Fitz v. Nunez

CourtDistrict Court, N.D. Texas
DecidedAugust 29, 2024
Docket3:23-cv-02298
StatusUnknown

This text of Fitz v. Nunez (Fitz v. Nunez) 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
Fitz v. Nunez, (N.D. Tex. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

ZEFERINO OCAMPO FITZ, § § Plaintiff, § § v. § § § ELIZABETH VENEGAS NUÑEZ, § EXECUTOR AND HEIR OF THE § ESTATE OF DAVID VENEGAS § Civil Action No. 3:23-CV-02298-B FRIAS, ALEJANDRO AGUILERA § ROMAN, ALEXIS VENEGAS, GAEL § ORDAZ, EDGAR MELENDEZ, § ASCENSION QUIROZ, AND PETER § ANGEL, § § Defendants. § § §

MEMORANDUM OPINION AND ORDER

Before the Court is Defendants Elizabeth Venegas Nuñez, Executor and Heir of the Estate of David Venegas Frias (“Nuñez”), Alejandro Aguilera Roman, Alexis Venegas, Edgar Melendez, Armando Carlos Ascencion Quiroz, and Peter Angel (collectively, “Responding Defendants”1)’s Amended Motion to Dismiss (Doc. 26). Having reviewed the briefing and applicable law, the Court GRANTS IN PART and DENIES IN PART the Motion.

1 The Court vacated the Clerk’s Entry of Default as to Armando Carlos and Gael Ordaz after Plaintiff notified the Court that “Armando Carlos” and “Ascencion Quiroz” refer to the same person. See Doc 44, Mot. Vacate; Doc. 45, Order. Plaintiff has not since filed a renewed request to enter default against Gael Ordaz, who is the sole defendant that has not moved to dismiss. I. BACKGROUND A battle between musical bands, this lawsuit was launched to settle the question: who has priority use of the name “Los Yaguaru de Angel Venegas”? See generally Doc. 1, Compl. Plaintiff

Zerefino Ocampo Fitz and Responding Defendants are all citizens and residents of Mexico. Id. ¶¶ 4–15. Fitz is the longtime manager of a band called “Los Yaguaru de Angel Venegas,” also known as “Los Yaguaru.” Id. ¶ 17. Angel Venegas (“Angel”) is the founder of Los Yaguaru de Angel Venegas, which was formed more than 30 years ago. Id. ¶ 16. Los Yaguaru de Angel Venegas began performing in the United States in the 1990s and has toured continuously in the United States as early as 1998. Id.

Angel held all rights to the band’s name and business until he passed them to his successor- in-interest, who then assigned the rights to Fitz in August 2014. Id. ¶ 17. Angel passed away in October 2014. Id. ¶ 22. Fitz claims that he owns four trademarks, each of which are registered with the Mexican trademark office, depicting variations of the Los Yaguaru name and logos (“Mexican Marks”). See id. ¶ 18. The oldest mark depicts the band’s name “Los Yaguaru de Angel Venegas” in distinct curved word art. Id. This mark was registered with the Mexican trademark office on June

27, 1997, and renewed in 2017. Id. Angel, Angel’s successor-in-interest, and Fitz have continuously used all four marks in connection to the band’s live performances “since as early as 1998.” Id. ¶ 21. The band today consists of many of the same band members originally led by Angel. Id. ¶ 22. Responding Defendants are members of another musical band, which performs in the United States as “David Venegas Cachorro Presenta Angel Venegas y su Orquesta Con Sabor.” Id. ¶ 24. However, “on occasion[] and more increasingly as of recently,” they have advertised their concerts under the same name as Fitz’s band, “Los Yaguaru de Angel Venegas,” while using the same logo as the Mexican Mark owned by Fitz. Compare id. ¶¶ 25–26 with id. ¶ 18. For example, Responding Defendants used a poster, advertising an October 20, 2023 concert in Irving, Texas,

with the name “Los Yaguaru de Angel Vengas” and a “Yaguaru” logo resembling the mark Fitz claims to own. Compare id. ¶ 26 with id. ¶ 18. Another poster advertising Responding Defendants’ concert in Fort Worth’s Rodeo West is titled “Los Yaguaru de Angel Venegas.” Id. ¶ 26. Fitz and Responding Defendants’ musical groups are alleged to market their music to “identical” markets, “i.e. the Latin music market of the United States.” Id. ¶¶ 42, 44. Therefore, according to Fitz, Responding Defendants’ use of the same band name has confused consumers in

