Navajo Nation v. Urban Outfitters, Inc.

918 F. Supp. 2d 1245, 90 Fed. R. Serv. 581, 2013 WL 258414, 2013 U.S. Dist. LEXIS 14289
CourtDistrict Court, D. New Mexico
DecidedJanuary 16, 2013
DocketNo. Civ. 12-195 LH/WDS
StatusPublished
Cited by12 cases

This text of 918 F. Supp. 2d 1245 (Navajo Nation v. Urban Outfitters, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Navajo Nation v. Urban Outfitters, Inc., 918 F. Supp. 2d 1245, 90 Fed. R. Serv. 581, 2013 WL 258414, 2013 U.S. Dist. LEXIS 14289 (D.N.M. 2013).

Opinion

MEMORANDUM OPINION AND ORDER

C. LEROY HANSEN, District Judge.

On September 20, 2012, Defendants Urban Outfitters, Inc.; UO.com, L.L.C.; Urban Outfitters Wholesale, Inc.; Anthropologie, Inc.; Anthropologie.com, L.L.C.; Free People of PA, L.L.C.; and Freepeople.com, L.L.C. (collectively “Defendants”) filed a Motion to Transfer Venue Pursuant to 28 U.S.C. § 1404(a) (Doc. 38). The parties submitted briefs in support of and in opposition to the motion. Additionally, Plaintiffs The Navajo Nation, the Diñé Development Corporation (“DDC”), and the Navajo Arts and Crafts Enterprise (“NACE”) (collectively, “Plaintiffs” or “The Navajo Nation”) filed a Motion for Leave to File Sur-Reply to Defendants’ Motion to Transfer Venue (Doc. 47). This Court, having considered the pleadings, motions, briefs, relevant law, and otherwise being fully advised, concludes that Plaintiffs motion to file a sur-reply will be granted and Defendants’ motion to transfer venue will be denied.1

I. INTRODUCTION

A. THE PARTIES

The Navajo Nation is a sovereign Indian Nation with over 300,000 enrolled members. Am. Compl. (Doc. 30) ¶ 9. It owns controls, and exercises jurisdiction over a semi-autonomous territory spanning more than 27,000 square miles in northeastern Arizona, the southeastern portion of Utah, and northwestern New Mexico. Id. The Navajo Nation Tribal Government’s company headquarters are located in Window [1249]*1249Rock, Arizona. See Def.’s Mot., Ex. 1 (Doc. 39-1) at 1. The Navajo Nation is an institution that acts through its political subdivision, the Division of Economic Development; its wholly-owned instrumentalities, NACE and DDC; its officers, employees, and authorized agents; and its members, the Navajo People. Am. Compl. (Doc. 30) ¶ 9.

Defendant Urban Outfitters, Inc., (“Urban Outfitters”) is an international retail company that markets and retails its merchandise in its more than 200 stores located internationally and nationally and on the internet. See id. ¶ 13. Defendants UO.com, L.L.C.; Urban Outfitters Wholesale, Inc.; Anthropologie, Inc.; Anthropologie.com, L.L.C.; Free People of PA, L.L.C.; and FreePeople.com, L.L.C. are wholly-owned subsidiaries of Urban Outfitters. Id. ¶¶ 14-17. The subsidiaries are not separate autonomous entities, but rather are “brands” of Urban Outfitters. Id. ¶ 18. All seven of the Defendants’ corporate headquarters are located in Pennsylvania. See Def.’s Mot., Ex. 5 (Doc. 39-5) at ¶¶ 3-8.

Defendants sell fashion apparel, accessories, and home goods. Am. Compl. (Doc. 30) ¶ 33. Defendants had sales of approximately $2.5 billion in fiscal year 2012. Id. ¶ 34. Defendants purchased merchandise from numerous vendors; in fiscal year 2012, they did business with approximately 3,400 vendors. Id. ¶ 35. Urban Outfitters’ Free People wholesale division sells the Free People brand worldwide through approximately 1,400 department and specialty stores, as well as through Free People and Urban Outfitters stores. Id. ¶ 36. Defendants admit that their goods reach New Mexico. Def.’s Mot. (Doc. 39) at 7. Urban Outfitters operates a store in Albuquerque, New Mexico, and transacts business through the Internet in New Mexico. Am. Compl. (Doc. 30) ¶ 20. Free People does not operate any physical stores in New Mexico, but has four stores in Pennsylvania, among other locations around the nation. See Def.’s Mot., Ex. 8 (Doc. 39-8) at 1-3.

