Nutraceutical Corporation v. NutriChamps

CourtDistrict Court, D. Utah
DecidedOctober 30, 2020
Docket2:18-cv-00400
StatusUnknown

This text of Nutraceutical Corporation v. NutriChamps (Nutraceutical Corporation v. NutriChamps) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nutraceutical Corporation v. NutriChamps, (D. Utah 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH, CENTRAL DIVISION

NUTRACEUTICAL CORPORATION, a Delaware corporation; and NUTRAMARKS, INC., a Delaware MEMORANDUM DECISION AND corporation, ORDER

Plaintiffs / Counterclaim Defendants, Case No. 2:18-cv-00400-DB-DAO v.

NUTRACHAMPS, INC., a Canadian District Judge Dee Benson company, Magistrate Judge Daphne A. Oberg Defendant / Counterclaim Plaintiff.

Before the court are five motions: Plaintiffs’ Motion for Partial Summary Judgment on Nutraceutical’s First and Second Causes of Action (Dkt. No. 56); Plaintiffs’ Motion for Partial Summary Judgment on NutraChamps’ Third, Fourth, Sixth, Seventh, Eighth, Ninth, Tenth, and Eleventh Affirmative Defenses (Dkt. No. 59); Defendant’s Motion to Exclude Testimony and Report of Plaintiffs’ Expert Witness (Dkt. No. 62); Defendant’s Motion for Partial Summary Judgment on Plaintiffs’ Third, Fourth, Fifth, Sixth, and Seventh Causes of Action (Dkt. No. 63); and Defendant’s Motion to Strike Brief in Support of Plaintiffs’ Second Motion for Partial Summary Judgment. (Dkt. No. 76.) The motions have each been fully briefed by the parties, and the court has considered the facts and arguments set forth in those filings. Pursuant to civil rule 7-1(f) of the United States District Court for the District of Utah Rules of Practice, the Court elects to determine the motion on the basis of the written memoranda and finds that oral argument would not be helpful or necessary. FACTUAL AND PROCEDURAL BACKGROUND Nutraceutical Corporation and NutraMarks, Inc. (“Plaintiffs” or “Nutraceutical”) and NutraChamps, Inc. (“Defendant” or “NutraChamps”) are each in the business of selling dietary supplement products to the public. Plaintiffs claim that Defendant has “brazen[ly] infringe[d]” on Nutraceutical’s trademarks and trade dress rights, including: (i) Nutraceutical’s trademark in

its Hairfluence product, (ii) Nutraceutical’s trademark in its Boost Elite product, and (iii) Nutraceutical’s trade dress rights in the packaging of the Zhou nutritional supplement products (“Zhou Trade Dress”), which include the Calm Now, DriftOff, Neuro Peak, Resveratol, Turmeric, K2+D3, Energy Focus, N.O. Pro, Horny Goat Weed, Hairfluence, Iron Beard, Tart Cherry, and Boost Elite products (“Zhou Products”). (Dkt. No. 43 ¶ 1.) On this basis, Plaintiffs initiated the underlying suit against Defendant, alleging the following seven causes of action: (1) Trademark Infringement under 15 U.S.C. § 1114; (2) Trademark – Federal Unfair Competition, False Representation, and False Designation of Origin under 15 U.S.C. § 1125; (3) Lanham Act – Trade Dress Infringement under 15 U.S.C. § 1125;