Texas as to what musical group is actually performing under the name “Los Yaguaru de Angel Venegas.” Id. ¶¶ 26–28. Defendant Nuñez owns a mark registered with the United States Patent and Trademark Office (“USPTO”) called “Los Yaguaru de Angel Venegas” (“US Mark”). Id. ¶ 29, 36–37. She inherited ownership of the US Mark from her deceased father, David Venegas Frias (“David”). Id. ¶ 37; see also Doc. 1-2, Compl. Ex. B, 1. David and Angel were brothers. Doc. 1, Compl., ¶ 29.

David applied for the US Mark in 2012, and the trademark registration was completed in 2020. See Doc. 1-1, Ex. A, 2. In his application for the US Mark, David asserted that he used the mark “Los Yaguaru de Angel Venegas” since as early as 1996 and that the mark was first used in commerce on July 24, 2012. See Doc. 1-1, Ex. A, 14 (final draft), 54 (proposing edit to use in commerce date). In support of his application, David represented to the USPTO that he had “full and legal rights to the exclusive use of ‘Angel Venegas,’ which [he] claim[ed] as [his] pseudonym,

stage name.” Doc. 1, Compl., ¶¶ 33–34. Fitz asserts several claims against Defendants for their alleged use of the US Mark: false association2 under the Lanham Act, 15 U.S.C. §1125(a)(1)(A), state trademark infringement and unfair competition, and cancellation of trademark registration under the Lanham Act, 15 U.S.C. §

1119. Doc. 1, Compl., ¶¶ 38–81. Fitz also asserts as an independent claim, an accounting of Defendants’ profits. Id. ¶¶ 82–88. Responding Defendants moved to dismiss the Complaint, arguing the following: (1) Fitz lacks standing to bring his Lanham Act unfair competition claims, (2) the cancellation claim is insufficiently pled, (3) four claims are time-barred, and (4) the accounting “cause of action” must be dismissed as an equitable remedy and not a stand-alone claim. Doc. 26, Mot., 5–10. The Court addresses each argument in turn. II.

LEGAL STANDARD Federal Rule of Civil Procedure 12(b)(6) authorizes a court to dismiss a plaintiff’s complaint for “failure to state a claim upon which relief can be granted.” 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.” 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).

2 While Fitz labels his first cause of action as federal trademark infringement and unfair competition, the Complaint expressly states his claim arises from Responding Defendants’ use of a competing mark that “constitutes use of a . . . misleading description and representation of fact” under § 1125(a)(1)(A). Thus, the Court relies on the substance of Fitz’s allegations and construes the Complaint as asserting a false association claim. See Lexmark Int’l, Inc. v. Static Control Components, Inc., 572 U.S. 118, 122, (2014) (“Section 1125(a) thus creates two distinct bases of liability: false association, § 1125(a)(1)(A), and false advertising, § 1125(a)(1)(B)”). False association claims are also referred to as false designation of origin claims. See, e.g., Spicy Beer Mix, Inc. v. New Castle Beverage, Inc., No. CV 14-00720 SJO (JEMX), 2014 WL 12573409, at *4 (C.D. Cal. Oct. 10, 2014). Fraud claims are subject to a heightened standard requiring the plaintiff to plead “with particularity the circumstances” surrounding the fraudulent claims alleged. FED. R. CIV. P. 9(b). “Rule 9(b) requires the complaint to set forth ‘the who, what, when, where, and how’ of the events

at issue.” Dorsey v.

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