Max Rack, Inc. v. Core Health & Fitness, LLC

CourtDistrict Court, S.D. Ohio
DecidedSeptember 17, 2019
Docket2:16-cv-01015
StatusUnknown

This text of Max Rack, Inc. v. Core Health & Fitness, LLC (Max Rack, Inc. v. Core Health & Fitness, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Max Rack, Inc. v. Core Health & Fitness, LLC, (S.D. Ohio 2019).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO EASTERN DIVISION

MAX RACK, INC., : : Case No. 2:16-cv-01015 Plaintiff, : : JUDGE ALGENON L. MARBLEY v. : : Magistrate Judge Vascura CORE HEALTH & FITNESS, LLC, et al., : : : Defendants. :

OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT [#34] AND DENYING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT [#35]

I. INTRODUCTION This matter is before the Court on Plaintiff and Defendants’ Cross-Motions for Summary Judgment. (Docs. 34 & 35.) The Motions are ripe for review, and the Court will resolve each of them without oral argument. For the reasons set forth below, the Court GRANTS IN PART and DENIES IN PART Defendants’ Motion [#34] and DENIES Plaintiff’s Motion [#35]. II. BACKGROUND Plaintiff Max Rack, Inc. is an Ohio corporation that markets and sells weightlifting equipment throughout the United States, including a machine known as the MAX RACK. (Complaint, Doc. 1 at 1.) Plaintiff owns the trademark for MAX RACK, as well as two patents associated with the machine’s design. (Id. at 4; Doc. 35 at 6.) On January 24, 2006, Plaintiff and Defendant Star Trac Strength, Inc. (“Star Trac”) entered into a licensing agreement, whereby Star Trac obtained the exclusive right to manufacture, sell, and distribute the MAX RACK until November 21, 2015, the date when the patents associated with the machine would expire. (License Agreement, Doc. 34-3 at 3; Memorandum in Support of Defendants’ Motion for Summary Judgment, Doc. 34-1 at 8.) Once the agreement terminated, Star Trac would be permitted to continue selling MAX RACK units already in production for a six-month period. (Doc. 34-3 at 9.) For each unit sold prior to or during this run-off period, Star Trac was obligated to pay Plaintiff $120 in royalties. (Id. at 4.)

On October 13, 2015, and in anticipation of their licensing agreement expiring, Defendant Core Health and Fitness, LLC (“Core Fitness”), a successor to Star Trac, sent Plaintiff a letter informing them that once their agreement terminated, it would continue selling a product identical to the MAX RACK but under the name FREEDOM RACK. (Doc. 34-4; Doc. 34-1 at 9.) To that end, Core Fitness began implementing the name change on its company website, in associated printed materials, with its manufacturer, and with its independent dealers and distributors. (Doc. 34-1 at 9.) But as late as November 2017, Core Fitness had failed to remove every reference to MAX RACK from its website. (Id.; Decl. Erin O’Brien, Doc. 34-10 at 2-3; Doc. 35 at 7.) Core Fitness also sold 24 MAX RACK units after the six-month run-off period had expired. (Doc. 34-

1 at 9-10.) Plaintiff contends, among other things, that Defendants intentionally used the MAX RACK name to create confusion between MAX RACK and FREEDOM RACK. (Doc. 1 at 7.) Accordingly, Plaintiff brings this action asserting five claims under federal and state law: (Count One) Infringement of a Federally Registered Trademark, 15 U.S.C. § 1114(1); (Count Two) Unfair Competition under the Lanham Act, 15 U.S.C. § 1501 et seq.; (Count Three) False Advertising in Interstate Commerce under the Lanham Act; (Count Four) Trademark Misuse in Interstate Commerce under the Lanham Act; and (Count Five) Deceptive Trade Practices under Ohio Law, O.R.C. § 4165. (Id. at 7-12.) Defendants concede that they owe Plaintiff damages for the 24 MAX RACK units that they sold after the agreed upon six-month run-off period. (Doc. 34-1 at 9-10.) Defendants have thus offered to pay Plaintiff the full gross revenue from these sales: $44,403. (Id.) Defendants also acknowledge that they must pay Plaintiff royalties for the 238 MAX RACK units that they sold during the sixth-month run-off period, amounting to an additional $28,560 in damages. (Id.)

Defendants maintain that these concessions should bring an end to this action. (Id. at 10.) Plaintiff, however, disagrees, and moves for summary judgment on Counts One and Two of the Complaint, as well as on certain elements of damages. (Doc. 35 at 10.) III. STANDARD OF REVIEW Federal Rule of Civil Procedure 56(a) provides that a court may grant summary judgment if “the movant shows there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). No dispute of material fact exists where the record “taken as a whole could not lead a rational trier of fact to find for the non-moving party.” Matsushita Elec. Indus., Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986). In resolving cross-

motions for summary judgment, “the court must evaluate each party’s motion on its own merits, taking care in each instance to draw all reasonable inferences against the party whose motion is under consideration.” B.F. Goodrich Co. v. United States Filter Corp., 245 F.3d 587, 592 (6th Cir. 2001) (quoting Taft Broadcasting Co. v. United States, 929 F.2d 240, 241 (6th Cir. 1991)). Ultimately, the court must evaluate “whether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 251-52. IV. ANALYSIS Defendants move for summary judgment on all counts in Plaintiff’s Complaint, arguing Plaintiff fails to support its claims for relief with admissible evidence. Plaintiff, in turn, moves for summary judgment on Counts One and Two, as well as on certain elements of damages, arguing there is no dispute that Defendants used the MAX RACK name to bolster the sales of the

FREEDOM RACK. As an initial matter, Plaintiff did not file a timely response to Defendants’ Motion for Summary Judgment. Nor did Plaintiff attach supporting exhibits to its own Motion for Summary Judgment. Although Plaintiff attempted to cure these deficiencies, the Court Denied Plaintiff’s Motion for Leave to File. (See Doc. 45.) Consequently, the Court will not consider Plaintiff’s untimely filings or exhibits for purposes of resolving the Motions for Summary Judgment. A. Lanham Act Claims

Counts One and Two of the Complaint assert claims of Trademark Infringement and Unfair Competition under the Lanham Act. Plaintiff and Defendants’ Motions, though seeking relief on the same claims, raise separate issues. Defendants move for summary judgment, arguing their mark, FREEDOM RACK, does not create a likelihood of confusion between it and Plaintiff’s MAX RACK mark. (Doc. 34-1.) Plaintiff, on the other hand, appears to move for summary judgment, arguing Defendants’ unauthorized references to MAX RACK on their website created a likelihood of confusion by suggesting the two marks were associated. To prevail on a trademark infringement and unfair competition claim under the Lanham Act, a plaintiff must establish that the defendant’s trademark creates a likelihood of confusion regarding the origin of goods or services offered by the respective parties. Progressive Distribution Servs., Inc. v.

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Bluebook (online)
Max Rack, Inc. v. Core Health & Fitness, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/max-rack-inc-v-core-health-fitness-llc-ohsd-2019.