Pave/Lock/Plus II LLC v. Erosion Prevention Products LLC

District Court, S.D. Texas·Decided March 1, 2022·No. 4:20-cv-03557·Unknown

Opinion

□ Southern District of Texas ENTERED IN THE UNITED STATES DISTRICT COURT March 01, 2022 FOR THE SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk HOUSTON DIVISION PAVE/LOCK/PLUS II LLC, § § Plaintiff, § VS. § CIVIL ACTION NO. 4:20-CV-3557 § EROSION PREVENTION PRODUCTS LLC, § et al, § § Defendants. § ORDER □ Pending before the Court is Plaintiff and Counterclaim Defendant Pave/Lock/Plus II, LLC’s (“Paveloc”) Motion for Summary Judgment (Doc. No. 80), originally filed as a motion to dismiss.! Defendant and Counterclaim Plaintiff Erosion Prevention Products LLC (“EPP”) filed a Response, (Doc. No. 86), Paveloc filed a Reply in Support, (Doc. No. 89), and EPP filed a Sur- Reply. (Doc. No. 97). □

Also pending before the Court is Third-Party Defendant TLC Trucking & Contracting, LLC’s (“TLC”) Motion for Summary Judgment, (Doc. No. 82), originally filed as a motion to dismiss.” EPP filed a Response, (Doc. No. 87), and TLC filed a Reply in Support. (Doc. No. 90). The Court converted Paveloc’s and TLC’s motions into Motions for Summary Judgment and allowed all parties to supplement their briefings. (Doc. No. 106). Paveloc and TLC jointly supplemented their motions, (Doc. No. 116), and EPP filed a response to the joint supplement, (Doc. No. 117). Paveloc and TLC subsequently filed a Joint Reply, (Doc. No. 118), and EPP filed a Sur-Reply. (Doc. No. 120).

This Motion was converted to a Motion to Summary Judgment by the Court. (See Doc. No. 106). 2 This Motion was converted to a Motion to Summary Judgment by the Court. (See Doc. No. 106).

On November 10, 2021, the Court held a hearing on these motions. After considering the briefings, the testimony, and the applicable law, the Court denies both Paveloc’s converted Motion for Summary Judgment, (Doc. No. 80), and TLC’s converted Motion for Summary Judgment. (Doc. No. 82). I. Background Plaintiff Paveloc and Defendant EPP both design and construct “erosion prevention” systems. Put simply, the systems are made up of interlocking blocks and are used in retaining walls. EPP has a patent on its “Channel Lock Block” (U.S. Patent No. 8,123,435). In 2010, EPP contracted with Paveloc to manufacture the Channel Lock Block. According to EPP, when the - business relationship soured, Paveloc began manufacturing a “knock off’ of the Channel Lock Block using the molds that EPP had provided. In 2020, Fort Bend County Levee Improvement District No. 2 opened a new project for bidding. It awarded the contract for the project to TLC, a general contractor providing contractor services on construction projects. TLC took bids from subcontractors for erosion prevention blocks. Both Paveloc and EPP submitted bids. TLC accepted Paveloc’s bid. According to EPP, Paveloc got the project by using the alleged knock off of EPP’s Channel Lock Block. Paveloc sued EPP for declaratory judgment of noninfringement. EPP countersued and joined TLC. EPP’s claims are for: patent infringement; trade dress infringement and dilution; misappropriation; unfair competition; tortious interference; and unjust enrichment. EPP claims trade dress protection for the shape of its block, as well as for the interlocking arms and sockets that its product features. Paveloc and TLC moved to dismiss each of EPP’s trade dress claims, reflected in Counts II, III, IV, V, and VIII. As stated above, the Court converted these motions into motions for summary judgment. (Doe. No. 106).

I. Legal Standard Summary judgment is warranted “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). “The movant bears the burden of identifying those portions of the record it believes demonstrate the absence of a genuine issue of material fact.” Triple Tee Golf, Inc. v. Nike, Inc., 485 F.3d 253, 261 (Sth Cir. 2007) (citing Celotex Corp. v. Catrett, 477 U.S. 317, 322-25 (1986)). Once a movant submits a properly supported motion, the burden shifts to the non-movant to show that the Court should not grant the motion. Celotex, 477 U.S. at 321-25. The non-movant then must provide specific facts showing that there is a genuine dispute. Id. at 324; Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986). A dispute about a material fact is genuine if “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). The Court must draw all reasonable inferences in the light most favorable to the nonmoving party in deciding a summary judgment motion. Jd. at 255. The key question on summary judgment is whether there is evidence raising an issue of material fact upon which a hypothetical, reasonable factfinder could find in favor of the nonmoving party. /d. at 248. WI. Analysis Paveloc and TLC (collectively “Movants”) argue that they are each entitled to partial summary judgment on Counts II-VIII—EPP’s trade dress claims and related state law claims— because there is no genuine dispute of material fact that EPP’s purported trade dress is “functional” and, consequently, is not entitled to trade dress protection as a matter of law. (Doc. No. 116). “Trade dress” refers to a product design or package which acquires such distinctiveness that it serves to identify the product with its source, also known as “secondary meaning.” TrafFix

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Pave/Lock/Plus II LLC v. Erosion Prevention Products LLC, (S.D. Tex. 2022).

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