Spectrum Vision Systems, Inc. v. Spectera, Inc.

35 F. Supp. 2d 797, 1998 U.S. Dist. LEXIS 20473, 1998 WL 919678
CourtDistrict Court, D. Kansas
DecidedOctober 30, 1998
Docket97-2459-JWL
StatusPublished
Cited by2 cases

This text of 35 F. Supp. 2d 797 (Spectrum Vision Systems, Inc. v. Spectera, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spectrum Vision Systems, Inc. v. Spectera, Inc., 35 F. Supp. 2d 797, 1998 U.S. Dist. LEXIS 20473, 1998 WL 919678 (D. Kan. 1998).

Opinion

MEMORANDUM AND ORDER

LUNGSTRUM, District Judge.

Plaintiff Spectrum Vision Systems, Inc. brought this action against defendant Spect-era, Inc. alleging trademark infringement in violation of the Lanham Act and common law unfair competition claims. The matter is presently before the court on the parties’ cross motions for summary judgment. 1 Because no reasonable fact-finder could conclude that defendant’s use of its name and trademark creates a likelihood of confusion with plaintiff, the court denies plaintiffs motion for summary judgment (doc. 95) and grants defendant’s motion for summary judgment (doe. 93).

I. Factual Background

Plaintiff, a Delaware corporation with its principal place of business in Kansas, began doing business as Spectrum Vision Systems, Inc. (“Spectrum”) in 1987. Plaintiff offers vision care benefits to its members. Eye care providers, such as optometrists and opticians, contract with plaintiff to sell eyeglasses and contact lenses at a predetermined discounted price to individual members of plaintiffs vision care plan. Spectrum’s main vision care benefits products are marketed under its federally-registered “PREFERRED VISION CARE” tradename. Plaintiffs promotional materials often include a color spectrum radiating from the outline of a human face, both of which are superimposed on an outerspace-like background.

Defendant Spectera is a Maryland corporation with its principal place of business in Maryland. Defendant offers a variety of health care benefits, including a vision care benefits plan. Defendant’s vision care plan is more akin to a traditional insurance program; members of defendant’s plan submit claims for reimbursement after first paying for any eye care received. Defendant’s promotional materials ordinarily portray the Spectera name in large, blue letters pierced by a rainbow-colored logo.

Prior litigation between the parties prompted defendant, then United HealthCare, Inc., to change its name to Spectera, pursuant to a settlement agreement reached by the parties. Spectera applied for, and was granted, a federal registration for its “Spectera” trademark in late 1995. Defendant began doing business under the “Spect-era” tradename on January 1,1996.

The income from both parties’ vision care plans is derived primarily from each plan’s “sponsors.” Typically, sponsors are employers, unions, or other associations that purchase a vision care plan and offer it to employees as part of a health care benefits package.

II. Summary Judgment Standard

Summary judgment is appropriate if the moving party demonstrates that there is “no genuine issue as to any material fact” and that it is “entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(e). In applying this standard, the court views the evidence and all reasonable inferences therefrom in the light most favorable to the nonmoving party. Adler v. Wal-Mart Stores, Inc., 144 F.3d 664, 670 (10th Cir.1998) (citingMatsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986)). A fact is “material” if, under the applicable substantive law, it is “essential to the proper disposition of the claim.” Id. (citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 *801 (1986)). An issue of fact is “genuine” if “there is sufficient evidence on each side so that a rational trier of fact could resolve the issue either way.” Id. (citing Anderson, 477 U.S. at 248, 106 S.Ct. 2505).

The moving party bears the initial burden of demonstrating an absence of a genuine issue of material fact and entitlement to judgment as a matter of law. Id. at 670-71. In attempting to meet that standard, a mov-ant that does not bear the ultimate burden of persuasion at trial need not negate the other party’s claim; rather, the movant need simply point out to the court a lack of evidence for the other party on an essential element of that party’s claim. Id. at 671 (citing Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986)).

Once the movant has met this initial burden, the burden shifts to the nonmoving party to “set forth specific facts showing that there is a genuine issue for trial.” Anderson, 477 U.S. at 256, 106 S.Ct. 2505; see Adler, 144 F.3d at 671 n. 1 (concerning shifting burdens on summary judgment). The non-moving party may not simply rest upon its pleadings to satisfy its burden. Anderson, 477 U.S. at 256, 106 S.Ct. 2505. Rather, the nonmoving party must “set forth specific facts that would be admissible in evidence in the event of trial from which a rational trier of fact could find for the nonmovant.” Adler, 144 F.3d at 671. “To accomplish this, the facts must be identified by reference to affidavits, deposition transcripts, or specific exhibits incorporated therein.” Id.

Finally, the court notes that summary judgment is not a “disfavored procedural shortcut;” rather, it is an important procedure “designed to secure the just, speedy and inexpensive determination of every action.” Celotex, 477 U.S. at 327, 106 S.Ct. 2548(quoting Fed.R.Civ.P. 1).

III. Analysis

The Lanham Act prohibits the unauthorized reproduction, colorable imitation, or use of “any word, term, name, symbol, device or combination thereof... which is likely to cause confusion, or to cause mistake” in the marketplace as to the origin of goods or services. 15 U.S.C. § 1125(a) (1991). The confusion against which the Lanham Act is designed to protect occurs when, because of design, label, or name similarities, the consuming public incorrectly assumes two competing products or services are produced by the same source. Jordache Enters., Inc. v. Hogg Wyld, Ltd., 828 F.2d 1482, 1484 (10th Cir.1987).

A trademark need not be registered to be entitled to protection under the Lan-ham Act. Indeed, it is well-settled that § 43(a) of the Lanham Act, 15 U.S.C. § 1125

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35 F. Supp. 2d 797, 1998 U.S. Dist. LEXIS 20473, 1998 WL 919678, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spectrum-vision-systems-inc-v-spectera-inc-ksd-1998.