CFE Racing also does not promote a specific meaning for the letters BMF, but chooses to let customers believe what they want about what it means.

[1031]*1031BMF Wheels features its logo prominently in its catalog of wheel products, on websites where its products are sold, and on its own website. The BMF Wheels logo bears a striking resemblance to the CFE Racing “BMF” brand logo. CFE used the white, red, and black version of the logo from 2006 to 2012, and recently created a new logo which is black with a shiny silver appearing outline.

Carl Foltz, president of CFE Racing, first became aware of BMF Wheels and the Wheels logo’s resemblance to CFE’s BMF logo in June 2011, when he received a text message from a girlfriend who had seen a truck with BMF brand wheels at a race in California. While at the race, the owner of the truck had spoken to Bob Panela Junior, a racer whom CFE sponsored, and commented, upon noticing the “BMF” logo on Panela’s car, that he had wheels made by the same company. Brock Weld became aware of CFE Racing and CFE’s “BMF” logo in early 2008, when his business associate, Justin Lundy, and Joe Lopez at Icon Media, the marketing company that developed the BMF Wheels logo, told Weld that another company was “ripping off’ his logo.

CFE did not identify any vendor that features both “BMF” branded cylinder heads and BMF Wheels products, but it submitted several examples showing that BMF Wheels are sold or advertised in the same places as cylinder heads by other makers. The “4WheelParts” website lists BMF Wheels in the category “Wheels > > Aluminum Wheels,” and lists cylinder heads by maker Edelbrock under “Performance Parts > > Engine Parts & Components > > Cylinder Head.” Weld Racing and other wheel makers advertise in National Dragster magazine, which carries advertisements for cylinder heads; and CFE has in the past advertised its “BMF” brand cylinder heads in that magazine. CFE and BMF Wheels both have internet websites and advertise their products on the internet.

CFE attends the Performance Racing Industry (“PRI”) trade show each year to showcase its products. BMF Wheels attends the Specialty Equipment Market Association (“SEMA”) trade show each year, where it shows its products in the “Trucks, SUVs, and Off-Road” section. The PRI trade show focuses on the racing industry, but the SEMA show has twelve different sections, including a separate section for “racing and performance.” CFE does not attend the SEMA show, and BMF Wheels does not attend PRI.

The Court submitted a special verdict form to the jury. In response to the particular questions posed, the jury found that: (1) “defendants’ use of its mark in connection with the sale of its products creates a likelihood of confusion with the plaintiffs registered BMF trademark”; (2) “the plaintiffs unregistered BMF logo trademark is a valid trademark owned by the plaintiff’; (3) “the defendants’ use of its mark in connection with the sale of its products creates a likelihood of confusion with the plaintiffs unregistered BMF logo, trademark,” with respect to all five versions of the BMF logo pictured on the verdict form; (4) “at the time of the defendants’ initial use of BMF, the defendants [did not] intend[ ] to derive a benefit from the plaintiffs goodwill or reputation”; and (5) “the plaintiff [did not] suffer[] actual damages.” Verdict Form [dkt. # 100] ¶¶ 1-5. The jury entered the figure “$0” in the space for “plaintiffs actual damages.” Id. ¶ 6.

The BMF Wheels trademark was registered for use on March 18, 2008, and the defendants’ registration states that the mark was first used in commerce on October 1, 2007. U.S. Trademark Reg. No. 3,400,041.

[1032]*1032II.

The Court reserved the question of equitable remedies at trial until after the jury returned its verdict. The question of injunctive relief was not for the jury to decide. See Sheila’s Shine Products, Inc. v. Sheila Shine, Inc., 486 F.2d 114, 122 (5th Cir.1973) (holding that because “the jury awarded no damages against either party, and the trial court found that no damages were appropriate,” the question of injunctive relief was solely equitable in nature and was a matter “for court, not jury disposition”). At this stage of the ease, therefore, the jury’s verdict must be considered advisory. See Static Control Components, Inc. v. Lexmark Int’l, Inc., 697 F.3d 387

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Bluebook (online)
2 F. Supp. 3d 1029, 2014 U.S. Dist. LEXIS 22529, 2014 WL 700476, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cfe-racing-products-inc-v-bmf-wheels-inc-mied-2014.