Monster Energy Company v. Beastup LLC

District Court, E.D. California·Decided August 13, 2019·No. 2:17-cv-01605·Unknown

Opinion

MONSTER ENERGY COMPANY, a No. 2:17-cv-01605-KJM-EFB Delaware corporation, Plaintiff, v. BEASTUP LLC, a California limited liability company, Defendant. This trademark action arises from two energy drink companies’ use of stylized claw marks and a formulation of the word “beast” on their cans and in their advertisements. Plaintiff Monster Energy Company (“Monster”) has brought this lawsuit against defendant BeastUp LLC (“BeastUp”) to stop BeastUp from using claw marks, its “BEASTUP” mark, and any variation of the word “beast” on its energy drinks. Plaintiff moves for summary judgment. ECF No. 38. Defendant filed an untimely opposition, ECF No. 47, and, consequently, plaintiff filed an untimely reply1, ECF No. 48. The court submitted the matter without a hearing. For the reasons explained below, the court GRANTS in part and DENIES in part plaintiff’s motion. 1 In its reply, plaintiff argues defendant filed an untimely opposition and, therefore, the court should grant the motion for summary judgment as conceded. Reply at 1. The hearing on the motion was noticed for November 2, 2018, but defendant did not file its opposition until October 30, 2018, eleven days after the due date provided by the scheduling provisions of Local A. Procedural History Monster filed this lawsuit against BeastUp on August 2, 2017, asserting the following claims relating to BeastUp’s alleged infringement of plaintiff’s trademarks: (1) trademark infringement and false designation of origin in violation of the Lanham Act, 15 U.S.C. § 1125(a); (2) trademark infringement under 15 U.S.C. § 1114; (3) trademark dilution under 15 U.S.C. § 1125(c); (4) a claim for cancellation of BeastUp’s U.S. Trademark Registration No. 4,584,629 under 15 U.S.C. § 1119; (5) unfair competition in violation of California Business & Professions Code section 17200 et seq.; and (6) unfair competition under California common law. Compl., ECF No.1, ¶ 1. BeastUp filed an Amended Answer raising three affirmative defenses: laches, waiver or acquiescence; unclean hands; and priority. ECF No. 28 ¶¶ 101–03. On October 4, 2018, Monster filed the instant motion for summary judgment. Mot., ECF No. 38; Mem., ECF No. 39. Monster also seeks summary judgment on BeastUp’s three affirmative defenses. Mem. at 1. B. Factual Background Plaintiff filed a statement of undisputed facts. See ECF No. 40. Defendant neither filed an alternative statement of facts nor responded to plaintiff’s statement of facts. The court refers to each listed fact as undisputed. 1. Undisputed Facts Monster develops, markets, sells and distributes ready-to-drink beverages, including energy drinks. Sacks Decl. ECF No. 41, ¶ 3. Monster launched its line of Monster Energy drinks in 2002 and has, since that time, used its Claw Icon mark and “UNLEASH THE BEAST!” mark in connection with its energy drinks and other products. Sacks Decl. ¶ 3 & Ex. 6, ECF No. 41-1. Monster applied for and received U.S. Trademark Registration No. 2,903,214 for its Claw Icon on November 16, 2004, and No. 2,769,364 for “UNLEASH THE BEAST!” on Rule 230(c), and after the date provided for plaintiff to file a reply. Further, defendant did not explain the delay in filing its opposition. In the interest of resolving the motion on the merits, however, the court considers the opposition. September 30, 2003, both in International Class 32 for beverages. Sacks Decl. Exs. 1, 5. Monster also uses and owns U.S. Trademark Registrations for several other marks incorporating the term “beast” in connection with its Monster line of beverages, including UNLEASH THE BEAST!, UNLEASH THE NITRO BEAST!, REHAB THE BEAST!, UNLEASH THE ULTRA | BEAST!, and PUMP UP THE BEAST! marks, among others. Sacks Decl. | 9 & Exs. 7-15. The container of each product in the Monster line of beverages displays the Claw Icon, and the vast majority also display a mark incorporating the word BEAST. Sacks Decl. 4 10. Images of one of the Monster Energy drink cans bearing these marks are shown below.

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4 | Since 2002, Monster has spent over $5.5 billion marketing and promoting its Monster line of energy drinks, including the Claw Icon and its various marks containing the word BEAST. 423. Monster features these marks in its marketing and promotion efforts, appearing on point-of-sale materials, clothing and promotional items, as well as Monster’s website and social media accounts, and in connection with Monster’s sponsorship of athletes, teams and events, including extensive promotion efforts in connection with motorsports. Id. 9] 25-26, 29-52. From 2002 to the time this lawsuit was filed, Monster sold more than twelve billion beverages displaying both its Claw Icon and marks containing the word BEAST together on the product containers. Id. Jj 22.

BeastUp produces, distributes, markets and sells energy drinks and other products under the BeastUp brand name. Bellinger Decl. Ex. 7, ECF No. 42-1, at 2. In May 2014, BeastUp began selling its BeastUp energy drink. Bellinger Decl. Ex. 8, at 2. The BeastUp energy drink can displays the BEASTUP name together with a stylized logo beneath the BEASTUP name and what appear to be two sets of silver claw marks running diagonally near the top and bottom of each can (collectively defendant’s “claw logo and claw marks”). Bellinger Decl. Ex. 3. BeastUp began using these claw marks in May 2014. Bellinger Decl. Ex. 1 at 9 (50:16—-51:10),? 10-11 (51:23-52:12), 14-15 (59:12-60:8). BeastUp applied for and received U.S. Trademark Registration No. 4,584,629 for its BEASTUP mark on August 12, 2014, in International Class 32 for beverages. Bellinger Decl. Ex. 11. An image of the BeastUp energy drink can bearing these marks is shown below. - ee i |

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i A VAT atu Monster brought this action against BeastUp based on claimed similarities in appearance between the parties’ marks as used in the marketplace on identical goods. Compl. 99] 40-42, 47. Specifically, Monster asserts BeastUp’s use of claw marks in connection with the BEASTUP mark creates a likelihood of confusion, mistake or deception among consumers ? Citations within the parentheses refer to the internal page and line numbers of □□□□□□□□□□ 38 exhibits, rather than the ECF page numbers.

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