North Atlantic Imports, LLC v. LoCo Crazy Good Cookers, Inc.

CourtDistrict Court, D. Delaware
DecidedJanuary 23, 2024
Docket1:23-cv-00999
StatusUnknown

This text of North Atlantic Imports, LLC v. LoCo Crazy Good Cookers, Inc. (North Atlantic Imports, LLC v. LoCo Crazy Good Cookers, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North Atlantic Imports, LLC v. LoCo Crazy Good Cookers, Inc., (D. Del. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE NORTH ATLANTIC IMPORTS, LLC, ) Paint v. C.A. No. 23-999-GB W-SRF LOCO-CRAZY GOOD COOKERS, INC., Defendant.

REPORT AND RECOMMENDATION Presently before the court in this civil action for patent infringement, violations of the Lanham Act, 15 U.S.C. § 1125(a), deceptive trade practices under 6 Del. C. § 2532, and false marking under 35 U.S.C. § 292 is the partial motion to dismiss the complaint for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6), filed by defendant LoCo-Crazy Good Cookers, Inc. (“Defendant”). (D.I. 12)! For the following reasons, I recommend that the court DENY Defendant’s partial motion to dismiss. I. BACKGROUND Plaintiff North Atlantic Imports, LLC d/b/a Blackstone (“Plaintiff”) is well-established in the market for outdoor cooking griddles and accessories. (D.I. 1 at $10) Plaintiff owns U.S. Patent No. 10,660,473 (“the ’473 patent”), entitled “System, Device and Method for Controlling Convective Heating of a Griddle.” (id. at J 16) Defendant entered the market for outdoor cooking griddles in 2022 and directly competes with Plaintiff in that market, selling and advertising to the same customers at stores such as Home Depot and Lowes. (/d. at J] 12, 18, 29) Since its entry into the market, Defendant has

! The briefing and related filings associated with the pending motion to dismiss are found at D.I. 13, D.L. 15, and D.I. 17.

copied Plaintiff's intellectual property. (id. at J] 12-13, 18-19) Plaintiff sent Defendant a cease-and-desist letter on August 24, 2022, informing Defendant of its infringement of the ’473 patent. (Id □□□ □□□ The letter also notified Defendant of its false statements in advertising its SmartTemp Kettle Charcoal Grill, 3-Burner Precision Griddle, and 2-Burner Precision Griddle (collectively, the “False Advertising Products”). (/d. at ] 26) In its advertising, Defendant represented that the False Advertising Products had patented “SmartTemp” technology, even though no such patent exists. (Ud. at J] 21, 23, 25) On September 8, 2023, Plaintiff filed this civil action alleging that Defendant’s propane griddle Model Nos. LCG3ST3C36 and LCGISTTC36 (the “Accused Products”) infringe the ’473 patent, and the advertisements for its False Advertising Products violate the Lanham Act and the Delaware Uniform Deceptive Trade Practices Act. (/d. at Jf 18, 26) The complaint further alleges that Defendant violates the false marking statute by representing that the False Advertising Products feature patented SmartTemp technology. (/d. at J 57) On November 2, 2023, Defendant moved to dismiss Counts I, II, and IV of the complaint for violations of the Lanham Act, the Delaware Uniform Deceptive Trade Practices Act (“DTPA”), and the false marking statute, respectively. (D.I. 12) Defendant does not seek dismissal of Count I of the complaint for infringement of the ’473 patent. The motion is fully briefed and ripe for resolution. Il LEGAL STANDARD Rule 12(b)(6) permits a party to seek dismissal of a complaint for failure to state a claim upon which relief can be granted. Fed. R. Civ. P. 12(b)(6). To state a claim upon which relief can be granted pursuant to Rule 12(b)(6), a complaint must contain a “short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). Although

detailed factual allegations are not required, the complaint must set forth sufficient factual matter, accepted as true in the light most favorable to the plaintiff, to “state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007); see also Ashcroft v. Iqbal, 556 U.S. 662, 663 (2009). A claim is facially plausible when the factual allegations allow the court to draw the reasonable inference that the defendant is liable for the misconduct alleged. Iqbal, 556 U.S. at 663; Twombly, 550 at 555-56. The court’s determination is not whether the non-moving party “will ultimately prevail,” but whether that party is “entitled to offer evidence to support the claims.” Jn re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1420 (3d Cir. 1997) (internal citations and quotation marks omitted). This “does not impose a probability requirement at the pleading stage,” but instead “simply calls for enough facts to raise a reasonable expectation that discovery will reveal evidence of [the necessary element].” Phillips v. Cty. of Allegheny, 515 F.3d 224, 234 (3d Cir. 2008) (quoting Twombly, 550 U.S. at 556). “[A] complaint may not be dismissed merely because it appears unlikely that the plaintiff can prove those facts or will ultimately prevail on the merits.” /d. at 231. I. DISCUSSION A. Count II: False Advertising under the Lanham Act, 15 U.S.C. § 1125(a) Defendant contends that Count II of the complaint should be dismissed because it fails to state a claim under the Lanham Act, 15 U.S.C. § 1125(a). (D.I. 13 at 4-8) To prevail on a claim for false advertising under the Lanham Act, a plaintiff must prove: (1) the defendant has made a false or misleading statement regarding his own product or another’s; (2) that has a tendency to deceive the intended audience; (3) the deception is material and is likely to influence purchasing decisions; (4) the advertised goods traveled in interstate commerce; and (5) there is a likelihood

of injury to the plaintiff. Groupe SEB USA, Inc. v. Euro-Pro Operating LLC, 774 F.3d 192, 198 (3d Cir. 2014) (citing Pernod Ricard USA, LLC v. Bacardi U.S.A., Inc., 653 F.3d 241, 248 (3d Cir. 2011)). To state a claim, “the complaint must include sufficiently detailed allegations regarding the nature of the alleged falsehood to allow defendant to make a proper defense.” Robert Bosch LLC v. Pylon Mfg. Corp., 632 F. Supp. 2d 362, 365 (D. Del. 2009) (internal citations and quotation marks omitted). Defendant argues that Count II should be dismissed because the complaint does not adequately plead the second, third, and fifth elements of a false advertising claim. (D.I. 13 at 6) Regarding the second element, Defendant contends that the complaint contains only threadbare legal conclusions supporting actual deception or a tendency to deceive due to Defendant’s advertisements. (/d. at 6) But the complaint also contains factual allegations to support an inference of deception.

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Bluebook (online)
North Atlantic Imports, LLC v. LoCo Crazy Good Cookers, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-atlantic-imports-llc-v-loco-crazy-good-cookers-inc-ded-2024.