Helpful Hound, L.L.C. v. New Orleans Bldg. Corp.
This text of 331 F. Supp. 3d 581 (Helpful Hound, L.L.C. v. New Orleans Bldg. Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
SARAH S. VANCE, UNITED STATES DISTRICT JUDGE
New Orleans Building Corporation and the City of New Orleans move to preliminarily enjoin Helpful Hound, L.L.C. and related parties from using the mark "St. Roch Market" at locations other than the food halls of the same name in New Orleans and Miami.1 The Court issues the preliminary injunction contained in this Order for the reasons discussed below.
I. BACKGROUND
This case arises out of a dispute over use of the name "St. Roch Market." The original St. Roch Market is located at 2381 St. Claude Avenue, on the neutral ground of St. Roch Avenue. It is one of the few remnants of the once-extensive network of public markets in New Orleans.2 According to defendants, St. Roch Market dates back to 1838, when an open-air market was built at the site.3 It was originally known as Washington Market, just as St. Roch Avenue used to be known as Washington Avenue.4 The present structure was designed and built in 1875.5 According to the City, the market was enclosed in 1914, and rebuilt in 1937 by the Works Progress Administration.6 By 1964, the market had acquired its distinctive signage:7
*589The City leased stalls in St. Roch Market to various food vendors until 1945.8 From 1945 until the 1990s, the City leased the market to the Lama family, who first operated a seafood market and po-boy restaurant at the site before converting the space to a supermarket in 1954.9 The City then leased the space to a different tenant, which operated a seafood market, po-boy restaurant, and Chinese food restaurant until the space was damaged by Hurricane Katrina in 2005.10
The City renovated St. Roch Market between 2012 and 2014.11 The renovation cost $3,258,873.77, of which the City contributed $555,459.34.12 The City then sought a master tenant to operate the property.13 On May 10, 2014, defendant Will Donaldson submitted a proposal on behalf of a company called Launch Pad.14 Launch Pad proposed to "replicate the original St. Roch Market through the installation of 15 independent, local food vendors, each selling fresh and prepared foods seven days a week."15
On September 29, 2014, New Orleans Building Corporation (NOBC) leased the building to Bayou Secret, LLC, which was allegedly established by Donaldson and his business partners.16 The lease places a number of restrictions on Bayou Secret's use of the building. For example, the lease requires Bayou Secret to operate "a full service neighborhood restaurant" and *590"fresh foods market using multiple vendors in a 'stalls' concept."17 According to the lease, "[i]t is important to [NOBC] that the fresh and prepared foods market concept remain intact."18 Exhibit D to the lease provides that Bayou Secret "may utilize existing typeface logo for the St. Roch Market as is presently posted on the building and replicate this logo in additional locations of the building."19
According to Bayou Secret, it "has successfully operated St. Roch Market as a southern food hall featuring a diverse lineup of food and beverage purveyors."20 Bayou Secret's responsibilities allegedly include identifying, securing, and managing the market's vendors, cleaning and maintaining the premises, and performing administrative functions for the market.21
Bayou Secret opened a second food hall in New Orleans, called "Auction House Market," in 2018.22 Bayou Secret allegedly displayed a marketing banner using the "St. Roch Market" mark at this location in December 2017.23 After NOBC CEO Cynthia Connick raised this issue with Bayou Secret, the banner was removed.24
Bayou Secret and related entities also opened a food hall called "St. Roch Market" in Miami in 2018.25 Various newspaper articles and Bayou Secret's website report that Bayou Secret has plans to open additional food halls called "St. Roch Market" in other locations, including Chicago and Nashville, Tennessee.26 The City and NOBC have not consented to the opening of additional of food halls under the name "St. Roch Market."27
Helpful Hound, L.L.C. (allegedly a member of Bayou Secret) applied for registration of "St. Roch Market" on April 6, 2017.28 The U.S. Patent and Trademark Office (PTO) refused registration on the Principal Register on the ground that the mark was primarily geographically descriptive.29 The PTO allowed registration on the Supplemental Register on September 19, 2017.30 In April 2018, the City and Helpful Hound filed competing applications for registration of "St. Roch Market" on the Principal Register.31 Both applications remain pending. The PTO initially refused registration of the City's mark, again on the ground that it is primarily geographically descriptive.32 On July 5, 2018, the PTO approved the City's mark for publication on the Principal Register,33 but then withdrew it on August 1.34 On August 3, the PTO refused registration to the City because of a likelihood of confusion *591with Helpful Hound's Supplemental Register mark.35 See
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SARAH S. VANCE, UNITED STATES DISTRICT JUDGE
New Orleans Building Corporation and the City of New Orleans move to preliminarily enjoin Helpful Hound, L.L.C. and related parties from using the mark "St. Roch Market" at locations other than the food halls of the same name in New Orleans and Miami.1 The Court issues the preliminary injunction contained in this Order for the reasons discussed below.
