Innovation Ventures, LLC v. N2G Distributing, Inc.

635 F. Supp. 2d 632, 2008 U.S. Dist. LEXIS 106686, 2008 WL 5110603
CourtDistrict Court, E.D. Michigan
DecidedDecember 2, 2008
Docket08-10983
StatusPublished
Cited by7 cases

This text of 635 F. Supp. 2d 632 (Innovation Ventures, LLC v. N2G Distributing, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Innovation Ventures, LLC v. N2G Distributing, Inc., 635 F. Supp. 2d 632, 2008 U.S. Dist. LEXIS 106686, 2008 WL 5110603 (E.D. Mich. 2008).

Opinion

ORDER (1) GRANTING DIEHL’S MOTION TO DISMISS WITHOUT PREJUDICE; (2) DENYING N2G DISTRIBUTING, INC. AND ALPHA PERFORMANCE LABS PARTIAL MOTION TO DISMISS; AND (3) DENYING N2G DISTRIBUTING, INC. AND ALPHA PERFORMANCE LABS’ MOTION FOR PARTIAL SUMMARY JUDGMENT

PAUL D. BORMAN, District Judge.

Before the Court is Defendant Jeffrey Diehl’s (“Diehl”) motion to dismiss, filed September 2, 2008 (Doc. No. 46), and Defendants N2G Distributing and Alpha Performance Labs’ (“N2G” “Alpha” collectively “Defendants”) partial motion to dismiss and/or for partial summary judgment, filed August 20, 2008 (Doc. No. 43). The Court held a motion hearing on November 24, 2008. Having considered the entire record, and for the reasons that follow, the Court GRANTS Diehl’s motion to dismiss without prejudice and DENIES N2G and Alpha’s motion to dismiss, and for partial summary judgment.

I. BACKGROUND

This lawsuit arises from Plaintiffs allegations that Defendants’ “6 Hour Energy” and “Pure Energy” drinks infringe upon Plaintiffs trademark, copyright and trade dress for its “5 Hour Energy” products.

Plaintiff is a Michigan limited liability company with its headquarters in Novi, Michigan. (ComplJ 1). N2G Distribution is a California corporation. (Comply 2). Alpha Performance Labs is a Nevada corporation. (Comply 3). Diehl is the President and CEO of N2G Distributing Inc. and the principal of Alpha Performance Labs. (Second Amended Compl. ¶ 4 [hereinafter “SAC”]). Diehl resides in San Bernadino, California. (Doc. No. 46-2, Diehl Deck ¶ 3).

Plaintiff is a national marketer and distributor of nutritional and dietary supplements. (SAC ¶ 8). This lawsuit concerns two of Plaintiffs products: 5 Hour Energy and Extra Strength 5 Hour Energy, which are 2-ounce liquid energy supplements. (SAC ¶¶ 2, 13). Plaintiff has used the 5 Hour Energy trademark since 2004, and registered it with the United States Patent and Trademark Office on September 27, 2005. (SAC ¶¶ 9-10). Plaintiff asserts that it has used the 5 Hour Energy trade dress for its 5 Hour Energy products since 2004; Extra Strength 5 Hour Energy was introduced in 2008. (SAC ¶ 13).

Defendants market and distribute competing 2-ounce liquid energy shots called 6 Hour Energy, Nitro2Go Instant Energy and Pure Energy. (SAC ¶¶ 6-7). Plaintiff discovered Defendants’ “6 Hour Energy Shot” drink at a trade show in Nevada. (Defs.’ Br. Ex. B, Henderson Deck ¶ 15).

Thereafter, on March 7, 2008, Plaintiff filed a Complaint in this Court, alleging the following causes of action:

*635 Count I: Federal Trademark Infringement & Counterfeiting (15 U.S.C. § 1114)
Count II: False Designation of Origin, False Sponsorship, and Trade Dress (15 U.S.C. § 1125(a))
Count III: Common Law Trademark Infringement.

On March 13, 2008, Plaintiff moved for a preliminary injunction, arguing that Defendants had infringed on its trademark and trade dress by copying Plaintiffs packaging design and caution statement. (PL’s Mot. Prelim. Injunc. ¶ 16). This Court granted Plaintiffs motion for a preliminary injunction at the motion hearing on April 7, 2008, and entered an order on April 9, 2008. (Doc. No. 23). Defendants were enjoined from “manufacturing, distributing, shipping, advertising, marketing, promoting, transferring, selling, or offering to sell Defendants’ Enjoined Product during the pendency of this case.” (Order Granting Prelim. Injunc., April 9, 2008). The “Enjoined Product” is 6 Hour Energy. (Id.) Defendants were further enjoined from manufacturing, marketing and distributing any product that use the 5 Hour Energy trade dress or use confusingly similar packaging during the pendency of the action, and ordered to recall the 6 Hour Energy shots out on the market. (Id.)

After the preliminary injunction issued, Plaintiff moved for leave to file an amended complaint. (Doc. No. 38). Defendants acquiesced to Plaintiffs request, and a stipulated order allowing Plaintiff to file an amended complaint was entered on August 5, 2008. (Doc. No. 42). In the second amended complaint, Plaintiff added Jeffrey Diehl as a defendant, and alleged the following new claims: copyright infringement (Count IV), inducement of trademark infringement (Count V), inducement of trade dress infringement, and contributory and/or vicarious liability for copyright infringement (Count VII).

On August 20, 2008, Defendants N2G Distributing, Inc. and Alpha Performance Labs filed the instant motion to dismiss Plaintiffs second amended complaint, or in the alternative, for summary judgment. Defendant Diehl filed his motion to dismiss on September 2, 2008. Plaintiff filed responses to the motions to dismiss on September 29, 2008.

II. ANALYSIS

In deciding a motion to dismiss under Fed.R.Civ.P. 12(b)(6), “[t]he court must construe the complaint in the light most favorable to the plaintiff, accept all the factual allegations as true, and determine whether the plaintiff can prove a set of facts in support of its claims that would entitle it to relief.” Bovee v. Coopers & Lybrand C.P.A., 272 F.3d 356, 360 (6th Cir.2001). The Supreme Court held in Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 1974, 167 L.Ed.2d 929 (2007), that a complaint must be dismissed pursuant to Rule 12(b)(6) for failure to state a claim upon which relief can be granted if the complaint does not plead “enough facts to state a claim to relief that is plausible on its face.” Under Rule 12(b)(6), “a plaintiffs obligation to provide the ‘grounds’ of his ‘entitlement to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Id. at 1964-65 (citations omitted); Association of Cleveland Fire Fighters v. City of Cleveland, 502 F.3d 545, 548 (6th Cir.2007). Even though a complaint need not contain “detailed” factual allegations, its “[fjactual allegations must be enough to raise a right to relief above the speculative level on the assumption that all the allegations in the complaint are true (even if doubtful in *636 fact).” Twombly, 127 S.Ct. at 1965 (citations omitted).

A. Diehl’s Motion to Dismiss

Diehl raises a jurisdictional issue in his motion to dismiss. 1 Diehl argues that this Court does not have personal jurisdiction over him because he has insufficient contacts with the forum state to subject him to either general or limited personal jurisdiction in this Court. (Diehl Mot. to Dismiss ¶ 5).

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635 F. Supp. 2d 632, 2008 U.S. Dist. LEXIS 106686, 2008 WL 5110603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/innovation-ventures-llc-v-n2g-distributing-inc-mied-2008.