Halo Management, LLC v. Interland, Inc.

308 F. Supp. 2d 1019, 2003 U.S. Dist. LEXIS 25354, 2003 WL 23320571
CourtDistrict Court, N.D. California
DecidedNovember 17, 2003
DocketC-03-1106 MHP
StatusPublished
Cited by8 cases

This text of 308 F. Supp. 2d 1019 (Halo Management, LLC v. Interland, 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
Halo Management, LLC v. Interland, Inc., 308 F. Supp. 2d 1019, 2003 U.S. Dist. LEXIS 25354, 2003 WL 23320571 (N.D. Cal. 2003).

Opinion

MEMORANDUM AND ORDER

Motion for Preliminary Injunction

PATEL, Chief Judge.

In March 2003, plaintiff Halo Management, LLC (“HM”) brought this civil action against defendant Interland, Inc., seeking monetary and injunctive relief for alleged violations of federal trademark law, see 15 U.S.C. §§ 1114, 1125, and of California’s Business and Professional Code. See Cal. Bus. & Prof.Code § 17203. At the heart of HM’s complaint is Interland’s use—in a variety of contexts—of the word mark “HALO,” a mark for which plaintiff holds a registered United States trademark.

Before the court is HM’s motion for a preliminary injunction. HM has asked the court to prohibit Interland from using the “HALO” mark, as well as any variation thereof, in its business enterprise. The court has considered fully the parties’ arguments, and for the reasons set forth below, the court rules as follows.

BACKGROUND 1

Founded as a sole proprietorship, HM is a small, privately-held limited liability corporation based in Los Altos, California. Focusing on internet-related services, HM offers email, web-search functions, and web-hosting to its list of subscribers and customers. 2 Interland, Inc. is a publicly-traded corporation, attracting customers through, inter alia, its listing on the NASDAQ stock exchange. Like HM, Interland offers an array of internet-based services to its subscribers and customers. As a part of its business practices, Interland employs the web address “bluehalo.com,” often redirecting visitors to the “blueha-lo.com” site to Interland’s corporate homepage (“interland.com”). Interland also displays the symbol “blueHALO” prominently throughout its corporate, sales, and marketing materials, often — if not uniformly- — casting the mark in the color blue.

I. History of the Relevant Trademark

In late 1999, HM filed a United States trademark application for the word mark “HALO,” 3 By June 25, 2002, HM had registered the “HALO” mark, 4 see Ashby Dec., Exh. 3, identifying two classes of internet- and computer-focused goods and services in this registration:

CLASS 038 — Electronic communication and commerce services, namely, elee- *1025 tronie transmission of voice, video, and data via computer terminals, electronic mail services, providing on-line chat rooms for transmission of messages among computer users in the field of business, legal, and intellectual asset management, and providing multi-user access to a global computer network.
CLASS 042 — Providing a search engine for online searching and retrieving of information on a global computer network; hosting the web sites of others on a computer server for a global computer network; on-line, non-downloadable electronic newsletters in the field of business, legal, and intellectual asset management; and intellectual property consultation.

Id.

After HM filed its 1999 trademark application for “HALO,” 5 Interland filed an intent-to-use 6 trademark application for the mark “blueHALO Architecture.” See Ashby Dec., Exh. 5 (dated June 13, 2002). 7 Interland’s trademark application identified web-hosting as the service targeted by the mark, drawing Interland’s desired mark into close linguistic and subject affinity with HM’s existing “HALO” mark. The Patent & Trademark Office (“PTO”) rejected Interland’s “blueHALO Architecture” application on March 7, 2003. See Ashby Dec., Exh. 6. Citing 15 U.S.C. section 1052(d) of the Lanham Act, the PTO found Interland’s proposed mark too likely to cause confusion, too likely to cause mistake, or too likely to deceive in light of HM’s existing mark to merit trademark registration. Id. Because the two marks were visually and phonetically comparable, 8 and because the services Interland and HM offered were, in this instance, closely related, the PTO rejected Inter-land’s application. Id. (adding that any doubt regarding the likelihood of confusion was to be resolved in favor of HM’s existing mark) (citing In re Hyper Shoppes (Ohio), Inc., 837 F.2d 463 (Fed.Cir.1988)).

Interland filed a second trademark application a short time later. In this second application, Interland substituted the phrase “and Design” for “Architecture,” seeking to register the mark “blueHALO and Design.” See Ashby Dec., Exh. 7 (noting that the mark was “lined” for the color blue). Again citing 15 U.S.C. section 1052(d), the PTO refused Interland’s second application, once again noting the likelihood of confusion and the close affinity between the goods and services offered by the parties. Interland’s mark, the PTO concluded, was sufficiently likely to spur confusion that Interland’s application must be refused. See Ashby Dec., Exh. 8.

II. The Parties’Relationship

Though the PTO rejected Interland’s two efforts to register a “blueHALO”-based mark, Interland continued to employ the “blueHALO” moniker in its business ventures. See, e.g., Ashby Dec., Exh. 9 (Transcript of Fair Disclosure Financial Network Interview) (“ ... new products such as blueHALO are raising the bar .... ”). HM learned of Interland’s ongo *1026 ing use in January 2003, promptly asking Interland to alter the mark used in Inter-land’s web-hosting services in order to dissipate any potential confusion. See Ashby Dec., Exh. 10 at 1. Interland confirmed receipt of HM’s initial query, but Interland did not respond to HM’s demand.

In a second, similarly-worded letter, HM reiterated its name-change request. Id. at 2. On February 18, 2003, Interland formally responded to — and refused — HM’s demand.

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308 F. Supp. 2d 1019, 2003 U.S. Dist. LEXIS 25354, 2003 WL 23320571, Counsel Stack Legal Research, https://law.counselstack.com/opinion/halo-management-llc-v-interland-inc-cand-2003.