Patagonia, Inc. v. Worn Out, LLC

CourtDistrict Court, S.D. Florida
DecidedMay 1, 2023
Docket1:22-cv-23858
StatusUnknown

This text of Patagonia, Inc. v. Worn Out, LLC (Patagonia, Inc. v. Worn Out, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patagonia, Inc. v. Worn Out, LLC, (S.D. Fla. 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

Case No. 22-cv-23858-BLOOM/Otazo-Reyes

PATAGONIA, INC.,

Plaintiff,

v.

WORN OUT, LLC,

Defendant. ________________________________/

OMNIBUS ORDER ON REQUEST FOR JUDICIAL NOTICE, MOTION TO DISMISS AND MOTION TO STRIKE

THIS CAUSE is before the Court upon Plaintiff Patagonia, Inc.’s (“Patagonia”) Combined Motion to Dismiss and Motion to Strike Defendant Worn Out LLC’s (“Worn Out”) First Counterclaim, ECF No. [28] (“Motion”); and Patagonia’s Request for Judicial Notice in Support of its Motion, ECF No. [29]. Worn Out filed a Response in Opposition, ECF No. [35], to which Patagonia filed a Reply, ECF No. [36]. The Court has carefully considered the Motion, all supporting and opposing submissions, the record in this case, the applicable law, and is otherwise fully advised. For the reasons set forth below, the Motion is granted in part and denied in part. I. BACKGROUND Patagonia filed this action against Worn Out on November 23, 2022, alleging that Worn Out is infringing, misusing, and trading on Patagonia’s WORN WEAR ® trademark. ECF No. [1] ¶ 2. Patagonia asserts the following claims for relief: Federal Trademark Infringement under 15 U.S.C. §§ 1114-1117 (“Complaint’s First Claim”), Federal Unfair Competition and False Designation of Origin Under 15 U.S.C. § 1125(a) (“Complaint’s Second Claim”), Violation of the Florida Deceptive and Unfair Trade Practices Act (FDUTPA) (“Complaint’s Third Claim”), and Common Law Infringement and Unfair Competition (“Complaint’s Fourth Claim”). Id. at 27-49. Patagonia seeks declaratory and injunctive relief, including an order to prevent registration of Worn Out’s trademark applications, an accounting of Defendant’s assets that arise out of its allegedly infringing activities, and the imposition of a constructive trust. Id. at 15-17.

On February 1, 2023, Worn Out filed its Answer and Counterclaim, asserting several affirmative defenses and alleging that Patagonia committed fraud on the United States Patent and Trademark Office (“USPTO”) in order to obtain and maintain its trademarks. Counterclaim ¶¶ 39- 42, ECF No. [23]. Worn Out’s Counterclaim specifically alleges that Patagonia, a large clothing designer and retailer, owns a “WORN WEAR” word mark with registration number 4,955,520, and a “WORN WEAR” logo with registration number 4,623,527, both for “[r]etail store services featuring vintage and used clothing, footwear, luggage, and outdoor gear and accessories” (the “WORN WEAR Marks”). Id. ¶ 13. Patagonia claims October 7, 2012 as its first use date for its WORN WEAR Marks. Id. ¶ 23. Worn Out, an “affordable luxury street wear” company filed an application for a “WO WORN OUT” logo with serial number 90/590,855, and another application

for a “WORN OUT” word mark with serial number 90/548,014 (the “WORN OUT Marks”). Id. ¶¶ 7, 9. On May 24, 2022, Patagonia sent a cease-and-desist letter demanding that Worn Out “cease all use of its WORN OUT [M]arks and abandon its WORN OUT Applications.” Id. ¶ 10. On or about August 17, 2022, Patagonia filed an opposition with the Trademark Trial and Appeal Board (“TTAB”) to oppose Worn Out’s registration of its WORN OUT Marks “on the basis of priority and likelihood of confusion with Patagonia’s WORN WEAR [M]arks.” Id. ¶ 12. On September 19, 2022, Worn Out filed a cancellation petition with the TTAB to cancel Patagonia’s WORN WEAR Marks. Id. ¶ 14. On November 23, 2022, Patagonia filed a trademark infringement complaint against Worn Out in this Court while its TTAB action was pending. Id. ¶ 21. As of October 7, 2012, the first use date that Patagonia provided to the USPTO, Patagonia had not used the WORN WEAR Marks in connection with “[r]etail store services featuring vintage

