Cirrus Aviation Services, LLC v. Cirrus Design Corporation

CourtDistrict Court, D. Nevada
DecidedJanuary 6, 2023
Docket2:16-cv-02656
StatusUnknown

This text of Cirrus Aviation Services, LLC v. Cirrus Design Corporation (Cirrus Aviation Services, LLC v. Cirrus Design Corporation) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cirrus Aviation Services, LLC v. Cirrus Design Corporation, (D. Nev. 2023).

Opinion

2 UNITED STATES DISTRICT COURT 3 DISTRICT OF NEVADA 4 * * * 5 Great Western Air, LLC d/b/a Cirrus Case No. 2:16-cv-02656-DJA 6 Aviation Services, LLC,

7 Plaintiff/Counter- Findings of Fact, Conclusions of Law, Defendant, and Judgment Following Bench Trial 8 v. 9 Cirrus Design Corporation, 10 Defendant/Counter- 11 Claimant.

12 13 This is a trademark infringement case arising out of a dispute between a high-end airplane 14 charter company—Great Western Air, LLC dba Cirrus Aviation Services, LLC (“Cirrus 15 Aviation”)—and a personal airplane manufacturer—Cirrus Design Corporation (“Cirrus 16 Aircraft”)—that share the same name. Cirrus Aviation sues Cirrus Aircraft for declaratory relief 17 that its name does not infringe on Cirrus Aircraft’s trademark of the single word CIRRUS and 18 that it has not engaged in unfair competition. 19 Cirrus Aircraft counterclaims, arguing that Cirrus Aviation has infringed on its trademark 20 and engaged in unfair competition under federal, state, and common law. Cirrus Aircraft also 21 asks the Court to impose a permanent injunction to keep Cirrus Aviation from using the name, to 22 disgorge Cirrus Aviation of profits attributable to its use of the name, and to require Cirrus 23 Aviation to pay Cirrus Aircraft’s attorneys’ fees. The parties engaged in a four-day bench trial 24 and, based on the testimony presented, the exhibits, and briefing, the Court finds that Cirrus 25 Aircraft has not met its burden of proving its claims by a preponderance of the evidence and thus 26 has not shown it is entitled to damages or injunctive relief. The Court enters judgment in favor of 27 Cirrus Aviation and against Cirrus Aircraft and closes this case. 1 Findings of Fact 2 Cirrus Aviation is a charter airline catering to “the one percent of the one percent.”1 3 Passengers aboard a Cirrus Aviation flight experience the lofty luxury of picking when they 4 would like to fly, avoiding the lines and traffic of commercial airlines, having the plane all to 5 themselves, and taking advantage of opulent onboard amenities.2 Prices are, fittingly, sky high. 6 Passengers can expect to pay between $8,000 and $340,000 per trip.3 Cirrus Aviation even offers 7 to help customers purchase their own plane to keep in Cirrus Aviation’s fleet.4 Cirrus Aviation 8 provides the pilot, maintenance, management, and storage.5 And when the owner is not using the 9 plane, Cirrus Aviation uses it to fly other customers and the owner earns money in return.6 10 Cirrus Aircraft is a successful plane manufacturer. It makes planes for people who love to 11 fly, not as passengers, but as pilots.7 It builds three models: the SR20, the SR22, and the Vision 12 Jet.8 Its planes seat between four and seven people, cost between $1 million and over $3 million, 13 and are the only planes in the industry to include a parachute for the entire plane.9 Since their 14 introduction, Cirrus Aircraft’s planes have soared in popularity. The SR series has been the most 15 popular single engine aircraft for twenty years and the Vision Jet has been the most-delivered 16 business jet for three years.10 To encourage non-pilots to consider plane ownership, Cirrus 17 Aviation has created programs through which it finds pilots to fly the owners’ planes and teach 18 19

