Lucky's Detroit, LLC v. Double L, Inc.

533 F. App'x 553
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 9, 2013
Docket12-1760
StatusUnpublished
Cited by18 cases

This text of 533 F. App'x 553 (Lucky's Detroit, LLC v. Double L, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lucky's Detroit, LLC v. Double L, Inc., 533 F. App'x 553 (6th Cir. 2013).

Opinion

HELENE N. WHITE, Circuit Judge.

Lucky’s Detroit, LLC (LD) appeals the district court’s grant of a permanent injunction in favor of Double L, Inc. (Double L), enjoining LD from using the names “Lucky’s” or “Lucky’s Pub and Grille” in connection with its restaurants. We AFFIRM.

I. BACKGROUND

Plaintiff-Appellant LD and Defendant-Appellee Double L both operate restaurants in Michigan. Double L operates eight restaurants, including five under the name “Lucky’s Steak House,” located in Imlay City, Davison, Fenton, Clio, and Bay City. Double L began using the marks “Lucky’s” and “Lucky’s Steak House” in October 1998. It registered the marks with the state of Michigan on November 16, 1999, and with the United States Patent and Trademark Office (USPTO) in connection with “restaurant services” on June 12, 2001. Lucky Vasilakis owns the stock and is an officer of Double L, which owns 100% of three of the Lucky’s Steak Houses, and 33% and 50% of the other two Lucky’s Steak Houses. Vasilakis oversees the daily operations of the restaurants, including signage, the appearance and content of menus, maintenance of the website, and advertising, and testified that Double L had a “verbal agreement” with each of the Lucky’s Steak House restaurants permitting them to use the marks. Vasilakis also testified that with his permission, the staff at the restaurants refer to them as “Lucky’s.”

LD operates three pub-style establishments under the name “Lucky’s Pub & Grille,” two in downtown Detroit, which have been in business since sometime in 2008 and October 2009, and a third in Southfield, which opened in May 2010 during the pendency of this action. All three restaurants are owned and managed by Waleed Mona.

In October 2009, after customers allegedly expressed confusion regarding whether Vasilakis owned Lucky’s Pub and Grille, Vasilakis sent a letter to Mona requesting that LD cease and desist its use of the *555 names “Lucky’s Pub and Grille” and “Lucky’s.” LD refused and filed this action seeking a declaratory judgment of non-infringement. The complaint also alleges lack of confusing similarity, fraud on the USPTO, fraud on the Michigan Corporation and Securities Department, and abandonment. Double L filed an answer and counterclaim, alleging federal trademark infringement, a violation of Lanham Act § 43(a), trademark infringement under Michigan Compiled Laws § 429.42 and Michigan common law, and unfair competition under Michigan common law. LD’s answer to the counterclaim asserts affirmative defenses of unclean hands, estop-pel, and abandonment.

After the court ruled on the parties’ partial motions to dismiss, only LD’s claims for declaration of non-infringement and abandonment and Double L’s counterclaims for federal trademark infringement and violation of Lanham Act § 43(a) remained. Following discovery, both parties moved for summary judgment. The district court granted Double L’s motion as to liability and enjoined LD from using the marks “Lucky’s” or “Lucky’s Pub and Grille.” LD timely appealed.

II. STANDARD OF REVIEW

In our review of a district court’s grant of a permanent injunction, “[fjactual findings are reviewed under the clearly erroneous standard, legal conclusions are reviewed de novo, and the scope of injunctive relief is reviewed for an abuse of discretion.” Sec’y of Labor, U.S. Dep’t of Labor v. 3Re.com, Inc., 317 F.3d 534, 537 (6th Cir.2003) (internal quotation marks omitted). A court may issue a permanent injunction when the party requesting the injunction demonstrates that: (1) it will suffer an irreparable injury absent an injunction; (2) legal remedies, such as money damages, provide inadequate compensation; (3) the balance of hardships warrants an injunction; and (4) the public interest would not be disserved by an injunction. eBay Inc. v. MercExchange, LLC, 547 U.S. 388, 391, 126 S.Ct. 1837, 164 L.Ed.2d 641 (2006). In trademark infringement cases, a likelihood of confusion or possible risk to the requesting party’s reputation satisfies the irreparable injury requirement. Wynn Oil Co. v. Am. Way Serv. Corp., 943 F.2d 595, 608 (6th Cir.1991).

III. ANALYSIS

The central question is whether Double L’s use of “Lucky’s” or “Lucky’s Pub & Grille” is likely to cause confusion among patrons regarding the ownership of the restaurants. See AutoZone, Inc. v. Tandy Corp., 373 F.3d 786, 791-92 (6th Cir.2004) (citing Daddy’s Junky Music Stores, Inc. v. Big Daddy’s Family Music Ctr., 109 F.3d 275, 280 (6th Cir.1997)); see also 15 U.S.C. § 1114(1)(a). LD challenges the district court’s determination that there is a likelihood of confusion and reasserts the affirmative defenses of estop-pel and unclean hands.

A. Likelihood of Confusion

In this circuit, we weigh eight factors, known as the Frisch factors, to determine whether there is a likelihood of confusion: (1) the strength of Double L’s marks, (2) the relatedness of the restaurants, (3) the similarity of the marks, (4) the evidence of actual confusion, (5) the marketing channels used, (6) the likely degree of purchaser care and sophistication, (7) LD’s intent in selecting its mark; and (8) the likelihood of expansion of the restaurants using the marks. Frisch’s Rests., Inc. v. Elby’s Big Boy of Steubenville, Inc., 670 F.2d 642, 648 (6th Cir.1982). Under this test, the “ultimate question” is “whether relevant consumers are likely to believe that the products or services offered by the *556 parties are affiliated in some way.” Homeowners Grp., Inc. v. Home Mktg. Specialists, Inc., 931 F.2d 1100, 1107 (6th Cir.1991). The district court concluded that all of the Frisch factors weighed in favor of Double L, except LD’s intent in selecting its mark, which the court considered neutral.

1. Strength of the Marks

To evaluate the strength of a mark, we consider two separate components: (1) the conceptual strength, or placement of the mark on the spectrum of marks, which encapsulates the question of inherent distinctiveness; and (2) the commercial strength, or marketplace recognition value of the mark. Maker’s Mark Distillery, Inc. v. Diageo N. Am., Inc., 679 F.3d 410, 419 (6th Cir.2012) (internal quotation marks omitted).

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533 F. App'x 553, Counsel Stack Legal Research, https://law.counselstack.com/opinion/luckys-detroit-llc-v-double-l-inc-ca6-2013.