Miyano MacHinery USA, Inc. v. Miyanohitec MacHinery, Inc.

576 F. Supp. 2d 868, 2008 U.S. Dist. LEXIS 83624, 2008 WL 4145649
District Court, N.D. Illinois·Decided September 5, 2008·No. 08 C 526·Published·Cited by 19 cases

Opinion

MEMORANDUM OPINION AND ORDER

VIRGINIA M. KENDALL, District Judge.

Plaintiff Miyano Machinery U.S.A., Inc. (“MMU”) brings suit against MiyanoHitec Machinery, Inc. (“MiyanoHitec”), Tom Mi-yano and Steven Miyano alleging trademark infringement in violation of the Lan-ham Act, 15 U.S.C. §§ 1114 and 1125(a) as well as cybersquatting, unfair competition, deceptive trade practices, and seeking a declaratory judgment. Soon after filing suit, MMU moved for a preliminary injunction barring MiyanoHitec from using any of MMU’s trademarks or tradenames, specifically the “Miyano” name, the Miya-no plain text mark, and the “winged M” mark. A hearing was held on July eighteenth and twenty-third, 2008. The Plaintiff seeks the injunction prior to the International Machine and Tool Show scheduled to begin September eighth, 2008 in Chicago. For the reasons stated below, this Court grants MMU’s Motion for a Preliminary Injunction.

STATEMENT OF FACTS

The Marks at Issue

The parties here dispute the use of the trade name “Miyano,” the “plain text” and “stylized text” Miyano marks, and the triangle “winged M” mark. MMU argues that they have exclusive rights to use these marks. The triangle “winged M” mark was registered as registration number 1,217,317 on November 23, 1982. Marchionne Testimony at 68:8-11; Pl.Ex. 3. That registration eventually lapsed, and MMU filed to re-register the mark on May 9, 2007, stating a first-use date of January 1, 1970. Pl.Ex. 4. MMU registered the plain text Miyano mark on November 6, 2007, Pl.Ex. 1. The word “Miyano” in the marks has undergone some changes, and the new version is referred to as “stylized.” Marchionne at 69:5-12; 23-25; see also Olczak 89:10-13. The M in the stylized version is a merger of the letter M and the infinity sign. Marchionne at 69:13-15. MMU registered the “stylized” Miyano text mark on March 7, 1989. PI. Ex. 2. Tom Miyano testified that the companies began using the stylized Miyano to differentiate the company name from his family name. T. Miyano 112:1-6.

Defendants have opposed MMU’s 2007 attempt to re-register the triangle “winged M” mark and have filed to cancel the original registration of the mark. Pl.Ex. 29, 33, 39. In addition, Defendants have petitioned the United States Patent and Trademark Office to cancel MMU’s trademark of the non-stylized text Miyano, arguing that Tom Miyano did not give consent to register the mark and that the registration was fraudulently obtained. Pl.Ex. 34.

The History of MMU

MMJ is a wholly-owned subsidiary of Miyano Machinery, Inc., a Japanese company. (“MMJ”). MMU manufactures and sells lathes, including multiaxis machines, and accessories for those machines. See, e.g., Minemura Testimony at 13:20-14:3. The machines cut metal at a high degree of accuracy and can be used in a variety of trades including the orthopedic implant industry. In the 1960’s, prior to the existence of MMU, Dynamic Machine Company became the American national distributor for Miyano Machinery Japan. Marchionne at 36:4-5. At that time, the *875 name “Miyano” and the triangle “winged M” logo were placed on every machine. Id. at 36: 8-9. The marks appear as a supplement to this order. At some point thereafter, MMU came into existence, at first using the Dynamic Tools sales facility as their headquarters. They were incorporated in Illinois in 1975. Id. at 36:12-16. Dynamic Tools connected MMU with all their distributors, and MMU began distributing the lathes throughout the U.S. Id. at 36: 21-25. MMU invested a great deal of money in advertising through their distributors and in magazines and often entered trade shows. Id. at 37:3-10.

Initially some problems occurred with the machines MMJ distributed through Dynamic Tools. Id. at 38:7-9. Specifically, in the 1960’s, the machines had difficulty making heavy cuts. Id. at 38: 8-9. However, over two years of adjustments, the machines became some of the best on the market. Id. at 38:11-39:10. MMU now distributes their lathes throughout the United States, Central and South America, and Canada. Id. at 39:12-16. MMU built a dealer network, good will, and a customer base over their many years’ of operation. Id at 37:25-38:4.

MMU and its products are known as “Miyano” in the machine tool industry. Id. at 50:14-19; Tom Miyano Declaration at ¶ 6. Indeed, they are referred to as such in various machining industry magazines (see Pl.Ex. 8, 11, and 12, such as in an October 2005 issue of TMW Machining World); Marchionne at 1-52:15 (news articles as recent as 2007); see Pl.Ex. 6, 10. MMU refers to themselves as Miyano on their own website and in their advertisements. See Pl.Ex. 13, 67-68. The Miyano brand name is still used on MMU products for sale in North America. Seito Testimony at 48:8-13.

Defendant Tom Miyano was the head of MMU and MMJ for many years in Japan prior to 2004. Marchionne at 62:20-25. Tom Miyano is well-known in the machine tool industry and some of MMU and MMJ’s good will is likely attributable to him. Id. at 63:1-16. Tom Miyano is the named inventor on approximately twenty-three patents in the Machine Tool industry. T. Miyano at 109:9-11.

Tom Miyano left MMJ in 2004 pursuant to an agreement with Japan’s Industrial Revitalization Corp. (“IRC”). Pl.Ex. 46, 63. Pursuant to their agreement, the IRC purchased Tom Miyano’s shares in MMJ, relieving him of approximately one-hundred-twenty million dollars in debt. As a condition of Japan’s relief of this debt, Tom Miyano was required to leave the company and abdicate his role with MMJ. Id.

MMU’s Use of the Triangle “Winged M” Mark

MMU argues that it has used the Miya-no name, text marks, and triangle “winged M” mark since its inception. MMU has used the name Miyano on machines, literature, stationary, checks, packing lists, service reports, warranties, shopping bags, on servicemen’s and distributors’ shirts, and binders and folders given to potential customers. Marchionne 39:20-40:7; Pl.Ex. 9, 16, 44-45, 49, 65, 67. For example, the triangle “winged M” mark is worn on the servicemen’s shirt that has been worn by employees of MMU since 1997 or 2000. Marchionne at 40:11-19; Olczak at 76:15-21. Individuals wearing those shirts with the mark travel to customer locations to repair machines throughout North and South America. Olczak at 77:10-20. Indeed, Derek Olczak (“Olczak”), MMU’s service manager, testified that he wears such a shirt when he performs installations, which are included in the sale of the product. Id. at 93:18-94:2.

The triangle “winged M” mark and the Miyano name also appear on a machine warranties (e.g. a machine warranty issued *876 April 25, 2008 bears the “winged M” Mar-chionne 42:14-43:8; 44:24-25). A similar form has been in use since the 1970’s, and this exact form has been in use since January of 1998. Id. at 45:1-9; 16-24.

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Miyano MacHinery USA, Inc. v. Miyanohitec MacHinery, Inc., 576 F. Supp. 2d 868, 2008 U.S. Dist. LEXIS 83624, 2008 WL 4145649 (N.D. Ill. 2008).

576 F. Supp. 2d 868 (Miyano MacHinery USA, Inc. v. Miyanohitec MacHinery, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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