Proeduca Altus, S.A. v. Technology Trade Group, Inc.

CourtDistrict Court, S.D. Florida
DecidedDecember 1, 2021
Docket1:21-cv-22639
StatusUnknown

This text of Proeduca Altus, S.A. v. Technology Trade Group, Inc. (Proeduca Altus, S.A. v. Technology Trade Group, Inc.) 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
Proeduca Altus, S.A. v. Technology Trade Group, Inc., (S.D. Fla. 2021).

Opinion

United States District Court for the Southern District of Florida

Proeduca Altus, S.A. and ) Universidad Internacional De La ) Rioja, S.A., Plaintiffs, ) ) Civil Action No. 21-22639-Civ-Scola v. )

) Technology Trade Group, Inc. and ) others, Defendants. )

Order on Motion to Dismiss This matter is before the Court on the Defendants’ motion to dismiss the amended complaint or, in the alternative, to stay the case. (ECF No. 24.) The Plaintiffs filed a response to the motion (ECF No. 32), and the Defendants filed a reply brief in support of the motion (ECF No. 34). After consideration of the parties’ briefs and the relevant legal authorities, the Court grants in part and denies in part the motion. (ECF No. 24.) 1. Background This case concerns two entities that provide postsecondary-educational services to consumers. One is based in Spain but purports to provide educational courses to students worldwide, including in South Florida where the Plaintiffs acquired a physical campus in 2019. The other is based in Florida, where the Defendants began providing educational services under the name UNIR International University beginning in 2020. The parties now compete for what are undoubtedly some of the most valuable consumers— students of higher education. Proeduca Altus, S.A. is a Spain-based corporation and a provider of online educational services. (ECF No. 20 at ¶¶ 7, 15.) These services are provided through various universities, including UNIR SA, UNIR Mexico, and CUNIMAD. (Id. at ¶ 15.) The Plaintiffs use their website, www.unir.net, to promote these services throughout the world, including in the United States. (Id. at ¶ 24.) In connection with these services, Proeduca owns rights in trademarks, including “UNIR” and “UNIR La Universidad en Internet” (the “Marks”). (Id. at ¶ 17.) Proeduca has used the Marks in connection with services to U.S. consumers since 2010. (Id. at ¶ 20.) The Marks have been registered in various countries, but they have not been registered in the United States. (Id. at ¶ 16.) This dispute arose out of Proeduca’s efforts to expand its educational services into the United States. In 2019, Proeduca began offering educational services through Marconi International University (“Marconi”), based in Miami, Florida, which Proeduca acquired in March 2019. (Id. at ¶¶ 15, 40, 44–45.) Marconi is now a subsidiary of Proeduca and is authorized to use the Marks. (Id. at ¶¶ 19, 45.) While in the process of acquiring Marconi, Proeduca met with officials from other Miami-based universities. (Id. at ¶ 42.) In March 2018, Proeduca’s General Director of Business Development met with Defendant Technology Trade Group (“TTG”) and provided a business card, which depicted the Marks. (Id.) At no point during this meeting did the Defendants disclose that they used a similar mark. (Id.) In November 2019, approximately twenty months after the parties first met in Miami and eight months after Proeduca acquired Marconi, TTG filed an application to register the mark “UNIR International University.” (Id. at ¶ 48.) In June 2020, Proeduca sent a cease-and-desist letter to TTG, stating that the proposed mark was likely to cause confusion because of its similarity to the Marks. (Id. at ¶ 52.) The Defendants did not cease use of the mark; rather, TTG later (1) registered the name UNIR International University in Florida, (2) began operating UNIR International University (“UNIR”) as a branch of the Defendants’ Atlantis University, and (3) received accreditation to provide four degrees through UNIR. (Id. at ¶¶ 13, 32, 58.) Moreover, in March 2021, the Defendants created a new website domain, www.unir.edu, to provide online educational services through UNIR. (Id. at ¶ 55.) The Defendants claim that they have used a UNIR-related mark since 1975 in connection with an affiliated entity, UNIR Instituto Universitario de Tecnologia Readic (“UNIR Venezuela”), based in Maracaibo, Venezuela. (Id. at ¶ 30.) However, TTG has not consistently used a UNIR mark. In 2006, TTG operated a college named “UNIR College of Technology,” although two years later the name was changed to Unitech College of Technology. (Id. at ¶¶ 34–35.) This was a precursor to what is now called Atlantis University. (Id. at ¶ 37.) Despite the change in names, TTG has issued a catalog every year, in which TTG has, since 2009, identified its relationship to UNIR Venezuela. (Id. at ¶¶ 36–37); (see ECF No. 24-5 at 11 (referring to Unitech College of Technology as an “affiliate school” to UNIR Venezuela).) 2. Legal Standards When considering a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), the Court must accept all of the complaint’s allegations as true, construing them in the light most favorable to the plaintiff. See Pielage v. McConnell, 516 F.3d 1282, 1284 (11th Cir. 2008). A pleading need only contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). “[T]he pleading standard Rule 8 announces does not require detailed factual allegations, but it demands more than an unadorned, the-defendant-unlawfully-harmed-me accusation.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quotation omitted). A plaintiff must articulate “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678. “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Id. “Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Id. Thus, a pleading that offers mere “labels and conclusions” or “a formulaic recitation of the elements of a cause of action” will not survive dismissal. See Twombly, 550 U.S. at 555. “Rule 8 marks a notable and generous departure from the hyper-technical, code-pleading regime of a prior era, but it does not unlock the doors of discovery for a plaintiff armed with nothing more than conclusions.” Iqbal, 556 U.S. at 679. Yet, where the allegations “possess enough heft” to suggest a plausible entitlement to relief, the case may proceed. See Twombly, 550 U.S. at 557. “[T]he standard ‘simply calls for enough fact to raise a reasonable expectation that discovery will reveal evidence’ of the required element.” Rivell v. Private Health Care Sys., Inc., 520 F.3d 1308, 1309 (11th Cir. 2008). “And, of course, a well-pleaded complaint may proceed even if it strikes a savvy judge that actual proof of those facts is improbable, and ‘that a recovery is very remote and unlikely.’” Twombly, 550 U.S. at 556. 3. Analysis The Defendants seek to dismiss Counts II, III, and V of the amended complaint. Moreover, the Defendants seek to dismiss the entire amended complaint as an impermissible shotgun pleading. Last, the Defendants seek to dismiss the amended complaint for failure to join an indispensable party. The Court will address each ground. A. False Advertising (Count II) The Plaintiffs’ second cause of action alleges false advertising under 15 U.S.C. § 1125(a).

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Proeduca Altus, S.A. v. Technology Trade Group, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/proeduca-altus-sa-v-technology-trade-group-inc-flsd-2021.