Oasis v. Asna

909 F. Supp. 58
CourtDistrict Court, D. New Hampshire
DecidedNovember 1, 1995
Docket1:16-adr-00010
StatusPublished

This text of 909 F. Supp. 58 (Oasis v. Asna) 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
Oasis v. Asna, 909 F. Supp. 58 (D.N.H. 1995).

Opinion

909 F.Supp. 58 (1995)

OPTICAL ALIGNMENT SYSTEMS AND INSPECTION SERVICES, INC.
v.
ALIGNMENT SERVICES OF NORTH AMERICA, INC., et al.

Civ. No. 95-94-JD.

United States District Court, D. New Hampshire.

November 1, 1995.

*59 Stephen J. Tybursky, Portsmouth, NH, for plaintiff.

Lawrence M. Edelman, Hampton, NH, for Zane Blanchard & Co., Inc.

Anthony M. Bonanno, Manchester, NH, Lawrence J. Casey, Boston, MA, for Alignment Services of N. America, Inc., Timothy MacDonald, Paul Dallaire.

ORDER

DiCLERICO, Chief Judge.

The plaintiff, Optical Alignment Systems and Inspection Services, Inc. ("OASIS"), brought this action against Alignment Services of North America, Inc. ("ASNA"), Zane S. Blanchard & Co., Inc. ("ZSB"), Timothy MacDonald, and Paul Dallaire, alleging, inter alia, trademark infringement and unfair competition under federal and New Hampshire law. Before the court is ZSB's motion to dismiss for failure to state a claim upon which relief can be granted (document no. 6).

Background[1]

OASIS is a New Hampshire corporation in the business of aligning industrial equipment through the use of optical instruments. In 1989, OASIS registered a service mark with the United States Patent and Trademark Office. The mark consists of the word "OASIS" in capital letters. The "O" is slightly larger than the other letters and contains within it a depiction of an optical alignment device.

McDonald and Dallaire, former employees of OASIS, left the company in 1993 and formed ASNA, a New Hampshire corporation providing similar services to those offered *60 by OASIS. In 1994, ASNA arranged for ZSB, a manufacturers' representative, to distribute a letter introducing ASNA to ZSB's customers. ZSB later circulated a letter to its customers describing ASNA's credentials and stating that the company "was formed in 1993 by former engineers from OASIS" (italics in original).

Discussion

ZSB argues that it is entitled to a dismissal because the reference to Oasis in its letter of introduction for ASNA was neither untrue nor misleading, and thus is not actionable. The plaintiff contends that the use of the OASIS trademark in the letter of introduction infringed OASIS's goodwill in violation of state and federal law.

A motion to dismiss under Fed. R.Civ.P. 12(b)(6) is one of limited inquiry, focusing not on "whether a plaintiff will ultimately prevail but whether the claimant is entitled to offer evidence to support the claims." Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 1686, 40 L.Ed.2d 90 (1974). Accordingly, the court must take the factual averments contained in the complaint as true, "indulging every reasonable inference helpful to the plaintiff's cause." Garita Hotel Ltd. Partnership v. Ponce Fed. Bank, 958 F.2d 15, 17 (1st Cir.1992); see also Dartmouth Review v. Dartmouth College, 889 F.2d 13, 16 (1st Cir.1989). The court may also consider material submitted as part of the complaint or expressly incorporated by reference. See Fed.R.Civ.P. 10(c); Watterson v. Page, 987 F.2d 1, 3 (1st Cir.1993). In the end, the court may grant a motion to dismiss under Rule 12(b)(6) "`only if it clearly appears, according to the facts alleged, that the plaintiff cannot recover on any viable theory.'" Garita, 958 F.2d at 17 (quoting Correa-Martinez v. Arrillaga-Belendez, 903 F.2d 49, 52 (1st Cir.1990)).

I. Lanham Act Claims

Section 32 of the Lanham Act prohibits the unauthorized reproduction or use in commerce of registered trademarks.[2] As amended, section 43(a) of the Lanham Act proscribes, inter alia, the use in commerce of words or symbols that misidentify the source or affiliation of a product or service.[3] Although section 43(a) "prohibits a broader range of practices than does" section 32, Inwood Labs. v. Ives Labs., 456 U.S. 844, 858, 102 S.Ct. 2182, 2190-91, 72 L.Ed.2d 606 (1982), the pertinent provisions of each require a plaintiff to demonstrate a likelihood of consumer confusion in order to prevail.[4]See generally 3 McCarthy on Trademarks and Unfair Competition § 23.01[1] (3d ed. 1995).

*61 No likelihood of confusion results from the fair and accurate use of a company name "as a means of identifying either an individual working for a company or of describing the nature of goods or services being offered by that company." BIEC Int'l, Inc. v. Global Steel Servs., Ltd., 791 F.Supp. 489, 535 (E.D.Pa.1992); see also Business Trends Analysts, Inc. v. Freedonia Group, Inc., 700 F.Supp. 1213, 1233 (S.D.N.Y.1988) (Freedonia II) (use of trade name of employees' former employer in advertisement to describe credentials of employees not violative of § 36), aff'd in part and rev'd in part on other grounds, 887 F.2d 399 (2d.Cir.1989); Business Trends Analysts v. Freedonia Group, Inc., 650 F.Supp. 1452, 1461-62 (S.D.N.Y.1987) (Freedonia I) (same facts do not support finding of likelihood of confusion under § 43(a)). Accordingly, the mere reference to a competitor's trademark will comply with the Lanham Act if the reference is truthful, G.D. Searle & Co. v. Hudson Pharm'l Corp., 715 F.2d 837, 843 (3rd Cir. 1983), and not misleading, Freedonia II, 700 F.Supp. at 1233.

The reference to OASIS in ZSB's letter of introduction satisfies both of these requirements. OASIS has not alleged that the sentence at issue is untruthful. To the contrary, the plaintiff's own complaint concedes that the individual defendants are former employees. Complaint ¶¶ 3, 5. Although the plaintiff has argued at length that the reference to OASIS in ZSB's letter of introduction creates the false impression that OASIS is a sponsor or an affiliate of ASNA, the plain language of the letter, which does nothing other than to identify the founders of ASNA as former employees of OASIS—belies this claim. See Freedonia I, 650 F.Supp. at 1461 ("Stating that these individuals have been previously been employed by [the plaintiff] does not invite the inference that the [plaintiff] ... is affiliated with the [defendant]."). If anything, the reference to the individual defendants' former employment with the plaintiff discourages the inference that OASIS and the individual defendants or their company are affiliated. Because the reference to OASIS was neither false nor misleading, the court dismisses the plaintiff's Lanham Act claims.

II. State Law Claims

A.

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909 F. Supp. 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oasis-v-asna-nhd-1995.