and used clothing, footwear, luggage, and outdoor gear and accessories.” See id. ¶¶ 13, 24. Specimens that Patagonia submitted to the USPTO did not contain “any actual evidence of the Worn Wear Marks in use commerce [sic] in connection with the listed services,” id. ¶ 25. Worn Out’s internet searches did not “reveal any use of the Worn Wear Marks as of the dates of submission of the statements of use for both applications for the Worn Wear Marks,” id. ¶ 27. On September 13, 2013, and September 9, 2015, “representatives for Patagonia” executed declarations in support of the application for the WORN WEAR Marks, stating that Patagonia was using the WORN WEAR Marks in commerce for the listed services, despite knowing that the WORN WEAR Marks were not actually being used in connection with the listed services. Id. ¶¶ 28, 34, 37. On October 24, 2019, Patagonia Assistant General Counsel Robert Tadlock

submitted a false declaration of continued use for the same services. Id. ¶¶ 34, 35, 37. The “representatives for Patagonia” and Tadlock made these false statements to intentionally induce the USPTO to issue registrations for the WORN WEAR Marks and afterwards to maintain the registrations, both of which the USPTO did. Id. ¶¶ 29, 37-38. Based on those allegations, Worn Out claims that Patagonia fraudulently obtained and maintained its WORN WEAR Marks by intentionally making “material false statements in its applications for the Worn Wear Marks and subsequent declarations of continued use, attesting that the Worn Wear Marks were in use with all of the listed services of the Worn Wear Registrations when they were not.” Id. ¶¶ 39-42 (“Counterclaim’s First Claim”). In addition, Worn Out asserts Abandonment (“Counterclaim’s Second Claim”). Id. ¶¶ 43-45. Worn Out asks this Court to cancel Patagonia’s WORN WEAR Marks on the basis of fraud and abandonment, id. ¶ A, and requests an award of punitive damages, id. ¶ D, together with an award of pre- and post-judgment interest, id. ¶ F.

Patagonia requests this Court to take judicial notice of sixteen exhibits, moves to dismiss the Counterclaim’s First Claim for failure to state a claim upon which relief may be granted under Federal Rule of Civil Procedure 12(b)(6), and moves to strike paragraphs D and F from Worn Out’s Counterclaim under Federal Rule of Civil Procedure 12(f). ECF No. [28] at 5. II. LEGAL STANDARDS A. Judicial Notice Under Federal Rule of Evidence 201(b), “[a] district court may take judicial notice of an adjudicative fact that is both ‘not subject to reasonable dispute’ and either (1) ‘generally known within the trial court’s territorial jurisdiction’ or (2) ‘can be accurately and readily determined from sources whose accuracy cannot reasonably be questioned.’” Grayson v. Warden, Comm’r, Ala.

DOC, 869 F.3d 1204, 1224-25 (11th Cir. 2017) (footnotes omitted) (quoting Fed. R. Evid. 201(b)). Accordingly, the Eleventh Circuit has provided examples of the kinds of facts that courts may ordinarily judicially notice: “(1) scientific facts: for instance, when does the sun rise or set; (2) matters of geography: for instance, what are the boundaries of a state; or (3) matters of political history: for instance, who was president in 1958.” Shahar v. Bowers, 120 F.3d 211, 214 (11th Cir. 1997). “A court may take judicial notice of appropriate adjudicative facts at any stage in a proceeding.” Dippin’ Dots, Inc. v.

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