Levi Strauss & Co. v. Abercrombie & Fitch Trading Co.

633 F.3d 1158, 97 U.S.P.Q. 2d (BNA) 1947, 2011 U.S. App. LEXIS 2361, 2011 WL 383972
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 8, 2011
Docket09-16322
StatusPublished
Cited by24 cases

This text of 633 F.3d 1158 (Levi Strauss & Co. v. Abercrombie & Fitch Trading Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Levi Strauss & Co. v. Abercrombie & Fitch Trading Co., 633 F.3d 1158, 97 U.S.P.Q. 2d (BNA) 1947, 2011 U.S. App. LEXIS 2361, 2011 WL 383972 (9th Cir. 2011).

Opinion

OPINION

RIPPLE, Senior Circuit Judge:

Levi Strauss & Co. (“Levi Strauss”) seeks review of a district court judgment that Abercrombie & Fitch Trading Co. (“Abercrombie”) did not dilute Levi Strauss’s trademarked “Arcuate” design in violation of the Trademark Dilution Revision Act of 2006 (“TDRA”), 15 U.S.C. § 1125(c). Levi Strauss maintains that the district court applied an incorrect legal standard in evaluating its dilution claim, namely that the junior mark be “identical or nearly identical” to the senior one. We agree with Levi Strauss that the “identical or nearly identical” standard did not survive Congress’s enactment of the TDRA and that the district court’s use of the incorrect standard was not harmless error. Accordingly, we reverse the judgment of the district court and remand the case for further proceedings consistent with this opinion.

BACKGROUND

A. The Stitched Designs

Levi Strauss created, and began selling, blue jeans in the 1870s. Since 1873, the company has stitched the back pocket of its jeans with two connecting arches that meet in the center of the pocket; Levi Strauss holds a federally registered trademark on this “Arcuate” design. Sales of garments bearing the Arcuate mark have accounted for more than ninety-five percent of Levi Strauss’s revenue over the past thirty years, totaling roughly fifty billion dollars. Levi Strauss actively monitors use of competing stitching designs and enforces its trademark rights against perceived infringers.

In 2006, Abercrombie began using a stitching design on the back pockets of its jeans that, according to Levi Strauss, “incorporates the distinctive arcing elements of the Arcuate trademark.” Appellant’s Br. 4. Abercrombie’s “Ruehl” design consists of two less-pronounced arches that are connected by a “dipsy doodle,” which resembles the mathematical sign for infinity. The design on the Abercrombie jeans sits lower on the pocket than Levi Strauss’s Arcuate design. **

B. District Court Proceedings

In 2007, Levi Strauss brought an action against Abercrombie for trademark infringement, unfair competition and trademark dilution under both federal and California state law. Before trial, Levi Strauss dropped its state-law trademark dilution claim, and it withdrew its claim for monetary relief on its federal dilution claim. Consequently, Levi Strauss’s federal trademark dilution claim, for which it sought only injunctive relief, was tried be *1160 fore the court with advisory rulings from the jury.

During trial, Levi Strauss presented the testimony of Dr. Sanjay Sood. Dr. Sood conducted a survey to evaluate whether women associated Abercrombie’s Ruehl design with Levi Strauss. Dr. Sood’s “Confusion Survey” revealed that “[a]p-proximately 30% of all respondents identified the Ruehl jeans as made, sponsored or endorsed by the same company that made the LEVI’S® jeans, as compared to lower percentages for the ‘control’ jeans.” Levi Strauss & Co. v. Abercrombie & Fitch Trading Co., No. C 07-03752 JSW, 2009 WL 1082175, at *4 (N.D.Cal. Apr.22, 2009). Dr. Sood testified that “the Ruehl design would erode the distinctiveness of the Arcuate mark, in light of what he opined was a significant level of confusion between the Ruehl jeans and the [Levi Strauss] jeans.” Id. Dr. Sood also testified concerning a “Recognition Survey” that he had conducted. According to Dr. Sood, the survey revealed that “approximately 32% to 35% of the respondents actually associated the Arcuate mark with [Levi Strauss].” Id. at *5.

For its part, Abercrombie presented the testimony of Dr. Gerald Ford, who had been engaged in commercial marketing research for more than three decades and had offered expert testimony in over 50 trademark cases. Dr. Ford testified that Dr. Sood’s confusion survey was not conducted according to generally accepted and standard practices; as a result, the survey was “ ‘so flawed that it render[ed] the survey results’ and Dr. Sood’s conclusions ‘meaningless.’ ” Id. (internal citations omitted). Nevertheless, Dr. Ford acknowledged that, “[i]f a likelihood of confusion survey is conducted in a valid and reliable manner, a finding that ten percent or more of the population is confused is problematic to a trademark owner.” Id. Dr. Ford opined that Dr. Sood’s recognition survey was problematic; specifically, it “was flawed[] because it did not control for spurious recognition, used ambiguous questions, lacked an appropriate control cell, and suffered from order bias.” Id.

As part of its deliberations, the district court requested that the jury provide advisory rulings on factual issues related to Levi Strauss’s federal dilution claims. With respect to the elements of the dilution claim, the court asked the jury to answer the following question: “Is Abercrombie’s Ruehl design identical or nearly identical to the Arcuate trademark?” ER 67. Although the jury later determined that the Arcuate trademark was famous and distinctive, it found that the marks were not identical or nearly identical and also determined that the Arcuate trademark was not likely to be diluted by the Ruehl design.

C. Findings of Fact and Conclusions of Law

On April 22, 2009, the district court entered judgment in favor of Abercrombie on Levi Strauss’s federal dilution claim. In its findings of fact, the district court noted that, “[w]ith the exception of visual depictions of the two designs, Dr. Sood’s testimony regarding the results of the Confusion Survey was [Levi Strauss]’s only evidence that the Ruehl design was identical or nearly identical to the Arcuate mark.” Levi Strauss & Co., 2009 WL 1082175, at *5 (emphasis added). Although the district court acknowledged that Dr. Sood’s survey suggested confusion among thirty percent of the participants, the court determined that Dr. Ford’s critique of Dr. Sood’s methodology was persuasive and that his testimony was more reliable than that offered by Dr. Sood.

Turning to its conclusions of law, the court first reviewed the elements of a claim under the TDRA, 15 U.S.C. § 1125(c). The court stated:

*1161 To prevail on its dilution claim, [Levi Strauss] has the burden of proving by a preponderance of evidence the following elements: (a) that [Levi Strauss] is the owner of a trademark that is famous; (b) that the famous mark is distinctive, either inherently or through acquired distinctiveness; (c) that [Abercrombie] is making or has made use in commerce of an identical or nearly identical trademark, in this case the Ruehl design; (d) that [Abercrombie]’s use of its Ruehl design began after [Levi Strauss]’s Arcuate mark became famous; and (e) that [Abercrombie]’s use of its Ruehl design is likely to cause dilution by blurring of [Levi Strauss]’s Arcuate mark. 15 U.S.C. § 1125(c); Jada Toys, Inc. v.

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Bluebook (online)
633 F.3d 1158, 97 U.S.P.Q. 2d (BNA) 1947, 2011 U.S. App. LEXIS 2361, 2011 WL 383972, Counsel Stack Legal Research, https://law.counselstack.com/opinion/levi-strauss-co-v-abercrombie-fitch-trading-co-ca9-2011.