I. BACKGROUND
This case arises out of a dispute over use of the name "St. Roch Market." The original St. Roch Market is located at 2381 St. Claude Avenue, on the neutral ground of St. Roch Avenue. It is one of the few remnants of the once-extensive network of public markets in New Orleans.2 According to defendants, St. Roch Market dates back to 1838, when an open-air market was built at the site.3 It was originally known as Washington Market, just as St. Roch Avenue used to be known as Washington Avenue.4 The present structure was designed and built in 1875.5 According to the City, the market was enclosed in 1914, and rebuilt in 1937 by the Works Progress Administration.6 By 1964, the market had acquired its distinctive signage:7
*589The City leased stalls in St. Roch Market to various food vendors until 1945.8 From 1945 until the 1990s, the City leased the market to the Lama family, who first operated a seafood market and po-boy restaurant at the site before converting the space to a supermarket in 1954.9 The City then leased the space to a different tenant, which operated a seafood market, po-boy restaurant, and Chinese food restaurant until the space was damaged by Hurricane Katrina in 2005.10
The City renovated St. Roch Market between 2012 and 2014.11 The renovation cost $3,258,873.77, of which the City contributed $555,459.34.12 The City then sought a master tenant to operate the property.13 On May 10, 2014, defendant Will Donaldson submitted a proposal on behalf of a company called Launch Pad.14 Launch Pad proposed to "replicate the original St. Roch Market through the installation of 15 independent, local food vendors, each selling fresh and prepared foods seven days a week."15
On September 29, 2014, New Orleans Building Corporation (NOBC) leased the building to Bayou Secret, LLC, which was allegedly established by Donaldson and his business partners.16 The lease places a number of restrictions on Bayou Secret's use of the building. For example, the lease requires Bayou Secret to operate "a full service neighborhood restaurant" and *590"fresh foods market using multiple vendors in a 'stalls' concept."17 According to the lease, "[i]t is important to [NOBC] that the fresh and prepared foods market concept remain intact."18 Exhibit D to the lease provides that Bayou Secret "may utilize existing typeface logo for the St. Roch Market as is presently posted on the building and replicate this logo in additional locations of the building."19
According to Bayou Secret, it "has successfully operated St. Roch Market as a southern food hall featuring a diverse lineup of food and beverage purveyors."20 Bayou Secret's responsibilities allegedly include identifying, securing, and managing the market's vendors, cleaning and maintaining the premises, and performing administrative functions for the market.21
Bayou Secret opened a second food hall in New Orleans, called "Auction House Market," in 2018.22 Bayou Secret allegedly displayed a marketing banner using the "St. Roch Market" mark at this location in December 2017.23 After NOBC CEO Cynthia Connick raised this issue with Bayou Secret, the banner was removed.24
Bayou Secret and related entities also opened a food hall called "St. Roch Market" in Miami in 2018.25 Various newspaper articles and Bayou Secret's website report that Bayou Secret has plans to open additional food halls called "St. Roch Market" in other locations, including Chicago and Nashville, Tennessee.26 The City and NOBC have not consented to the opening of additional of food halls under the name "St. Roch Market."27
Helpful Hound, L.L.C. (allegedly a member of Bayou Secret) applied for registration of "St. Roch Market" on April 6, 2017.28 The U.S. Patent and Trademark Office (PTO) refused registration on the Principal Register on the ground that the mark was primarily geographically descriptive.29 The PTO allowed registration on the Supplemental Register on September 19, 2017.30 In April 2018, the City and Helpful Hound filed competing applications for registration of "St. Roch Market" on the Principal Register.31 Both applications remain pending. The PTO initially refused registration of the City's mark, again on the ground that it is primarily geographically descriptive.32 On July 5, 2018, the PTO approved the City's mark for publication on the Principal Register,33 but then withdrew it on August 1.34 On August 3, the PTO refused registration to the City because of a likelihood of confusion *591with Helpful Hound's Supplemental Register mark.35 See
