Herb Reed Enterprises, Inc. v. Monroe Powell's Platters, LLC

842 F. Supp. 2d 1282, 103 U.S.P.Q. 2d (BNA) 1081, 2012 WL 288705, 2012 U.S. Dist. LEXIS 12453
CourtDistrict Court, D. Nevada
DecidedFebruary 1, 2012
DocketNo. 2:11-CV-02010-PMP-RJJ
StatusPublished
Cited by4 cases

This text of 842 F. Supp. 2d 1282 (Herb Reed Enterprises, Inc. v. Monroe Powell's Platters, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Herb Reed Enterprises, Inc. v. Monroe Powell's Platters, LLC, 842 F. Supp. 2d 1282, 103 U.S.P.Q. 2d (BNA) 1081, 2012 WL 288705, 2012 U.S. Dist. LEXIS 12453 (D. Nev. 2012).

Opinion

ORDER

PHILIP M. PRO, District Judge.

Presently before this Court is Plaintiff Herb Reed Enterprises, Inc. and Herb Reed Enterprises, LLC’s Motion for a Preliminary Injunction (Doc. # 4), filed on December 15, 2011. Defendant Monroe Powell’s Platters, LLC; Monroe Powell; and Don Gloude (collectively “Powell”) filed an Opposition to the Motion for a Preliminary Injunction (Doc. # 17) on January 5, 2012. Plaintiffs filed a Reply to Powell’s Opposition (Doc. # 23) on January 6, 2012. The Court held a hearing on the Motion on January 9, 2012 (Doc. #25).

I. BACKGROUND

The Platters musical group was formed in 1953. (Decl. of Frederick J. Balboni (“Balboni Deck”) (Doc. # 6) ¶ 5 & Ex. C; Defs.’ Opp’n to Mot. for Prelim. Inj. (“Defs’ Opp’n”) (Doc. # 17) at 3.)1 The “original” members of the group were David Lynch, Herb Reed (“Reed”), Paul Robi (“Robi”), Zola Taylor, and Tony Williams. (Balboni Deck ¶ 7.) The group charted several number one hits during the 1950s and 1960s. (Id. ¶ 8.) In 1956, Buck Ram, the group’s manager, incorporated Five Platters, Inc. (“FPI”), and the original members of the group assigned their rights in “The Platters” mark to FPI in exchange for the issuance of stock in FPI. (Balboni Deck ¶¶ 9, 10; Defs.’ Opp’n at 3.) Gradually the original members left the group, and in 1969 Reed was the only original member remaining. (Balboni Deck ¶ 12.) In 1969, Reed discontinued his relationship with FPI but continued performing. (Id. ¶ 13.) In 1970, FPI hired Monroe Powell (“Powell”) to perform with FPI’s Platters group. (Defs.’ Opp’n, Deck of Monroe Powell (“Powell Deck”) ¶ 2.)

Thereafter, FPI brought suit against Robi, an original member, for trademark infringement in the California Superior Court, Case No. C43926, claiming exclusive rights to “The Platters” mark based on the 1956 assignments. In 1974, the court granted judgment in favor of Robi. Robi v. Five Platters, Inc., 838 F.2d 318, 320, 324 (9th Cir.1988) (discussing the 1974 California judgment). The court held that FPI “was a sham used by Mr. Ram to obtain ownership in the name ‘Platters,’ ” and FPI’s issuance of stock to the group members was “illegal and void” because it violated California corporate securities law. Id. at 320 (quoting the 1974 Califor[1285]*1285nia judgment). The 1974 California judgment left open the question of who owns the rights to “The Platters,” and various parties have been embroiled in litigating this question ever since.

Numerous courts have endeavored to determine who, of all the parties claiming rights to the mark, is “The Great Pretender.” See Robi v. Reed, 173 F.3d 736, 737 (9th Cir.1999). Unfortunately this drawn out legal battle has created “a tangled web of litigation resulting in a number of inconsistent federal and state court decisions.” Five Platters Inc. v. Williams, 4 U.S.P.Q.2d 1296, 1297 (N.Y.Sup.Ct.1987). “While some courts have held that one party has superior rights to the other, this Court has held that “Only You,” Herb Reed, have exclusive rights to the mark. Reed v. Bennett, No. 2:10-CV-01981-JCM-RJJ (D.Nev. May 16, 2011). The Court will give a brief account of the cases that affect Reed’s and Powell’s rights to “The Platters.”

