Converse Inc. v. Reebok International Ltd.

328 F. Supp. 2d 166, 2004 U.S. Dist. LEXIS 15100, 2004 WL 1763755
CourtDistrict Court, D. Massachusetts
DecidedAugust 5, 2004
DocketCIV.A. 01-12249 RCL
StatusPublished
Cited by13 cases

This text of 328 F. Supp. 2d 166 (Converse Inc. v. Reebok International Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Converse Inc. v. Reebok International Ltd., 328 F. Supp. 2d 166, 2004 U.S. Dist. LEXIS 15100, 2004 WL 1763755 (D. Mass. 2004).

Opinion

MEMORANDUM AND ORDER ON MAGISTRATE JUDGE’S REPORT AND RECOMMENDATION ON PLAINTIFF’S MOTION FOR CONTEMPT AND ENFORCEMENT OF THE CONSENT JUDGMENT AND ORDER

LINDSAY, District Judge.

Before the court is a motion filed by Converse Inc. (“Converse”) for contempt and enforcement of a consent decree entered in favor of Converse against Reebok International Ltd. (“Reebok”) on December 28, 2001. The motion was referred to Magistrate Judge Joyce London Alexander for a report and recommendation. On May 14, 2004, Judge Alexander issued findings and recommendations in which she recommended that the motion for contempt be denied and that sanctions be imposed on Converse in the form of a requirement that Converse reimburse Reebok for attorneys’ fees and costs incurred by Reebok in preparing its initial opposition to the motion for contempt.

After conducting a de novo review of the issues raised by the motion, I accept the magistrate judge’s recommendations. I add the following observations, however, to address some of the plaintiffs objections.

Judge Alexander found that “the quoted part of paragraph 3(a) [of the consent decree] and the entirety of paragraph 3(b) fail pursuant to Rule 65(d) for lack of specificity,” explaining that “[t]he requirements in those paragraphs are ‘do not break the law’ admonishments.” See Findings and Recommendations on PL’s Mot. for Contempt and Enforcement of the Consent Judgment and Order (“Findings and Recommendations”) at 16. The plaintiff objects on two grounds: (1) that Judge Alexander did not clearly specify which part of paragraph 3(a) fails for lack of specificity; and (2) that courts routinely *169 honor consent decrees that quote statutory language.

While there may be some superficial ambiguity about which portion of paragraph 3(a) was found to be deficient, any confusion is easily dispelled by a careful review of the magistrate judge’s findings. Judge Alexander found that Reebok had not used the designation or mark “ALL-STAR” or any of the other Converse Trademarks. Her consideration of these two prohibitions found in paragraph 3(a) suggests that she did not intend to find that they presented a Rule 65(d) problem. The only portion of paragraph 3(a) that she found to be deficient, then, was the third prohibition containing language quoted from the Lanham Act. See 15 U.S.C. § 1125(a)(1)(A).

As to the plaintiffs second objection, I agree with Judge Alexander that, in some cases, a consent decree containing abstract legal language will not comply with Rule 65(d). See International Longshoremen’s Assn., Local 1291 v. Philadelphia Marine Trade Assn., 389 U.S. 64, 76, 88 S.Ct. 201, 19 L.Ed.2d 236 (noting that abstract conclusions of law are not “operative command[s] capable of enforcement”). This is one of those cases. In Sterling Drug, Inc. v. Bayer AG, the Second Circuit held that “where the parties share rights to the ‘Bayer’ mark ..., requiring [the defendant] to guess^ — on pain of contempt — at what conduct the Lanham Act proscribes is too onerous a burden.” 14 F.3d 733, 748-49 (2d Cir.1994). Although Reebok does not share the rights to the designation or mark “ALL-STAR” with Converse, Reebok has not, by entering into the consent decree, surrendered all rights to the use of the term “ALL-STAR.” Reebok, in full compliance with the consent decree and the Lanham Act, could use “ALL-STAR” as a descriptive term referring to the NBA All-Star game. Thus, Reebok is in the same position as the defendant in Sterling. That is, Reebok must guess at what conduct the Lanham Act might proscribe, given that some uses of the term “ALL-STAR” would certainly be permissible under the Act. 1 Reebok’s interpretive dilemma is especially acute because there has been no prior judgment of infringement and thus no example of what would be found to infringe.

Additionally, I agree with Judge Alexander’s findings that the accused shoes do not violate the consent decree, and I spill ink here only to make clear my reasons for accepting these findings. First, the appearance of the term “ALL-STAR” in the names of the shoes and within the NBA logo on the sockliner does not violate the consent decree’s prohibition against use of “the designation or mark ‘ALL-STAR’ ” because the term does not function as a source-identifier in this context. Instead, it is a descriptive term clearly meant to refer to the then upcoming NBA All-Star *170 Game. Second, the registration for the placement mark (registration number 1,490,262) depicts, in the words of the registration itself, “a shoe design shown in dotted lines demonstrating the placement of a circular ankle patch on the side of the shoe.” The patch on the accused shoe, however, is square, not circular, and it does not resemble the Chuck Taylor emblem pictured in the registration. If Converse believes that Reebok has infringed its trademarks, it may file the appropriate action, but Converse has presented no clear and convincing evidence that Reebok’s shoes violate the terms of the consent decree now at issue.

Finally, I must address the issue of sanctions. In her report, Judge Alexander addresses the bases in law and fact for sanctioning Converse’s deliberate violation of Local Rule 7.1, and I endorse her reasoning and conclusion wholeheartedly. Here, I address only Converse’s objections to the severity of the sanction.

In its objections, Converse does not dispute the finding that its counsel violated Rule 7.1. Instead, Converse claims that the sanctions proposed by the magistrate judge are grossly disproportionate to Converse’s conduct and, essentially, that an award of attorneys’ fees will over-compensate Reebok for the difficulties of having to mount a hasty defense to the motion for contempt in light of the fact that no hearing was actually held until nearly four months after Converse initially filed its “emergency” motion. In making these arguments, Converse fails to account for the “aspect of bad faith” found by Judge Alexander, see Findings and Recommendations at 9 n. 4, and ignores the legitimate punitive and deterrent purposes of sanctions. See United States v. Kouri-Perez, 187 F.3d 1, 8 (1st Cir.1999) (“[Normally there is much to be said for deploying the least extreme sanction reasonably calculated to achieve the appropriate punitive and deterrent purposes.”). 2 Clearly, counsel for Converse has not taken responsibility for what the magistrate judge found was a “deliberate choice to disregard the rules of the District Court,” see Findings and Recommendations at 7, and instead euphemistically characterizes the attempt to blindside Reebok with an emergency motion filed the Friday before a holiday weekend as a mere “failure to wait,” see Converse Inc.’s Objections, Docket No. 37, at 16. Moreover, Converse’s argument that Reebok suffered no prejudice is, for the reasons stated in the Findings and Recommendations, irrelevant.

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Bluebook (online)
328 F. Supp. 2d 166, 2004 U.S. Dist. LEXIS 15100, 2004 WL 1763755, Counsel Stack Legal Research, https://law.counselstack.com/opinion/converse-inc-v-reebok-international-ltd-mad-2004.