Sparknet Communications, L.P. v. Bonneville International Corp.

386 F. Supp. 2d 965, 2005 U.S. Dist. LEXIS 19661, 2005 WL 2191187
CourtDistrict Court, N.D. Illinois
DecidedSeptember 9, 2005
Docket05 C 2677
StatusPublished
Cited by3 cases

This text of 386 F. Supp. 2d 965 (Sparknet Communications, L.P. v. Bonneville International Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sparknet Communications, L.P. v. Bonneville International Corp., 386 F. Supp. 2d 965, 2005 U.S. Dist. LEXIS 19661, 2005 WL 2191187 (N.D. Ill. 2005).

Opinion

MEMORANDUM OPINION AND ORDER

DENLOW, United States Magistrate Judge.

The music radio industry is highly competitive and radio stations seek to differentiate themselves in a variety of ways. This case involves a claim for trademark infringement and related state law claims in which the Plaintiffs claim that their “PLAYING WHAT WE WANT®” trademark has been infringed by the Defendant. The Defendant denies that there is a likelihood of confusion in their use of the “70’s, 80’s ... WHATEVER WE WANT!”, “70’s, 80’s ... WHATEVER WE FEEL LIKE!” and “TODAY’S NEW MUSIC ... and WHATEVER WE WANT” slogans, and denies that it is unfairly competing with Plaintiff.

The Court conducted a bench trial on the papers and heard oral argument on July 25, 2005. The Court has carefully considered the numerous declarations filed by the parties 1 , the exhibits introduced into evidence, the briefs and closing arguments of counsel. The following constitute the Court’s findings of fact and conclusions of law pursuant to Rule 52(a) of the Federal Rules of Civil Procedure.

I. BACKGROUND

A. THE PARTIES.

1. The Plaintiffs are SparkNet Communications, L.P. (“SparkNet”), a Nevada *967 limited partnership, and SparkNet Holdings, Inc. (“Holdings”), a Nevada corporation, (collectively referred to as “Plaintiffs”).

2. The Defendant is Bonneville International Corporation (“Bonneville” or “Defendant”), a Utah corporation. It has been in the radio business since the mid-1920’s. Horowitz Dec. ¶ 20. Bonneville owns and operates 38 radio stations including WTMX in Chicago (also known as “101.9 THE MIX”), KELT in Phoenix (also known as “98.7 THE PEAK”), WSSM in St. Louis (also known as “106.5 THE ARCH”), and KZBR in San Francisco (also known as “95.7 MAX FM”). Id. ¶ 6.

B. JURISDICTION AND VENUE.

3. This is an action brought by Plaintiffs for trademark infringement under § 32 of the Lanham Act, 15 U.S.C. § 1114, unfair competition under § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), dilution under § 43(e) of the Lanham Act, 15 U.S.C. § 1125(c), common law unfair competition, and violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/10a. Bonneville filed a counterclaim for service mark cancellation that has not as yet been tried and is not the subject of this opinion.

4. This Court has jurisdiction over the subject matter of this action under 28 U.S.C. § 1331, 15 U.S.C. § 1121, 28 U.S.C. §§ 1338(a) and (b), and pursuant to principles of supplemental jurisdiction under 28 U.S.C. § 1367. The parties have consented to a Magistrate Judge’s jurisdiction pursuant to 28 U.S.C. § 636(c)(1).

5. Venue is proper in this district pursuant to 28 U.S.C. § 1391 because Bonneville is doing business in this district.

C. THE MARK.

6. Robert Perry (“Perry”) originally owned the Registered Mark, PLAYING WHAT WE WANT® (U.S. Trademark Registration No. 2,884,476) (the “Mark”) for use in connection with internet streaming. Perry Dec. ¶ 2, Ex. A. Perry first used the Mark on May 1, 2001 and he registered it with the U.S. Patent and Trademark Office (“PTO”) on September 14, 2004. Id. ¶ 3, Ex. A.

7. On June 16, 2005, Perry assigned to Holdings his entire right, title and interest to the Mark. Holdings recorded the assignment with the PTO on June 22, 2005. Accordingly, Holdings owns the Mark and all rights therein. Perry Dec. ¶¶ 5-6; Comp. ¶ 14. The Mark is used in connection with the JACK FM programming package. Perry Dec. ¶ 4.

8. SparkNet is the exclusive licensee of the Mark in the United States. Pursuant to its license, SparkNet has the exclusive right to sublicense the Mark to broadcasters that make radio programming available throughout the United States. Wall Dec. ¶ 8.

9. Before SparkNet became the exclusive licensee of the Mark, Perry granted Bohn and Associates (“Bohn”) the exclusive right to use the Mark in the United States. Perry Dec. ¶ 5. Perry’s agreement with Bohn (the “Agreement”) allowed Bohn to sublicense the Mark. Id. Bohn subsequently assigned all rights in the agreement to SparkNet, and Perry consented to that assignment. Id. ¶ 6.

10. JACK FM is a radio format that was developed by SparkNet and its predecessors. THE JACK FM branded radio product contains a broader and more eclectic music playlist than the typical music radio stations. Burns Dec. ¶ 7. The playlists of stations offering the JACK FM product typically contains 1200 or more songs and the song selections defy easy categorization. Id. Traditional broadcast models include playlists of only 300-400 songs. Johnson Dec. ¶ 6.

*968 11. THE JACK FM format has strong commercial appeal to companies such as Infinity Broadcasting Company and has been described as “fresh, irreverent, and unique.” Barnett Dec. ¶ 5; Strassell Dec. ¶ 5. As a result, Bohn was able to subli-cense the JACK FM product to Infinity Broadcasting Corporation for use in Dallas, Los Angeles, Seattle, Minneapolis, Baltimore, Buffalo, New York City, and Chicago. Id. ¶ 7. Infinity has not launched the JACK FM format in San Francisco because Bonneville started up a MAX FM station in San Francisco on or about May 12, 2005 which uses the slogan “70’s, 80’s ... WHATEVER WE FEEL LIKE.” Id. ¶ 8. Infinity did launch the JACK FM format in Chicago on June 3, 2005, after Bonneville started up its new format and slogan in March, 2005. Solk Dec. ¶ 13; Strassel Dec. ¶ 8.

12. Those stations that have licensed the JACK FM format consider the PLAYING WHAT WE WANT mark to be an integral part of the JACK FM product. Strassel Dec. ¶ 6.

13. SparkNet and its predecessor have licensed the JACK FM format and the related PLAYING WHAT WE WANT trademark for use in at least 15 cities in the United States and expects to add many new stations. Wall Dec. ¶ 13. SparkNet and its licensees have spent and expect to spend millions of dollars to promote the JACK FM concept and the associated PLAYING WHAT WE WANT Mark.

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Bluebook (online)
386 F. Supp. 2d 965, 2005 U.S. Dist. LEXIS 19661, 2005 WL 2191187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sparknet-communications-lp-v-bonneville-international-corp-ilnd-2005.