Exclaim Marketing, LLC v. DIRECTV, LLC

674 F. App'x 250
CourtCourt of Appeals for the Fourth Circuit
DecidedDecember 29, 2016
Docket15-2339
StatusUnpublished
Cited by6 cases

This text of 674 F. App'x 250 (Exclaim Marketing, LLC v. DIRECTV, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Exclaim Marketing, LLC v. DIRECTV, LLC, 674 F. App'x 250 (4th Cir. 2016).

Opinion

Affirmed by unpublished per curiam opinion.

Unpublished opinions are not binding precedent in this circuit.

PER CURIAM:

A jury awarded $760,000.00 to Exclaim Marketing, LLC, (“Exclaim”) on its North Carolina Unfair and Deceptive Trade Practices Act (“UDTPA”) claim against DirecTV, LLC, (“DirecTV”) and $25,000.00 to DirecTV on its counterclaim for trademark infringement. Thereafter, the district court granted DirecTV’s motions for judgment as- a matter of- law on the UDTPA claim and for an increased award of profits under the counterclaim. Exclaim appeals both of these judgments. In addition, DirecTV has filed a cross-appeal challenging the district court’s denial of its motion for attorney’s fees. For the reasons that follow, we affirm the judgments of the district court in their entirety.

I.

Exclaim is a nationwide marketing company that, in relevant part, acts as a liaison between potential satellite television consumers and satellite television retailers. It purchases thousands of telephone numbers that are then included in telephone directories under various listings. Often, a single Exclaim telephone number will be used in multiple listings in multiple directories. When a consumer calls the number, a telemarketer at a call center asks some screening questions and then forwards the *252 call to one of its clients, a retailer of satellite television. These retailer-clients pay Exclaim for each forwarded call, regardless of whether the consumer eventually purchases satellite television.

The retailers in turn have contracted with one or more providers of satellite television to “market, advertise, and promote” their services. Exclaim Mktg., LLC v. DirecTV, LLC (Exclaim I), 134 F.Supp.3d 1011, 1016 (E.D.N.C. 2015). DirecTV and Dish Network are the leading satellite television providers in the United States. DirecTV’s retailer contracts regulate how its retailers operate and include a restriction that DirecTV retailers can only contract with a third party—such as Exclaim—with DirecTV’s written consent. DirecTV did not provide written authorization for its retailers to contract with Exclaim.

Although most of Exclaim’s telephone directory listings are identified in generic terms such as “satellite television,” some of its listings used the name “DirecTV” or a close variant such as “Direct TV” or “DIRECTTV.” When DirecTV discovered the unauthorized use of its name, the company concluded that was a violation of its trademark. Accordingly, DirecTV hired an outside company to investigate who owned the listings by calling the numbers associated with them. In addition, one of DirecTV’s employees also called some of the listings. At times, the callers would give the intermediary telemarketer a false name as part of their conversation. Once DirecTV identified Exclaim as the owner of numbers tied to these allegedly infringing listings, DirecTV contacted Exclaim and asked that Exclaim coordinate to have the listings removed or renamed. Exclaim took steps to remove some of the listings, but over the course of several years DirecTV continued to identify unauthorized listings owned by Exclaim using DirecTV’s name and its variants.

In 2011, Exclaim filed a lawsuit in North Carolina state court against DirecTV alleging that it had violated the UDTPA, N.C. Gen. Stat. § 75-1.1 et seq. On the basis of diversity jurisdiction, DirecTV removed the case to the U.S. District Court for the Eastern District of North Carolina and filed a counterclaim against Exclaim alleging trademark infringement, in violation of the Lanham Act, 15 U.S.C. § 1114. 1

At trial, Exclaim alleged UDTPA violations arising from multiple practices, but the jury found that DirecTV only engaged in one of them. Specifically, the jury found that DirecTV “telephoned Exclaim Marketing, LLC’s call center over 175 times over a, six year period, at times using false names.” J.A. 1743. It further found that this conduct proximately caused injury to Exclaim and that Exclaim was entitled to damages in the amount of $760,000.00.

On DirecTV’s counterclaim, the jury found that Exclaim used DirecTV’s “trademark or a misspelling of the trademark in connection with the sale, offering for sale, distribution or advertising of products or services,” and that it did so “in a manner likely to cause confusion, mistake, or deception as to the source, origin, affiliation, approval, or sponsorship” of Exclaim’s goods or services. J.A. 1744. The jury specifically found that Exclaim’s conduct was “undertaken with the intent to confuse or deceive” and awarded DirecTV $25,000.00 for trademark infringement. J.A. 1746.

The issues on appeal arise from the district court’s rulings on three post-trial motions filed by DirecTV. First, DirecTV renewed its motion for judgment as a matter of law on Exclaim’s UDTPA claim, *253 contending that its conduct did not support a UDTPA claim as a matter of law. The district court granted DirecTV’s motion, concluding that the phone calls to Exclaim were not “in or affecting commerce,” nor did they constitute an “unfair or deceptive” practice, both of which were required to state a UDTPA claim. Exclaim I, 134 F.Supp.3d at 1020-25. Second, DirecTV moved for an increased profits award on its successful trademark infringement claim, contending that $25,000.00 was inadequate to account for Exclaim’s wrongdoing. The district court granted that motion as well, though it awarded less than the amount DirecTV sought. The district court awarded DirecTV $610,560.00 based on a calculation of the profit Exclaim derived from each infringing number over the course of Exclaim’s infringement. Exclaim Mktg., LLC v. DirecTV, LLC (Exclaim II), No. 5:11-CV-684-FL, 2015 WL 5725692 (E.D.N.C. Sept. 30, 2015). Third, DirecTV moved for statutory attorney’s fees in light of its successful trademark infringement verdict. The district court denied that motion, concluding no award of attorney’s fees was warranted because this case did not meet the statutory requirement of being “exceptional.” Exclaim Mktg., LLC v. DirecTV, LLC (Exclaim III), No. 5:11-CV-684-FL, 2015 WL 5725703 (E.D.N.C. Sept. 30, 2015).

Exclaim noted a timely appeal, as did DirecTV. We have jurisdiction under 28 U.S.C. § 1291.

II.

This case presents three issues: (1) whether the district court erred in granting DirecTV’s motion for judgment as a matter of law on Exclaim’s UDTPA claim; (2) whether the district court abused its discretion in increasing the jury’s award of damages from $25,000,00 to $610,560.00 in profits arising from DirecTV’s trademark infringement claim; and (3) whether the district court abused its discretion in denying DirecTV’s motion for statutory attorney’s fees as the prevailing party in the trademark infringement claim. We address each issue in turn.

A. UDTPA Claim

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Cite This Page — Counsel Stack

Bluebook (online)
674 F. App'x 250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exclaim-marketing-llc-v-directv-llc-ca4-2016.