Corbitt Manufacturing Co. v. GSO America, Inc.

197 F. Supp. 2d 1368, 2002 U.S. Dist. LEXIS 7100, 2002 WL 654241
CourtDistrict Court, S.D. Georgia
DecidedApril 19, 2002
DocketCV 201-204
StatusPublished
Cited by4 cases

This text of 197 F. Supp. 2d 1368 (Corbitt Manufacturing Co. v. GSO America, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Corbitt Manufacturing Co. v. GSO America, Inc., 197 F. Supp. 2d 1368, 2002 U.S. Dist. LEXIS 7100, 2002 WL 654241 (S.D. Ga. 2002).

Opinion

ORDER

BOWEN, Chief Judge.

Plaintiff Corbitt Manufacturing Company has moved for a preliminary injunction. On March 27 and 28, 2002, an evidentiary hearing was held to address Plaintiffs request. For reasons stated below, Plaintiffs motion for a preliminary injunction is DENIED.

I. Introduction

Plaintiff and Defendants manufacture and market mulch. In 1990, Plaintiff registered the trademark “NO FLOAT” for its mulch. Plaintiff packages and sells its mulch under this name. According to Plaintiff, Defendants are infringing this trademark by using the words “NON-FLOATING” on their packaging. Plaintiff also brings additional federal and state law trademark claims.

Defendants produce a similar mulch. Defendants admit to using “NON-FLOATING” on their packaging, but they claim this constitutes fair use — a defense to a trademark infringement claim. Defendants contend that “NON-FLOATING” is a common descriptive term for mulch. They also maintain that the description is necessary because consumers demand a mulch which resists the tendency to “float” or move due to rainfall or irrigation. In addition, Defendants deny that their packaging creates a likelihood of confusion with Plaintiffs product.

II. Background

Plaintiff is a Florida corporation. Plaintiff claims it has sold mulch under its “NO FLOAT” mark since 1990. On October 10, 1990, Plaintiff filed an application for federal registration of its NO FLOAT mark. The United States Patent & Trademark Office approved the application on July 14, 1992.

The name NO FLOAT is not arbitrary. Plaintiff contends its mulch possesses superior qualities which distinguish it from the competition. Specifically, Plaintiff claims that its mulch lacks the propensity to float away when exposed to water. To achieve this characteristic, Plaintiff uses a patented manufacturing process.

Since 1990, Plaintiff has developed a large enterprise in manufacturing and selling mulch. Plaintiff sells its product in twenty-eight states, Guam, and Puerto Rico. NO FLOAT is sold by over 400 unaffiliated retailers, including Home Depot and Wal-Mart. Over the past five years, Plaintiff has sold over 23 million *1373 bags of mulch, spent $800,000 to promote NO FLOAT, and generated $37 million in revenues.

Defendants GSO America, Inc. and GSO Georgia, Inc. (collectively “GSO”) are Ohio corporations. GSO Georgia is authorized to do business in Georgia. GSO also manufactures and markets mulch. In 1970, it began operating in the mulch market as a broker. Over time, GSO expanded its operations.

According to GSO, it produces a “premium-grade cypress mulch” for commercial and residential landscaping. GSO claims its mulch resists decay and insect infestation. More importantly, GSO maintains that its “100% cypress mulch” does not float away.

GSO has two lines of mulch products. One line is sold under its house name and logo, GSO AMERICA. GSO AMERICA is a federally registered trademark. According to GSO, it has marketed this line since January 1, 1990. GSO’s other mulch product line uses the brand name GOLDEN TROPHY. GOLDEN TROPHY is also a registered trademark and was first used in January 1991. GOLDEN TROPHY is GSO’s premium brand.

In 1999, GSO altered the packaging of GOLDEN TROPHY. According to GSO, it wanted to highlight GOLDEN TROPHY’S water-resistant properties. To this end, GSO placed the following quotation on the packaging: “won’t wash away, blow away or float away!”

In 2000, GSO altered its packaging again. The reason for this change is disputed. In addition to stating the mulch “won’t wash away, blow away or float away,” the packaging reads “100% Cypress Mulch” on one line, and “NON-FLOATING” on the line below. The two lines containing “100% Cypress Mulch” and “NON-FLOATING” appear near the center of the package. This lawsuit turns on GSO’s use of “NON FLOATING.” Corbitt claims “NON FLOATING” infringes and dilutes its NO FLOAT trademark. In addition, Corbitt claims Defendants’ product actually floats away when exposed to water.

Otherwise, GSO’s latest packaging is clear. The label and print colors are green, gold, and blue. The packaging also contains the depiction of a rain cloud. GSO asserts that these changes occurred to emphasize the water-resistant characteristics of GOLDEN TROPHY. GSO maintains that the trademarks, GSO AMERICA and GOLDEN TROPHY, clearly appear on the front and sides of this packaging. Most importantly, GSO argues that the changes do not, and were not intended to, create confusion with Plaintiffs NO FLOAT brand.

GSO contrasts its packaging with Plaintiffs NO FLOAT packages. According to GSO, NO FLOAT comes in two types of packaging. One contains black striping with gold trim, limited white wording, and a blue water design. The other package is labeled, “PURE TIDEWATER RED CYPRESS, THE LONGEST LASTING, MOST DECORATIVE.” The second package also contains four panels describing the properties of the mulch. At the bottom, the NO FLOAT trademark appears. Both packages contain the word “CORBITT,” Plaintiffs house mark.

In the fall of 2001, GSO entered into negotiations to purchase the Corbitt company. The negotiations failed. Shortly afterwards, GSO claims that Corbitt complained about GSO’s packaging for the first time. Corbitt filed suit on November 9, 2001.

Corbitt brings an assortment of federal and state law claims. All of the federal claims fall under the Lanham Act and include trademark infringement, trademark dilution, false designation of origin, and unfair competition. With the addition *1374 of a false advertising claim, the state-law claims mirror the federal ones. Based on these claims, Corbitt seeks a preliminary injunction.

III. Preliminary Injunction Standard

Corbitt wishes to enjoin the use of “NON-FLOATING” on GSO’s packaging. Corbitt possesses a burden of persuasion to show: (1) a substantial likelihood of success on -the merits; (2) a substantial threat of irreparable injury; (3) that its own injury outweighs the injury to the other party; and (4) the injunction would serve the public interest. Tally-Ho, Inc. v. Coast Cmty. Coll. Dist., 889 F.2d 1018, 1022 (11th Cir.1989). A preliminary injunction is an extreme remedy and should be granted only when all four elements are clearly established. Horton v. City of St. Augustine, 272 F.3d 1318, 1326 (11th Cir.2001).

Although the other factors will be discussed, the primary question is whether Corbitt has shown a substantial likelihood of success on the merits. Corbitt seeks a preliminary injunction based on all of its claims. Each claim will be discussed in turn.

A. Likelihood of Success on the Merits

1. Trademark Infringement

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Bluebook (online)
197 F. Supp. 2d 1368, 2002 U.S. Dist. LEXIS 7100, 2002 WL 654241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/corbitt-manufacturing-co-v-gso-america-inc-gasd-2002.