PSI Marine, Inc. v. Seahorse Docking LLC

CourtDistrict Court, D. Connecticut
DecidedNovember 26, 2024
Docket3:24-cv-00163
StatusUnknown

This text of PSI Marine, Inc. v. Seahorse Docking LLC (PSI Marine, Inc. v. Seahorse Docking LLC) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PSI Marine, Inc. v. Seahorse Docking LLC, (D. Conn. 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT PSI MARINE, INC., and MARK ) 3:24-CV-163 (SVN) BALUHA ) Plaintiffs, ) ) v. ) ) SEAHORSE DOCKING LLC, ) November 26, 2024 Defendant. ) RULING AND ORDER ON DEFENDANT’S MOTION TO DISMISS Sarala V. Nagala, United States District Judge. Plaintiff PSI Marine, Inc., and Defendant Seahorse Docking LLC (“Seahorse”) are competitors in the boat mooring products industry. PSI Marine and its President, Plaintiff Mark Baluha, claim Seahorse is liable for trademark and copyright infringement, false advertising, unjust enrichment, common law unfair competition, and violations of the Connecticut Unfair Trade Practices Act in offering three of its boat mooring products. Seahorse seeks to dismiss seven of the twelve counts of Plaintiffs’ amended complaint for failure to state a claim, relating to trademark and copyright infringement and false advertising. For the reasons described below, the motion to dismiss is DENIED. I. FACTUAL AND PROCEDURAL BACKGROUND The amended complaint contains the following allegations, which are accepted as true for the purpose of this motion. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). PSI Marine sells mooring products for docks and watercraft under the trademark TIDESLIDE. Am. Compl., ECF No. 31 ¶ 7. This trademark is owned by Baluha, and PSI Marine is the exclusive licensee of the trademark. Id. The trademark was registered in November of 2003 and is alleged to have become incontestable under Section 15 of the Lanham Act, 15 U.S.C. § 1065. Id. ¶¶ 9–10. PSI Marine is also the exclusive licensee of a registered copyright in a brochure that includes a price guide for its TIDESLIDE product. Id. ¶ 22. Seahorse also sells mooring products for docks and watercraft and, specifically, offers its Sea Slide, Tide Right, and Flex Slide mooring products on its website. Id. ¶¶ 16, 18–20. Seahorse

advertises on its website that its Tide Right product contains a “patented self-adjusting fender and cleat,” and also claimed that “Seahorse Docking offers the only adjustable Self-Leveling Docking System!” Id. ¶¶ 86, 95. Additionally, Seahorse displays a price guide for its Sea Slide product. Id. ¶¶ 24, 101; id. Ex. F. PSI Marine and Baluha brought this action alleging trademark infringement in violation of Sections 32 and 43(a) of the Lanham Act in Seahorse’s offering of its Sea Slide, Tide Right, and Flex Slide products (Counts One through Six); false advertising for statements made on Seahorse’s website in violation of Section 43(a) of the Lanham Act (Counts Seven and Eight); copyright infringement of Plaintiffs’ price guide (Count Nine); unjust enrichment (Count Ten); common law unfair competition (Count Eleven); and violation of the Connecticut Unfair Trade Practices Act,

Conn. Gen. Stat. §§ 42-110a, et seq. (Count Twelve). Seahorse moves to partially dismiss the amended complaint on three grounds. Def.’s Br., ECF No. 36-1. First, Seahorse argues that Plaintiffs fail to state a claim for trademark infringement in Counts Two, Three, Five, and Six as to Seahorse’s Tide Right and Flex Slide products. Second, Seahorse contends that Plaintiffs fail to state a claim for false advertising in Counts Seven and Eight, arguing that the statements made on its website were true. Finally, Seahorse argues that Plaintiffs’ copyright claim in Count Nine fails to state a claim, as Seahorse did not copy any protectible elements of Plaintiffs’ copyright registration. II. LEGAL STANDARD Pursuant to Federal Rule of Civil Procedure 12(b)(6), a defendant may move to dismiss a case or cause of action for failure to state a claim upon which relief can be granted. When determining whether a complaint states a claim upon which relief can be granted, highly detailed

allegations are not required, but the complaint must “contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Iqbal, 556 U.S. at 678 (quoting 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.” Id. at 678. This plausibility standard is not a “probability requirement,” but imposes a standard higher than “a sheer possibility that a defendant has acted unlawfully.” Id. In undertaking this analysis, the Court must “draw all reasonable inferences in [the plaintiff’s] favor, assume all well-pleaded factual allegations to be true, and determine whether they plausibly give rise to an entitlement to relief.” Faber v. Metro. Life Ins. Co., 648 F.3d 98, 104 (2d Cir. 2011) (internal quotation marks and citation omitted).

The Court is not “bound to accept conclusory allegations or legal conclusions masquerading as factual conclusions,” Rolon v. Henneman, 517 F.3d 140, 149 (2d Cir. 2008), and “a formulaic recitation of the elements of a cause of action will not do,” Iqbal, 556 U.S. at 678 (quoting Twombly, 550 U.S. at 555). Consequently, “[t]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Id. (citing Twombly, 550 U.S. at 555). Ultimately, “[d]etermining whether a complaint states a plausible claim for relief will . . . be a context-specific task that requires the reviewing court to draw on its judicial experience and common sense.” Id. at 679. III. DISCUSSION The Court holds that the amended complaint states plausible trademark infringement, false advertising, and copyright claims against Seahorse. For the reasons described below, Seahorse’s motion to dismiss is denied.

A. Trademark Infringement (Counts Two, Three, Five, and Six) Plaintiffs plausibly state a claim for trademark infringement in Counts Two and Three (alleging that Seahorse’s use of Tide Right and Flex Slide violate Section 32 of the Lanham Act) and in Counts Five and Six (alleging that Seahorse’s use of Tide Right and Flex Slide violate Section 43(a) of the Lanham Act). 1. Legal Standard Plaintiff brings claims under Sections 32 and 43(a) of the Lanham Act. Both prohibit the use of another person’s mark in a manner that is “likely to cause confusion,” “to cause mistake,” or “to deceive.” See 15 U.S.C. § 1114(1)(a); 15 U.S.C. § 1125(a). Section 32 pertains to registered marks, see 15 U.S.C. § 1114(1)(a), and Section 43(a) pertains to any “word, term, name, symbol,

or device, or any combination thereof,” see 15 U.S.C. § 1125(a). The parties agree that the same analysis applies to both types of claims. The Court analyzes trademark infringement claims in two steps. First, the Court determines whether a plaintiff’s mark “merits protection.” Christian Louboutin S.A. v. Yves Saint Laurent Am. Holdings, Inc., 696 F.3d 206, 216 (2d Cir. 2012).

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Bluebook (online)
PSI Marine, Inc. v. Seahorse Docking LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/psi-marine-inc-v-seahorse-docking-llc-ctd-2024.