Sensory Path Inc. v. Fit and Fun Playscapes LLC

CourtDistrict Court, N.D. Mississippi
DecidedOctober 12, 2021
Docket3:19-cv-00219
StatusUnknown

This text of Sensory Path Inc. v. Fit and Fun Playscapes LLC (Sensory Path Inc. v. Fit and Fun Playscapes LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sensory Path Inc. v. Fit and Fun Playscapes LLC, (N.D. Miss. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF MISSISSIPPI SENSORY PATH INC,, Plaintif€ CIVIL NO. 3:19-CV-219-GHD-RP FIT AND FUN PLAYSCAPES LLC PAMELA A. GUNTHER, Defendants, OPINION DENYING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

This matter arises from a Complaint by the Plaintiff in which it seeks a declaratory judgment of copyright non-infringement and asserts claims against the Defendants for common law trademark infringement; unfair competition and false designation of origin under 15 U.S.C. § 1125(a); statutory unfair competition under Miss. Code Ann, §§ 75-25-1, et seq; and common law unfair competition [1]. Presently before the Court is the Defendants’ Motion for Summary Judgment on Counts II-V of the Complaint [92], in which they argue that the Plaintiff's alleged trademark SENSORY PATH is a generic term that is incapable of functioning as a trademark and that consequently the Defendants’ use of this supposedly generic term cannot be considered trademark infringement [/d., at [2]. The Defendants also argue that the Plaintiff's claim of unfair competition fails because the Plaintiff allegedly admitted in depositional testimony that the Defendants did not misrepresent the Plaintiff's products [/d., at | 3}. The Plaintiff responded in opposition to the Defendants’ Motion for Sunimary Judgment [98], and the Defendants replied to the Plaintiff's Response [108]. The Defendants’ motion is now ready for review. For the reasons presented herein, Defendants’ Motion for Summary Judgment on Counts of the Complaint [92] is DENTED.

L Factual Background and Procedural History A. Factual Background The Plaintiff, Sensory Path Inc., is a corporation organized and existing under the laws of the state of Mississippi, and has its principal place of business at 198 Woodlawn Drive, Oxford, MS 38655 [1, § 1]. Ms. Holly Clay is the founder of Sensory Path Inc. [1,7]. Ms. Clay has been a public school teacher for twenty-two years, and has particularized expertise with special education and the education of children with autism [1, [J 1-2]. In 2007, Ms. Clay began developing her “Sensory Path” product, which was designed “to reduce sensory stimulation by using the child’s body movements in a coordination pattern developed to target key areas of the neurological system that the child experiences during the learning process” [1, §j 9-10]. On September 3, 2018, Ms. Clay posted on her Facebook page a video of a child using her Sensory Path product [1, 14], In the parlance of the Internet, Ms. Clay’s video went “viral,” having been viewed over 42,000,000 times and shared nearly 1,000,000 times [77]. Another similar video from Ms, Clay received 5,600,000 views [1, ] 15]. On September 11, 2018, Ms. Clay purchased the domain thesensorypath.com, and began building a website through which she could market her first two products, the Original Sensory Path and the Blast Off Path [1, 716]. Through her Sensory Path Inc. business, Ms. Clay began selling her Sensory Path products throughout the United States and expanded her product line [1, J 19-20]. The business sells individual elements of her Sensory Path products as well as the entire products [1, 9 201. Defendant Fit and Fun Playscapes LLC (herein “Fit and Fun”) is a limited liability company organized and existing under the laws of the state of New York, effective May 3, 2011, with an address of 316 Main Street, Nelsonville, NY 10516 [10-1, | 3]. Defendant Pamela A. Gunther is the founder and president of Fit and Fun, and resides at 67 Pearl Street, Nelsonville,

