Georgia-Pacific Consumer Products LP v. Four-U-Packaging, Inc.

701 F.3d 1093, 105 U.S.P.Q. 2d (BNA) 1082, 2012 U.S. App. LEXIS 25466, 2012 WL 6200282
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 13, 2012
Docket11-4394
StatusPublished
Cited by71 cases

This text of 701 F.3d 1093 (Georgia-Pacific Consumer Products LP v. Four-U-Packaging, Inc.) 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
Georgia-Pacific Consumer Products LP v. Four-U-Packaging, Inc., 701 F.3d 1093, 105 U.S.P.Q. 2d (BNA) 1082, 2012 U.S. App. LEXIS 25466, 2012 WL 6200282 (6th Cir. 2012).

Opinion

OPINION

SILER, Circuit Judge.

Georgia-Pacific Consumer Products, LP asserted numerous claims against Four-U-Packaging, Inc., (“Four-U”) alleging that Four-U’s supply of off-brand paper towels for use in Georgia-Pacific paper-towel dispensers infringed on its trademarks. Four-U moved for summary judgment, arguing that the claims were barred by the ruling in a similar case brought by Georgia-Pacific in Arkansas against a different distributor of generic paper towels. The district court granted summary judgment to Four-U. For the following reasons, we AFFIRM.

I.

Plaintiffs Georgia-Pacific Consumer Products LP and Georgia-Pacific LLC (together, “Georgia-Pacific”) manufacture paper-towel dispensers and disposable paper towels. In 2002, Georgia-Pacific introduced the enMotion system, which includes a touchless paper-towel dispenser and disposable paper-towel rolls designed for use in the dispenser. Both of these products are registered with the United States Patent and Trademark Office.

Georgia-Pacific leases enMotion dispensers to distributors who then sublease them to end users such as restaurants and businesses. Under this arrangement, Georgia-Pacific retains ownership of the dispensers, and end users are granted permission only to use them. The usage agreements require that enMotion dispensers be stocked exclusively with enMotion-brand paper towels.

Four-U is a seller and distributor of janitorial supplies. It distributes paper towels manufactured by the von Drehle Corporation to end users, such as restaurants and other commercial establishments. One paper towel sold by von *1097 Drehle is the 810B towel, which fits in enMotion dispensers.

Georgia-Pacific filed the underlying suit alleging that Four-U’s distribution of von Drehle paper towels for use in enMotion dispensers constitutes (1) false representation and false designation of origin and dilution under the Lanham Act, 15 U.S.C. § 1125; (2) contributory trademark infringement under the Lanham Act, 15 U.S.C. § 1114; (3) counterfeiting under the Lanham Act, 15 U.S.C. § 1114(l)(a); (4) common law unfair competition; (5) tortious interference with contractual relationships; (6) tortious interference with business relationships; and (7) a violation of the Ohio Deceptive Trade Practices Act, Ohio Rev.Code §§ 4165.01 et seq.

Four-U moved for summary judgment on all claims, arguing that the decision in Georgia-Pacific v. Myers Supply, Inc., No. 6:08-CV-6086, 2009 WL 1850324 (W.D.Ark. June 26, 2009), another case involving the distribution of off-brand paper towels for use in enMotion dispensers, precluded Georgia-Pacific’s claims. The district court granted the motion.

II.

We review a grant of summary judgment de novo. Keck v. Graham Hotel Sys., Inc., 566 F.3d 634, 636 (6th Cir.2009). We also review de novo a district court’s ruling on issue preclusion. Stemler v. Florence, 350 F.3d 578, 585 (6th Cir.2003).

III.

A. Georgia-Pacific v. Myers Supply, Inc.

In the Arkansas case, Georgia-Pacific sued Myers Supply, a distributor of von Drehle 810B paper towels. 1 Georgia-Pacific v. Myers Supply, 2009 WL 1850324, at *1. Georgia-Pacific alleged that Myers Supply’s distribution of 810B papers towels to sublessees of enMotion dispensers constituted (1) false representation and false designation of origin and dilution under the Lanham Act, 15 U.S.C. § 1125(a)(1)(A); (2) trademark infringement under the Lanham Act, 15 U.S.C. § 1114; (3) counterfeiting in violation of 15 U.S.C. § 1114(l)(a); (4) common law unfair competition; (5) conversion; (6) tortious interference with contractual relationships; (7) tortious interference with business relationships; and (8) a violation of the Arkansas Deceptive Trade Practices Act. The district court granted summary judgment in part to Myers Supply and dismissed all of Georgia-Pacific’s claims, except contributory trademark infringement. That claim, too, was later dismissed following a bench trial in which the district court found no likelihood of confusion between the two brands of paper towels.

The ease was affirmed on appeal. Georgia-Pacific Consumer Prods. LP v. Myers Supply, Inc., 621 F.3d 771, 779 (8th Cir.2010). The Eighth Circuit agreed with the district court that the trademarks on en-Motion towel dispensers were not “source identifying” so as to create a likelihood that commercial purchasers of the paper towels or the people using them would be confused into believing that the trademark on the paper-towel dispensers indicated the source of towels inside. The Eighth Circuit, like the district court, relied heavily upon general, pervasive industry prac *1098 tices of “stuffing” paper towel dispensers with generic products to conclude that there was no likelihood of confusion. Id. at 775. Absent a finding of confusion, the Eighth Circuit held that the district court properly dismissed Georgia-Pacific’s trademark infringement claims. It also affirmed the dismissal of Georgia-Pacific’s other claims.

B. Issue preclusion.

We must determine whether the Eighth Circuit’s ruling in Myers Supply bars Georgia-Pacific’s claims against Four-U. Issue preclusion, often referred to as collateral estoppel, “precludes relitigation of issues of fact or law actually litigated and decided in a prior action between the same parties and necessary to the judgment, even if decided as part of a different claim or cause of action.” Gargallo v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 918 F.2d 658, 661 (6th Cir.1990). Four requirements must be met before issue preclusion applies: 2

(1) the precise issue must have been raised and actually litigated in the prior proceedings; (2) the determination of the issue must have been necessary to the outcome of the prior proceedings; (3) the prior proceedings must have resulted in a final judgment on the merits;

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701 F.3d 1093, 105 U.S.P.Q. 2d (BNA) 1082, 2012 U.S. App. LEXIS 25466, 2012 WL 6200282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georgia-pacific-consumer-products-lp-v-four-u-packaging-inc-ca6-2012.