A. Litigation between FPI and Robi

Years after the 1974 judgment in favor of Robi, FPI sued Robi again for trademark infringement. Robi, 838 F.2d at 323. The district court dismissed FPI’s complaint against Robi based on the claim preclusive effect of the 1974 California judgment. Id. In 1988, the Court of Appeals for the Ninth Circuit affirmed. Id. at 324. Specifically, the Ninth Circuit held “[t]he claim preclusive effect of the 1974 California judgment precludes the Corporation from challenging Robi’s use of the name THE PLATTERS.” Id. The Ninth Circuit remanded, and the district court cancelled FPI’s registration of the mark and permanently enjoined FPI from challenging Robi’s use of the mark. Robi v. Five Platters, Inc., 918 F.2d 1439, 1441 (9th Cir.1990). FPI once again appealed, and the Ninth Circuit affirmed. Id. In sum, as between Robi and FPI, Robi has superior rights to the mark.

B. Litigation between Robi and Reed

Following litigation with FPI, Robi transferred his -rights to his wife, Martha Robi. Robi, 173 F.3d at 738. Martha Robi sued Reed claiming exclusive rights to the mark. Id. The district court held that Reed had the right to use the mark to the exclusion of Robi. Id. In 1999, the Ninth Circuit affirmed. Id. The Ninth Circuit held that “members of a group do not retain rights to use the group’s name when they leave the group.” Id. at 739. Unlike Robi, who joined the Platters in 1954 and left in 1965, Reed was a member of the group since its inception in 1953 and performed continuously with the group since 1953. Id. Therefore, Robi lost his rights to the mark when he left the group, but Reed has retained his rights to the mark. Id. at 740. In sum, as between Robi and Reed, Reed has superior rights to the mark.

C. Litigation between FPI and Powell

Powell performed for FPI from 1970 to 1995 but continued performing with a group calling themselves The Platters after 1995. (Powell Decl. ¶¶3-4.) FPI brought suit against Powell for trademark infringement in the United States District Court for the Central District of California. Five Platters, Inc. v. Powell, 7 Fed. Appx. 794, 794-95 (9th Cir.2001). The district court granted summary judgment in Powell’s favor. Id. at 795. In 2001, the Ninth Circuit reversed, reasoning that FPI used the mark with intent to mislead by presenting its group as “The Platters,” although the group did not “include any original members. Id. The Ninth Circuit held that “unless the plaintiffs can present evidence that they used the trademark in a way that was not false and misleading (e.g., by identifying the group as ‘The Platters Since 1970’ or some similarly distin[1286]*1286guishing label), they cannot assert a common law trademark in ‘The Platters.’ ” Id. The Ninth Circuit remanded to the district court to determine if any of FPI’s use was not false or misleading. Id.

On remand the district court dismissed for lack of federal jurisdiction, Case No. 98-3712 R (BQRX). (Pis.’ Mot. for Prelim. Inj. (Doc. # 4), Decl. of Eric M. Sommers (“Sommers Deck”), Ex. D.) Thereafter FPI filed suit against Powell in state court. In 2002, FPI and Powell entered into a stipulation for entry of judgment in the California Superior Court, Case No. BC262188. (Sommers Deck, Ex. B.) Powell agreed not to use “The Platters” name and FPI agreed not to contest Powell’s use of the names “Monroe Powell Platters,” “The Platters Featuring Monroe Powell,” “The Platters Featuring the Legendary Monroe Powell,” or “Monroe Powell and the Platters” provided Powell’s name was featured prominently in any advertising. (Id.) In short, as between FPI and Powell, no court has determined who has superior rights to the mark. But FPI and Powell agreed that Powell could use certain names, including “The Platters featuring Monroe Powell.”

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842 F. Supp. 2d 1282, 103 U.S.P.Q. 2d (BNA) 1081, 2012 WL 288705, 2012 U.S. Dist. LEXIS 12453, Counsel Stack Legal Research, https://law.counselstack.com/opinion/herb-reed-enterprises-inc-v-monroe-powells-platters-llc-nvd-2012.