On April 3, 2018, Helpful Hound brought a declaratory judgment action against the City and NOBC.37 Helpful Hound's complaint seeks a declaration of noninfringement and a declaration that the registration of its service mark was proper.38 The City and NOBC (collectively, plaintiffs) filed suit the next day against Bayou Secret, St. Roch F & B, LLC, Helpful Hound, St. Roch Design District, LLC, Will Donaldson, Barre Tanguis, and David Donaldson (collectively, defendants).39 Plaintiffs' complaint asserts a number of claims, including trademark cancellation, trademark infringement, trademark dilution, unfair competition, breach of trademark license or implied trademark license, breach of contract, and unauthorized use of assumed name of a governmental entity. On May 4, 2018, plaintiffs moved for a preliminary injunction to enjoin defendants "from using the designation 'St. Roch Market' or any other confusingly similar designation in connection with any business" at any location other than 2831 St. Claude Avenue in New Orleans and defendants' Miami location.40
II. LEGAL STANDARD
A party may obtain a preliminary injunction only if: (1) there is a substantial *592likelihood that the movant will prevail on the merits; (2) there is a substantial threat that the movant will suffer irreparable harm if the injunction is not granted; (3) the threatened injury to the movant outweighs the potential injury to the nonmovant; and (4) the preliminary injunction will not disserve the public interest. Guy Carpenter & Co., Inc. v. Provenzale ,
III. DISCUSSION
A. Trademark Infringement
Plaintiffs first seek a preliminary injunction based on trademark infringement under the Lanham Act. See
First, he must prove that the name he seeks to protect is eligible for protection. He must then prove he is the senior user. Having proven these elements he must then show a likelihood of confusion between his mark and that of the defendant. Finally, because he is asking for the equitable remedy of an injunction, he must show that the likelihood of confusion will actually cause him irreparable injury for which there is no adequate legal remedy.
Union Nat'l Bank ,
1. Protectability
The Lanham Act defines a service mark (i.e. , a trademark used for services rather than goods) as "any word, name, symbol, or device, or any combination thereof ... used by a person ... to identify and distinguish the services of one person ... from the services of others and to indicate the source of the services, even if that source is unknown."
The parties agree that the mark is protectable; each side seeks to protect it against the other's use. The Court nevertheless addresses this element because the Patent and Trademark Office (PTO) refused registration on the Principal Register.
*59341 "[R]egistration of a mark with the PTO constitutes prima facie evidence that the mark is valid and that the registrant has the exclusive right to use the registered mark in commerce with respect to the specified goods or services." Amazing Spaces ,
"A mark is geographically descriptive if it describes to consumers the geographic origin of the goods or services rather than the source of the goods or services." Pebble Beach Co. v. Tour 18 I, Ltd. ,
As an initial matter, the Court distinguishes between use of the mark in New Orleans and prospective use of the mark in other cities. See Sarco Creek Ranch v. Greeson ,
Potential consumers in Chicago, Nashville, and other cities far afield likely would not make the same association. St. Roch-unlike, say, the French Quarter-is not a place name that is generally recognizable *594by the American public. Cf. In re The Newbridge Cutlery Co. ,
Because plaintiffs have used the mark only in New Orleans, they must show secondary meaning in order to establish the protectability of the mark. Secondary meaning "occurs when, 'in the minds of the public, the primary significance of a [mark] is to identify the source of the product rather than the product itself.' " Wal-Mart ,
A party's burden of demonstrating secondary meaning "is substantial and requires a high degree of proof." Nola Spice Designs, L.L.C. v. Haydel Enters., Inc. ,
(1) length and manner of use of the mark or trade dress, (2) volume of sales, (3) amount and manner of advertising, (4) nature of use of the mark or trade dress in newspapers and magazines, (5) consumer-survey evidence, (6) direct consumer testimony, and (7) the defendant's intent in copying the mark.
