Hodgdon Powder Co., Inc. v. ALLIANT TECHSYSTEMS

497 F. Supp. 2d 1221, 2007 U.S. Dist. LEXIS 53215, 2007 WL 2079882
CourtDistrict Court, D. Kansas
DecidedJuly 20, 2007
DocketCivil Action 06-2100-CM
StatusPublished
Cited by2 cases

This text of 497 F. Supp. 2d 1221 (Hodgdon Powder Co., Inc. v. ALLIANT TECHSYSTEMS) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hodgdon Powder Co., Inc. v. ALLIANT TECHSYSTEMS, 497 F. Supp. 2d 1221, 2007 U.S. Dist. LEXIS 53215, 2007 WL 2079882 (D. Kan. 2007).

Opinion

MEMORANDUM AND ORDER

MURGUIA, District Judge.

Plaintiff brings this lawsuit against defendant for trademark infringement, trademark dilution, false designation of origin, and unfair competition. Defendant filed counterclaims, seeking to have plaintiffs trademark registrations canceled based on being generic, functionality, abandonment, and fraud. This matter is before the court on Plaintiffs Motion for Summary Judgment (Doc. 52) and Defendant’s Motion for Summary Judgment (Doc. 54).

I. Factual Background 1

Plaintiff Hodgdon Powder Company, Inc. and defendant Alliant Techsystems, Inc. are business competitors that supply reloading gunpowder to the shooting sports industry. The primary market for most shotgun reloading powders is “clay” target shooters. These target shooters shoot at flying round orange clay targets as part of the sports of Trap, Skeet, or Sporting Clays.

Plaintiff has several registered trademarks for its gunpowders that have “clays” in the title — CLAYS, INTERNATIONAL CLAYS, and UNIVERSAL CLAYS. Plaintiff introduced CLAYS in the early 1990s. CLAYS is a shotgun gunpowder designed for target shooters and named to appeal to plaintiffs target audience — clay target shooters. The CLAYS product label includes a pair of orange clay targets in flight superimposed on the word CLAYS. Plaintiffs name is displayed at the top of the label.

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On January 26, 1993, plaintiff registered the trademark CLAYS with the U.S. Patent and Trademark Office (“PTO”). Dur *1228 ing the registration process, the PTO required plaintiff to “indicate whether Clays has any significance in the relevant trade, any geographical significance or any meaning in a foreign language.” (Def.’s Br. Ex. 38.) Plaintiff responded to the PTO stating that “[s]o far as trade relevant to gun powder is concerned, there is the shooting sport know (sic) as ‘shooting clays’ which involves using clay pigeons (clay discs) as the target. This is the only use of ‘CLAYS’ currently known to applicant in this field.” (Id.) Thomas Shepherd, plaintiffs president, filed an affidavit swearing that plaintiff did not intend to mislead the Trademark Examiner when it registered the CLAYS trademark. Plaintiff has continued to use the trademark and has no intention of discontinuing its use.

In 2005, defendant introduced a new shotgun powder specifically designed for clay target shooters. According to his declaration, Jeffrey Bandel, defendant’s former Program Manager, named the powder CLAY DOT. Mr. Bandel named the powder after defendant’s “DOT” series of reloading powders — RED DOT, GREEN DOT, and BLUE DOT. He also states that defendant did not choose the name to create confusion with CLAYS. According to Mr. Bandel’s affidavit, defendant obtained a legal opinion from its counsel that CLAY DOT did not infringe on any trademarked name. Defendant registered the mark on the PTO’s Principal Register. The CLAY DOT label shows an orange clay target superimposed on the words CLAY DOT. Defendant’s name is displayed at the top of the label.

Plaintiff has received several inquiries about defendant’s CLAY DOT powder from people apparently confusing which company sells which gunpowder. The words “clay” and “clays” and pictures of clay targets are frequently used in the shooting sports industry. 2 Plaintiff was *1229 aware of defendant’s use of CLAY DOT in August 2005 and filed this lawsuit in March 2006.

II. Standards for Judgment

Summary judgment is appropriate if the moving party demonstrates that there is “no genuine issue as to any material fact” and that it is “entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). In applying this standard, the court views the evidence and all reasonable inferences therefrom in the light most favorable to the nonmoving party. Adler v. Wal-Mart Stores, Inc., 144 F.3d 664, 670 (10th Cir.1998) (citing Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986)).

III. Defendant’s Motion for Summary Judgment

Defendant moves for summary judgment on each of plaintiffs claims — trademark infringement, false designation of origin, trademark dilution, and unfair competition.

A. Trademark Inñ'ingement

To prevail on its trademark infringement claim, plaintiff must establish that (1) it has a valid and protected trademark; (2) defendant used a similar mark in commerce; and (3) defendant’s use of the mark is likely to cause confusion. Health Care and Ret. Corp. of Am. v. Heartland Home Care, Inc., 396 F.Supp.2d 1262, 1266 (D.Kan.2005) (citing Team Tires Plus. Ltd. v. Tires Plus, Inc., 394 F.3d 831, 832-33 (10th Cir.2005)). “The key inquiry in a trademark infringement case is the likelihood of confusion between two similar marks.” Team Tires Phis, Ltd., 394 F.3d at 832-33. When determining the likelihood of consumer confusion, the court considers the following factors:

(1) the degree of similarity between the marks; (2) the intent of the alleged in-fringer in adopting its mark; (3) evidence of actual confusion; (4) the relation in use and the manner of marketing between the goods or services marketed by the competing parties; (5) the degree of care likely to be exercised by purchasers; and (6) the strength or weakness of the marks.

Id. No single factor is determinative; they must all be considered together. At all times, the court’s focus is whether the similarity of the marks is likely to deceive or confuse the consumer. Id. Likelihood of confusion is a question of fact, but it is amenable to summary judgement in appropriate cases. King of the Mountain Sports, Inc. v. Chrysler Corp., 185 F.3d 1084, 1089 (10th Cir.1999) (quotations omitted).

Plaintiff argues that defendant is not entitled to summary judgment because the CLAYS mark is incontestable under 15 U.S.C. § 1065. When a mark reaches incontestable status, “its registration becomes ‘conclusive evidence of the validity of the registered mark and of the registration of the mark, of the registrant’s ownership of the mark, and of the registrant’s exclusive right to use the registered mark in commerce.’” Golf Warehouse, L.L.C. v. Golfer’s Warehouse, Inc., 142 F.Supp.2d 1307, 1309 (D.Kan.2001) (quoting 15 U.S.C. § 1115(b)).

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497 F. Supp. 2d 1221, 2007 U.S. Dist. LEXIS 53215, 2007 WL 2079882, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hodgdon-powder-co-inc-v-alliant-techsystems-ksd-2007.