Trade Dress – Federal Unfair Competition, False Representation, and False Designation of Origin under 15 U.S.C. § 1125; (5) Trade Dress Infringement under Common Law; (6) Unfair Competition under Common Law; and (7) Violation of the Utah Unfair Competition Act. (Id. ¶¶ 127-200.) Defendant asserts eleven affirmative defenses in its Answer to Plaintiffs’ Complaint. (Dkt. No. 45.) On July 8, 2020, Plaintiffs filed two motions for partial summary judgment. (Dkt. Nos. 56, 59.) The first of these motions seeks summary judgment on Plaintiff’s first two causes of action (Dkt. No. 56), while the second seeks summary judgment on several of Defendant’s asserted affirmative defenses. (Dkt. No. 59.) The primary matter at issue in Plaintiff’s first motion is Nutraceutical’s trademark in its Boost Elite product. “Boost Elite” is a dietary supplement marketed as promoting testosterone levels, stamina, and energy. The trademark for the Boost Elite supplement prominently features the image of a raised clenched fist surrounded by a circle with the words “BOOST ELITE” appearing underneath the illustrated fist. (Dkt. No. 43 ¶ 30.) Nutraceutical has used this mark to promote, advertise, and sell its Boost Elite product

since at least May of 2016. (Id. ¶ 27.) The Boost Elite trademark was officially registered and assigned to NutraMarks, Inc.1 (“NutraMarks”) in 2017. In 2019, Defendant launched a product called “Tribulus.” Tribulus is also marketed as a supplement that boosts testosterone and energy levels. Like Boost Elite, the Tribulus supplement bottle features the image of a raised clenched fist with the palm facing outward. Plaintiffs contend that the illustrated fist on Defendant’s Tribulus product infringes on their Boost Elite trademark, thus entitling Plaintiffs to summary judgment on their trademark claims. On July 8, 2020, Defendant also filed a motion for partial summary judgment. (Dkt. No. 63.) The primary issue in this motion is Defendant’s alleged infringement of Nutraceutical’s

Zhou Trade Dress. Each of the Zhou Products have a specific color scheme and trade dress as described in paragraphs 40-45 and 72-110 of Plaintiffs’ Second Amended Complaint. Plaintiffs allege that the packaging used on a number of Defendant’s products is unlawful and confusingly similar to the Zhou Trade Dress because Defendant uses: (1) a stout, black bottle with a black corrugated cap, (2) a front label that is predominately white, (3) similar product color schemes, (4) similar placement and order of titles, labels, product descriptions, and quantity statement, (5) confusingly similar product logos, and (6) confusingly similar side labels and back labels. (Dkt.

1 NutraMarks, Inc. is a wholly owned subsidiary of Nutraceutical. No. 43 ¶¶ 77-117.) Defendant argues that it is entitled to summary judgment on Plaintiffs’ trade dress claims because Plaintiffs cannot establish any infringement of the Zhou Trade Dress. In addition to its motion for partial summary judgment, Defendant has moved to strike Plaintiffs’ second motion for summary judgment (Dkt. No. 76) and to exclude report and testimony by Plaintiffs’ expert. (Dkt. No. 62.)

The court will address each of the parties’ five motions in the following analysis. ANALYSIS A. Defendant’s Motion to Strike: As an initial matter, the court addresses Defendant’s motion to strike Plaintiffs’ second motion for partial summary judgment. (Dkt. No. 76.) Defendant argues that Plaintiffs have violated DUCivR 56-1 by filing two separate motions for summary judgment. The court’s local rules provide that “parties should endeavor to address all summary judgment issues in a single motion,” and that “[i]f a party files more than one motion, the court may strike the motion and require that the motions be consolidated into a single motion.” DUCivR 56-1(b)(1) (emphasis

added). This clearly is not a strict mandate to combine all summary judgment motions, but rather an instruction to avoid multiple motions where appropriate. Plaintiffs’ two motions for summary judgment deal with entirely different issues. Plaintiffs’ first motion seeks summary judgment on several of their own claims, while Plaintiffs’ second motion requests summary judgment on a number of Defendant’s affirmative defenses. Under the circumstances, the court in its discretion will not require Plaintiffs to consolidate two discrete motions for summary judgment. Defendant’s Motion to Strike (Dkt. No. 76) is DENIED. B. Plaintiffs’ Motion for Partial Summary Judgment on Their First and Second Claims: Federal Rule of Civil Procedure

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