Shakespeare Company v. Silstar Corporation of America, Incorporated

110 F.3d 234, 42 U.S.P.Q. 2d (BNA) 1266, 1997 U.S. App. LEXIS 6237, 1997 WL 152658
CourtCourt of Appeals for the Fourth Circuit
DecidedApril 3, 1997
Docket95-3208
StatusPublished
Cited by31 cases

This text of 110 F.3d 234 (Shakespeare Company v. Silstar Corporation of America, Incorporated) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shakespeare Company v. Silstar Corporation of America, Incorporated, 110 F.3d 234, 42 U.S.P.Q. 2d (BNA) 1266, 1997 U.S. App. LEXIS 6237, 1997 WL 152658 (4th Cir. 1997).

Opinions

Affirmed by published opinion. Judge NIEMEYER wrote the opinion, in which Judge MURNAGHAN joined. Judge WIDENER wrote a dissenting opinion.

OPINION

NIEMEYER, Circuit Judge.

Shakespeare Company, the owner of a registered trademark for fishing rods that have a “whitish translucent” tip and a contrasting opaque shaft, brought this trademark infringement action against Silstar Corporation of America, Inc. which also manufactures a clear-tipped fishing rod. Because of the functional or descriptive aspects of Shakespeare’s mark, the district court initially ordered the Commissioner of the Patent and Trademark Office to cancel its registration. See Shakespeare Co. v. Silstar Corp. of America, Inc. (Shakespeare I), 802 F.Supp. 1386 (D.S.C.1992). On appeal, however, we held that because Shakespeare’s trademark had become incontestable under 15 U.S.C. § 1065, it could not be canceled. We remanded the case for resolution of the remaining infringement issues. See Shakespeare Co. v. Silstar Corp. of America, Inc. (Shakespeare II), 9 F.3d 1091 (4th Cir.1993). On remand, the district court found, among other things, that “Silstar’s use of the clear tip on its fishing rods will [not] create a likelihood of confusion” and that, in any event, Silstar had “established its fair-use defense.” Shakespeare Co. v. Silstar Corp. of America, Inc. )(Shakespeare III ), 906 F.Supp. 997, 1001 (D.S.C.1995). We now affirm.

I

In the 1940s, fishing rods were manufactured from either hollow or solid fiberglass. Hollow fiberglass rods were lighter and less expensive than solid ones, but they were also more inclined to break, particularly at the tip. While solid rods were stronger, they were also heavier and more expensive than the hollow ones.

Shakespeare, which has been one of the leading manufacturers of fishing rods, developed a process that combined the benefits of each type of rod by joining a hollow fiberglass base to a solid fiberglass tip. With developments in graphite in the mid 1970s, Shakespeare added a graphite core to the base of the rod, making it even stronger. The tip remained solid fiberglass, which is both strong and flexible. Shakespeare patented its invention and for years was the only manufacturer of fishing rods with a hollow graphite base and a solid fiberglass tip.

Because graphite is naturally charcoal gray and fiberglass is naturally clear or “whitish translucent,” Shakespeare’s rods had a distinctive appearance when compared to those of its competitors. While Shakespeare was at first troubled by the aesthetically unappealing two-toned rod, with increased consumer acceptance Shakespeare sought to capitalize on its appearance, deliberately marketing it in its natural two-toned appearance so that consumers could recognize the graphite base and solid fiberglass tip. Shakespeare denominated the rod the “Ugly Stik” and applied to the Patent and Trademark Office to register both the “Ugly Stik” mark and the two-toned appearance of the rod. The Patent and Trademark Office issued both trademarks. The mark covering the appearance of the rod claims exclusive right to market a fishing rod,

in which the tipped portion of the shaft between the tip and the second line guide elements consist of whitish translucent material in contrast to the opaque remainder of the shaft.

United States Trademark Registration No. 1,261,786 (registered on the Principal Register). In 1989, this trademark became incontestable under 15 U.S.C. § 1065.

Silstar Corporation of America, Inc., a competing manufacturer who desired for quality purposes to market a fishing rod with a graphite base and fiberglass tip, began manufacturing such a rod through a process different from that used by Shakespeare. Because Silstar wanted to communicate to [237]*237consumers the rod’s graphite and fiberglass properties, Silstar left these materials with their natural color. The base and tip of its rods consequently appeared like Shakespeare’s. Silstar called its rod the “Power Tip Crystal” rod. When Silstar introduced this rod in 1990, it knew that Shakespeare had a trademark for a rod with a “whitish translucent” tip and contrasting opaque base.

In response to Silstar’s introduction of the Power Tip Crystal rod, Shakespeare filed this trademark infringement action. In defense, Silstar contended that Shakespeare could not claim a mark in the functional or descriptive design of the rod, arguing that even though Shakespeare’s mark had become incontestable, it should be canceled by the court under 15 U.S.C. § 1119. The case was tried to the district court without a jury, and after making findings of fact, the district court agreed with Silstar that Shakespeare’s mark should be canceled. See Shakespeare I, 802 F.Supp. at 1399. The court found that Shakespeare’s mark was nothing more than the natural appearance of the functional features of graphite fishing rods with solid fiberglass tips and therefore concluded that Shakespeare’s mark was not subject to registration. See id. at 1398-99. The court ordered the Commissioner of the Patent and Trademark Office to cancel Shakespeare’s mark from the register. See id. at 1399.

On appeal we reversed, holding that the Lanham Act did not authorize courts to cancel trademark registrations because of their functionality once they had become incontestable under 15 U.S.C. § 1065. We summarized:

[W]e hold that the district court erred in canceling, pursuant to 15 U.S.C. § 1119, the trademark held by Shakespeare on the grounds that it is functional, because that is not an authorized ground for cancellation under 15 U.S.C. § 1064. Since no other ground enumerated under § 1064 was alleged by Silstar, the mark is valid as a matter of law. We therefore reverse the district court and remand the ease for further consideration of Shakespeare’s statutory and common law infringement and unfair competition claims. We further instruct the district court that any inquiry into an alleged “fair use” of the -clear tip must be accompanied by an analysis of the likelihood of confusion among consumers that may be created by Silstar’s use of the clear tip.

Shakespeare II, 9 F.3d at 1099.

On remand, the district court addressed the remaining infringement issues and held that Shakespeare had failed to establish a likelihood of confusion from Silstar’s clear-tipped rods and, alternatively, that Silstar had established its fair-use defense. See Shakespeare III, 906 F.Supp. at 1001. The court also concluded that Silstar had failed to establish its unclean hands defense and its counterclaims. See id.

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110 F.3d 234, 42 U.S.P.Q. 2d (BNA) 1266, 1997 U.S. App. LEXIS 6237, 1997 WL 152658, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shakespeare-company-v-silstar-corporation-of-america-incorporated-ca4-1997.