Montana Professional Sports, LLC v. Leisure Sports Management, Inc.

422 F. Supp. 2d 1271, 83 U.S.P.Q. 2d (BNA) 1730, 2006 U.S. Dist. LEXIS 7218, 2006 WL 289111
CourtDistrict Court, M.D. Florida
DecidedFebruary 7, 2006
DocketCIVA605CV1827ORL18DA
StatusPublished
Cited by1 cases

This text of 422 F. Supp. 2d 1271 (Montana Professional Sports, LLC v. Leisure Sports Management, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montana Professional Sports, LLC v. Leisure Sports Management, Inc., 422 F. Supp. 2d 1271, 83 U.S.P.Q. 2d (BNA) 1730, 2006 U.S. Dist. LEXIS 7218, 2006 WL 289111 (M.D. Fla. 2006).

Opinion

FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER GRANTING MOTION FOR PRELIMINARY INJUNCTION

G. KENDALL SHARP, District Judge.

This matter having come before the Court on January 24, 2006 on Plaintiff Montana Professional Sports, LLC’s (“MPS”) Motion for Preliminary Injunction, and the Court having considered the declarations, pleadings, memoranda and exhibits on file and the arguments of counsel, the Court hereby enters its Findings of Fact and Conclusions of Law, and enters the following Order:

I.FINDINGS OF FACT

A. The Parties

1. Defendant National Indoor Football League, LLC is the owner and operator of the National Indoor Football League (the “League”). The League consists of approximately twenty-four professional football teams located in fifteen different states, including Florida. The League playing season commences in March each year. Shiver Aff. ¶¶ 3-7.

2. MPS is the owner and operator of the BILLINGS OUTLAWS, a professional indoor football team located in Billings, Montana that plays in the League. Austin Deck ¶ 2; Shiver Aff. ¶ 13.

3. Leisure Sports Management, Inc. (“LSM”) is the owner and operator of the OSCEOLA OUTLAWS, a professional football team located in Osceola County, Florida that plays in the League. Doebler Aff. ¶¶ 2-3; Shiver Aff. ¶¶ 21-22.

B. History of the Outlaws Trademarks

4. In 2000, Duane Anderson acquired the right from the League to operate a professional football team in Billings, Montana as part of the League beginning with *1273 its inaugural 2001 season. Anderson Decl. ¶ 2; Shiver Aff. ¶¶ 3, 8-9.

5. Mr. Anderson named his team the BILLINGS OUTLAWS and developed two logos for use in connection with the team. Anderson Decl. ¶¶ 3-4.

6. On January 24, 2001 Mr. Anderson filed three trademark applications in the U.S. Patent and Trademark Office to register the marks BILLINGS OUTLAWS (the “BILLINGS OUTLAWS Word Mark”) and two design marks (collectively the “Outlaws Design Marks”). Based on those trademark applications, on February 25, 2003 Mr. Anderson was granted U.S. Registration No. 2.691,663 for the BILLINGS OUTLAWS Word Mark for use in connection with clothing and entertainment services, namely, professional football games and exhibitions; on February 15, 2005 Mr. Anderson was granted U.S. Registration No. 2,926.797 for one of the Outlaws Design Marks for use in connection with clothing and entertainment services, namely, professional football games and exhibitions; and on August 30, 2005, Mr. Anderson was granted U.S. Registration No. 2,990,181 for the other Outlaw Design Mark also for use in connection with clothing and entertainment services, namely, professional football games and exhibitions (collectively the “Outlaws Marks”). Anderson Decl. ¶¶ 3-4; Roth-well Decl. Exs. A-C.

7. Mr. Anderson operated the BILLINGS OUTLAWS under the Outlaws Marks for four consecutive seasons from the League’s inaugural season through 2004. Anderson Decl. ¶¶ 5,12.

