Hard Candy, LLC v. Hard Candy Fitness, LLC

106 F. Supp. 3d 1231, 2015 U.S. Dist. LEXIS 67479, 2015 WL 3377906
CourtDistrict Court, S.D. Florida
DecidedMay 13, 2015
DocketCase No. 13-23705-CIV
StatusPublished
Cited by16 cases

This text of 106 F. Supp. 3d 1231 (Hard Candy, LLC v. Hard Candy Fitness, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hard Candy, LLC v. Hard Candy Fitness, LLC, 106 F. Supp. 3d 1231, 2015 U.S. Dist. LEXIS 67479, 2015 WL 3377906 (S.D. Fla. 2015).

Opinion

ORDER

CECILIA M. ALTONAGA, District Judge.

THIS CAUSE came before the Court on Specially Appearing Defendants, MGHCandy, LLC (“MGHCandy”), Guy Oseary (“Oseary”), and Madonna Louise Ciccone’s (“Ciecone[’s]” or “Madonna[’s]”) (collectively, the “New Defendants^]”) Second Motion to Dismiss for Lack of Personal Jurisdiction, or in the Alternative to Transfer to Northern (or Central) District of California (“Motion”) [ECF No. 179], filed February 20, 2015. On March 9, 2015, Plaintiff, Hard Candy, LLC (“Hard Candy”), filed its Sealed Response ... (“Response”) [ECF No. 185]. On March 20, 2015, the New Defendants filed a Sealed Reply ... (“Reply”) [ECF No. 192], The Court has carefully reviewed the parties’ written submissions and applicable law.

I. BACKGROUND

In this trademark action, Hard Candy, a company operating in the fashion and beauty industries, challenges the use in commerce of certain trademarks by various businesses and individuals associated with Ciccone, popularly known as the musician Madonna. In the latest iteration of this suit, which has been pending since October 2013, Hard Candy tests the limits of the Court’s power to render binding judgments on individuals tenuously connected with the State of Florida.

A. Hard Candy

Hard Candy, a Florida limited liability company with its principal place of business in Hollywood, Florida, traces its origins to a “Hard Candy” nail polish its predecessor created in 1995. (See First Amended Complaint ... (“First Amended Complaint” or “FAC”) [ECF No. 85] ¶¶ 1, 12). Around that time, the predecessor filed a U.S. trademark application for the nail polish. (See id. ¶ 12). Some time later, the predecessor filed another application under the name “Hard Candy” for cosmetics, including lipstick, lipliner, mascara, and the like. (See id.). Since then, Hard Candy and its predecessors have grown into a manufacturer of goods in the fashion and beauty industries, with a target demographic primarily consisting of teenage girls and young female adults. (See id. ¶ 11).

Hard Candy’s products are sold in the United States in Wal-Mart retail stores and on Wal-Mart’s website. (See id.). Since 1997, Hard Candy has also operated a website at www.hardcandy.com, on which Hard Candy currently - displays its products with a link to Wal-Mart’s website. (See id. ¶¶ 11, 15). Given the “Hard Candy” products’ success at Wal-Mart, Hard Candy “has planned and is in the midst of implementing an extensive launch of Hard Candy products at Wal-Mart, including clothing, apparel, furniture, bedding, and more.” (Id. ¶¶ 22-23 (emphasis in original)). According to Hard Candy, “[t]hrough continuous and exclusive use in commerce, and as a result of extensive marketing, promotion, advertising and sales activity, [its] distinctive Hard Candy Marks have achieved widespread renown and recognition by the general public and [1236]*1236have become famous marks.” (Id. ¶ 25 (emphasis in original; alterations added)).