Viacom ,
Because the protectability of the mark is uncontested, the parties provide little evidence of secondary meaning. Nevertheless, it is clear that St. Roch Market has long been used as the name of a specific food market in New Orleans. Both parties state that St. Roch Market has been known as such since the late 1800s.44 Attached to plaintiffs' complaint is a photograph dated January 28, 1964, portraying St. Roch Market with its distinctive sign.45 The photograph shows an additional sign, which reads "Lama's Meat Market." The Lama family later relocated their business-now a restaurant called "Lama's St.
*595Roch"-to Mandeville, Louisiana.46 Their website emphasizes the restaurant's connection to St. Roch Market.47 The Lama family's continued use of the name "St. Roch" outside of the St. Roch neighborhood indicates an association between the name and the provision of food that transcends geographic boundaries. This undisputed evidence, though limited, suggests a lengthy use of the mark in connection with the provision of food. Cf. Resorts of Pinehurst, Inc. v. Pinehurst Nat'l Corp. ,
Defendants, like the Lama family, seek to capitalize on this secondary meaning. For example, a screenshot of defendants' website for its Miami location states that "St. Roch Market is a contemporary, multi-vendor food hall brand, hailing from New Orleans," and that "[t]his popular New Orleans food hall has made its way down to Miami."48 Another screenshot from the website gives a brief history of St. Roch Market in New Orleans.49 These deliberate associations suggest that defendants themselves believe the mark has "secondary meaning that could influence consumers, which further supports the conclusion that there is secondary meaning here."50 Bd. of Supervisors for La. State Univ. Agric. & Mech. Coll. v. Smack Apparel Co. ,
2. Use
The parties chiefly dispute whose use of the mark is senior. "The first one to use a mark is generally held to be the 'senior' user and is entitled to enjoin other junior users from using the mark, or one that is deceptively similar to it, subject to limits imposed by the senior user's market and natural area of expansion." Union Nat'l Bank ,
Generally, a senior user's common law rights are geographically limited.51 Two Supreme Court cases, Hanover Star Milling Co. v. Metcalf ,
It is undisputed that the City has leased St. Roch Market to tenants who provide food services since the nineteenth century. The City leased stalls in to various food vendors until 1945.52 The Lama family was the sole tenant from 1945 until the 1990s, and first operated a seafood market and po-boy restaurant at the site before converting the space to a supermarket in 1954.53 Every lease to a member of the Lama family required that the lessee use the space for some sort of food market.54 From the 1990s until 2005, the City leased the space to a different tenant who operated a seafood market, po-boy restaurant, and Chinese food restaurant under the name St. Roch Market.55 The market was damaged by Hurricane Katrina and sat *597vacant until the City completed renovations in 2014.56 NOBC then leased the space to Bayou Secret, which has since operated a food hall in the building pursuant to the terms of the lease. Although the use of St. Roch Market has evolved over time, each prior use is substantially identical to its present use as a food hall. See Big Blue Prods. Inc. v. IBM Corp. ,
The critical question in this case is whether the landlord (as owner of the food hall) has seniority over the tenant (as operator of the food hall). According to a leading treatise, "[o]wnership of a mark identifying a business carried on at rented premises will depend on an informed balancing of the policies of customer perception and contractual provisions (express or implied) between landlord and tenant." See 2 McCarthy on Trademarks and Unfair Competition § 16:38. Of course, if the tenant creates the mark and owns the business with which the mark is associated, the tenant owns the mark. See
In Norden Restaurant , the defendant owned a building in lower Manhattan that had been called Fraunces Tavern since the eighteenth century. The plaintiff leased the space and operated a restaurant there called Fraunces Tavern Restaurant. Although the plaintiff-tenant registered "Fraunces Tavern" as a service mark, the court held that the defendant-landlord's common law rights were superior. Norden Rest. ,