NY 10516 [10-1, 2-3]. Fit and Fun “designs and sells reusable stencils, paint kits, indoor adhesive stickers and roll-out games” [10-1, ¥ 4]. The term “Sensory Path” appears on Fit and Fun’s website and social media pages [10-1, {| 8]. Prior to this lawsuit and for some time after the Plaintiff filed its complaint, Mississippi residents could access Fit and Fun’s website and social media pages [10-1, 10; 19-1, | 17]. Through this website, prospective customers could view products, add them to their digital shopping carts on the website, enter their shipping and payment information, and conclude a purchase through the website [19-1, 417]. In an apparent effort to cater to its prospective and current customers, Fit and Fun also provided information on its website about grants through which clients could purchase Fit and Fun’s products [19-1, ]] 18 and Ex. 9]. One of these grants explicitly targeted entities in Tennessee, Arkansas, and Mississippi [/d. |. Fit and Fun sent mass email blasts to entities across the country, including to consumers in Mississippi [10-1, {| 12]. Fit and Fun possessed approximately 1,118 Mississippi email addresses between June 1, 2018, and September 26, 2019 [65-6, at 91. Fit and Fun obtained these email addresses from purchased lists, contacts made from trade shows outside of Mississippi, and people who signed up on the Fit and Fun website [65-6, at 9-10]. On October 10, 2019, “Fit and Fun instituted measures to delete its email contacts for individuals or entities from Mississippi,” and was therefore unable to provide a report showing the number of Mississippi contacts who “received (rather than blocked as spam filters or otherwise deleted without opening) mass emails” [65-6, at 10}. Fit and Fun also engaged in advertising through the search engine Google in which the ads used the term “sensory path”; this advertising was visible to Mississippi users as well [19- 1,919]. Fit and Fun has made four direct sales to customers in Mississippi for a total of $5,390.92

| 6], with an additional indirect sale to a Mississippi customer through an independent distributor [30, at 6). On August 22, 2019, Fit and Fun, through its legal representatives, sent a cease-and-desist letter to Sensory Path Inc., in which it alleged that Sensory Path Inc. was violating unfair competition laws and infringing on Fit and Fun’s copyrights and/or trade dress [1-4]. Fit and Fun sent a second cease-and-desist letter to Sensory Path Inc. on September 25, 2019 [1-5], B. Procedural History In response to these letters, Sensory Path Inc. brought its Complaint seeking a declaratory judgment of copyright non-infringement, as well as alleging claims against Fit and Fun and Ms. Gunther for trademark infringement and unfair competition [1, J] 28-57]. The Defendants subsequently filed their Motion to Dismiss for Lack of Personal Jurisdiction and Improper Venue Or, Alternatively, to Transfer Venue [10]. The Plaintiff responded to this Motion [19], and the Defendants replied to this Response [28]. In an effort to resolve this issue, the Plaintiff filed a Motion for Limited Jurisdictional Discovery [21]. The Defendants responded to this Motion [29], and the Plaintiff replied to this Response [34]. Upon a Motion from the Defendants [35], the Court granted leave for the Defendants to file a short sur-reply [39], which the Defendants subsequently filed [40]. The Court then issued an Order granting the Plaintiff's Motion for Limited Discovery [41]. Following a period for discovery, the Court issued an Opinion [74] and Order [75] in which it granted in part and denied in part the Defendants’ Motion to Dismiss, dismissing without prejudice the Plaintiff's claim for a declaratory judgment of copyright non-infringement and denying dismissal in all other respects [75, at 2-3]. Thus, the only remaining issues relate to trademark infringement and unfair competition claims.

The Defendants subsequently filed their Answer, Affirmative Defenses, Counterclaims, and Demand for Jury Trial [78], which was followed by their First Amended Answer, Affirmative Defenses, Counterclaims, and Demand for Jury Trial [82]. The Plaintiff then filed its Answer to the Defendants’ First Amended Counterclaims [90].

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Bluebook (online)
Sensory Path Inc. v. Fit and Fun Playscapes LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sensory-path-inc-v-fit-and-fun-playscapes-llc-msnd-2021.