Resorts of Pinehurst, Inc. v. Pinehurst National Development Corp.

973 F. Supp. 552, 43 U.S.P.Q. 2d (BNA) 1746, 1997 U.S. Dist. LEXIS 11347
CourtDistrict Court, M.D. North Carolina
DecidedJune 24, 1997
DocketNos. 3:94CV00265, 3:96CV00311
StatusPublished
Cited by9 cases

This text of 973 F. Supp. 552 (Resorts of Pinehurst, Inc. v. Pinehurst National Development Corp.) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Resorts of Pinehurst, Inc. v. Pinehurst National Development Corp., 973 F. Supp. 552, 43 U.S.P.Q. 2d (BNA) 1746, 1997 U.S. Dist. LEXIS 11347 (M.D.N.C. 1997).

Opinion

MEMORANDUM OPINION

This matter comes before the Court on Plaintiffs Motion for a Preliminary Injunction [Document # 3].1

I. FACTUAL BACKGROUND.

The facts as are relevant for the purposes of this motion reveal the following. Plaintiff Resorts of Pinehurst, Inc. (“Resorts”) owns a hotel and golf course resort in the Village of Pinehurst, an area in Moore County, North Carolina. The Resorts golf courses have been the site of many prominent national tournaments, and Resorts is currently scheduled to host the 1999 U.S. Open championship. Resorts registered federal trademarks for its resort and golf operations in 1990, and holds a number of unregistered service marks for these operations as well.

The late 1980’s saw the development of two new golf course operations in the Moore County area. In 1985, plans were announced for a new golf community in Moore County called “Pinehurst National Golf Club” (“National”). The National course was designed by Jack Nicklaus and opened for play in 1989. In 1988, plans for the “Pinehurst Plantation Golf Club” (“Plantation”) were announced. Arnold Palmer designed the Plantation course, which opened for play in 1993.

It was not until 1994 that Resorts filed suit against the ownership interests of National and Plantation (collectively, “Defendants”) alleging trademark and service mark infringement, false designation of origin, and false advertising, all under the Lanham Act, and state law claims of unfair trade practices and unfair competition. Resorts subsequently brought a claim of dilution seeking injunctive relief and damages under the newly enacted Federal Trademark Dilution Act (“Dilution Act”). The Dilution Act, which took effect in January 1996, incorporated into the Lanham Act a federal claim for dilution of trademarks and service marks. Pursuant to this Dilution Act claim, Resorts now moves for a preliminary injunction.

II. DISCUSSION.

In response to Resorts’ Motion for Preliminary Injunction, Defendants contend that the provisions of the Dilution Act cannot be applied in this case because the statute would operate retroactively, thereby punishing De[554]*554fendants for conduct that was legal prior to the effective date of the Dilution Act. The Dilution Act provides:

(c) Remedies for dilution of famous marks
(1) The owner of a famous mark shall be entitled, subject to the principles of equity and upon such terms as the court deems reasonable, to an injunction against another person’s commercial use in commerce of a mark or trade name, if such use begins after the mark has become famous and causes dilution of the distinctive quality of the mark, and to obtain such other relief as is provided in this subsection. In determining whether a mark is distinctive and famous, a court may consider factors such as, but not limited to—
(A) the degree of inherent or acquired distinctiveness of the mark;
(B) the duration and extent of use of the mark in connection with the goods or services with which the mark is used;
(C) the duration and extent of advertising and publicity of the mark;
(D) the geographical extent of the trading area in which the mark is used;
(E) the channels of trade for the goods or services with which the mark is used;
(F) the degree of recognition of the mark in the trading areas and channels of trade used by the marks’ owner and the person against whom the injunction is sought;
(G) the nature and extent of use of the same or similar marks by third parties; and
(H) whether the mark was registered under the Act of March 3, 1881, or the Act of February 20, 1905, or on the principal register.
(2) In an action brought under this subsection, the owner of the famous mark shall be entitled only to injunctive relief unless the person against whom the injunction is sought willfully intended to trade on the owner’s reputation or to cause dilution of the famous mark. If such willful intent is proven, the owner of the famous mark shall also be entitled to the remedies set forth in sections 1117(a) and 1118 of this title, subject to the discretion of the court and the principles of equity.
(3) The ownership by a person of a valid registration under the Act of March 3, 1881, or the Act of February 20, 1905, or on the principal register shall be a complete bar to an action against that person, with respect to that mark, that is brought by another person under the common law or a statute of a State and that seeks to prevent dilution of the distinctiveness of a mark, label, or form of advertisement.
(4) The following shall not be actionable under this section:
(A) Fair use of a famous mark by another person in comparative commercial advertising or promotion to identify the competing goods or services of the owner of the famous mark.
(B) Noncommercial use of a mark.
(C) All forms of news reporting and news commentary.

15 U.S.C. § 1125(c).

The guiding principles in determining whether a statute has retroactive effect are set out in Landgraf v. USI Film, Products, 511 U.S. 244, 114 S.Ct. 1483, 128 L.Ed.2d 229 (1994). In Landgraf the United States Supreme Court dealt with the retroactivity issue in its analysis of new provisions of Title VII enacted in the Civil Rights Act of 1991. The Supreme Court first noted the “apparent tension” that results when comparing the general rule that “ ‘a court is to apply the law in effect at the time it renders its decision,’ ” id. at 264, 114 S.Ct. at 1496, 128 L.Ed.2d at 251 (quoting Bradley v. Richmond School Bd., 416 U.S. 696, 711, 94 S.Ct. 2006, 2016, 40 L.Ed.2d 476, 488 (1974)), with the statement that “ ‘[rjetroactivity is not favored in the law,’ and its interpretive corollary that ‘congressional enactments and administrative rules will not be construed to have retroactive effect unless their language requires this result[,]’ ” id. (quoting Bowen v. Georgetoum Univ. Hosp., 488 U.S. 204, 208, 109 S.Ct. 468, [555]*555471, 102 L.Ed.2d 493, 500 (1988) (citation omitted)). Nonetheless, the Supreme Court concluded that this “apparent tension” did not alter the “the well-settled presumption against application of the class of new statutes that would have genuinely ‘retroactive’ effect.” Id. at 276, 114 S.Ct. at 1502-03, 128 L.Ed.2d at 260. The Supreme Court then offered the following general principle in summary:

When a case implicates a federal statute enacted after the events in suit, the court’s first task is to determine whether Congress has expressly prescribed the statute’s proper reach. If Congress has done so, of course, there is no need to resort to judicial default rules.

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973 F. Supp. 552, 43 U.S.P.Q. 2d (BNA) 1746, 1997 U.S. Dist. LEXIS 11347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/resorts-of-pinehurst-inc-v-pinehurst-national-development-corp-ncmd-1997.