Ford Motor Company v. Intermotive, Inc.

District Court, E.D. Michigan·Decided August 15, 2024·No. 4:17-cv-11584·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

FORD MOTOR COMPANY, AND FORD GLOBAL TECHNOLOGIES, LLC, 4:17-CV-11584-TGB-APP

Plaintiffs/Counter-Defendants, HON. TERRENCE G. BERG

v. OPINION AND ORDER GRANTING INTERMOTIVE’S INTERMOTIVE, INC., AND MOTION FOR INJUNCTIVE GREGORY E. SCHAFFER, RELIEF (ECF NO. 256)

Defendants/Counter-Plaintiffs. Before the Court is Defendants/Counter-Plaintiffs InterMotive, Inc.’s and Gregory E. Schafer’s (together, “InterMotive’s”) motion for injunctive relief against Plaintiffs/Counter-Defendants Ford Motor Company and Ford Global Technologies, LLC (together, “Ford”). Following a trial and jury verdict in InterMotive’s favor, finding intentional trademark infringement by Ford, the parties have submitted written briefs arguing whether a permanent injunction is warranted. ECF Nos. 256, 271, 272. Under Local Rule 7.1(f)(2), the Court will decide InterMotive’s motion for injunctive relief without a hearing. E.D. Mich. LR 7.1(f)(2). For the reasons stated in this opinion and order, the Court will GRANT InterMotive’s motion for injunctive relief. I. BACKGROUND

A jury trial was held in this matter from October 18, 2023 to November 1, 2023. Concerning InterMotive’s present motion for injunctive relief, the jury found for InterMotive on two of its Lanham Act counterclaims: (1) trademark infringement under Section 32 of the Lanham Act, 15 U.S.C. § 1114 and (2) unfair competition under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a). As outlined in the verdict form, the jury found that InterMotive owns a valid trademark in the product name “Upfitter Interface Module.” ECF No. 247, PageID.9408.

The Court instructed the jury to find for InterMotive on validity if it proved that InterMotive’s registered “Upfitter Interface Module” trademark is not generic (i.e., it is, at least, descriptive) and has acquired distinctiveness through secondary meaning. ECF No. 266, PageID.11142–45. Furthermore, the jury found that Ford’s use of the “Upfitter Interface Module” name created a likelihood of confusion regarding the origin of Ford’s module and, therefore, constituted trademark infringement and unfair competition under the Lanham Act. ECF No. 247, PageID.9408, 9413. Additionally, the jury found that Ford’s

infringement was willful, deliberate, and intentional. Id. at PageID.9408. On November 28, 2023, InterMotive filed its present motion for injunctive relief, requesting a permanent injunction based on the jury’s finding of liability under Section 34(a) of the Lanham Act, 15 U.S.C. § 1116(a). ECF No. 256. In compliance with the February 28, 2024 scheduling order, ECF No. 269, Ford filed its opposition brief on March

20, 2024, and InterMotive filed its reply brief on March 29, 2024. ECF Nos. 271, 272. II. LEGAL STANDARDS The Lanham Act empowers district courts hearing trademark infringement and unfair competition actions “to grant injunctions, according to the principles of equity and upon such terms as the court may deem reasonable.” 15 U.S.C. § 1116. “It is widely recognized that injunctive relief is a customary remedy in actions for trademark

infringement and unfair competition.” RESTATEMENT (THIRD) OF UNFAIR COMPETITION § 35 cmt. a (AM. LAW INST. 1995). “The decision to grant or deny permanent injunctive relief is an act of equitable discretion by the district court, reviewable on appeal for abuse of discretion.” eBay Inc. v. MercExchange, LLC, 547 U.S. 388, 391 (2006). A district court abuses its discretion when it relies on clearly erroneous findings of fact, improperly applies the governing law, or uses an erroneous legal standard. Lorillard Tobacco Co. v. Amouri’s Grand Foods, Inc., 453 F.3d 377, 379–80 (6th Cir. 2006).

III. DISCUSSION In its motion for injunctive relief, InterMotive requests a permanent injunction prohibiting Ford from further use of the “Upfitter Interface Module” name and the acronym “UIM” in connection with programmable CAN (Controller Area Network) modules. A. Arguments of the Parties

InterMotive argues that a permanent injunction is warranted based on the jury verdict, particularly given the jury’s findings that InterMotive’s trademark is protectable and Ford’s infringement was willful, deliberate, and intentional. In its opposition brief, Ford does not contest InterMotive’s position that the jury verdict and the trial record provide a basis of support for injunctive relief. Ford’s position is that it has since changed the name of the at-issue module from “Upfitter Interface Module” to “Vehicle Integration System.” A permanent

injunction is therefore unwarranted because Ford has stopped using the “Upfitter Interface Module” name, and as such, there is nothing to enjoin.1

1 Ford also argues that the Court should defer a ruling on InterMotive’s motion for injunctive relief until after deciding Ford’s future renewed motion for judgment as a matter of law under Federal Rule of Civil Procedure 50(b). To address Ford’s argument, the Court directs Ford to the February 28, 2024 scheduling order. ECF No. 269. In the scheduling order, which Ford does not address, the Court informed the parties when it will take up which post-trial motions and why, including that the Court would not, as Ford had proposed, delay ruling on InterMotive’s motion for injunctive relief. Id. at PageID.11194–96. In its opposition brief, Ford merely string cites cases where district courts exercised their discretion over docket management to defer such a ruling until after deciding other post-trial motions. ECF No. 271, PageID.11308–09. Ford does not cite any authority for the proposition that district courts cannot issue a permanent injunction based on a jury verdict for the plaintiff just because the defendant intends to dispute the jury’s finding of liability in a future Rule 50(b) motion. B. Analysis

A permanent injunction does not automatically follow from a Lanham Act violation. “According to well-established principles of equity,” the Supreme Court has held that “a plaintiff seeking a permanent injunction must satisfy a four-factor test before a court may grant such relief.” eBay, 547 U.S. at 391. Specifically, the plaintiff must demonstrate: “(1) that it has suffered an irreparable injury; (2) that remedies available at law, such as monetary damages, are inadequate to compensate for that injury; (3) that, considering the balance of hardships

between the plaintiff and defendant, a remedy in equity is warranted; and (4) that the public interest would not be disserved by a permanent injunction.” Id. Below, the Court will consider the four factors in light of the jury verdict, the record at trial, and the current information provided related to the subsequent name change and determine whether the principles of equity support the issuance of a permanent injunction in this case. 1. Irreparable Injury As to the first factor, the Court must consider whether InterMotive

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Ford Motor Company v. Intermotive, Inc., (E.D. Mich. 2024).

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