Quoc Viet Foods, Inc. v. VV Foods, LLC

192 F. Supp. 3d 1067, 2016 U.S. Dist. LEXIS 87091, 2016 WL 3536708
CourtDistrict Court, C.D. California
DecidedJune 14, 2016
DocketCase No.: SACV 12-02165-CJC(DFMx)
StatusPublished

This text of 192 F. Supp. 3d 1067 (Quoc Viet Foods, Inc. v. VV Foods, LLC) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Quoc Viet Foods, Inc. v. VV Foods, LLC, 192 F. Supp. 3d 1067, 2016 U.S. Dist. LEXIS 87091, 2016 WL 3536708 (C.D. Cal. 2016).

Opinion

ORDER GRANTING DEFENDANT’S MOTION FOR JUDGMENT AS A MATTER OF LAW

CORMAC J. CARNEY, UNITED STATES DISTRICT JUDGE

I. INTRODUCTION AND BACKGROUND

This is a trademark case involving soup base for pho, a Vietnamese noodle soup. The traditional preparation of pho is highly labor-intensive: a pho cook will begin by boiling beef bones for 30 minutes, discarding the water, washing the bones, and then boiling them again to slowly extract the bone marrow and make a broth. (Dkt. 270-1 [“Reddy Decl.”] Exh. 1 at 12-13.) Properly done, this process takes about a day. (Id. at 13.) Crucially, while the broth is cooking, the cook must scrape away detritus and scum that floats to the top of the pot. (Id.) Failing to do so will leave the broth cloudy instead of clear, as desired: (Id.) A pho cook needs to tend the pot for many hours, periodically scraping the top and slowly extracting the marrow. (Id. at 14.) Eventually meat and noodles are added to the broth to create the finished soup.

To simplify this process for individual consumers who do not have the time necessary to prepare pho, Tuan Nguyen—the president and CEO of Plaintiff Quoc Viet, Inc.—devised a soup base, sold in paste form, to which consumers could add water and quickly create pho broth without the intense traditional preparation process, (Reddy Decl. Exh. 1 at 13.) In 2002, Quoc Viet began selling its first two soup base products—one beef-flavored and one chicken-flavored. The beef-flavored soup base was labeled COT PHO BÓ, and the chicken-flavored base was labeled COT PHO GÁ. (Id. at 14-15.) Tuan Nguyen explained that in Vietnamese, “pho bo” means “beef pho soup,” and “pho ga” means “chicken pho soup.” The parties dispute the meaning of “cot”: Quoc Viet argues that “cot” means “bones of thé dead” or “skeleton,” and that its meaning has nothing to do with pho soup. Defendant W Foods LLC argues that “cot” means “condensed,” “concentrated,” or “base,” and that in the context of Quoc Viet’s products, “cot” simply describes a pho soup base.

Only a few months after Quoc Viet began selling pho soup.bases, W Foods began producing and selling its own Vietnamese pho soup bases, also branded as COT PHO BÓ and COT PHO GÁ. Since 2002, the parties have—in parallel—developed a number of other flavors of soup bases,.including pork and vegetarian varieties. Quoc Viet, believing that it owns trademark rights in the names of its soup bases, ultimately registered a number of trademarks with the United States Patent [1070]*1070and Trademark Office (“PTO”). Seven of those marks, which this order refers to as the “ ‘Cot’ marks,” are at issue here. Those marks, and the associated Quoc Viet prod-nets, are:

MARK PRODUCT

CÓTPHÓ BO Beef-flavored pho soup base

CÓTPHÓ GÁ Chicken-flavored pho soup base

CÓTBÚNBÓHUÉ Beef-flavored vermicelli soup base1

CÓT SÚP HEO Porlc-flavored soup base

CÓT SÚP CHAY Vegetarian soup base

CÓT SÚP GÁ Chicken-flavored soup base

CÓT LÁU THÁI LAN Thai soup base

In December 2012, Quoc Viet filed a complaint against W Foods and two of its principals, Nga Vu and Thanh Vu, alleging that they are all infringing the seven marks at issue. (Dkt. 1; see also Dkt. 29.) The case proceeded to trial in March 8, 2016, (see Dkt. 215), and the jury began their deliberations on March 16, (Dkt. 253). On March 18, the jury returned a verdict, finding that each of the seven trademarks was valid, protectable, and owned by Quoc Viet, that W Foods—but not Nga Vu .or Thanh Vu—infringed the trademarks, and that W Foods’ use did not constitute fair use, (Dkt. 247.) The jury deadlocked on the question of what damages Quoc Viet suffered, although it did agree that the statute of limitations barred Quoc Viet from collecting any damages it incurred prior to December 14, 2008. (Id.)

Before the Court is W Foods’ motion for judgment as a matter of law. (Dkt. 270.) W Foods contends that Quoc Viet’s “Cot” marks are not valid and protectable. After considering all the evidence presented at trial, the Court agrees with W Foods and GRANTS its motion for judgment as a matter of law. Quoc Viet’s “Cot” marks all lack the required distinctiveness to be valid and protectable because they are merely descriptive and did not' acquire secondary meaning'prior to W Foods’ initial use.

II. ANALYSIS

A. Motion for Judgment as a Matter of Law

W Foods moves for judgment as a matter of law on the ground that the marks at issue are not valid and protecta-ble. Under Federal Rule of Civil Procedure 50(a) and (b), a court may enter judgment as a matter of law if “a reasonable jury would not have a legally sufficient evidentiary basis to find for the [prevailing] party” as to an issue on which that party- has been fully heard during trial. A party seeking judgment as a matter of law has a “very high” standard to meet. Costa v. Desert Palace, 299 F.3d 838, 859 (9th Cir.2002). The jury’s verdict must be upheld if, viewing the facts' in the light most favorable to the nonmoving party, there is sufficient evidence for a reasonable jury to have found in the nonmoving party’s favor. Johnson v. Paradise Valley Unified Sch. [1071]*1071Dist., 251 F.3d 1222, 1227 (9th Cir.2001). Judgment as a matter of law is appropriate in trademark infringement eases if no reasonable jury could find that the trademarks at issue are .valid and protectable. Kendall-Jackson Winery, Ltd. v. E. & J. Gallo Winery, 150 F.3d 1042, 1048 (9th Cir.1998).

B. Trademark Law

A trademark is a “word, name, symbol or device” that is used by a manufacturer or seller of goods or services to “identify and distinguish the seller’s goods from goods made or sold by others.” 1 J. Thomas McCarthy, McCarthy on Trademarks and Unfair Competition § 3:1 (4th ed. 2015).2 Laws protecting trademarks have three primary goals: (1) protecting the public from being misled or confused about the nature and source of goods; (2) protecting the rights of a business to identify itself to the public and to protect its reputation in offering goods to the public; and (3) achieving the first two goals in a manner consistent with free and fair competition. Intel Corp. v. Terabyte Int’l, Inc., 6 F.3d 614, 618 (9th Cir.1993). To balance these sometimes-conflicting goals, trademark law protects only “distinctive” marks, or marks that are “used by a substantial number of people as a symbol to identify and distinguish one source.” 2 McCarthy § 11:2. Indeed, as Professor McCarthy explains, a word or symbol that is not distinctive is not a trademark at all. Id. (“No distinctiveness—no mark.”).

Trademarks are “often classified in categories of generally increasing distinctiveness; ...

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Bluebook (online)
192 F. Supp. 3d 1067, 2016 U.S. Dist. LEXIS 87091, 2016 WL 3536708, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quoc-viet-foods-inc-v-vv-foods-llc-cacd-2016.