B. Hard Candy Fitness

Hard Candy Fitness is a network of luxury fitness clubs operated by Defendant, Hard Candy Fitness, LLC (“HCF”), a Delaware limited liability company with its principal place of business in California. (See id. ¶ 2, 32). HCF’s clubs are located worldwide, but there has never been a club in Florida. (See id. ¶¶ 31-32; Declaration of Guy Oseary ... (“Oseary Declaration”) [ECF No. 180] ¶ 3). HCF is owned by two companies: NEV Hard Candy Fitness, LLC (“NEV-HC”) (a Delaware limited liability company) and MGHCandy (a Delaware limited liability company with its principal place of business in California). (See HCF Operating Agreement, Ex. AC at 2; FAC ¶ 4).1 As the Court previously found, NEV-HC is a vehicle through which Defendant, New Evolution Ventures, LLC (“NEV”) (a Delaware limited liability company with its principal place of business in California), exercises operational control over HCF. (See Sealed Order [ECF No. 84] 2-5; FAC ¶ 3).

MGHCandy, the other owner of HCF, is owned by Ciccone (a resident of New York) and Oseary (a resident of California). (See MGHCandy Operating Agreement, Ex. A at 1; FAC ¶ 5; Oseary Decl. ¶ l).2 Although Ciccone is MGHCandy’s “Managing Member” — vested with “full power and authority to operate and manage [MGHCandy], ... including without limitation full power and authority with regard to the creative and business decisions under the HCF Operating Agreement” — Oseary, as MGHCandy’s “senior management representative,” is charged with “conducting [MGHCandy’s] day-today business affairs.” (MGHCandy Operating Agreement 3, ¶ 2.8(a); see also Oseary Decl. ¶¶ 1, 5). Additionally, Oseary and Sara Zambreno (“Zambreno”) have provided personal management services to Ciccone since around 2005, first as employees of Guyo Entertainment, Inc. (“Guyo”), and later in affiliation with third-party Live Nation. (See id. ¶ 1). Although in some circumstances Oseary and Zambreno must consult with Ciccone before making decisions on her behalf, as a general matter both have considerable discretion to manage Ciccone’s affairs without her input. (See id.).

In November 2008, NEV filed an intent-to-use application with the U.S. Patent and Trademark Office for use of the mark “Hard Candy Fitness” for “[h]ealth club services, namely providing instruction and equipment in the field of physical exercise for health and physical fitness purposes; instruction in the field of health and physical fitness.” (FAC ¶ 26 (alteration added)). The “Hard Candy Fitness” mark was used for the first time over two years later, on November 30, 2010, and was used for the first time in commerce on June 30, 2011. (See id. ¶ 29). On October 12, 2011, MGHCandy granted HCF a license to use the mark “Hard Candy Fitness” and any derivatives or developments thereof in connection' with the operation of fitness clubs, the sale of related products, and the marketing and promotion of the clubs and products. (See License Agreement, Ex. C at Recital E, ¶ 1.1, Schedule A at 1-1 to I-2). Later, in May 2014, MGHCandy assigned to HCF its rights in the unregistered mark “Hard Candy” for use on clothing, bags, jewelry, athletic gear, and [1237]*1237accessories sold in the U.S. (See Oseary Decl. ¶ 8).

Hard Candy claims the New Defendants “are infringing [Hard Candyl’s Hard Candy Marks by, among other things, using the Hard Candy Fitness name to promote the fitness clubs, as well as Hard Candy Fitness branded apparel, owning and operating their www.hardcandyfitness.com website ..., and selling, marketing and distributing the Hard Candy Fitness DVD,” entitled Addicted to Sweat (the “ATS DVD”). (Resp. 3 (emphasis in original; alterations added); FAC ¶ 51).

C. Procedural History

On October 11, 2013, Hard Candy filed a Complaint ... (“Complaint”) [ECF No. 1] against HCF and NEV, asserting federal and common law trademark infringement, federal false designation of origin, federal trademark dilution, and common law unfair competition. (See Compl. Counts IV). The Complaint also sought related declaratory judgments and cancellation of NEV’s trademark registration. (See id. Counts VI-VIII).

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
106 F. Supp. 3d 1231, 2015 U.S. Dist. LEXIS 67479, 2015 WL 3377906, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hard-candy-llc-v-hard-candy-fitness-llc-flsd-2015.