Lorillard Tobacco Co. v. Ahmad's Pizza, Inc.

866 F. Supp. 2d 872, 2012 U.S. Dist. LEXIS 44730, 2012 WL 1097010
CourtDistrict Court, N.D. Ohio
DecidedMarch 30, 2012
DocketCase No. 5:10 CV 01893
StatusPublished

This text of 866 F. Supp. 2d 872 (Lorillard Tobacco Co. v. Ahmad's Pizza, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lorillard Tobacco Co. v. Ahmad's Pizza, Inc., 866 F. Supp. 2d 872, 2012 U.S. Dist. LEXIS 44730, 2012 WL 1097010 (N.D. Ohio 2012).

Opinion

MEMORANDUM OF OPINION AND ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT IN PART AND DENYING IN PART

LESLEY WELLS, District Judge.

This case arises out of the sale of allegedly counterfeit Newport cigarettes at the defendant’s store, Empress Market. On 25 August 2010, Lorillard Tobacco Company, the manufacturer of Newport cigarettes, filed a complaint in this Court. (Doc. 1). The complaint alleges that the defendant’s activities constituted infringement of Lorillard’s federally registered trademarks under 15 U.S.C. Section 1114(1), false designations of origin and false descriptions or representations under 15 U.S.C. Section 1125(a), trademark dilution under 15 U.S.C. Section 1125(c), un[875]*875fair competition and trademark infringement under common law, and a violation of the Ohio Deceptive Trade Practices Act. On 16 June 2011, the plaintiff moved for summary judgment on the above claims as to liability and damages, and further requested that the Court enter a permanent injunction and award attorneys fees. (Doc. 26). The defendant filed a response, and the plaintiff replied. (Doc. 28, 29).

Plaintiffs motion for summary judgment will be granted in part and denied in part. Specifically, this Court will grant summary judgment on the plaintiffs state and federal trademark infringement claims, false designations of origin and trademark-dilution claims, and Ohio Deceptive Trade Practices Act claim. This Court will deny summary judgment on the plaintiffs state law unfair competition claim and request for enhanced statutory damages, attorney’s fees, and a permanent injunction. Finally, the Court will determine that the defendant is liable to Lorillard for $8,000 in statutory damages pursuant to 15 U.S.C. Section 1117(c).

Factual Background

“Lorillard’s leading brand, Newport®, is the best selling menthol brand in the United States and the second best selling cigarette brand overall.” (Doc. 26). Lorillard manufactures these cigarettes in North Carolina and then distributes them throughout the country through a network of wholesalers and retailers. (Doc. 26).

The defendant, Empress Market, is a convenience store doing business since January of 2008 at 518 East Exchange Street, Akron, Ohio 44304. Lorillard’s Newport® cigarettes are the top selling menthol brand of cigarette at the store. The defendant purchases its Newports® as well as all other cigarettes from ADCO Distributors, Inc., an authorized wholesale tobacco distributor.

On 4 August 2010, Lorillard sales representative Dale Hutton visited Empress Market and observed approximately one carton and fifty loose packs of suspected counterfeit Newport® brand cigarettes located within the market’s cigarette inventory. (Decl. Hutton at ¶ 4). Unbeknownst to the defendant, Mr. Hutton removed five packs of these suspected counterfeits from the defendant’s inventory and delivered them to Lorillard for further inspection. Id. Edward O’Brien, Manager of Sales Planning for Lorillard, received these packs of suspected counterfeits and utilized his specialized knowledge and experience to determine that they were, indeed, counterfeit. (Decl. O’Brien at ¶ 4-11). Justifying his conclusion, Mr. O’Brien stated:

The clarity of the printing on genuine packages of NEWPORT® brand cigarettes is not as sharp as that found on a counterfeit package ... Lorillard’s tear tape has no elasticity while the cigarette packs obtained from Empress Market in connection with this case have tear tapes that will stretch to nearly twice their original length ... With regard to cigarettes obtained from Empress Market, the product code appearing on the bottom of the pack was “OC07N114” and time stamp was “19:09.” This code has been found on previous samples that have been confirmed counterfeit NEWPORT cigarettes ... I am certain that the cigarettes I inspected, which had Lorillard trademarks on the packages, were not genuine, but were counterfeit product. (Decl. O’Brien at ¶ 4-11).

Upon determining that the five packs were, indeed, counterfeit, Lorillard contacted the Ohio Department of Taxation (“ODT”). The ODT proceeded to conduct a seizure operation at Empress Market, but found no counterfeit cigarettes.

A. Standard of Review

Summary judgment must be entered “against a party who fails to make a show[876]*876ing 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 Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party:

always bears the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, which it believes demonstrate the absence of a genuine issue of material fact.

Id. at 323, 106 S.Ct. 2548; see also Boretti v. Wiscomb, 930 F.2d 1150, 1156 (6th Cir.1991) (moving party has the “burden of showing that the pleadings, depositions, answers to interrogatories, admissions and affidavits in the record, construed favorably to the nonmoving party, do not raise a genuine issue of material fact for trial”) (quoting Gutierrez v. Lynch, 826 F.2d 1534, 1536 (6th Cir.1987)). The burden then shifts to the nonmoving party who “must set forth specific facts showing that there is a genuine issue for trial.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986) (quoting Fed.R.Civ.P. 56(e)). Thus, “[o]nee the moving party has met its initial burden, the nonmoving party must present evidence that creates a genuine issue of material fact making it necessary to resolve the difference at trial.” Talley v. Bravo Pitino Restaurant, Ltd., 61 F.3d 1241, 1245 (6th Cir.1995). Read together, Liberty Lobby and Celotex stand for the proposition that a party may move for summary judgment by demonstrating that the opposing party will not be able to produce sufficient evidence at trial to withstand a motion for judgment as a matter of law pursuant to Fed.R.Civ.P. 50. Street v. J.C. Bradford & Co., 886 F.2d 1472, 1478 (6th Cir.1989).

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Bluebook (online)
866 F. Supp. 2d 872, 2012 U.S. Dist. LEXIS 44730, 2012 WL 1097010, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lorillard-tobacco-co-v-ahmads-pizza-inc-ohnd-2012.