In another New York case, City of New York v. Tavern on the Green , the city owned a building in Central Park called Tavern on the Green. The building was built in 1934 and then leased to various companies that operated a restaurant under the name "Tavern on the Green." The defendants, who had leased the building and operated the restaurant since 1973, registered the name of the restaurant as a *598service mark in 1981. The court nevertheless found that the city had a superior common law right. Tavern on the Green ,
The Ninth Circuit came to the opposite conclusion, ruling in favor of a tenant, in Department of Parks and Recreation for the State of California v. Bazaar Del Mundo ,
The Court finds that this case more closely resembles the New York cases than Bazaar del Mundo . Like Tavern on the Green, St. Roch Market has long been associated with food services. The City's use of the mark has not been transitory and it achieved secondary meaning well before defendants acquired the lease in 2014. The City also designed and built the market, chose its lessees, and made significant investments to restore it after Hurricane Katrina. Defendants argue that this conduct does not suffice to establish use because there is no evidence that the City ever actually operated a market-or any other type of food service-in the building.57 But defendants cite no authority for the proposition, implicitly rejected by Norden Restaurant and Tavern on the Green , that a landlord must operate a specific business in its building in order to acquire ownership over the building's name.58 The Court therefore finds that *599plaintiffs used "St. Roch Market" in commerce, and achieved secondary meaning in the mark, before defendants began to use the mark in 2014.
Moreover, the 2014 lease-like the leases in the New York cases-includes several limitations on Bayou Secret's use of the premises. Section 5.1 of the lease requires Bayou Secret to operate "a full service neighborhood restaurant" and "fresh foods market using multiple vendors in a 'stalls' concept."59 The lease also prohibits Bayou Secret from using the building "for any other business or purpose" or "in any way that will injure the reputation of the NOBC or the Building."60 Bayou Secret must obtain NOBC's consent to assign the lease, and NOBC may reject an assignment if the proposed transferee's use of the premises "would not be in strict conformity with" Section 5.1.61 If Bayou Secret desires to change the use of the building, the lease requires Bayou Secret to provide NOBC "with detailed information on the proposed new or additional uses," and subjects any such change to NOBC's approval.62 The lease also provides for certain business hours, though it gives Bayou Secret some discretion to vary the hours.63
Additionally, the lease permits Bayou Secret to "utilize existing typeface logo for the St. Roch Market as is presently posted on the building and replicate this logo in additional locations of the building."64 But the lease requires the City's consent to change or add exterior signage, and gives the City "the right to disapprove and require the removal of any sign, graphics, lettering, or advertising readily visible from outside" the market.65 The lease also prohibits the use of "any signs or displays illuminated electrically or otherwise."66
These terms do not give plaintiffs as much managerial authority as the Tavern on the Green lease gave the City of New York, nor does it restrict the tenant's use of the building name as explicitly as the Fraunces Tavern lease did. Nevertheless, the lease's restrictions on Bayou Secret's use of St. Roch Market further buttresses the Court's finding that plaintiffs own the mark.
Defendants also argue that even if plaintiffs owned the mark, their common law rights do not extend to the locations where defendants plan to open additional food halls called "St. Roch Market." Chicago and Nashville may very well be remote locations. But, as noted earlier, the evidence suggests that defendants intend to capitalize on the goodwill and reputation developed by plaintiffs. Screenshots from defendants' website for its Miami location include a number of references to New Orleans:
• "St. Roch Market is a contemporary, multi-vendor food hall brand, hailing from New Orleans."
• "This popular New Orleans food hall has made its way down to Miami."
