Groupion, LLC v. Groupon, Inc.

826 F. Supp. 2d 1156, 101 U.S.P.Q. 2d (BNA) 1341, 2011 U.S. Dist. LEXIS 136129, 2011 WL 5913992
CourtDistrict Court, N.D. California
DecidedNovember 28, 2011
DocketNo. C 11-00870 JSW
StatusPublished
Cited by6 cases

This text of 826 F. Supp. 2d 1156 (Groupion, LLC v. Groupon, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Groupion, LLC v. Groupon, Inc., 826 F. Supp. 2d 1156, 101 U.S.P.Q. 2d (BNA) 1341, 2011 U.S. Dist. LEXIS 136129, 2011 WL 5913992 (N.D. Cal. 2011).

Opinion

ORDER DENYING GROUPION’S MOTIONS

JEFFREY S. WHITE, District Judge.

Now before the Court are the motions filed by plaintiff Groupion, LLC (“Groupion”) for a preliminary injunction, for summary judgment, and for declaratory judgement. Having carefully reviewed the parties’ papers, considered their arguments and the relevant legal authority, the Court hereby denies Groupion’s motions.1

BACKGROUND

Groupion contends that defendant Groupon, Inc. (“Groupon”) is infringing upon its trademark. Groupion moves for a preliminary injunction and for summary judgment on its infringement claim. Groupion further moves for declaratory judgment on its claim that Groupon’s trademark registration should be cancelled. The Court shall refer to additional facts as necessary in the remainder of this Order.

ANALYSIS

A. Groupion’s Motion for Preliminary Injunction.

1. Applicable Legal Standards.

In order to obtain a preliminary injunction, plaintiffs “must establish that [they are] likely to succeed on the merits, that [they are] likely to suffer irreparable harm in the absence of preliminary relief, that the balance of equities tips in [their] favor, and that an injunction is in the public interest.” Winter v. Natural Resources Defense Council, 555 U.S. 7, 129 S.Ct. 365, 374, 172 L.Ed.2d 249 (2008) (citations omitted). The Winter court also noted that because injunctive relief is “an extraordinary remedy,” it “may only be awarded upon a clear showing that the plaintiff is entitled to such relief.” Id. at 375-76 (citing Mazurek v. Armstrong, 520 U.S. 968, 972, 117 S.Ct. 1865, 138 L.Ed.2d 162 (1997) (per curiam)). Thus, “[i]n each case, courts ‘must balance the competing claims of injury and must consider the effect on each party of the granting or withholding of the requested relief.’ ” Id. at 376 (citing Amoco Production Co. v. Gambell, 480 U.S. 531, 542, 107 S.Ct. 1396, 94 L.Ed.2d 542 (1987)). ‘“In exercising their sound discretion, courts of equity should pay particular regard for the public consequences in employing the extraordinary remedy of injunction.’” Id. at 376-77 (citing Weinberger v. Romero-Barcelo, 456 U.S. 305, 312, 102 S.Ct. 1798, 72 L.Ed.2d 91 (1982)).

In Alliance for the Wild Rockies v. Cottrell, 632 F.3d 1127, 1135 (9th Cir.2011), the Ninth Circuit held that the “serious questions” sliding scale approach survived Winter, whereby preliminary injunctive relief may be granted if a plaintiff demonstrates “that serious questions going to the [1162]*1162merits were raised and the balance of the hardships tips sharply in the plaintiffs favor,” thereby allowing district courts to preserve the status quo where difficult legal questions require more deliberate investigation. See Sencion v. Saxon Mortg. Services, LLC, 2011 WL 1364007 *2 (N.D.Cal. April 11, 2011). The plaintiff must also satisfy the irreparable harm and public interest requirements under Winter. Alliance for the Wild Rockies, 632 F.3d at 1132, 1135.

2. Groupion Fails to Show Likelihood of Success on the Merits or That There Are Serious Questions Going to the Merits.

To establish trademark infringement under the Lanham Act, Groupion must establish that Groupon is “using a mark confusingly similar to a valid, protectable trademark of [Groupion’s].” Brookfield Communications, Inc. v. West Coast Entertainment, 174 F.3d 1036, 1046 (9th Cir.1999). The parties dispute whether Groupion was the first to use its mark in the sale of goods or services and/or whether Groupion acquired a protectable mark through its registration. However, the Court need not resolve this dispute at this time because the Court finds that Groupion fails to show a likelihood of success on the issue of confusion, or even that there are serious questions going to the merits.

At issue is whether Groupion has shown a likelihood of confusion, i.e. “whether the similarity of the marks is likely to confuse the customers about the source of the products.” GoTo.Com, Inc. v. Walt Disney Co., 202 F.3d 1199, 1205 (9th Cir.2000) (internal quotations omitted). Groupion bears the burden of proving likelihood of confusion. See Lindy Pen Co., Inc. v. Bic Pen Corp., 725 F.2d 1240, 1243 (9th Cir.1984). “Likelihood of confusion requires that confusion be probable, not simply a possibility.” Rodeo Collection, Ltd. v. West Seventh, 812 F.2d 1215, 1217 (9th Cir.1987); see also Playboy Enterprises, Inc. v. Terri Welles, Inc., 78 F.Supp.2d 1066, 1083 (S.D.Cal.1999) (“There must be a substantial likelihood that the public will be confused.”) (emphasis in original) (citation omitted), rev’d in part on other grounds, 279 F.3d 796 (9th Cir.2002).

To determine whether there is a likelihood of confusion between the marks, the Ninth Circuit applies the following eight factor test: “(1) the similarity of the marks; (2) the relatedness of the two companies’ services; (3) the marketing channel used; (4) the strength of [the plaintiffs] mark; (5) [the defendant’s] intent in selecting its mark; (6) evidence of actual confusion; (7) the likelihood of expansion into other markets; and (8) the degree of care likely to be exercised by purchasers.” GoTo.Com, Inc., 202 F.3d at 1205. However, “the eight-factor test is a pliant one, in which some factors are much more important than others.” Id.

i. Similarity of the Marks.

The similarity of the marks is a critical question in this analysis. GoTo.Com, 202 F.3d at 1205. “[T]he greater the similarity between the two marks at issue, the greater the likelihood of confusion.” Id. at 1206. The Ninth Circuit has developed certain axioms to guide the similarity analysis: (1) “the marks must be considered in their entirety and as they appear in the marketplace;” (2) “similarity is adjudged in terms of appearance, sound, and meaning;” and (3) “similarities are weighed more heavily than differences.” Id. at 1206 (citations omitted).

Despite the similarity in the spelling of the two words, the Court finds that [1163]*1163the marks, when viewed in their entirety and as they appear in the marketplace, are dissimilar. Groupion presents its mark in two colors, with the “group” in black and the “ion” in green. Only the “G” is capitalized. All of the letters are outlined in white and the mark is on a grey background, followed by the tag line “Business Groupware and CRM for the Cloud.” In contrast, Groupon’s mark is all capitalized, all of the letters are in the same white color, and it appears on a black background. Moreover, Groupon does not display other marks or words with its mark. Additionally, groupion is a three syllable word, while groupon is a two syllable one.

Both “groupon” and “groupion” are made up words.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
826 F. Supp. 2d 1156, 101 U.S.P.Q. 2d (BNA) 1341, 2011 U.S. Dist. LEXIS 136129, 2011 WL 5913992, Counsel Stack Legal Research, https://law.counselstack.com/opinion/groupion-llc-v-groupon-inc-cand-2011.