B. THE ALLEGATIONS OF THE COMPLAINT

The Navajo Nation alleges that it and its members have been known by the name “Navajo” since at least 1849, have continuously used the NAVAJO trademark in commerce, and have made the NAVAJO name and trademarks famous with numerous products, including, among other things, clothing, accessories, blankets, jewelry, foods, tools, decorations, crafts, and retail services. Am. Compl. (Doc. 30) ¶ 3. Plaintiffs state that they have registered 86 trademarks using the NAVAJO component with the United States Patent and Trademark Office (“USPTO”) on the Principal Register for a variety of different classes of goods and services, including clothing, jewelry, house wares, and accessories. Id. ¶¶ 3, 27. Plaintiffs allege that the trademark NAVAJO mark is inherently distinctive, and given the incontestable status of its registration, the trademark may not be challenged as merely descriptive. Id. ¶ 29. The Navajo Nation asserts that its NAVAJO marks are prominently featured on its and its agents’ websites. Id. ¶ 30. Plaintiffs contend that its famous NAVAJO mark is broadly recognized by purchasers of consumer goods and the general public as a trademark for the Navajo Nation’s Indian-styled and Indian-produced goods. Id. ¶ 31.

The Navajo Nation asserts that, at least as early as March 16, 2009, Defendants have used “Navajo” and “Navaho” as names and marks in direct competition with NAVAJO-branded goods. See id. ¶¶ 5, 37. The Navajo Nation has brought suit against Defendants, claiming trademark infringement, trademark dilution, [1250]*1250unfair competition, false advertising, commercial practices laws violations, and violation of the Indian Arts and Crafts Act. Specifically, Plaintiffs allege in Count One that Defendants’ use of the “Navajo” and “Navaho” mark in connection with the sale of clothing, jewelry, house ware, footwear, and similar items is likely to cause confusion, mistake, or deception in the market place, and has created actual confusion in the market place, and constitutes trademark infringement in violation of 15 U.S.C. §§ 1114 and 1117 of the Lanham Act.2 See id. ¶¶ 81-91. In Count Two, Plaintiffs assert that Defendants’ use of the “Navajo” and “Navaho” names and marks to promote, market, and sell its retail items constitutes willful Trademark Dilution by blurring, and willful Trademark Dilution by tarnishment under § 1125(c) of the Lanham Act. See id. ¶¶ 92-96. Plaintiffs contend in Count Three that Defendants’ are also liable for Unfair Competition and False Advertising under § 1125(a) of the Lanham Act based on false advertising and infringement of the Navajo Nation’s unregistered NAVAJO trademarks. See id. ¶¶ 97-101.

In Count Four, Plaintiffs allege that Defendants violated the Indian Arts and Crafts Act, 25 U.S.C. § 305 et seq., (“IACA”) by offering, advertising, marketing, displaying for sale, and selling goods that falsely suggest Defendants’ products are products of an Indian Tribe, when in fact they are not products of any Indian Tribe. See id. ¶¶ 102-22. Plaintiffs contend that the damages suffered include lost sales by members of the Navajo Nation, lost profits through driven-down prices caused by Defendants’ imitation products, and loss of goodwill and reputation. See id. ¶ 112.

Plaintiffs assert state law claims in the two remaining counts. In Count Five, Plaintiffs contend that Defendants are liable for violation of the New Mexico Unfair Practices Act (“NMUPA”), N.M. Stat. Ann.

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918 F. Supp. 2d 1245, 90 Fed. R. Serv. 581, 2013 WL 258414, 2013 U.S. Dist. LEXIS 14289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/navajo-nation-v-urban-outfitters-inc-nmd-2013.