Chattanoga Manufacturing, Inc. v. Nike, Inc.

140 F. Supp. 2d 917, 2001 U.S. Dist. LEXIS 8533, 2001 WL 422607
CourtDistrict Court, N.D. Illinois
DecidedMarch 16, 2001
Docket99 C 7043
StatusPublished
Cited by5 cases

This text of 140 F. Supp. 2d 917 (Chattanoga Manufacturing, Inc. v. Nike, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chattanoga Manufacturing, Inc. v. Nike, Inc., 140 F. Supp. 2d 917, 2001 U.S. Dist. LEXIS 8533, 2001 WL 422607 (N.D. Ill. 2001).

Opinion

*919 MEMORANDUM OPINION AND ORDER

CASTILLO, District Judge.

Chattanoga Manufacturing, Inc. sued. Nike, Inc., Michael Jordan, and Does 1-10, 1 alleging: (1) trademark infringement in violation of § 32 of the Lanham Act, 15 U.S.C. § 1114(1); (2) unfair competition in violation of § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); (3) common law trademark infringement and unfair competition; and (4) violation of the Illinois Deceptive Trade Practices Act, 815 ILCS 510/2. Nike filed counterclaims alleging that Chattanoga’s JORDAN trademark was improperly granted by the United States Patent and Trademark Office (“PTO”) and should be canceled because: (1) Chattano-ga’s JORDAN trademark is primarily merely a surname without secondary meaning; (2) at the time Chattanoga applied to register its mark, the term had already acquired secondary meaning and was identified with Michael Jordan and/or products associated with him; and (3) at the time Chattanoga applied to register its mark, it had not been using the trademark in connection with all the goods it described in its application for trademark registration. Plaintiff filed a motion for partial summary judgment against Nike and Jordan (“Defendants”). Defendants also filed a motion for summary judgment as to all of Plaintiffs claims and, in addition, ask for summary judgment on Counts II and III of their counterclaims. For the reasons stated below, we grant Defendants’ motion for summary judgment on all of Plaintiffs claims. We deny Plaintiffs motion for partial summary judgment against Defendants. Finally, we deny Defendants’ motion for summary judgment on counts II and III of its counterclaims as moot.

RELEVANT FACTS 2

1. Chattanoga Manufacturing, Inc.

In 1979, Morris Moinian and Jimmy Soufian founded Chattanoga and its Jordan Blouse Division. The purpose of Chattanoga and its Jordan Blouse Division has been to manufacture women’s blouses and related items. Since 1979, Chattanoga has sold only women’s apparel. Initially coined by Mr. Moinian, Chattanoga claims that it has continuously used the term JORDAN to identify the products of its Jordan Blouse Division. Defendants disagree that Chattanoga has continuously used the JORDAN mark and point out that Chattanoga has used various labels other than JORDAN on its products. (R. 62, Defs.’ Resp. to Pl.’s 56.1(a)(3) Statement of Facts ¶ 8.) In addition, Chattanoga uses a flower symbol on its “hand tags, bags and some of its letterhead,” but Chat-tanoga claims that it does not consider the flower symbol to be a logo and that it is not intended to identify products with Chattanoga. (R. 57, Pl.’s Resp. to Defs.’ 56.1(a)(3) Statement of Facts ¶ 51.)

In 1997, Chattanoga retained trademark counsel and applied for trademark registration for JORDAN for use on “women’s wearing apparel, namely blouses, sweaters, tee shirts[,] jackets, vests, pants, trousers, skirts, suits, dresses, jumpers, jump suits, jogging suits, exercise wear and women’s underwear.” (R. 43, Pl.’s 56.1(a)(3) Statement of Facts ¶ 9; Pl.’s Ex. 20, Pl.’s Trademark Application for JORDAN.) When it applied for registration of the mark JORDAN in 1997, Chattanoga did *920 not submit evidence that the mark had become distinctive of the Chattanoga goods in commerce. (R. 57, PL’s Resp. to Defs.’ 56.1(a)(3) Statement of Facts ¶ 59.) Chattanoga’s first trademark application was rejected by the PTO for two reasons. First, the examining attorney found a likelihood of confusion with another registered mark, J. JORDAN, for “clothing, namely, coats, jackets, pants, skirts, blouses, shirts, sweaters, dresses, and bathrobes,” which was, in some cases “identical” to products in Chattanoga’s application. (R. 62, Defs,’ Resp. to Pl.’s 56.1(a)(3) Statement of Facts ¶ 12 (citing PL’s Ex. 21, Denial of First Trademark Application).) In addition, the application was rejected because the examining attorney determined that “[t]he wording ‘exercise wear’ in the identification of goods [was] unacceptable as indefinite.” (Id.) Thus, to register the mark, Chattanoga needed to either specify the common commercial name of the clothing items it had originally identified as “exercise wear” or describe the product and its intended uses. (R. 57, PL’s Resp. to Defs.’ 56.1(a)(3) Statement of Facts ¶ 62.) In Spring 1998, Chattanoga purchased the rights to use the term J. JORDAN and then filed a second trademark application. The Certificate of Registration was issued in October 1998. 3

In 1984, Chattanoga’s net sales were almost $3.6 million. By 1998, net sales had grown to almost $16 million. Chatta-noga sells directly to wholesalers and retailers, who, in turn, market Chattanoga’s products to the ultimate consumer. Chat-tanoga’s intended consumer market has, to date, principally been middle class women in the twenty-five to fifty year old age group, and its products are sold at moderate prices. Over the years, Chattanoga developed a sizeable list of domestic and international clients, numbering in the thousands. Chattanoga’s women’s clothing products are very diverse. Chattano-ga does not currently make, sell or distribute men’s clothing or any footwear, and has never done so. (Id. at ¶ 7.) Chattano-ga does not engage in direct advertising and has no advertising budget. Instead, monies are allocated to advertising on an “as needed” basis. (R. 43, PL’s 56.1(a)(3) Statement of Facts ¶ 21.)

II. The Defendants

A. Nike, Inc.

Nike, established in 1971, is the world’s leading sports and fitness company. Nike designs, manufactures and markets high quality footwear, apparel, equipment, and accessory products. Nike sells its products through approximately 19,000 retail accounts in the United States, through its nike.com website and its Nike Town retail stores and through a mix of independent distributors, licensees and subsidiaries in approximately 140 countries around the world.

B. Michael Jordan

Michael Jordan is a man of extraordinary fame throughout the world. ESPN’s “SportsCentury” named Jordan the greatest North American athlete of the 20th Century. Jordan’s fame began at least as far back as 1982 when, as a freshman at the University of North Carolina, he hit the game-winning shot in the 1982 NCAA Championship basketball game. In both 1983 and 1984, Jordan was named “College Player of the Year” by The Sporting News and was a unanimous selection for First Team All-American. Jordan was a member of the gold medal-winning United *921 States Olympic men’s basketball team in 1984. Also in 1984, Jordan joined the NBA’s Chicago Bulls and became the NBA Rookie of the Year, an All Star and the Slam Dunk Champion. Jordan won a second Olympic gold medal in 1992.

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Bluebook (online)
140 F. Supp. 2d 917, 2001 U.S. Dist. LEXIS 8533, 2001 WL 422607, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chattanoga-manufacturing-inc-v-nike-inc-ilnd-2001.