Dudley v. Healthsource Chiropractic, Inc.

883 F. Supp. 2d 377, 107 U.S.P.Q. 2d (BNA) 1665, 2012 WL 3253194, 2012 U.S. Dist. LEXIS 110861
CourtDistrict Court, W.D. New York
DecidedAugust 7, 2012
DocketNo. 07-CV-6631
StatusPublished
Cited by5 cases

This text of 883 F. Supp. 2d 377 (Dudley v. Healthsource Chiropractic, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Dudley v. Healthsource Chiropractic, Inc., 883 F. Supp. 2d 377, 107 U.S.P.Q. 2d (BNA) 1665, 2012 WL 3253194, 2012 U.S. Dist. LEXIS 110861 (W.D.N.Y. 2012).

Opinion

DECISION AND ORDER

MICHAEL A. TELESCA, District Judge.

INTRODUCTION

Donald R. Dudley (“Dudley” or “Plaintiff’) brings this action against Health-Source Chiropractic, Inc. (“HealthSource Inc.”) and Stephen T. Divito (“Divito”) (collectively, “Defendants”) alleging trademark infringement, cybersquatting, false designation of origin and unfair competition, seeking monetary damages and a permanent injunction. (Docket No. 1.) Defendants filed an answer and counterclaim, denying the allegations in the complaint and seeking a declaratory judgment of non-infringement. (Docket No. 10.) Plaintiff moved for a preliminary injunction on January 29, 2008, which this Court denied in a Decision and Order dated September 30, 2008. (Docket No. 37.)

Now before the Court are the parties’ cross-motions for summary judgment, filed on December 14, 2011. Plaintiff moves for partial summary judgment on liability and seeks leave to amend the complaint to substitute DRD HealthSource Chiropractic PLLC as the Plaintiff in this case. (Docket No. 84.) Defendant moves for summary judgment seeking dismissal of Plaintiffs claims and a declaration that they did not infringe Plaintiffs trademark. (Docket No. 83.)

For the reasons set forth below, this Court grants in part and denies in part Defendants’ motion for summary judgment. The Court finds that material issues of fact remain as to the geographic extent of the Plaintiffs trademark rights. Plaintiffs motion for partial summary judgment and for leave to amend the complaint is denied.

BACKGROUND

The following facts are taken from the parties’ submissions pursuant to Local Rule 56(a) and the entire record in this case. This case arises from a dispute over the parties’ rights to use the mark “HealthSource Chiropractic” in relation to chiropractic services. Plaintiff claims that he is the senior user of the mark, having used the mark continuously since 2003 in connection with his private chiropractic practice. Plaintiff asserts trademark rights to the exclusive use of the mark in the greater Rochester area and on the internet.

Plaintiff established his practice in 2003 and obtained a d/b/a certificate for Health-Source Chiropractic from the Monroe County Clerk’s office on December 8, 2003. Plaintiff contends that he has invested significant time and resources to establish and promote his practice. He has developed relationships with several local sports teams, providing chiropractic services and some cash payments to the teams in return for advertisement and promotional opportunities, such as announcements during games, placement of his logo on the field, commercials during radio broadcasts of [385]*385games, and advertisements in team magazines. Plaintiff also asserts that he has advertised locally and regionally in the Yellow Pages, magazines, newspapers, restaurants, and on local radio. He also registered the domain name healthsourcechiropractic.com and created a web site. Plaintiff claims that his practice extends beyond the City of Rochester to all of Monroe County and the five contiguous counties and that he draws patients from those areas due to his advertising efforts and the geographic location of his clientele.

Defendant HealthSource Inc. is an Ohio corporation founded in 2005 by Chris Tom-shack, D.C., who continues as the corporation’s CEO. Dr. Tomshack states that after he retired from private chiropractic practice in 2001 he established chiropractic offices in the Ohio area under the name HealthQuest Chiropractic. In 2005, he established a chiropractic franchise, which he named HealthSource Chiropractic, Inc. Dr. Tomshack claims that he decided to use the name HealthSource Chiropractic and the corporate name HealthSource Chiropractic, Inc., because he knew of other chiropractic offices, not related to his franchise, that were operating under the name HealthQuest. Before deciding on the name, Dr. Tomshack states that his counsel conducted a trademark search with the United States Patent and Trademark Office (“PTO”), the Ohio Secretary of State, and on the internet. He asserts that he was not aware of Plaintiffs practice in Rochester when he applied for registration of the HealthSource Chiropractic mark.

Dr. Tomshack filed an intent-to-use application with the PTO on November 25, 2005 for the HealthSource Chiropractic mark in relation to chiropractic services, physical therapy, and related medical and radiology services. On December 5, 2005, after filing the intent-to-use application, he filed for incorporation of HealthSource Chiropractic, Inc. in Ohio. Dr. Tomshack then filed another intent-to-use application for the HS HealthSource logo on December 15, 2005 and filed an Allegation of Use for HS HealthSource on January 8, 2007 and HealthSource Chiropractic on February 12, 2008. HS HealthSource was registered by the PTO on July 10, 2007. HealthSource Chiropractic was registered on May 20, 2008. Both marks were registered to Dr. Tomshack as an individual. Dr. Tomshack claims that he licensed the rights to use and sub-license both marks to HealthSource Inc.

Dr. Tomshack registered the domain name healthsourcechiro.com on March 16, 2006. He claims that he chose that domain name because healthsourcechiropractic.com was already taken and there was also less chance for people to misspell chiro than chiropractic. Dr. Tomshack claims that he was not aware of Plaintiffs web site because it was unavailable or down at the time he registered his domain.

HealthSource Inc. launched its first franchise in April 2006. It currently has 325 franchisees nationwide and claims to have served 300,000 patients. In April 2007, Dr. Divito opened a HealthSource Inc. franchise in Rochester. Dr. Divito informed Dr. Tomshack that Dr. Dudley was already using the mark HealthSource Chiropractic in Rochester. Dr. Tomshack and Dr. Divito agreed that the Rochester location would operate under the name HealthQuest Chiropractic because Dr. Tomshack’s Ohio clinics previously operated under that name.

Plaintiff asserts that Defendants’ use of the HealthQuest Chiropractic mark in the greater Rochester area causes confusion with his own mark. Defendants contend that the use of HealthQuest Chiropractic in the Rochester area is not likely to cause confusion with Plaintiffs mark. Beyond renaming their Rochester franchise loca[386]*386tion, Defendants assert that they have taken additional steps to minimize confusion with Dr. Dudley’s practice. HealthSource Inc. has removed Dr. Divito’s practice from its web site, although the change was reverted for approximately one month in 2010 due to a technical error. Dr. Divito uses the web site, rochesterspinalcare.com, to promote his practice. Although Dr. Divito receives advertising templates that contain the term HealthSource from HealthSource, Inc., he replaces references to HealthSource with HealthQuest before the advertisements are published. There have been instances of a few advertisements retaining the mark HealthSource. However, Defendants claim they are unaware of any instances of patients contacting or visiting Dr. Divito’s practice when actually looking for Dr. Dudley’s practice.

Plaintiff also argues that as the senior user of the HealthSource Chiropractic mark he has exclusive common law rights within the City of Rochester, Monroe County, and the five contiguous counties as well as on the internet. The Plaintiff asserts that the use of the mark HealthQuest Chiropractic for Dr.

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883 F. Supp. 2d 377, 107 U.S.P.Q. 2d (BNA) 1665, 2012 WL 3253194, 2012 U.S. Dist. LEXIS 110861, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dudley-v-healthsource-chiropractic-inc-nywd-2012.