C. Consumer Recognition of the Outlaws Marks

8. The BILLINGS OUTLAWS were the subject of substantial and continuous advertising and promotion under the Outlaws Marks from 2001 through 2004. Advertisements bearing the Outlaws Marks were published in newspapers, on the League’s website, on the BILLINGS OUTLAWS’ website, and on roadside signage. Anderson Decl. ¶¶ 12, 17-18. Advertisements featuring the Outlaws Marks also aired on television and on the radio. Id. ¶¶ 12, 19-20. Additional promotional efforts included public appearances by “The Most Wanted,” the BILLINGS OUTLAWS’ dancers, corporate sponsorships, participation in trade shows, advertisements on buses, and a myriad of press releases and direct mailings to consumers. Id. ¶¶ 12-16, 21-22. As a result, the Outlaws Marks are recognized throughout the League and elsewhere as an indication of source for the BILLINGS OUTLAWS. Id. ¶ 25.

9. The goodwill associated with the Outlaws Marks has also been strengthened by the BILLINGS OUTLAWS’ success on the football field since 2001. Approximately 100,000 fans have purchased tickets and attended the BILLINGS OUTLAWS’ games in Montana. Anderson Decl. ¶ 5. Those fans were repeatedly exposed to the Outlaws Marks through advertisements at the venue, the prominently displayed OUTLAWS design mark on the field, the branded merchandise offered for sale, team uniforms and helmets worn by players, and programs which feature the Outlaws Marks. Id. ¶ 23.

D. MPS’ Acquisition of the BILLINGS OUTLAWS and the Outlaws Marks

10. In February 2005, Mr. Anderson had a dispute with the League and informed the League that the BILLINGS OUTLAWS would not play in the upcoming season. Anderson Decl. ¶¶ 6-7; Shiver Aff. ¶¶ 10-12. Mr. Anderson always intended for the BILLINGS OUTLAWS to resume play under the Outlaws Marks in 2006 either as part of the League or elsewhere. Anderson Decl. ¶¶ 6, 9. Mr. *1274 Anderson also intended to continue and did continue the promotion and advertisement of the Outlaws Marks and the promotion, advertisement and sale of related merchandise during 2005. Id., ¶¶ 6, 9-10.

11. The League responded to Mr. Anderson’s decision by terminating his contract, taking control of the BILLINGS OUTLAWS and offering MPS the right to operate a team in Billings, Montana as part of the League. Anderson Decl. ¶¶ 6-7; Austin Decl. ¶ 2; Shiver Decl. ¶¶ 10-13.

12. During the negotiations that followed between the League and MPS, the League expressly informed MPS that it would have the right to use the Outlaws Marks during the 2005 season pursuant to the contract between Mr. Anderson and the League. Austin Decl. ¶ 3, Ex. A at 1, 3-4, 8; Shiver Aff. ¶ 14. The League also informed MPS that its contractual right to use the Outlaws Marks would be limited to the 2005 season unless MPS could purchase the Outlaws Marks from Mr. Anderson. Austin Decl. ¶ 3, Ex. A at 1, 3-4, 8; Shiver Aff. ¶ 14.

13. MPS acquired the right to operate the team in Billings, Montana in March 2005, just before the start of the League’s 2005 season. Austin Decl. ¶¶ 2-3; Shiver Aff. ¶ 13. MPS relied upon the League’s representations that MPS could use the Outlaws Marks in 2005. Austin Decl. ¶ 4. Accordingly, MPS announced that its team would play as the BILLINGS OUTLAWS shortly after it acquired the team. Id.

14. Mr. Anderson disagreed with the League’s interpretation of their contract and threatened to sue MPS and the League for trademark infringement and seek an injunction if MPS used the Outlaws Marks. Anderson Decl. ¶ 7; Austin Decl. ¶ 5; Shiver ¶ 14. After investigating Mr. Anderson’s claims, MPS recognized the strength of Mr. Anderson’s rights in the federally registered Outlaws Marks and determined that it would be an act of infringement to use the Outlaws Marks without Mr. Anderson’s authorization. Austin Decl. ¶ 6.

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422 F. Supp. 2d 1271, 83 U.S.P.Q. 2d (BNA) 1730, 2006 U.S. Dist. LEXIS 7218, 2006 WL 289111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montana-professional-sports-llc-v-leisure-sports-management-inc-flmd-2006.