Pom Wonderful v. Robert Hubbard, Jr.

775 F.3d 1118, 113 U.S.P.Q. 2d (BNA) 1369, 2014 WL 7384391, 2014 U.S. App. LEXIS 24598
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 30, 2014
Docket14-55253
StatusPublished
Cited by155 cases

This text of 775 F.3d 1118 (Pom Wonderful v. Robert Hubbard, Jr.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pom Wonderful v. Robert Hubbard, Jr., 775 F.3d 1118, 113 U.S.P.Q. 2d (BNA) 1369, 2014 WL 7384391, 2014 U.S. App. LEXIS 24598 (9th Cir. 2014).

Opinion

OPINION

EBEL, Circuit Judge:

This appeal arises from the district court’s order denying Plaintiff-Appellant Pom Wonderful’s motion for a preliminary injunction. Pom Wonderful—the owner of the “POM” standard character mark— brought a trademark infringement claim against Defendant-Appellee Robert G. Hubbard, Jr., d/b/a Portland Bottling Company and Pur Beverages (“Pur”) to stop Pur from using the word “pom” on its pomegranate-flavored energy drink. The district court denied Pom Wonderful’s motion, finding that Pom Wonderful is unlikely to demonstrate a likelihood of consumer confusion and therefore is unlikely to succeed on the merits of its trademark infringement claim.

*1122 Exercising our jurisdiction under 28 U.S.C. § 1292(a)(1), we hold that the district court, abused its discretion in finding that Pom Wonderful is unlikely to succeed on the merits of its claim and, accordingly, we reverse. Because the district court’s decision to deny Pom Wonderful’s motion for a preliminary injunction was tainted by its mistaken likelihood-of-success determination, we remand with instructions that the district court consider whether, in light of our decision today, Pom Wonderful meets its burden of proving the other elements for a preliminary injunction: that it is likely to suffer irreparable harm in the absence of preliminary relief; that the balance of equities tips in its favor; and that a preliminary injunction is in the public interest.

I. Background 1

Pom Wonderful owns numerous trademark registrations that together comprise the “POM” brand family of trademarks. These trademarks are used in connection with various goods, including pomegranate juice beverages. In addition to producing its own “POM” brand goods, Pom Wonderful also sells-its pomegranate ingredients to other companies in the food and beverage industry. On occasion, Pom Wonderful licenses the use of its “POM” brand trademarks to these other companies.

Before 2002, when Pom Wonderful first began using the “POM” brand trademarks in connection with beverages, no one in the industry was known to have used the term “pom” in any way. Since 2002, Pom Wonderful has sold more than 190 million bottles of pomegranate juice, making it the leading seller of 100% pomegranate juice in supermarkets throughout the United States. Pom Wonderful’s annual supermarket sales exceed $60 million.

Pom Wonderful has devoted a great deal of time—and spent millions of dollars— marketing and selling its “POM” brand products. In 2011 and 2012 alone, Pom Wonderful spent $24 million promoting its pomegranate juice beverages. To protect its investment, and the rights of companies that license its “POM” brand trademarks, Pom Wonderful actively polices third-party uses that may infringe on its trademark rights.

Through these policing efforts, Pom Wonderful discovered that Pur was selling a pomegranate-flavored energy drink labeled “pom” and informed Pur of Pom Wonderful’s ownership interest in the “POM” brand trademarks. When Pur refused to change its packaging, Pom Wonderful filed suit, alleging that Pur’s use of the word “pom” violated Pom Wonderful’s trademark rights under the Lanham Act. 2 See 15 U.S.C. §§ 1114, 1125(a). Shortly after filing its first amended complaint, Pom Wonderful moved for a preliminary injunction to enjoin Pur from selling or marketing its “pom” beverage.

The district court denied the motion. Specifically, after considering the eight Sleekcraft factors, 3 the district court *1123 found that Pom Wonderful is unlikely to demonstrate a likelihood of consumer confusion as to the source of Pur’s “pom” beverage. Absent a likelihood of confusion, the district court concluded that Pom Wonderful is unlikely both to succeed on the merits of its trademark claim and to meet its burden of proving the other Win ter 4 factors for issuance of a preliminary injunction: that a preliminary injunction is necessary to prevent irreparable harm to Pom Wonderful; that a balancing of the equities favors a preliminary injunction; and that a preliminary injunction is necessary to protect the public interest. The district court accordingly denied the motion for a preliminary injunction, and Pom Wonderful filed a timely notice of appeal.

II. Standard of Review

We review for abuse of discretion the district courts order denying Pom Wonderful’s motion for a preliminary injunction. Alliance for the Wild Rockies v. Cottrell, 632 F.3d 1127, 1131 (9th Cir.2011). This case implicates two of the ways in which a district court might abuse its discretion. See id. First, a district court abuses its discretion if the court rests its decision on an erroneous legal standard. Id. To determine whether a district court abused its discretion in this way, we review legal conclusions de novo. Id. Second, a district court abuses its discretion if the court rests its decision on a clearly erroneous finding of fact. Id. To determine whether a district court abused its discretion in this way, we review factual findings for clear error. Id. Clear error results “from a factual finding that was illogical, implausible, or without support in inferences that may be drawn from the facts in the record.” M.R. v. Dreyfus, 697 F.3d 706, 725 (9th Cir.2012) (internal quotation marks omitted). In other words, we defer to a district court’s factual findings unless, “based on the entire evidence,” we are left with “a definite and firm conviction that a mistake has been committed.” Lahoti v. VeriCheck, Inc., 586 F.3d 1190, 1196 (9th Cir.2009) (internal quotation marks omitted).

Because de novo review is more stringent than clear error review, it is important to determine which standard applies before considering whether the district court abused its discretion in this case. Pom Wonderful argues that de novo review applies because the district court’s decision to deny injunctive relief was grounded in a number of asserted legal errors that the district court committed in applying the Sleekcrafb factors. We disagree. Although legal standards certainly inform a district court’s application of the Sleekcrafb factors, Ninth Circuit precedent requires us to review the district court’s Sleekcrafb-isuctoY findings for clear error.

In Levi Strauss & Co. v. Blue Bell, Inc., we held unequivocally that “the clearly erroneous standard should be applied in reviewing a trial court’s determination concerning likelihood of confusion.” 778 F.2d 1352, 1355 (9th Cir.1985) (en banc). Since Levi Strauss,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
775 F.3d 1118, 113 U.S.P.Q. 2d (BNA) 1369, 2014 WL 7384391, 2014 U.S. App. LEXIS 24598, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pom-wonderful-v-robert-hubbard-jr-ca9-2014.