Karoun Dairies Inc. v. Los Altos Food Products Inc.

107 F. App'x 785
Court of Appeals for the Ninth Circuit·Decided August 19, 2004·No. No. 03-55011·Published

Opinion

MEMORANDUM **

Karoun Dairies, Inc. (“Karoun”) appeals the district court’s summary judgment orders in favor of Kradjian Importing Company, Inc. (“Kradjian”). The district court granted summary judgment to Kradjian on Karoun’s claims that Kradjian misappropriated trade secrets regarding a cheese recipe in violation of the California Uniform Trade Secrets Act, Cal. Civ.Code § 3426, that Kradjian’s mark “Byblos California Cheese” infringes Karoun’s mark “Karoun’s California Cheese” under the Lanham Act, 15 U.S.C. § 1125(a), and that Kradjian’s alleged acts of misappropriation and trademark infringement constitute unfair business practices in violation of Cal. Bus. & Prof.Code § 17200. As the parties are familiar with the facts, procedural history, and arguments, we will not recount them here. We affirm.

We review the district court’s grant of summary judgment de novo. United States v. City of Tacoma, 332 F.3d 574, 578 (9th Cir.2003). Viewing the evidence in the light most favorable to the non-moving party, we must decide whether there are any genuine issues of material fact and whether the district court correctly applied the relevant substantive law. Id. The district court’s grant of summary judgment may be affirmed on any ground supported by the record. Simo v. Union of Needletrades, 322 F.3d 602, 610 (9th Cir.2003).

The district court did not err in granting summary judgment to Kradjian on the misappropriation of trade secrets claim. To prevail under § 3426.1, Karoun had the burden of proving that Kradjian used Karoun’s trade secret without express or implied consent, and at the time of use, knew or had reason to know that its knowledge of the trade secret was acquired through improper means. Baghdassarian’s declaration stated that Karoun “strongly believed” Byblos California Cheese was manufactured at Los Altos Dairies, that he told Kradjian the same, and that later, Kradjian admitted that Byblos California Cheese had been manufactured at Los Altos Dairies. Karlin’s declaration stated that Karlin wrote a letter to Kradjian in which it was alleged that the cheese Kradjian distributed was manufactured using Karoun’s trade secrets.

While a “factual dispute is genuine if a reasonable jury could return a verdict for the non-moving party,” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986), it cannot be said that these declarations established a genuine issue of material fact. The declarations did not demonstrate that Kradjian knew or should have known that a product it distributed was manufactured using trade secrets misappropriated from Karoun. Although the Baghdassarian declaration established that Byblos California Cheese was manufactured at the same plant as Karoun’s California Cheese, it does not necessarily follow that all cheese produced at Los Altos Dairies was manufactured using trade secrets misappropri[787] ated from Karoun. Likewise, the Karlin declaration failed to demonstrate how Karoun knew that its recipe was misappropriated, or why Kradjian should have treated the facts alleged in the letter as true. The unsupported claims of opposing parties and their attorneys do not raise a genuine issue of material fact sufficient to preclude summary judgment. See Danjaq LLC v. Sony Corp., 50 U.S. P.Q.2d 1638, 1639-40 (C.D.Cal.1999) (“[WJhere the nonmoving party seeks to rely on inferences drawn from certain facts, not only must the non-moving party demonstrate a genuine issue as to those underlying facts, but the proposed inferences must amount to more than mere speculation.”) (citing Nelson v. Pima Comm. College, 83 F.3d 1075, 1081-82 (9th Cir.1996)).

Moreover, those unsupported assertions were contradicted by evidence provided by Kradjian. Kradjian submitted the declaration of Raul Andrade, representative of Los Altos Dairies, which established that Los Altos “never had any business dealing with Kradjian Importing Co.,” and never disclosed any of Karoun’s trade secrets to Kradjian. The Kradjian declaration stated that it never had any business dealings with Los Altos Dairies, and that it never dealt with any company that misappropriated Karoun’s secret recipe.

Fed. R. Civ. P. 56(c) “mandates the entry of summary judgment, after adequate time for discovery and upon motion, against a party who fails to make a showing sufficient to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial.” Celotex v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Karoun failed to meet that burden. Accordingly, summary judgment in favor of Kradjian on the trade secrets claim was proper.1

Nor did the district court err in granting summary judgment to Kradjian on the trademark claim. “The core element of trademark infringement is the likelihood of confusion, i.e., whether the similarity of the marks is likely to confuse customers about the source of the products.” E. & J. Gallo Winery v. Gallo Cattle Co., 967 F.2d 1280, 1290 (9th Cir. 1992). We apply the following factors in determining likelihood of confusion: “(1) strength of the plaintiffs mark; (2) relatedness of the goods; (3) similarity of the marks; (4) evidence of actual confusion; (5) marketing channels used; (6) likely degree of purchaser care; (7) defendant’s intent in selecting the mark; (8) likelihood of expansion of the product lines.” White v. Samsung Elecs. America, Inc., 971 F.2d 1395, 1400 (9th Cir.1992) (citing AMF, Inc. v. Sleekcraft Boats, 599 F.2d 341, 348-49 (9th Cir.1979)). “Some factors are much more important than others, and the relative importance of each individual factor will be case-specific.” Brookfield Communications, Inc. v. W. Coast Entm’t Corp., 174 F.3d 1036, 1054 (9th Cir.1999).

Free access — add to your briefcase to read the full text and ask questions with AI

Karoun Dairies Inc. v. Los Altos Food Products Inc., 107 F. App'x 785 (9th Cir. 2004).

107 F. App'x 785 (Karoun Dairies Inc. v. Los Altos Food Products Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related