CSL Silicones, Inc. v. Midsun Grp. Inc.

301 F. Supp. 3d 328
CourtDistrict Court, D. Connecticut
DecidedMarch 15, 2018
DocketCivil Action No. 3:14-CV-1897 (CSH)
StatusPublished
Cited by11 cases

This text of 301 F. Supp. 3d 328 (CSL Silicones, Inc. v. Midsun Grp. Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CSL Silicones, Inc. v. Midsun Grp. Inc., 301 F. Supp. 3d 328 (D. Conn. 2018).

Opinion

CHARLES S. HAIGHT, JR., SENIOR UNITED STATES DISTRICT JUDGE

*339Plaintiff CSL Silicones, Inc. ("CSL") brought this action against Defendant Midsun Group Inc. ("Midsun") in connection with Midsun's alleged improper use of CSL's trademarks. CSL alleges that Midsun markets and sells two silicone-based coating products under marks similar to CSL's chosen marks for its own silicone-based coating products. CSL brings claims for trademark infringement and unfair competition pursuant to the federal Lanham Act, 15 U.S.C. § 1051 et seq. , and claims pursuant to the Connecticut Unfair Trade Practices Act ("CUTPA"), Conn. Gen. Stat. § 42-110. Midsun has brought counterclaims against CSL, alleging violations of the Lanham Act and CUTPA.1 The Court has issued a number of rulings in this matter, familiarity with which is assumed.

The parties have filed cross-motions for partial summary judgment, pursuant to Rule 56 of the Federal Rules of Civil Procedure. Four motions are pending; this Ruling resolves them.

I. BACKGROUND

The following facts are derived from the parties' submissions pursuant to Local Rule 56(a);2 the uncontroverted deposition testimony; and the affidavits and exhibits *340attached to the parties' submissions. The facts recounted in this section are undisputed or indisputable.

CSL is a Canadian corporation with its principal place of business in Ontario, Canada. CSL's Local Rule 56(a)(1) Statement in Support of CSL Silicones Inc.'s Motion for Partial Summary Judgment, Doc. 171-1 ¶ 1. Midsun is a Connecticut corporation with its principal place of business in Southington, Connecticut. Id. ¶ 2. Founded in 1984, CSL develops and sells high-voltage silicone-based coatings for high voltage insulator, anti-corrosion, and anti-graffiti applications in certain industries. Id. ¶ 3. Midsun was founded in 1992, and started out as a distributor and applicator of other companies' coating systems for electrical applications. Id. ¶ 8, 10; Doc. 171-3 at 2. Initially, Midsun did not manufacture its own products. Id. ¶ 9.

In 1994, Midsun and CSL entered into a distribution agreement. Id. ¶ 11. The agreement stated that Midsun "wishes to establish an exclusive marketing arrangement with a manufacturer of high quality silicones." Doc. 171-3 at 2. The agreement further provided that "CSL has developed silicone coatings; 560, 570, 579 ... for electrical applications hereafter referred to as the 'products' ". Id. Under the agreement, CSL appointed Midsun to be the "exclusive agent for sales, distribution, marketing and application of products[.]" Id. Midsun agreed to "use its best efforts to promote the use of the 'products,' " including providing "advertising, publicity, direct sales and other marketing to cover all potential customers" in the relevant territories. Id. at 3. Midsun further agreed to "do nothing which would in any way damage the reputation of CSL or its products." Id. CSL agreed, inter alia , to permit Midsun to identify itself as the exclusive agent of the products and to publish Product Data Sheets, sales literature, and press releases. Id. Thus, under the agreement, Midsun would purchase products from CSL in Canada, and would resell the products to customers in the United States. Midsun's Local Rule 56(a)(1) Statement in Support of Midsun Group, Inc.'s Motion for Partial Summary Judgment on Plaintiff's Counts V and VI, Doc. 161-1 ¶ 9.

In 1995, CSL and Midsun entered into a second distribution agreement, entitled "Sales, Marketing & Distribution Agreement." Doc. 171-5. Under this agreement, Midsun was again appointed as "the exclusive agent for sales and marketing of Products" in specific territories, in exchange for meeting a specified sales target. Id. at 2. CSL permitted Midsun "to advertise as the exclusive agent in the territories of the products ... and warranty that the products meet their specifications." Id. Pursuant to this agreement, Midsun purchased CSL's products and resold the products in the United States and other locations. Doc. 161-1 ¶ 11. The agreement contained annual sales targets. Doc. 161-1 ¶ 14. While the agreements were in effect, Midsun distributed and sold CSL's high voltage insulator coating (the '570' product) and an anti-corrosion coating (the '579' product) in the United States. Doc. 171-4 at 37.

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301 F. Supp. 3d 328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/csl-silicones-inc-v-midsun-grp-inc-ctd-2018.