Nordica Health v. Icon Health

2009 DNH 118
CourtDistrict Court, D. New Hampshire
DecidedAugust 11, 2009
DocketCV-06-451-PB
StatusPublished

This text of 2009 DNH 118 (Nordica Health v. Icon Health) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nordica Health v. Icon Health, 2009 DNH 118 (D.N.H. 2009).

Opinion

Nordica Health v. Icon Health CV-06-451-PB 08/11/09 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE

NORDICA S.p.A. ,_________________________________ NORDICA USA CORP.

_____ v. 06-CV-451-PB Case No. 2009 DNH 118 ICON HEALTH & FITNESS, INC.

MEMORANDUM AND ORDER

Nordica S.p.A. and its wholly owned subsidiary, Nordica USA,

("Nordica") have filed an action against ICON HEALTH & FITNESS

("ICON"). Nordica alleges that ICON has violated the terms of a

settlement agreement, reached between the two in the Spring of

2003, addressing ICON'S use of a trademark. The parties have

filed cross motions for summary judgment.

I. BACKGROUND

Nordica S.p.A. and Nordica USA manufacture, supply, and sell

skis, ski boots, and a variety of products related to winter

sport under the "NORDICA" trademark. ICON manufactures and

distributes fitness eguipment and apparel; it also owns the

fitness brand "NordicTrack," which it acguired in 1999. Under

the NordicTrack brand, ICON sells fitness eguipment such as

treadmills and elliptical machines, as well as fitness apparel. As part of ICON'S business model, it has sought to register the

mark "NORDICTRACK" in various jurisdictions, and pursuant to this

end, it applied for three registrations, one in Uruguay and two

in Europe, in 2003. In its applications, ICON indicated that it

was seeking to use the trademark in connection with particular

uses recognized by the international system of trademark

classification, namely in connection with those products falling

within the parameters of International Classes 25 and 28.

Nordica objected to ICON'S applications. (Compl., Doc. No. 1, at

1-2; Def.'s Mot. for Summ. J., Doc. No. 29, at 3; Pis.' Cross

Mot., Doc. No. 38, at 2.)

The parties ultimately reached an agreement (the

"Agreement") and resolved the matter. The Agreement acknowledged

that the controversy surrounded ICON'S trademark applications,

and identified them as follows:

-- Uruguayan TM Application No. 310.3151 NORDICTRACK, claiming the entire international class 28;

-- Community (European Union) TM Application No. 1.175.751 NORDICTRACK claiming the following goods: "Footwear, headgear" (international class 25) and "Games and playthings; gymnastic and sporting articles not included in other classes; decorations for Christmas trees" (International class 28);

-- Community (European Union) TM Application No. 1.422.542 NORDIC TRACK claiming the following

- 2 - goods: "Clothing" (international class 25). . . .

(Agreement, Doc. No. 1-2, at 1.) The Agreement further stated

that "although ICON deems that there is no likelihood of

confusion between its trademarks NORDICTRACK and NORDIC TRACK and

the NORDICA trademark of NORDICA S.p.A., the parties wish to

resolve the controversies between them." (I d .) ICON agreed to a

variety of provisions, among them, section 1 (b), wherein it

promised that it "shall register and/or use the trademarks

NORDICTRACK and NORDIC TRACK as well as any other mark including

the word NORDIC only in connection with the goods listed in Annex

A of this Agreement." (I d .)

As for the registration applications that initiated the

Agreement, ICON agreed in section 1 (g) to restrict the Uruguayan

and European Union applications "to the goods of international

class 28 listed in Annex A of this Agreement." (I d . at 2.) ICON

further agreed in section 1 (h) to restrict the European Union

applications to the "goods of international class 25 listed in

Annex A of this Agreement." (I d .) In response, Nordica agreed

to withdraw its objections to ICON'S Uruguayan and European Union

applications. Nordica further agreed that "it shall not object

to ICON'S registration and/or use of the trademarks NORDICTRACK

- 3 - and NORDIC TRACK if such registration and/or use are in

compliance with the terms of p o i n t [] 1(b) ... of this

Agreement." (I d .) The Agreement closed by stipulating, among

other things, that

4. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their related companies, successors, assignees, licensees, parents, subsidiaries . . . and employees.

5. This Agreement shall be effective worldwide.

(I d . at 3.) The Agreement is signed by representatives of both

Nordica S.p.A. and ICON. Annex A, which is attached the

Agreement, reads as follows:

International Class 2 5 : "men's shorts, women's shorts, socks, women's bras, women's tank tops, towels, gloves for indoor fitness, women's vests for indoor fitness, men's vests for indoor fitness, men's & women's long sleeve shirts, men's tank tops, men's & women's short sleeve shirts, women's spandex pants/shorts, men's leggings (spandex)".

International Class 2 8 : "gymnastic and sporting articles, except for those used in relation to outdoor winter sports, not included in other classes: exercise eguipment of all types except for that used in relation to outdoor winter sports".

(I d . at 4.)

In its current Complaint, Nordica alleges that since signing

the Agreement, ICON has engaged in behavior contrary to the

Agreement's terms. In Count 1, a claim for breach of contract.

- 4 - Nordica alleges that ICON has "materially breached its

obligations under the Contract by filing applications and/or

obtaining registrations for certain marks beyond those permitted

by the Contract." (Compl., Doc. No. 1, at 3.) In particular,

Nordica identifies two trademark applications filed in the United

States Patent and Trademark office by ICON IP, a subsidiary of

ICON. Nordica alleges that these applications reveal ICON'S

"pursuit of trademark applications beyond the scope of goods

permitted by the Contract for the underlying marks sought to be

registered." (I d .) Nordica also points to a second class of

violative behavior as well, namely ICON'S "advertising and

offering for sale goods that exceed the schedule of goods allowed

for ICON'S use on Annex A." (Pis.' Cross Mot., Doc. No. 38, at

7.) Nordica claims that it has reached out to ICON in an effort

to secure its compliance with the Agreement, but those contacts

have proved unfruitful. (Compl., Doc. No. 1, at 4.) In

responding to ICON'S conduct, Nordica maintains that it has "had

to engage in various adversarial proceedings with Defendant in

the United States and in foreign trademark tribunals." (I d . at

3.) In Count 2, Nordica alleges that ICON has violated the New

Hampshire Consumer Protection Act, RSA 358-A. In Count 3, it

- 5 - brings a claim for Attorneys' Fees.

Nordica seeks relief in a variety of forms. It seeks to

enjoin ICON from pursuing trademarks or using any marks on goods

or services beyond the scope of the Agreement. It also reguests

that ICON "be ordered to engage in specific performance of the

Contract and be ordered to abandon any trademark applications or

cancel any registrations . . . which are beyond the scope of that

permitted by the Contract." (I d . at 6.) Nordica seeks money

damages for ICON's failure to comply with the Agreement and for

the costs that resulted from Nordica's having to mount challenges

around the world to ICON'S pursuit of registrations that, if

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