Guthrie Healthcare System v. ContextMedia, Inc.

28 F. Supp. 3d 193, 2014 WL 2808594, 2014 U.S. Dist. LEXIS 84713
CourtDistrict Court, S.D. New York
DecidedJune 20, 2014
DocketNo. 12 Civ. 7992(KBF)
StatusPublished
Cited by2 cases

This text of 28 F. Supp. 3d 193 (Guthrie Healthcare System v. ContextMedia, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guthrie Healthcare System v. ContextMedia, Inc., 28 F. Supp. 3d 193, 2014 WL 2808594, 2014 U.S. Dist. LEXIS 84713 (S.D.N.Y. 2014).

Opinion

OPINION & ORDER

KATHERINE B. FORREST, District Judge:

On October 26, 2012, Guthrie Healthcare System (“Guthrie”) filed this trademark infringement action against ContextMedia, Inc. (“CMI”), and its president and chief executive officer (“CEO”), Rishi Shah. (Complaint, ECF No. 1; Trial Decl. of Rishi U. Shah (“Shah Deck”) ¶ 1, ECF No. 105.) Guthrie amended its complaint one year later to allege infringement of additional trademarks. (ECF No. 44.) The Amended Complaint asserts eight counts of federal trademark infringement pursuant to 15 U.S.C. § 1114 (Counts One through Eight); a claim of unfair competition under the Lanham Act, pursuant to 15 U.S.C. § 1125(a) (Count Nine); a claim of false designation of origin under the Lan-ham Act, pursuant to 15 U.S.C. § 1125(a) (Count Ten); common-law unfair competition (Count Eleven); federal trademark dilution under the Lanham Act, pursuant to 15 U.S.C. § 1125(c) (Count Twelve); and unjust enrichment (Count Thirteen).

On January 16, 2014, the Court partially granted and partially denied CMI’s motion for summary judgment. (“SJ Op.,” ECF No. 73, 2014 WL 185222.) The Court found that no triable issue of material fact existed as to actual consumer confusion, bad faith, or willful deception. (Id. at 13-18.) Accordingly, the Court found that monetary relief was unavailable to Guthrie under the Lanham Act, and disposed of Count Eleven, state-law unfair competition, which requires bad faith as an element. (Id. at 27, 29-31.) Guthrie voluntarily abandoned its dilution claim in Count Twelve. (ECF No. 51 at 1 n. 1.) The Court’s opinion left Counts One through Eight for copyright infringement, Count Nine for unfair competition, Count Ten for false designation of origin, and Count Thirteen for unjust enrichment to be resolved at trial. (SJ Op. 31.)

On January 31, 2014, the Court granted CMI’s motion for partial reconsideration and dismissed Count Thirteen of the complaint related to unjust enrichment, with respect to CMI Marks One through Seven. (ECF No. 92.) Additionally, prior to trial, the' Court severed Count Eight, regarding the trademark “ContextMedia Health,” which CMI applied to register with the U.S. Patent and Trademark Office (“PTO”) after this lawsuit had commenced. (See Trial Tr. 27, Feb. 20, 2014, ECF No. 113.) That trademark is the subject of Guthrie’s pending motion for partial reconsideration. (ECF No. 85.)

The Court held a bench trial on February 5, 2014, on Counts One through Seven, Count Nine, and Count Ten. This Opinion & Order constitutes the Court’s findings of fact and conclusions of law as to those counts.

For the reasons set forth below, the Court finds that there is a “likelihood of confusion” between Guthrie and CMI’s trademarks that affects “numerous ordinary prudent purchasers” in Guthrie’s service area-the Twin Tiers region of North[200]*200ern Pennsylvania and Southern New York (the “Guthrie Service Area”). See Gruner + Jahr USA Publ’g, a Div. of Gruner + Jahr Printing & Publ’g Co. v. Meredith Corp., 991 F.2d 1072, 1075 (2d Cir.1993). However, the Court also finds that there is no likelihood of confusion, or that “numerous ordinary prudent purchasers” are unlikely to be confused, outside of the Guthrie Service Area. Accordingly, the Court awards limited injunctive relief, as described below, in the Guthrie Service Area.

