Lindy Pen Company, Inc. Blackfeet Plastics, Inc., Cross-Appellees v. Bic Pen Corporation, Cross-Appellant

982 F.2d 1400, 93 Daily Journal DAR 673, 25 U.S.P.Q. 2d (BNA) 1570, 93 Cal. Daily Op. Serv. 309, 1993 U.S. App. LEXIS 345
CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 14, 1993
Docket90-55248, 90-55249
StatusPublished
Cited by211 cases

This text of 982 F.2d 1400 (Lindy Pen Company, Inc. Blackfeet Plastics, Inc., Cross-Appellees v. Bic Pen Corporation, Cross-Appellant) 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.

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Lindy Pen Company, Inc. Blackfeet Plastics, Inc., Cross-Appellees v. Bic Pen Corporation, Cross-Appellant, 982 F.2d 1400, 93 Daily Journal DAR 673, 25 U.S.P.Q. 2d (BNA) 1570, 93 Cal. Daily Op. Serv. 309, 1993 U.S. App. LEXIS 345 (9th Cir. 1993).

Opinion

ROLL, District Judge:

This trademark infringement case brought by Lindy Pen Company, Inc. against Bic Pen Corporation returns to this court for the third time seeking review of the district court’s damages order upon remand. For the reasons set forth below, we affirm the decision of the district court and deny Bic’s cross-appeal.

INTRODUCTION

The origins of this case go back to the mid-1960s when Appellant Lindy Pen Company 1 (Lindy) and Appellee Bic Pen Corporation (Bic) were competitors in the production and manufacture of ball point pens. Each marketed a fine-point tip for use by accountants and auditors. In 1965, before Lindy’s trademark was perfected and registration issued, Bic used the mark “Auditor’s” on its pen barrels. Lindy contacted Bic, making a claim to the mark, and Bic voluntarily agreed to stop using it. On September 20, 1966, United States Trademark Registration No. 815,488 was issued to Lindy for the word “Auditor’s.” Lindy Pen Co., Inc. v. Bic Pen Corp., 550 F.Supp. 1056, 1059 (C.D.Cal.1982). Lindy perfected the registration by filing the appropriate documents pursuant to federal statute. Id.

Fourteen years later, Bic adopted the legend “Auditor’s Fine Point” to describe a certain pen model. Prior to this use, Bic researched the term “Auditor’s” and found that at least three other manufacturers employed a variation of the word “Auditor’s” in their marketing materials. This investigation revealed that Lindy also used the term, but that Lindy exerted no proprietary interest over it in its advertising.

Lindy learned of Bic’s renewed use of the mark and filed suit in 1980 alleging trademark infringement, unfair competition, breach of contract, and trademark dilution. The district court entered judgment in favor of Bic on all claims. The circuit court upheld the district court’s ruling that Bic did not infringe in the major retail markets, but remanded the case to determine whether there was a likelihood of confusion in telephone order sales. Lindy Pen Co., Inc. v. Bic Pen Corp., 725 F.2d 1240 (9th Cir.1984), cert. denied, 469 U.S. 1188, 105 S.Ct. 955, 83 L.Ed.2d 962 (1985) (Lindy I). The court specifically found that “there is no evidence of actual confusion [and] that Bic adopted the designation *1404 ‘Auditor’s fine point’ without intent to capitalize on Lindy’s goodwill----” Id. at 1246.

Upon remand, the district court determined that there was a likelihood of confusion in the telephone order market because the purchaser did not have the opportunity to view the pens at the time of purchase. The court went on to find, however, that the confusion could be cured upon receipt of the goods because the purchaser could return the product. The circuit court again disagreed and found that Lindy had established a likelihood of confusion in the telephone order market which post-sale inspection could not cure. Lindy Pen Co., Inc. v. Bic Pen Corp., 796 F.2d 254 (9th Cir.1986) (Lindy II). In words which now comprise the nub of the current appeal, this court ordered that the case be remanded to district court “with instructions to enter an order enjoining Bic from using the word ‘Auditor’s’ on or in connection with its pens. We additionally instruct the district court to order an accounting and to award damages and other relief as appropriate.” Id.

The district court thereafter issued an injunction and permitted the parties to conduct discovery regarding damages and profits. The court ordered the parties to submit briefs addressing four specific points directed at the damages claim. After reviewing the parties’ briefs and exhibits, the court held that an accounting of profits was inappropriate because Bic’s infringement was innocent and accomplished without intent to capitalize on Lindy’s trade name. The court also found that an award of damages was inappropriate because Lindy had failed to establish the amount of damages. The court granted Lindy the opportunity to resubmit written argument on damages, but found that Lindy once again failed to sustain its burden of proof.

The parties now argue, on appeal and cross-appeal, that the remand determination regarding damages is in error. A determination of damages is left to the sound discretion of the trial court. In the instant case, there has been no abuse of discretion; therefore, the judgment is affirmed.

INTERPRETATION OF LINDY II

The threshold question of this appeal is whether the language of Lindy II entitled Lindy to an accounting and monetary damages upon remand. Lindy maintains that the district court had no choice but to order an accounting pursuant to this court’s mandate. Undeniably, the decision of the circuit court in a prior appeal must be followed in all subsequent proceedings in the same case under the law of the case doctrine. Eichman v. Fotomat Corp, 880 F.2d 149, 157 (9th Cir.1989). The law of the case controls unless evidence on remand is substantially different from that presented in previous proceedings. Waggoner v. Dallaire, 767 F.2d 589, 593 (9th Cir.1985), cert. denied, 475 U.S. 1064, 106 S.Ct. 1374, 89 L.Ed.2d 601 (1986). An order issued after remand may deviate from the mandate, however, if it is not counter to the spirit of the circuit court’s decision. King Instrument Corp. v. Otari Corp., 814 F.2d 1560, 1563 (Fed.Cir.1987). The district court must be given a meaningful opportunity to follow the directive of the circuit court in resolving the issues. Portsmouth Square. Inc. v. Shareholders Protective Committee, 770 F.2d 866, 872 (9th Cir.1985). The district court should not be reversed for failing to follow a mandate if its decision is within the scope of the remand. Little v. United States, 794 F.2d 484, 488 (9th Cir.1986).

We find that the district court established Lindy’s damages upon remand in accordance with the mandate of Lindy II. We base this decision upon a thorough reading of the decision as a whole which quite clearly remanded the action for a “determination of damages.” Lindy II, 796 F.2d at 255. We also draw support for this interpretation from case law that holds that a determination of damages in a trademark infringement action, including an accounting, is to be pursued in light of equitable considerations. Maier Brewing Co. v. Fleischmann Distilling Corp., 390 F.2d 117, 120 (9th Cir.), cert. denied, 391 U.S. 966, 88 S.Ct. 2037, 20 L.Ed.2d 879 (1968). “The equitable limitation upon the granting *1405 of monetary awards ...

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982 F.2d 1400, 93 Daily Journal DAR 673, 25 U.S.P.Q. 2d (BNA) 1570, 93 Cal. Daily Op. Serv. 309, 1993 U.S. App. LEXIS 345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lindy-pen-company-inc-blackfeet-plastics-inc-cross-appellees-v-bic-ca9-1993.