D & J Master Clean, Inc. v. ServiceMaster Co.

181 F. Supp. 2d 821, 2002 U.S. Dist. LEXIS 5214, 2002 WL 77201
CourtDistrict Court, S.D. Ohio
DecidedJanuary 22, 2002
DocketC2-01-524
StatusPublished
Cited by3 cases

This text of 181 F. Supp. 2d 821 (D & J Master Clean, Inc. v. ServiceMaster Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
D & J Master Clean, Inc. v. ServiceMaster Co., 181 F. Supp. 2d 821, 2002 U.S. Dist. LEXIS 5214, 2002 WL 77201 (S.D. Ohio 2002).

Opinion

ORDER AND OPINION

MARBLEY, District Judge.

I. INTRODUCTION

This matter is before the Court on Plaintiffs Amended Motion for Preliminary and Permanent Injunction filed on June 22, 2001, and Defendant’s Motion for Judgment on Partial Findings Pursuant to Rule 52(c) of the Federal Rules of Civil Procedure filed on October 29, 2001. On October 1 and 2, 2001, this Court held a preliminary injunction hearing. For the following reasons, upon consideration of the evidence adduced at the hearing and the arguments of counsel, the Court DENIES Plaintiffs motion and DENIES Defendant’s motion.

II. STATEMENT OF FACTS

Plaintiff D & J Master Clean (“Master Clean”) is an Ohio Corporation that maintains its principal place of business in Franklin County, Ohio. Master Clean provides, among other services, carpet cleaning and commercial janitorial services throughout the Central Ohio area. Plaintiff has used the service mark “MASTER CLEAN” since its inception in 1989. Plaintiff has not registered MASTER CLEAN as a trademark, but has acted to protect its common law trademark rights in this service mark, and has invested approximately $500,000 per year in developing a brand name and customer loyalty to it.

Defendant ServiceMaster Company (“SMC”) is a Delaware Corporation that is licensed to conduct business in Ohio, and has provided cleaning services since its founding in 1929. Today, SMC and its various affiliates and franchisees also offer hospital and pharmacy management services, food management services, lawn care and maintenance services, home inspection services, and pest control services. The mark “ServiceMASTER®” has been used by SMC and its predecessors in connection with commercial and residential cleaning services since at least 1954.

In or about January 1997, SMC expanded its ServiceMASTER family of marks to include the marks “ServiceMASTER Clean®” and “ServiceMASTER Clean *824 AND DESIGN.” 1 Defendant adopted these new marks to distinguish better SMC’s professional cleaning services and franchise systems from its other expanding service groups, such as its home health care, lawn care, and food management groups. From 1997 to 1999, Defendant and its franchisees changed their use and display of marketing materials, business forms and other printed materials, uniforms, internet web sites, training manuals, decals, interior and exterior signs, telephone directory listings, and the like, from ServiceMASTER to ServiceMASTER Clean and ServiceMASTER Clean AND DESIGN. SMC estimates that the company and its franchisees spent over $1 million in transition costs doing so. Defendant also estimates that an average of $14 million has been spent each year on regional and local advertising and promotion of the ServiceMASTER Clean mark in addition to the $2.5 million expended annually at the national level.

Columbus-area residents have been served by ServiceMASTER or Service-MASTER Clean franchisees since the 1960s, when the first ServiceMASTER franchise was established there. There are currently more than 130 SMC franchisees operating in Ohio, including eleven in the seven-county Central Ohio area. With more than 2700 franchisees in the United States, SMC’s ServiceMASTER Clean franchise system is one of the nation’s largest residential and commercial cleaning businesses.

Plaintiff and Defendant are direct competitors in Central Ohio. Plaintiff claims that Defendant, by adopting its Service-MASTER Clean mark, has created confusion among consumers about the two companies. Master Clean sent a cease and desist letter to SMC on or about October 16, 2000, asking that SMC cease using the ServiceMASTER Clean mark in the Central Ohio market. Defendant has ignored the letter and continued to use this mark in Central Ohio. As a result, Plaintiff alleges that it has lost business, has had the value of its service mark diluted, and has lost reputation and good will in the community. Plaintiff filed suit in this Court and seeks a preliminary and permanent injunction enjoining Defendant from further use of the ServiceMASTER Clean slogan and service mark in the Central Ohio market.

III. MOTION FOR PRELIMINARY AND PERMANENT INJUNCTION

In determining whether to issue a preliminary injunction, the district court must look at: (1) whether the movant has shown a strong likelihood of success on the merits; (2) the irreparable harm that could result to the movant if the injunction is not issued; (3) the possibility of substantial harm to others if the injunction is issued; and (4) whether the public interest would be served by issuing the injunction. Rock and Roll Hall of Fame and Museum, Inc. v. Gentile Productions, 134 F.3d 749, 753 (6th Cir.1998). The elements are factors to be balanced against each other, but each element need not be satisfied to issue a preliminary injunction. Dayton Area Visually Impaired Persons, Inc. v. Fisher, 70 F.3d 1474, 1480 (6th Cir.1995) (citing In re DeLorean Motor Co., 755 F.2d 1223, 1229 (6th Cir.1985)). A preliminary injunction is an extraordinary remedy that should only be granted if the movant carries his or her burden of proving that the circumstances clearly demand it. Leary v. Daeschner, 228 F.3d 729, 739 (6th Cir.2000) (citations omitted). The Court will examine each of these elements to deter *825 mine whether the Plaintiff has met its burden.

A. Likelihood of the Success on the Merits

Plaintiff claims that Defendant’s actions constitute an intentional infringement of the trademarks and service marks of Master Clean, and unfair competition in violation of the Lanham Act. 15 U.S.C. § 1125(a). To prove these allegations, Master Clean must demonstrate that it has an interest in a senior trademark that may be protected, and that SMC’s use of the term “ServiceMASTER Clean ” is likely to cause confusion or mistake, or is likely to deceive a reasonable consumer as to the origin, sponsorship, or approval of Master Clean’s goods or services. Id. Plaintiff is unlikely to satisfy this test for two reasons. First, Plaintiffs claims are precluded by the “tacking rule.” Second, even if the tacking rule does not apply, Plaintiff cannot establish a likelihood of confusion between its mark and that of Defendant.

1. Tacking Rule

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Bluebook (online)
181 F. Supp. 2d 821, 2002 U.S. Dist. LEXIS 5214, 2002 WL 77201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/d-j-master-clean-inc-v-servicemaster-co-ohsd-2002.