Í. FINDINGS OF FACT

A. Guthrie’s Operations

Guthrie is composed of Guthrie Healthcare, the Guthrie Clinic, and the Guthrie Foundation. (Deck of Joseph A. Scopelliti (“Scopelliti Decl”) ¶6, ECF No. 100.) Guthrie operates 82 medical facilities, including three hospitals and 29 medical clinics. (Deck of Mary Ann Dougherty (“Dougherty Deck”) ¶7, ECF No. 98.) Guthrie also operates a number of specialized healthcare facilities, including separate cardiology, cancer, dialysis, endocrine and bariatric, orthopedic, pediatric and same-day surgery centers, as well as an orthodontics clinic, a specialty eye-care and optometry business, and a fitness center. (Id. ¶¶ 7, 9.) In addition, Guthrie offers occupational health services to employers under contract. (Id. ¶ 11.) Guthrie’s operations are in facilities located in the Twin Tiers Region of Northern Pennsylvania and Southern New York (the “Guthrie Service Area”). (See Tr. 88:6-14, 114:10-115:16.)1 Guthrie’s medical practice is comprised of 280 physicians and 130 mid-level providers (physician assistants and nurse practitioners). (Scopelliti Deck ¶ 9.) These physicians practice in 23 locations in southern New York and northern Pennsylvania. (Id. ¶ 9; Tr. 61:12-17.) Guthrie derives a substantial portion óf its patient-care revenue from referrals from physicians and medical professionals. (Dougherty Deck ¶ 10; Scopelliti Deck ¶ 30.)

Guthrie focuses considerable marketing efforts on obtaining referrals from doctors and medical professionals. (Id. ¶ 31.) Securing referrals from physicians with whom Guthrie might otherwise compete is a delicate business, and Guthrie has made special efforts to make referring physicians comfortable in referring patients to Guthrie without fear that Guthrie will try to provide non-referred services to those patients. (Id. ¶ 32.)

Guthrie also has an extensive training program for clinical professionals, including training in nursing, residency programs for medical students, medical fellowships, and continuing medical education. (Id. ¶ 8.)

[201]*201The Guthrie Foundation conducts medical research. (Id. ¶ 39.) The Foundation also manages investigator-initiated trials and manages the Guthrie Institutional Review Board, which approves, monitors, and reviews research involving human experimentation. (Id. ¶ 40.) The Foundation further assists investigators in presenting their findings at various seminars and symposia. (Id. ¶ 41.) Funders of research are very sensitive to potential and actual conflicts of interest. (Tr. 71:18-72:07, 94:22-95:15, 96:10-18.) As a result, Guthrie takes very seriously the need to maintain independence from the sponsorship of brands or products, such as a particular type of branded pharmaceutical product. (Tr. 72:09-22.) Guthrie has a policy, to which it steadfastly adheres, to refuse to provide any endorsements or advertisements for third-party products or services so as to avoid any conflict, bias, or partiality, or the appearance of such. (Scopelliti Decl. ¶ 43.) Guthrie also insists that any medical information that it disseminates— whether over the Internet or in symposia, and whether to physicians and medical professionals or to patients and the public — meets evidence-based medical guidelines. (Id.)

B. The Guthrie Mark

Guthrie launched its trademark and an associated new brand identity in September 2001. (Dougherty Deck ¶ 34.) Moni-gle Associates developed the mark. (Sco-pelliti Deck ¶ 16; Declaration of Michael Herburger (“Herburger Deck”) ¶¶ 6, 17, EOF No.

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Bluebook (online)
28 F. Supp. 3d 193, 2014 WL 2808594, 2014 U.S. Dist. LEXIS 84713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guthrie-healthcare-system-v-contextmedia-inc-nysd-2014.