David Austin Roses Limited v. GCM Ranch LLC

CourtDistrict Court, N.D. Texas
DecidedJanuary 28, 2025
Docket3:24-cv-00882
StatusUnknown

This text of David Austin Roses Limited v. GCM Ranch LLC (David Austin Roses Limited v. GCM Ranch LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
David Austin Roses Limited v. GCM Ranch LLC, (N.D. Tex. 2025).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

DAVID AUSTIN ROSES LIMITED, § § Plaintiff, § § v. § CIVIL ACTION NO. 3:24-CV-0882-B § GCM RANCH LLC; MIO REN; § SPROUTIQUE LLC D/B/A ZEPHYR § GARDEN; YUANYUAN LIU; FEIFEI § ZHUO; and JOSE JAIMES, § § Defendants. §

MEMORANDUM OPINION AND ORDER

Before the Court is Defendants GCM Ranch LLC and Mio Ren (collectively, “GCM Ranch”)’s Motion to Dismiss Plaintiff David Austin Roses Limited (“David Austin”)’s First Amended Complaint (Doc. 27). For the following reasons, the Court GRANTS IN PART and DENIES IN PART the Motion. I. BACKGROUND This case is about roses. David Austin develops “beautiful and popular English roses.” Doc. 26, Am. Compl., ¶ 19. The company considers its rose plant varieties to be proprietary. Id. ¶ 20. As such, each rose at issue in this lawsuit is patented, id., and the name of each rose is trademarked, id. ¶ 60. David Austin marks every patented rose it sells with that plant’s specific patent number. Id. ¶ 21. GCM Ranch also sells roses. Id. ¶ 27. David Austin alleges that GCM Ranch is “selling roses that are protected by the David Austin Patents and which bear the David Austin Trademarks.” Id. ¶ 29. After developing a new rose variety, David Austin then attempts to patent the rose and trademark the name of the rose. See id. { 23. David Austin sells the patented rose under its trademarked name. See id. For example, its “Auslevity” rose variety is sold under the trademarked name “Beatrice,” its “Ausimmon” rose variety is sold under the trademarked name “Miranda,” and its “Auspastor” rose is sold under the trademarked name “Patience.” Id. David Austin alleges that GCM Ranch sells roses that are identical to the patented roses. Doc. 26, Am. Compl., { 32. David Austin attached each of the company’s patents at issue in this lawsuit to its Amended Complaint. Id. {| 22; see also Doc. 26-1, Ex. 1-Doc. 26-19, Ex. 19. Additionally, David Austin included screenshots of GCM Ranch’s online listings in its pleadings. Doc. 26-21, Ex. 21-Doc. 26-23, Ex. 23. For example, the following picture of the Auslevity rose variety, which is sold under the trademarked name “Beatrice,” is attached to the Amended Complaint:

Ca a —_—- (x

Doc. 26-13, Ex. 13, 5. And GCM Ranch sells the following rose that David Austin alleges is identical to the Beatrice rose: 2.

Homepage > Home & Living > Quidoor & Gardening > Plants 4 Only 9 left and in 13 baskets ° ($53.99 7 Wedding Rose - [Yellow] Cutting Rose] | “7+ = | A 1.5 Gel Own Root) Strong Disease Resistance) Strong ( Tee Upright! Less thorns | Seis) © GomRanch #47 1.1% reviews @ Delivery from Taxes Lion fe i: 4 Star Seller. Thia seller conzistently cerned 5-ster reviews, ao = fa = ae oe d 1: Seo oan aod replied quickly Wary meeszges iy eH | ie a 1 em details “ ff, fo ess ye □□ pal ® Hendmade er hi i ‘ @ Delivery from Texas! Shorter delivery distances are ~ * i kinder to the planet Ss tl @y Materials: rose, rosa, flower, rareplant, plant en Yd @Characteristics : @ Color: Yellow _ Cream.Gradient Seetns Ene ee Flowering: Repeat Flowering- Doc. 26-21, Ex. 21, 2. GCM Ranch also allegedly uses David Austin’s trademarked names to sell GCM Ranch’s roses. Id. 29. One of GCM Ranch’s customers received their roses in packaging labeled as “Beatrice,” “Miranda,” and “Patience.” Doc. 26-21, Ex. 21, 4. These are the same names that David Austin has trademarked. Doc. 26, Am. Compl., [J 23(i), 23(k), 23(n). David Austin asserts four causes of action—one patent claim and three Lanham Act claims. First, David Austin alleges that GCM Ranch willfully infringed nine of David Austin’s plant patents. Id. [J 139-66. Second, David Austin alleges that GCM Ranch committed trademark infringement by using David Austin’s trademarked names to sell GCM Ranch’s roses in violation of 15 U.S.C. § 1114. Id. {§f 167-77. Third, David Austin asserts a claim for False Designation of Origin under 15 ULS.C. § 1125(a)(1)(A). Id. I 178-88. Fourth, David Austin asserts a claim for Unfair Competition under the Lanham Act, 15 U.S.C. § 1125(a)(1)(B). Id. [Jf 189-95.

3.

GCM Ranch moves to dismiss all four of David Austin’s claims. See generally Doc. 27, Mot. The Court considers the Motion below. II.

LEGAL STANDARD Under Federal Rule of Civil Procedure 8(a)(2), a complaint must contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Rule 12(b)(6) authorizes a court to dismiss a plaintiff’s complaint for “failure to state a claim upon which relief can be granted.” FED. R. CIV. P. 12(b)(6). In considering a Rule 12(b)(6) motion to dismiss, “the Court must accept all well- pleaded facts as true, and view them in the light most favorable to the plaintiff.” Walker v. Beaumont

Indep. Sch. Dist., 938 F.3d 724, 735 (5th Cir. 2019) (alteration in original) (citation omitted). But the Court will “not look beyond the face of the pleadings to determine whether relief should be granted based on the alleged facts.” Spivey v. Robertson, 197 F.3d 772, 774 (5th Cir. 1999). To survive a motion to dismiss, plaintiffs must plead “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). “Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.”

Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Id. (quoting Twombly, 550 U.S. at 556). When well-pleaded facts fail to meet this standard, “the complaint has alleged—but it has not shown—that the pleader is entitled to relief.” Id. at 679 (alteration omitted)

(citation omitted). III. ANALYSIS The Court grants in part and denies in part GCM Ranch’s Motion to Dismiss. First, David

Austin failed to state a claim for willful patent infringement. Second, David Austin sufficiently pleaded that there would be a likelihood of consumer confusion in connection with GCM Ranch using David Austin’s trademarks. Thus, David Austin stated a plausible claim for relief for all three of its Lanham Act claims. A. David Austin Did Not Sufficiently Plead Its Willful Patent Infringement Claim. David Austin adequately alleged that GCM Ranch knew of the nine plant patents at issue in this lawsuit, but David Austin failed to allege that GCM Ranch infringed the plant patents. As a

preliminary matter, the Court applies the Federal Circuit’s binding precedent to the “substantive issues of patent law” arising out of David Austin’s claim for willful patent infringement. See Soverain Software LLC v. Victoria’s Secret Direct Brand Mgmt., LLC, 778 F.3d 1311, 1314 (Fed. Cir. 2015). However, the Court applies the law of the Fifth Circuit with respect to any “general procedural question[s].” See id.

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David Austin Roses Limited v. GCM Ranch LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/david-austin-roses-limited-v-gcm-ranch-llc-txnd-2025.