John Crane Production Solutions, Inc. v. R2R & D, LLC

861 F. Supp. 2d 792, 103 U.S.P.Q. 2d (BNA) 1153, 2012 U.S. Dist. LEXIS 38304, 2012 WL 951723
CourtDistrict Court, N.D. Texas
DecidedMarch 21, 2012
DocketCivil Action No. 3:11-CV-3237-D
StatusPublished
Cited by12 cases

This text of 861 F. Supp. 2d 792 (John Crane Production Solutions, Inc. v. R2R & D, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Crane Production Solutions, Inc. v. R2R & D, LLC, 861 F. Supp. 2d 792, 103 U.S.P.Q. 2d (BNA) 1153, 2012 U.S. Dist. LEXIS 38304, 2012 WL 951723 (N.D. Tex. 2012).

Opinion

MEMORANDUM OPINION AND ORDER

SIDNEY A. FITZWATER, Chief Judge.

In this trademark infringement action, plaintiff moves for a preliminary injunction to prevent defendants from using the trademark FINALROD that plaintiff maintains is confusingly similar to its trademark FIBEROD. Both marks are used in the sale of sucker rods, which are devices used widely in the production of crude oil. For the reasons that follow,1 the court denies the motion.2

I

Plaintiff John Crane Production Solutions, Inc. (“JCPS”) is a manufacturing and services organization in the areas of oil and gas recovery, specifically artificial lift systems. Artificial lift systems are used in crude oil production to bring oil from underground to the surface. An oil well brings oil to the surface using the up- [794]*794and-down motion of a pump jack at the top of the well that moves a plunger in the down-hole pump underground. Sucker rods connect the pump jack to the down-hole pump. The majority of oil wells worldwide contain steel sucker rods, but fiberglass sucker rods are also used. Part of JCPS’s business includes manufacturing fiberglass sucker rods.

In 1996 defendant Russell P. Rutledge (“Rutledge”) formed and served as Chairman and CEO of the Fiber Composite Company, Inc. (“FCC”) d/b/a Fibercom and d/b/a Fiberod to manufacture and sell fiberglass sucker rods.3 In 2002 FCC created the brand name FIBEROD for its fiberglass sucker rods, and began marketing the sucker rods under that name. In 2008 JCPS, through its predecessors-in-interest, entered into an asset purchase agreement with Rutledge to acquire all assets, property, and rights of the FCC, including the company’s interest in the FIBEROD name and trademark.4 JCPS has since invested significant sums promoting the FIBEROD brand and sells tens of millions of dollars worth of fiberglass sucker rod products annually. JCPS has locations throughout the Permian Basin area, including in Big Spring, Texas.

In 2011 Rutledge created two new companies — defendants R2R and D, LLC (“R2R”) and Finalrod, Inc. — to manufacture and sell a new type of fiberglass sucker rod. Defendants have applied for trademarks in “FINALROD” and the phrase “The FinalRod You Will Ever Need,”5 and have taken steps to begin manufacturing fiberglass sucker rods in Big Spring, including hiring at least 20 of JCPS’s employees.

JCPS filed this trademark infringement action alleging that defendants’ junior mark “FINALROD” is confusingly similar to JCPS’s senior mark “FIBEROD,” and that this confusion threatens to cause irreparable harm to JCPS’s trademarks and fiberglass sucker rod business. JCPS moves for a preliminary injunction seeking to enjoin defendants from using the FINALROD mark.6

II

“The decision whether to grant a preliminary injunction is within the discretion of the court, but it is an extraordinary remedy that should only be granted if the movant has clearly carried its burden.” TGI Friday’s, Inc. v. Great Nw. Rest., Inc., 652 F.Supp.2d 763, 767 (N.D.Tex.2009) (Fitzwater, C.J.) (citing Miss. Power & Light Co. v. United Gas Pipe Line, 760 F.2d 618, 621 (5th Cir.1985)). To obtain a preliminary injunction, JCPS must establish the following: (1) a substantial likelihood that it will prevail on the merits; (2) a substantial threat that it will suffer irreparable injury if the injunction is not granted; (3) that the threatened injury to [795]*795it outweighs the threatened harm the injunction may do to defendants; and (4) that granting the preliminary injunction will not disserve the public interest. E.g., Jones v. Bush, 122 F.Supp.2d 713, 718 (N.D.Tex.2000) (Fitzwater, J.), aff'd, 244 F.3d 134 (5th Cir.2000) (per curiam) (unpublished table decision).

Ill

The court addresses first whether JCPS has demonstrated a substantial likelihood that it will prevail on the merits of its trademark infringement claim.

A

“To succeed on a trademark infringement claim, a plaintiff first must show ownership of a legally protectable mark, and then it must establish infringement of the mark.” TGI Friday’s, 652 F.Supp.2d at 767 (citing Am. Rice, Inc. v. Producers Rice Mill, Inc., 518 F.3d 321, 329 (5th Cir.2008)).7 “Under the Lanham Act, infringement exists if a person uses (1) any reproduction, counterfeit, copy, or colorable imitation of a mark; (2) without the registrant’s consent; (3) in commerce; (4) in connection with the sale, offering for sale, distribution, or advertising of any goods; (5) where such use is likely to cause confusion, or to cause mistake or to deceive.” Id. (internal quotation marks and citations omitted).

A finding of “likelihood of confusion” requires “a probability of confusion” rather than a mere possibility. See Xtreme Lashes, LLC v. Xtended Beauty, Inc., 576 F.3d 221, 226 (5th Cir.2009). The following factors are used to determine the likelihood of confusion: (1) the strength of the plaintiffs trademark, (2) mark similarity, (3) product similarity, (4) outlet and purchaser identity, (5) advertising media similarity, (6) defendant’s intent, (7) actual confusion, and (8) care exercised by potential purchasers. Am. Rice, 518 F.3d at 329. “The digits are a flexible and nonexhaustive list. They do not apply mechanically to every case and can serve only as guides, not as an exact calculus.” Paulsson Geophysical Servs., Inc. v. Sigmar, 529 F.3d 303, 311 (5th Cir.2008) (quoting Scott Fetzer Co. v. House of Vacuums Inc., 381 F.3d 477, 485 (5th Cir.2004)). Each digit must be considered “in light of the specific circumstances of the case; otherwise, [the court] risk[s] inadvertently lowering the standard of confusion.” Scott Fetzer, 381 F.3d at 485.

B

The first digit is the strength of JCPS’s FIBEROD mark. “Stronger marks are entitled to greater protection.” Xtreme Lashes, 576 F.3d at 227. JCPS argues that FIBEROD is a distinctive, strong mark that is entitled to protection. Because defendants do not dispute the strength of FIBEROD8 and a preliminary injunction is not warranted even if it is a strong mark, the court will assume arguendo that FIBEROD is a strong mark and that this digit supports a finding of likelihood of confusion.

The second digit is the similarity of the marks. Similarity “is determined by comparing the marks’ appearance, sound, and meaning.” Elvis Presley Enters. v. Ca[796]*796pece, 141 F.3d 188, 201 (5th Cir.1998). “Similarity of appearance is determined on the basis of the total effect of the designation, rather than on a comparison of individual features.” Xtreme Lashes, 576 F.3d at 228 (citation omitted). “Nevertheless, courts should give more attention to the dominant features of a mark.” Id.

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861 F. Supp. 2d 792, 103 U.S.P.Q. 2d (BNA) 1153, 2012 U.S. Dist. LEXIS 38304, 2012 WL 951723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-crane-production-solutions-inc-v-r2r-d-llc-txnd-2012.