Florida Virtual School v. K12, Inc.

CourtDistrict Court, M.D. Florida
DecidedJanuary 2, 2024
Docket6:20-cv-02354
StatusUnknown

This text of Florida Virtual School v. K12, Inc. (Florida Virtual School v. K12, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Florida Virtual School v. K12, Inc., (M.D. Fla. 2024).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA ORLANDO DIVISION

FLORIDA VIRTUAL SCHOOL,

Plaintiff,

v. Case No: 6:20-cv-2354-GAP-EJK

K12, INC. and K12 FLORIDA, LLC,

Defendants

MEMORANDUM OPINION This cause came before the Court following a bifurcated bench trial conducted from October 16-19, 2023. In Phase I, the parties presented their cases on Defendants’ Counterclaim for cancellation of Plaintiff’s federally registered trademarks for fraud on the U.S. Patent and Trademark Office.1 The Court then proceeded to Phase II where it heard evidence and argument on Plaintiff’s claims for trademark infringement and unfair competition. This opinion resolves the Phase II issues.

1 See also Doc. 363 (Phase I Ruling). I. Background A. History of the Case This is a marathon trademark dispute twelve years in the making between two competitors in the online education market. In 2011, Plaintiff Florida Virtual

School (“Plaintiff”) sued Defendants K12, Inc. and K12 Florida, LLC (“Defendants”) for using the marks, “Florida Virtual Academy/Program” and the associated acronyms, “FLVA/P.” See Florida Virtual School v. K12, Inc. and K12 Florida, LLC, 6:11- cv-831-Orl-KRS, Doc. 1 (M.D. Fla. May 18, 2015). That dispute was resolved by a

settlement agreement dated November 3, 2015 (the “Agreement”). Doc. 350-14. The Agreement, in addition to requiring Defendants to cease their use of those marks, also prevented them from using the words “Florida” and “Virtual” together in a

mark and listed four examples of prohibited marks. Id. at 3, 7-8, 16. It listed acceptable marks, but did not require Defendants to use one of those marks.2 Id. In 2019, Defendants launched the “Florida Online School,” abbreviated

“FLOS,”3 under a contract with the Hendry County School District (“HCSD”). See Doc. 353 at 51:6-12; Doc. 354 at 7:4-17. Approximately one year later, Plaintiff

2 See Doc. 350-14 at 8 (“The parties further agree that K12 is not required to select a mark listed on Appendix A, and that there shall be no presumption against K12’s choice of a mark not listed on Appendix A.”). 3 Hereinafter, the Court refers to these two marks collectively as the “Florida Online School” mark. demanded that Defendants abandon that mark. See Doc. 342 at 163:10-164:25. Defendants acquiesced and, after conducting surveys and consulting with HCSD, Defendants chose a new name—“Digital Academy of Florida.” Id.; Doc. 353 at 44:16- 23, 51:19-52:2; Doc. 354 at 14:6-15:10. That name is not in dispute. A contractual

amendment with HCSD for use of this new name was executed on February 2, 2021, and implemented as soon as practicable the next year. Doc. 352-46; Doc. 353 at 60:4- 7; Doc. 354 at 14:6-16:2. However, impatient with Defendants’ progress, Plaintiff

filed this suit in December 2020 contesting their prior use of “Florida Online School.” See Doc. 1. In its Complaint, Plaintiff asserts several claims and seeks damages and injunctive relief. Doc. 1, ¶¶ 74-143. However, by the time of trial—three-hundred

and twenty-nine docket entries later—numerous aspects of Plaintiff’s case had been resolved against it. See Doc. 261; Doc. 297; see also Doc. 287; Doc. 295; Doc. 298. On July 10, 2023, the Court granted Defendants’ motion for summary judgment, in part,

on Plaintiff’s Count V claim for false advertising, while simultaneously striking the expert report and testimony of Jeffrey Stec (“Stec”).4 See Doc. 261. Upon review of the parties’ broader cross motions for summary judgment on September 5, 2023, the

