Forney Industries, Inc. v. Daco of Missouri, Inc.

835 F.3d 1238, 120 U.S.P.Q. 2d (BNA) 1035, 2016 U.S. App. LEXIS 15922, 2016 WL 4501941
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 29, 2016
Docket15-1226
StatusPublished
Cited by24 cases

This text of 835 F.3d 1238 (Forney Industries, Inc. v. Daco of Missouri, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Forney Industries, Inc. v. Daco of Missouri, Inc., 835 F.3d 1238, 120 U.S.P.Q. 2d (BNA) 1035, 2016 U.S. App. LEXIS 15922, 2016 WL 4501941 (10th Cir. 2016).

Opinion

HARTZ, Circuit Judge.

Plaintiff Forney Industries, Inc. (For-ney) manufactures and sells a variety of products. Its largest product line is retail metalworking parts and accessories. The issue in this case is whether the use of colors in its packaging of that product line is a protected mark under § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a).

Forney’s packaging has, since at least 1989, used some combination of red, yellow, black, and white coloration. It describes the mark it seeks to protect as follows:

The Forney Color Mark is a combination and arrangement of colors defined by a red into yellow background with a black banner/header that includes white letters. More specifically, the Forney Color Mark includes red and yellow as the dominate [sic] background colors. Red typically starts at the bottom of the packaging, continues up the packaging and may form borders. Red may also be used in accents including but not limited to lettering. Yellow typically begins higher than the red and continues up the packaging. Yellow may also provide borders and be used in accents including but not limited to lettering. A black banner is positioned toward the top of the package label or backer card. Black may also be used in accents including but not limited to lettering. White is used in lettering and accents.

It has also provided five pictures of its packaging over the years, reproduced below with Forney’s caption for each:

*1242 [[Image here]]

[[Image here]]

*1243 [[Image here]]

Aplt. Br. at 7-8.

Forney alleges that Defendant Daco of Missouri, Inc., which does business as KDAR Co. (KDAR), infringed on its protected mark by packaging KDAR’s “Hot Max” products with similar colors and a flame motif. Forney offered examples of KDAR packaging compared to that of the competing Forney product, some of which are reproduced below:

Aplee. App. Vol. I at 21, 28.

The district court granted summary judgment to KDAR and we affirm. For-ney’s use of color, which was not associated with any particular shape, pattern, or design, was not adequately defined to be inherently distinctive, and Forney failed to produce sufficient evidence that its use of color in its line of products had acquired secondary meaning (that is, that the relevant public understood those colors to identify Forney as the source).

I. Legal Background

Passed in 1946 in an effort to prevent unfair competition in interstate commerce, *1244 the Lanham Act contains “kn unusual, and extraordinarily helpful, detailed statement of the statute’s purposes.” Lexmark Int'l, Inc. v. Static Control Components, Inc., - U.S. -, 134 S.Ct. 1377, 1389, 188 L.Ed.2d 392 (2014) (internal quotation marks omitted). That statement says:

The intent of this chapter is to regulate commerce within the control of Congress by making actionable the deceptive and misleading use of marks in such commerce; to protect registered marks used in such commerce from interference by State, or territorial legislation; to protect persons engaged in such commerce against unfair competition; to prevent fraud and deception in such commerce by the use of reproductions, copies, counterfeits, or colorable imitations of registered marks; and to provide rights and remedies stipulated by treaties and conventions respecting trademarks, trade names, and unfair competition entered into between the United States and foreign nations.

15 U.S.C. § 1127.

The Act’s protection “embrace[s] not just word marks, such as ‘Nike,’ and symbol marks, such as Nike’s ‘swoosh’ symbol, but also ‘trade dress,’ ” Wal-Mart Stores, Inc. v. Samara Bros., 529 U.S. 205, 209, 120 S.Ct. 1339, 146 L.Ed.2d 182 (2000). We have defined trade dress as “an object’s total image and overall appearance, [which] may include features such as size, shape, color or color combinations, texture, graphics, or even particular sales techniques.” 1 Savant Homes, Inc. v. Collins, 809 F.3d 1133, 1146 (10th Cir. 2016) (internal quotation marks omitted).

The Lanham Act provides trademark protection under two separate sections. First, under § 2 of the Act, 15 U.S.C. § 1052, a party can seek protection of its trademark by registering it with the United States Patent and Trademark Office. See Wal-Mart Stores, 529 U.S. at 209, 120 S.Ct. 1339. This “entitles the owner to a presumption that its mark is valid.” Id. “But the failure to register a [mark] - does not preclude its protectability.” Savant Homes, 809 F.3d at 1147. Unregistered marks are protected from infringement under § 43(a) of the Act, 15 U.S.C. § 1125. See Savant Homes, 809 F.3d at 1147.

To make out a claim under § 43(a) for an unregistered mark, the plaintiff must prove: (1) “[the] identifying mark ... is inherently distinctive or ... has acquired distinctiveness through secondary meaning,” (2) the mark is nonfunctional, and (3) the competitor’s alleged violation of the plaintiff’s rights in its mark is likely to cause consumer confusion. Two Pesos, Inc. v. Taco Cabana, Inc., 505 U.S. 763, 769, 112 S.Ct. 2753, 120 L.Ed.2d 615 (1992); see Savant Homes, 809 F.3d at 1147 (“To obtain relief under § 43(a), a plaintiff must show: (1) The trade dress is inherently distinctive or has become distinctive through secondary meaning; (2) There is a likelihood of confusion among consumers as to the source of the competing products; and (3) The trade dress is nonfunctional.” (internal quotation marks omitted)). As here, proving the first element is often the greatest hurdle. A mark is “inherently distinctive if its intrinsic nature serves to identify a particular source. Such [marks] almost automatically tell a customer that they refer to a brand and immediately signal a brand or a product *1245 source.” Sally Beauty Co. v. Beautyco, Inc., 304 F.3d 964, 977 (10th Cir. 2002) (citations and internal quotation marks omitted). If the mark is not inherently distinctive, it can gain protection only once “it has developed secondary meaning, which occurs when, in the minds of the public, the primary significance of a mark is to identify the source of the product rather than the product itself.” Wal-Mart Stores, 529 U.S.

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835 F.3d 1238, 120 U.S.P.Q. 2d (BNA) 1035, 2016 U.S. App. LEXIS 15922, 2016 WL 4501941, Counsel Stack Legal Research, https://law.counselstack.com/opinion/forney-industries-inc-v-daco-of-missouri-inc-ca10-2016.