• "[A]t St. Roch, a New Orleans-based concept, chefs can try out their ideas on a small scale before launching stand-alone restaurants."
• "In 1875, the original St. Roch Market in New Orleans was named in honor of the Patron Saint of miraculous *600cures. For months prior, the neighborhood held vigil to Saint Roch, praying for an end to a devastating yellow fever epidemic. Once the fever broke, the grateful community enclosed the Market and gave it its official name."
"In its lifetime, the New Orleans Market has gone from an outdoor selling space on the neutral ground, to the fish market that was shut down by Katrina, to the food hall we know and love today. But it's always been a gathering place, a place where neighbors become friends and break bread together. Each day, we strive to keep the spirit of community and the resilience inherent to the St. Roch Market name alive."67
This evidence indicates that defendants seek to use the mark in bad faith. See C.P. Interests ,
3. Likelihood of confusion
The most important question in a trademark infringement action "is whether one mark is likely to cause confusion with another." Xtreme Lashes, LLC v. Xtended Beauty, Inc. ,
As an initial matter, the Court notes that the parties are not necessarily in direct competition with each other because plaintiffs do not intend to establish additional food halls called "St. Roch Market" outside New Orleans. But "[d]irect competition between the parties' services or products is not required in order to find a likelihood of confusion." Elvis Presley Enters., Inc. v. Capece ,
Mark similarity weighs heavily in favor of finding a likelihood of confusion. " 'The relevant inquiry is whether, under the circumstances of the use,' the marks are sufficiently similar that prospective purchasers are likely to believe that the two users are somehow associated." Capece ,
Service similarity also suggests a likelihood of confusion. Defendants intend to use the mark in connection with a food hall-the same services currently provided at St. Roch Market in New Orleans. Plaintiffs and defendants are responsible for slightly different aspects of running a food hall: plaintiffs own the space and lease it to defendants, while defendants operate the food hall and lease stalls to different vendors. But the Fifth Circuit has not regarded such minor differences as material. See, e.g. , Viacom ,
Defendants' intent also weighs in favor of finding a likelihood of confusion. This "inquiry focuses on whether the defendant intended to derive benefits from the reputation of the plaintiff." Streamline Prod. Sys., Inc. v. Streamline Mfg., Inc. ,
On the other hand, the physical distances between New Orleans and the cities where defendants plan to open additional food halls called "St. Roch Market" weigh against finding a likelihood of confusion. Because of these distances, the overlap in potential customers of St. Roch Market in New Orleans and defendants' future locations is likely small. The strength of the mark, which is descriptive rather than inherently distinctive, also weighs against finding a likelihood of confusion.70 There is *602little evidence pertaining to the remaining factors, so these factors do not weigh strongly either way.
In weighing the factors, the Court finds that mark similarity, services similarity, and defendants' deliberate attempts to associate their food halls outside New Orleans with St. Roch Market in New Orleans outweigh the small overlap in potential customers and the weakness of the mark. The Fifth Circuit has emphasized that finding a likelihood of confusion is particularly appropriate when a defendant's use of the plaintiff's mark "is designed to create the illusion of affiliation" with the plaintiff. Smack Apparel ,
B. Breach of Trademark License
Plaintiffs also seek a preliminary injunction based on breach of trademark license. This claim essentially asserts breach of contract under Louisiana law. See Brennan's Inc. v. Dickie Brennan & Co. Inc. ,
Plaintiffs argue that defendants' use of the mark outside St. Roch Market in New Orleans violates the 2014 lease.71 The lease does not explicitly prohibit such use of the mark; Exhibit D to the lease merely permits Bayou Secret to "utilize existing typeface logo for the St. Roch Market as is presently posted on the building and replicate this logo in additional locations of the building."72 This language clearly grants Bayou Secret a license to use the mark inside St. Roch Market in New Orleans. According to the Fifth Circuit, "the prevailing view is that one who exceeds the scope of [such a] license" may be liable for both breach of contract and trademark infringement. Brennan's ,
*603Digital Equip. Corp. v. AltaVista Tech., Inc. ,
These cases suggest that if a party owns a mark, then a license to use that mark implies an obligation not to use the mark outside the scope of the license. For example, in Digital Equipment , the plaintiff licensed the mark " AltaVista" to the defendant.