20 1 ECF No. 173 at 61:23-62:13. 2 Id. at 62:16-25, 91:20-92:17, 94:4-96:11. 21 3 Id. 22 4 Id. at 63:1-68:8. 23 5 Id. 24 6 Id. 25 7 ECF No. 175 at 190:6-19. 8 ECF No. 108 at 3. 26 9 ECF No. 175 at 229:15-21; ECF No. 174 at 64:13-69:12, 73:16-20, 117:20-121:14, 161:18-20; 27 ECF No. 108 at 3. 1 the owners how to fly.11 It also offers plane management, maintenance, and storage solutions to 2 make plane ownership a breeze.12 3 The trouble is, both companies have practically the same name. Their shared name— 4 cirrus—is a type of cloud. A high-altitude, wispy looking cloud. The appearance of which 5 indicates calm skies and excellent flying weather. But the little cloud has led to a turbulent 6 relationship between Cirrus Aviation and Cirrus Aircraft. 7 I. Cirrus Aircraft’s history 8 Midwestern-raised brothers, Alan and Dale Klapmeier, grew up around aviation. Their 9 grandfather owned planes and their uncle was a pilot.13 Older brother Alan first caught the 10 aviation bug, and his younger brother Dale followed suit.14 The brothers’ parents even got their 11 own pilots’ licenses, deciding that they would not let their sons fly until they knew how to do it 12 first.15 The brothers learned to fly in their family’s plane and eventually began fixing up their 13 own.16 They later graduated to building kit planes, which are sold unassembled so enthusiasts 14 can put them together themselves.17 15 One year, while the brothers were on break from college, they decided to fly from their 16 family farm in Wisconsin to see their grandparents in Chicago.18 They called the flight service 17 for a weather update and were disappointed to learn that storms were expected, and flying was not 18 recommended.19 Their disappointment only grew when, as they were driving to Chicago, they 19 20 11 ECF No. 175 at 204:4-205:15; ECF No. 174 at 85:12-88:12, 140:24-142:10, 162:3-15, 175:18- 21 176:14; Exs. 63, 67-76, 78. 22 12 ECF No. 174 at 140:24-142:10, 162:3-15, 173:5-14. 23 13 Id. at 49:11-50:18. 24 14 Id. at 50:1-14. 15 Id. 25 16 Id. at 50:20-25, 53:3-22. 26 17 Id. at 50:20-25, 53:3-22, 55:2-12. 27 18 Id. at 56:9-57:8. 1 looked up not to see storm clouds, but feathery cirrus clouds against a blue sky.20 It was excellent 2 flying weather. During that begrudging drive, the two decided to create their own aviation 3 company, and to name it after the cirrus clouds that mocked them as they drove.21 4 At the 1987 Oshkosh Air Show, the Klapmeier brothers unveiled their first Cirrus plane: a 5 kit plane that bragged to be the fastest, biggest, and coolest kit plane on the market.22 But the pair 6 quickly learned that, while people loved the design of the plane, not everyone wanted to build 7 their own.23 So the brothers found a financial backer and began designing their first ready-made 8 airplanes.24 As part of that process, in 1994, Alan applied for a trademark of the name CIRRUS 9 for use in aircraft and structural parts.25 Later, the company would expand the mark for use in 10 avionics, aircraft inspection and repair, flight instruction and training, aircraft financing, aircraft 11 sales and acquisition, aircraft maintenance, aircraft insurance, and aircraft management, amongst 12 others.26 13 In 1993, the brothers began marketing their new planes in teaser-style advertisements that 14 hinted at the “Mystery of Hangar X.”27 And at the July 1994 Oshkosh Airshow, they unveiled 15 their ready-made planes, including the mystery plane: the SR20.28 By about 2000, the SR series 16 was a bestseller.29 By 2011, a foreign entity purchased the company.30 And by about 2019, the 17 Vision Jet became the most-delivered turbo jet.31 Cirrus Aircraft had taken off. 18

19 20 Id. 21 Id. 20 22 Id. at 57:10-58:8. 21 23 Id. at 60:8-17. 22 24 Id. at 60:8-63:5. 23 25 Ex. 1 at 001. 24 26 Exs. 1, 2; ECF No. 176 at 31:4-14, 32:1-10. 27 ECF No. 174 at 61:5-63:20. 25 28 Id. at 63:2-64:12. 26 29 Id. at 125:12-20. 27 30 Id. at 106:1-3. 1 II. Cirrus Aircraft discovers Cirrus Aviation 2 Years later, in 2014, Cirrus Aircraft was surprised to learn that another company was 3 using its name. Todd Simmons—Cirrus Aircraft’s executive vice president of sales, marketing, 4 and support—had stumbled across Cirrus Aviation’s website, cirrusav.com.32 Concerned, he sent 5 the website link to others in the company, asking them to investigate.33 6 This was not the first time another company had used the name Cirrus.

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Bluebook (online)
Cirrus Aviation Services, LLC v. Cirrus Design Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cirrus-aviation-services-llc-v-cirrus-design-corporation-nvd-2023.