4 The Court found that the Stec report showed no evidence of consumer confusion, which precluded Plaintiff’s false advertising claim as a matter of law. Doc. 261 at 13; see also Johnson & Johnson Vision Care, Inc. v. 1-800 Contacts, Inc., 299 F.3d 1242, 1247 (11th Cir. 2002). Court granted summary judgment for the Defendants on Plaintiff’s breach of contract claim after determining that Plaintiff had presented no evidence of damages. Doc. 297 at 7-9. However, the Court concluded that disputed questions of material fact remained as to the issues of trademark infringement and unfair

competition and set the matter for a bench trial. Id. at 9-24; see also Doc. 293. Thus, the only relief remaining for Plaintiff in this case is an injunction— against Defendants’ use of a name which it relinquished years ago—and the

disgorgement of Defendants’ profits for using that name during a brief period of time.5 B. The Trademarks Plaintiff alleges that Defendants’ use of the “Florida Online School” mark

infringed upon seven trademarks it has registered with the U.S. Patent and Trade Office (“PTO”). Doc. 1, ¶¶ 41-46. They include federal trademark registrations No. 3,830,765 and No. 3,873,393, which were registered in 2010 and formed the basis of

the previous litigation between these parties. See Doc. 1-1, Florida Virtual School v. K12, Inc. and K12 Florida, LLC, 6:11-cv-831-Orl-KRS, Docs. 1, 130 (M.D. Fla. May 18,

5 On August 25, 2023, the Court granted, in part, Defendants’ motion to strike the expert report and testimony of Daniel Gallogly (“Gallogly”) as to Plaintiff’s lost profits, ruling that Gallogly’s report on the matter was “wholly deficient.” Doc. 287. Then, on September 1, 2023, the Court granted, in part, Defendants’ motion to restrict Gallogly’s testimony on disgorgement to revenue Defendants earned in the two years they used the Florida Online School mark. See Doc. 295. 2015). Those two marks have subsequently attained “incontestable status” with the PTO. See Doc. 142-1, § 7. Plaintiff's other marks at issue, which were registered in 2017, are: No. 5,113,225, No. 5,113,235, No. 5,113,248, No. 5,113,241, and No. 5,113,259. See Doc. 1-1. Plaintiff’s marks are listed here:

Mark Registration Number FLORIDA VIRTUALSCHOOL 3,830,765

FLORIDA VIRTUAL SCHOOL 5,113,225

□□□ "inal | wegee, 5,113,248 TS

lvs 5,113,259

FLORIDA VIRTUAL SCHOOL

-5-

Doc. 325 at 2-3. Defendants’ “Florida Online School” mark included an image of a Florida panther and had no asserted registration or trademark protection:

Fe 2 ea Doc. 323 at 14. IJ. Legal Standard A defendant who, without consent, uses “in commerce any reproduction, counterfeit, copy, or colorable imitation of a registered mark” that “is likely to cause confusion, or to cause mistake, or to deceive” is liable for trademark infringement under the Lanham Act. 15 U.S.C. § 1114(1); Fla. Int’l Univ. Bd. of Trs. v. Fla. Nat'l Univ., Inc., 830 F.3d 1242, 1255 (11th Cir. 2016) [hereinafter “FIU Board” prevail under this section, a claimant must show (1) that it had prior rights to the mark at issue and (2) that the defendant had adopted a mark or name that was the same, or confusingly similar to its mark, such that consumers were likely to confuse the two.” Planetary Motion, Inc. v. Techsplosion, Inc., 261 F.3d 1188, 1193 (11th Cir. 2001). Courts in the Eleventh Circuit consider seven factors when assessing whether

a likelihood of consumer confusion exists: “(1) the strength of the allegedly

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infringed mark; (2) the similarity of the infringed and infringing marks; (3) the similarity of the goods and services the marks represent; (4) the similarity of the parties’ trade channels and customers; (5) the similarity of advertising media used by the parties; (6) the intent of the alleged infringer to misappropriate the

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