Here, the Court has already found a substantial likelihood that plaintiffs will succeed in establishing their ownership of a protectable mark. Defendants' use of the mark in connection with food halls in other cities obviously exceeds the scope of the license in Exhibit D to the 2014 lease. Thus, the Court finds a substantial likelihood that plaintiffs will succeed on the merits of their breach of trademark license claim.
C. Substantial Threat of Irreparable Harm
The central prerequisite for injunctive relief "is a demonstration that if it is not granted the applicant is likely to suffer irreparable harm before a decision on the merits can be rendered." 11A Wright & Miller, Federal Practice and Procedure § 2948.1 (3d ed. 2018). "In general, a harm is irreparable where there is no adequate remedy at law, such as monetary damages." Janvey v. Alguire ,
In trademark infringement cases, courts have historically presumed irreparable harm once a plaintiff establishes likelihood of success on the merits. See Paulsson ,
In any event, the record supports a showing of irreparable harm. Defendants have appropriated a mark that the *604City has maintained for a century. Now, plaintiffs have "lost control" of the quality of the services associated with their mark.73 Paulsson ,
D. Balance of Hardships
Without an injunction, plaintiffs stand to lose control over the services associated with St. Roch Market, and potentially face damage to their reputation and goodwill. If an injunction is granted, defendants will also experience hardship. Specifically, defendants will be unable to use their preferred name for the food halls defendants seek to open in other cities. This restriction means that defendants will be unable to capitalize on the reputation and goodwill associated with St. Roch Market. Defendants' counsel also noted in oral argument that defendants have spent hundreds of thousands of dollars promoting the "St. Roch Market" brand. But any harm defendants may suffer is self-inflicted because defendants did not have the right to use the mark in the first place. Cf. ADT ,
E. Public Interest
Finally, a preliminary injunction would not disserve the public interest. Here, where plaintiffs have established a substantial likelihood of success on the merits, an injunction would serve the public interest by preventing unfair competition and protecting intellectual property. These values promoted by trademark law outweigh the public's interest in competition and free exchange of ideas. See Allied Mktg. Grp., Inc. v. CDL Mktg., Inc. ,
*605The Court further notes that St. Roch Market is a public institution with a rich history. It is one of only a few remnants of the once-extensive network of public markets in New Orleans. The City and other governmental bodies have invested substantial sums of money in the market over the years. The reputation of St. Roch Market and the goodwill associated with that name therefore belong to the public. In fact, Louisiana law explicitly recognizes the City's right to use, and exclude others from using, the name of a public facility owned by the City. See La. R.S. § 51:281.2(A) ("[N]o person shall transact any business under an assumed name which contains the name of any ... public facility without the written consent of the governing authority of the governmental entity which owns or operates the ... public facility."). For these reasons, the public interest would be served by enjoining defendants' infringing use of St. Roch Market.
The Court notes that the preliminary injunction will not affect defendants' Miami location. The Court need not, and does not, decide the proper scope of a permanent injunction at this time.
IV. PRELIMINARY INJUNCTION
The Court has found that plaintiffs have satisfied the requirements for preliminary injunctive relief. Accordingly, the Court preliminarily enjoins and restrains defendants, Bayou Secret, LLC, St. Roch Design District, LLC, Helpful Hound, L.L.C., St. Roch F & B, LLC, William Donaldson, Barre Tanguis, and David Donaldson, as well as their officers, agents, servants, employees, attorneys, successors, and assigns, and all others in active concert or participation with them, from using the designation "St. Roch Market" in connection with any food hall, or any other type of public food market, at any location other than 2381 St. Claude Avenue, New Orleans, Louisiana and 140 NE 39th Street, Suite 241, Miami, Florida. This preliminary injunction shall remain in effect until a trial is conducted on the merits, or until it is otherwise modified by the Court.
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