MFIB LLC v. IBCA LLC

District Court, D. Arizona·Decided September 19, 2025·No. 2:25-cv-02517·Unknown

Opinion

WO

MFIB L LC, ) No. CV-25-02517-PHX-SPL ) ) Plaintiff, ) ORDER vs. ) ) ) IBCA LLC, et al., ) ) Defendants. ) ) ) Before the Court is Plaintiff’s Motion for Preliminary Injunction (Doc. 2). For the following reasons, the Court will deny the Motion for Preliminary Injunction. Plaintiff, MFIB, LLC, doing business as MFRG-ICON Construction and ICON National (“Plaintiff” or “MFIB”), seeks injunctive relief for a variety of claims relating to Defendants IBCA, LLC, doing business as ICON Builders (“ICBA” or “ICON Builders”), and Allen W. Sands’ (“Sands,” collectively “Defendants”) alleged interference with Plaintiff’s trademarked names, all involving the use of the term “ICON.” (Docs. 2, 3.) Plaintiff is a construction company that specializes in affordable housing construction, owned by Justin Krueger, who is not a party to this case. (Doc. 1 at 3–5, ¶¶ 9–19.) Defendant IBCA is also an affordable housing construction company and is owned by Defendant Sands. (Id. at 2, ¶ 4.) This dispute stems from Defendants’ use of the name ICON Builders. (Id. at 6–10, ¶¶ 25–29.) Plaintiff MFIB was formed through the merging of Defendant Sands’ and Mr. Krueger’s construction companies. (Id. at 4, ¶ 12.) Prior to the formation, Defendant Sands owned and operated a general contracting company, Icon Commercial Contractors, Inc. (“ICC”), doing business as ICON Builders. (Id. at 3, ¶ 10; Doc. 28 at 7.) Mr. Krueger worked for Defendant Sands at ICC for several years before departing to eventually form his own company, Multi-Family Renovation Group (“MFRG”). (Doc. 1 at 3–4, ¶¶ 9–12.) In 2017, ICC and MFRG joined to form MFIB, LLC. (Doc. 1 at 4, ¶¶ 12–13.) The parties executed a Transition Services Agreement, which granted MFIB a “perpetual” and “non- exclusive” license “to use ICON trademarks and trade names for purposes of carrying out the duties of MFIB on the completion of the ICON projects through this Agreement.” (Doc. 20-1 at 5; Preliminary Injunction Hearing Exhibit1 101.) The newly formed company operated under the name MFRG-ICON Construction. (Doc. 1 at 4, ¶ 15.) In 2023, Plaintiff MFIB obtained two federal trademark registrations using the “MFRG-ICON Construction” name: U.S. Trademark Reg. No. 7,228,247 and 7,228,248. (Id. at 5, ¶ 19.) In August 2022, MFRG purchased ICC’s ownership interest in MFIB in accordance with the parties’ Membership Interest Purchase Agreement (“the Purchase Agreement”). (Doc. 28 at 8; Doc. 20-1 at 49; Ex. 103.) During the buyout, Plaintiff MFIB started a related brand, ICON National, and filed for two more federal trademark registrations in that name under U.S. Trademark Reg. No. 7,228,222 and 7,230,751. (Doc. 2 at 5.) The Purchase Agreement specified that Plaintiff MFIB had the right to continue using the marks “MFRG- ICON,” “ICON National,” and “MFRG-ICON Construction.” (Doc. 28 at 9; Doc. 20-1 at 49.) The Purchase Agreement also provided that MFIB would not use the marks “ICON Commercial” or “ICON Commercial Contractors” going forward. (Id.) MFIB refers to the “MFRG-ICON,” “ICON National,” and “MFRG-ICON Construction” trademarks as the ICON-formative marks,2 alleging that MFIB has invested in these marks to garner consumer recognition and commercial goodwill. (Doc. 2 at 5.)

1 Hereinafter, “Ex.” 2 Plaintiff also asserts ownership rights to “ICON” alone (Hearing Tr. 17:15) and asks the Court to enjoin Defendants from using “ICON” altogether. (Doc. 2-1 at 2.) The present dispute originated when Defendant Sands formed a new company in 2023,3 IBCA, LLC (“IBCA” or “ICON Builders”), doing business as ICON Builders. (Id. at 6.) Plaintiff alleges that, since 2024, Defendants’ use of “ICON” and “ICON Builders” has increasingly caused consumer confusion within the affordable housing and construction industries. (Doc. 2 at 6–7.) Plaintiff attached eleven exhibits to its Declaration, showing examples of consumer confusion that took place from March 2025 through July 2025.4 (Doc. 3-2 at 1–41.) On July 17, 2025, Plaintiff filed the Complaint (Doc. 1) and the Motion for Preliminary Injunction (Doc. 2). Plaintiff brings claims against Defendants for federal trademark infringement, federal false designation of origin, and trademark infringement under Arizona state law. (Doc. 1 at 11, ¶¶ 36–67.) In its Motion for Preliminary Injunction, Plaintiff asks the Court to enjoin Defendants from (1) using the “ICON” or “ICON Builders” marks and from using any of the ICON-formative marks or other marks that would cause confusion, as well as from filing an application for registration of any of the ICON-formative marks. (Doc. 2-1 at 1–2.) Plaintiff also asks that the Court enjoin Defendant from using any of the ICON-formative marks in an internet domain name. (Doc. 2-1 at 1–2.) The Court held an evidentiary hearing on September 10, 2025, during which it heard testimony from Mr. Krueger and Defendant Sands, among others, and received dozens of exhibits into evidence. (ME 40). Based on the briefing, the parties’ arguments, and the

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MFIB LLC v. IBCA LLC, (D. Ariz. 2025).

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