GOLO, LLC v. Goli Nutrition, Inc.

CourtDistrict Court, D. Delaware
DecidedSeptember 1, 2020
Docket1:20-cv-00667
StatusUnknown

This text of GOLO, LLC v. Goli Nutrition, Inc. (GOLO, LLC v. Goli Nutrition, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GOLO, LLC v. Goli Nutrition, Inc., (D. Del. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

GOLO, LLC,

Plaintiff,

v.

Civil Action No. 20-667-RGA GOLI NUTRITION INC., a Canadian Corp., and GOLI NUTRITION INC., a Delaware Corp.,

Defendants.

MEMORANDUM OPINION

Chad S. C. Stover, BARNES & THORNBURG LLP, Wilmington, DE; John Gabrielides (argued), Genevieve E. Charlton, BARNES & THORNBURG LLP, Chicago, IL; Caitlin R. Byczko, BARNES & THORNBURG LLP, Indianapolis, IN, Attorneys for Plaintiff.

Brian A. Biggs, DLA PIPER LLP, Wilmington, DE; Tamar Y. Duvdevani (argued), Kerry A. O’Neill, DLA PIPER LLP, New York, NY; Safraz W. Ishmael, DLA PIPER LLP, Boston, MA, Attorneys for Defendants.

September 1, 2020 /s/ Richard G. Andrews ANDREWS, UNITED STATES DISTRICT JUDGE: Before me in this trademark infringement action is Plaintiff GOLO, Inc.’s motion for a preliminary injunction. (D.I. 10). [have reviewed the parties’ briefing. (D.I. 11, 29, 46). I heard oral argument on August 14, 2020. For the following reasons, I will deny Plaintiffs motion.

I. BACKGROUND Goli Nutrition! was founded in October 2018, and began selling its only product, Goli apple cider vinegar gummies, on April 19, 2019. (D.I. 29 at 2). Goli gummies are marketed as a chewable gummy supplement that has the health and wellness benefits of apple cider vinegar without the taste. (/d.). Goli sells its product in brick-and-mortar stores, amazon.com, walmart.com, and its own website, among other platforms. (/d. at 6). GOLO has been developing dietary supplements and weight management products and services since 2011. (D.I. 1 at § 13). GOLO sells a weight loss program called “GOLO for Life,” and an accompanying diet pill in capsule form called “Release.” Consumers can purchase GOLO’s product from GOLO’s website and walmart.com. (D.I. 11 at 3).

GOLO GOLO = al ews its | —_— ae coo # Release of ete) I

= METABOLIC PLAN a ;

Plaintiffs Product (D.I. 34-1, Ex. A) Defendant’s Product (D.I. 31-1 Ex. E)

' The case so far treats the two defendants as one entity, and I will do so too.

Plaintiff seeks a preliminary injunction enjoining Defendant from using the “Goli” mark and ordering all third parties who sell Goli’s product to discontinue all such sales and recall any remaining Goli product. (D.I. 10-1 at 1-2).2

II. LEGAL STANDARD A preliminary injunction is “an extraordinary remedy,” and “should be granted only in limited circumstances.” Kos Pharms., Inc. v. Andrx Corp., 369 F.3d 700, 708 (3d Cir. 2004). A party seeking a preliminary injunction must satisfy the traditional four-factor test: “(1) a likelihood of success on the merits; (2) that it will suffer irreparable harm if the injunction is denied; (3) that granting preliminary relief will not result in even greater harm to the nonmoving party; and (4) that the public interest favors such relief.” Id. Injunctive relief “may only be awarded upon a clear showing that the plaintiff is entitled to such relief.” Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 22 (2008). III. DISCUSSION

A. Likelihood of success on the merits To prevail on its claim for trademark infringement and unfair competition under the Lanham Act, Plaintiff must first show that Defendant’s mark will cause a likelihood of confusion.3 See A

& H Sportswear, Inc. v. Victoria’s Secret Stores, Inc., 237 F.3d 198, 210 (3d Cir. 2000); see also Kos Pharms., 369 F.3d at 708. Each company sells nutritional supplements or weight loss pills to consumers interested in healthy living, weight management, or weight loss. Whether the weight

2 Plaintiff dropped its request for a recall at oral argument. 3 The most relevant provision of the Lanham Act provides for civil liability when, without consent, a person uses in commerce a “colorable imitation of a registered mark in connection with the sale, offering for sale, distribution, or advertising of any goods or services on or in connection with which such use is likely to cause confusion, or to cause mistake, or to deceive.” 15 U.S.C. § 1114(1)(a). loss pills and the nutritional supplements are considered to be competing or non-competing goods, courts use the same analysis—the Lapp factors—to assess the likelihood of confusion: (1) the degree of similarity between the owner’s mark and the alleged infringing mark;

(2) the strength of the owner’s mark;

(3) the price of the goods and other factors indicative of the care and attention expected of consumers when making a purchase;

(4) the length of time the defendant has used the mark without evidence of actual confusion arising;

(5) the intent of the defendant in adopting the mark;

(6) the evidence of actual confusion;

(7) whether the goods, competing or not competing, are marketed through the same channels of trade and advertised through the same media;

(8) the extent to which the targets of the parties’ sales efforts are the same;

(9) the relationship of the goods in the minds of consumers, whether because of the near- identity of the products, the similarity of function, or other factors; and

(10) other facts suggesting that the consuming public might expect the prior owner to manufacture both products, or expect the prior owner to manufacture a product in the defendant’s market, or expect that the prior owner is likely to expand into the defendant’s market.

A & H Sportswear, 237 F.3d at 215. “None of these factors is determinative in the likelihood of confusion analysis and each factor must be weighed and balanced one against the other.” Checkpoint Sys., Inc. v. Check Point Software Techs., Inc., 269 F.3d 270, 280 (3d Cir. 2011). If plaintiff and defendant deal in competing products or services, “the court need rarely look beyond the mark itself.” Fisons Horticulture, Inc. v. Vigoro Indus., Inc., 30 F.3d 466, 472 (3d Cir. 1994). Where plaintiff and defendant deal in non-competing products or services, the Third Circuit has held that “the court must look beyond the trademark to the nature of the products or services, and to the context in which they are marketed and sold. The closer the relationship between the products or services, and the more similar their sales contexts, the greater the likelihood of confusion.” Interpace Corp. v. Lapp, Inc., 721 F.2d 460, 462 (3d Cir. 1983). In determining whether the plaintiff’s and defendant’s products and services are in competition, Courts have examined whether the products and services can be substituted or interchanged for one another. See Safeguard Bus. Sys., Inc. v. New England. Bus. Sys., Inc., 696 F. Supp. 1041, 1044 (E.D. Pa. 1988).

One way to define “competitive” goods is that they are goods that are “reasonably interchangeable by consumers for the same purposes.” United States v. E. I. du Pont de Nemours & Co., 351 U.S. 377, 395 (1956) (cellophane competitive with other wrapping materials); United States v. Grinnell Corp., 384 U.S. 563

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