General Motors Corporation and Am General, LLC v. Lanard Toys, Inc. And Lanard Toys Limited

468 F.3d 405, 80 U.S.P.Q. 2d (BNA) 1608, 2006 U.S. App. LEXIS 26428, 2006 WL 3018471
CourtCourt of Appeals for the Sixth Circuit
DecidedOctober 25, 2006
Docket05-2085
StatusPublished
Cited by81 cases

This text of 468 F.3d 405 (General Motors Corporation and Am General, LLC v. Lanard Toys, Inc. And Lanard Toys Limited) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Motors Corporation and Am General, LLC v. Lanard Toys, Inc. And Lanard Toys Limited, 468 F.3d 405, 80 U.S.P.Q. 2d (BNA) 1608, 2006 U.S. App. LEXIS 26428, 2006 WL 3018471 (6th Cir. 2006).

Opinions

RYAN, J. (p. 422), delivered a separate concurring opinion.

OPINION

BOYCE F. MARTIN, JR., Circuit Judge.

The district court, in a trademark and trade dress infringement suit filed against Lanard Toys by General Motors Corporation, granted summary judgment for General Motors on its claims while denying Lanard’s motion for summary judgment based on the affirmative defenses of laches and estoppel. Lanard now appeals those decisions. The dispute is over a series of toy vehicles produced by Lanard called “THE CORPS! ATK” which resemble the Hummer vehicle produced by General Motors. Based on the following discussion, we affirm the district court’s decisions.

I.

A Development of Hummer

In the 1980s, the United States government commissioned AM General to produce a high mobility military vehicle. The result was called the High Mobility Multi-Wheeled Vehicle or HMMWV, which was commonly referred to as the “Humvee.” After garnering recognition through its use in the first Gulf War, AM General decided to introduce a civilian version of the Humvee in 1992, known as the Hummer. The design of both the Humvee and Hummer included a front grille with seven vertical pill-capsule shaped slots, bookend-ed by round headlights of approximately equal size to the slots. AM General received a registered trademark for the [411]*411grille design on March 5, 1996. AM General never sold more than 900 Hummers in any calendar year from 1992 to 1999, in part due to a price tag of over $100,000. In December of 1999, AM General transferred the Hummer brand to General Motors as well as all intellectual property rights in the civilian vehicle while maintaining all rights in the Humvee name and the military vehicle. After the transfer, General Motors created the H2, a smaller version of the Hummer.

B. Lanard’s Interactions with the Humvee/Hummer brands

In 1992, Lanard Toys, Inc. began selling a toy vehicle called the “MUDSLINGER.” It was modeled after the Humvee military vehicle, including a similar grille design to that of the Humvee. The box for the MUDSLINGER labeled the toy as a “Hyper Humvee.” Lanard’s sales records show that the MUDSLINGER had limited sales between 1992 and 1996, including no sales for the years of 1994 and 1996. In July 1993, AM General contacted Lanard regarding the use of their trademarked name of “Humvee” on its toys. After correspondence between the two parties, La-nard agreed to stop using the “Humvee” name on its toys, but continued to manufacture the MUDSLINGER toy. There is dispute between the parties as to whether Lanard agreed with AM General that La-nard could continue to manufacture MUDSLINGER toys.

In February 1997, Lanard contacted AM General regarding putting the “Humvee” name back on its toys. Lanard, at the time, was producing a number of military vehicle toys, including the “THE CORPS! ATK” vehicle at issue in this case. The ATK vehicle has a similar design to that of the MUDSLINGER vehicle. In response to Lanard’s letter, AM General sent a cease-and-desist letter to Lanard to stop using all of AM General’s trademarks. Lanard responded by stating that it did not use- either the Hummer or Humvee names on its packaging. .

In November 1998, AM General sent a demand letter to Lanard regarding the ATK vehicle’s “nose design.” Lanard responded by refusing to comply with the demand to stop producing the toy. In November 2000, General Motors contacted Lanard to inform it that Lanard’s military toy vehicles infringed on the Hummer vehicle produced by General Motors. La-nard again rejected that contention and continued to produce its toys. .On March 20, 2001, General. Motors filed suit claiming that Lanard’s toys infringed on its rights to the Hummer vehicle and grille design.

C. Procedural History

General Motors’s complaint alleged that Lanard’s toys infringed on its Hummer vehicle and grille design, resulting in trademark infringement, trade dress infringement, dilution, and common law trademark infringement. On July 16, 2003, Lanard filed a complaint against AM General seeking a declaratory judgment as to AM General’s rights in the Humvee vehicle and grille design. AM General, on September 29, 2003, filed a counterclaim against Lanard for infringement on its Humvee trade dress. In April 2004, all parties moved for summary judgment and the district court granted summary judgment for AM General and General Motors on their trade dress and trademark infringement claims. • The district court dismissed all of Lanard’s defenses except for laches and estoppel.

From March 8 to 10, 2005, a jury trial was held on damages and the issue of laches and estoppel. The jury awarded damages to General Motors as a eight percent royalty on sales of the ATK ($340,-[412]*412330), plus over $900,000 from Lanard’s profits. Acting in an advisory capacity, the jury denied Lanard’s laches and estop-pel defenses. Lanard filed a timely appeal to this Court on August 10, 2005.

II.

A. Summary Judgment Standard

This Court reviews a district court’s decision to grant summary judgment de novo. Bennett v. City of Eastpointe, 410 F.3d 810, 817 (6th Cir.2005). Summary judgment is only appropriate “if the pleadings, depositions, answers-to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). “The burden is generally on the moving party to show that no genuine issue of material fact exists, but that burden may be discharged by ‘showing — that is, pointing out to the district court — that there is an absence of evidence to support the nonmoving party’s case.’ ” Bennett, 410 F.3d at 817 (quoting Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986)). “In reviewing a summary judgment motion, credibility judgments and weighing of the evidence are prohibited. Rather, the evidence should be viewed in the light most favorable to the non-moving party.” Id. (citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)). “Thus, the facts and any inferences that can be drawn from those facts, must be viewed in the light most favorable to the non-moving party.” Id. (citing Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986)).

B. Trademark Infringement Claim

To demonstrate trademark infringement, the plaintiff must show that the use of the allegedly infringing trademark “is likely to cause confusion among consumers regarding the origin of the goods offered by the parties.” Daddy’s Junky Music Stores, Inc. v. Big Daddy’s Family Music Center, 109 F.3d 275, 280 (6th Cir.1997) (citing 15 U.S.C.

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468 F.3d 405, 80 U.S.P.Q. 2d (BNA) 1608, 2006 U.S. App. LEXIS 26428, 2006 WL 3018471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-motors-corporation-and-am-general-llc-v-lanard-toys-inc-and-ca6-2006.