Spiral Direct, Inc. v. Basic Sports Apparel, Inc.

151 F. Supp. 3d 1268, 2015 WL 9450575, 2015 U.S. Dist. LEXIS 178299
District Court, M.D. Florida·Decided November 24, 2015·No. Case No: 6:15-cv-641-Orl-28TBS·Published·Cited by 6 cases

Opinion

[1273] ORDER

JOHN ANTOONII, United States District Judge

Plaintiffs Spiral Direct, Inc. (‘Spiral U.S.‘) and Spiral Direct, LTD. (‘Spiral U.K.‘) (collectively, ‘Plaintiffs') filed a seven-count complaint against Defendant Basic Sports Apparel, Inc. (“BSA”) arising from a dispute over the trademark ‘Spiral1 on certain clothing. (See Am. Compl, Doc. 16). BSA moves, to dismiss the Complaint, or, in the alternative, for a more definite statement .of Counts Six and Seven. (Doc. 27). After considering the motion to dismiss, the alternative motion, and Plaintiffs’ response (Doc. 35), I conclude that the motions must be.denied.

I. Background

Plaintiffs are related companies with overlapping management and are in the business of manufacturing and distributing “Gothic” style clothing bearing the mark “Spiral” in a distinctive script (“Plaintiffs’ mark”). (Am. Compl. at 3). Spiral U.K’s immediate predecessor-in-interest is Spiral Design Partnership, which began selling clothing in the U.S. in 1993, and' over the internet in 1997. (Id. at 3-4). In 1999, Spiral U.K. wholly acquired its predecessor. (Id.).

On January 22, 2015, Plaintiffs received a cease and desist letter from BSA’s attorney. (Am. Compl. at 4). The letter informed Plaintiffs that on January 19,1999, the United States Patent and Trademark Office (“USPTO”) issued BSA-a trademark under U.S. Registration No. 2,218,515 for the mark “Spiral” on various items of clothing (“BSA mark”). (Id.). In its registration application, BSA stated that it first used the mark on June 15, 1997. (Id.). . The letter further claimed that Plaintiffs’ “actions constitute trademark infringement and unfair competition under both state and federal law, including the Lanham Act,” (Ex. C to Am. Compl, Doc. 16-3), and requested that Plaintiffs “discontinue any and all use of the [infringing [trademark with the marketing, sale, distribution, or identification of products or services,” (id.). It further stated that “my client has instructed me to file suit unless you respond promptly and appropriately to this demand.” (Id.).

BSA owns and operates a business that manufactures clothing for sporting retailers that is sold under the trademarks of those third-party retailers. (Id. at 5). Plaintiffs allége that “BSA may manufacture a few [goods bearing the BSA mark, but] only ... by using the remaining fabric from a particular job order.” (Id.). BSA “does no publicity, marketing, or advertising” for any goods bearing the BSA mark, and only sells a “very limited quantity of a very limited number of items ... set forth in (their trademark registration].” (Id.). Plaintiffs allege that, at the time BSA applied for its trademark, it should have known that Plaintiffs’ predecessor was using Plaintiffs’ mark in commerce in the United States as early as 1993. (Id.). For that reason and others, Plaintiffs allege that BSA fraudulently obtained its trademark from the USPTO.1 (Id. at 5-6).

Under these circumstances, Plaintiffs sued BSA for (i) declaratory judgment of non-infringement under the Lanham Act (Count 1); (ii) declaratory judgment that BSA’s claims are barred by the doctrine of laches (Count 2); (iii) declaratory judgment of invalidity of BSA’s registered [1274] trademark for abandonment -(Count 3) and for fraud on the’ USPTO (Count 4); and (iv) unfair competition arising from trademark infringement under the Lanham Act (Count 5),2 the Florida Deceptive and Unfair Trade Practices Act (“FDUTPA”) (Count -6),3 and Florida common law (Count 7). (Id. at 9-15).

II. Legal Standard

Generally, “(a) pleading that states a claim for relief must contain .... a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ.P. 8(a)(2). “[Detailed factual allegations” are not required, but “[a] pleading that offers ‘labels and conclusions’ or ‘a formulaic recitation of the elements of a cause of action will not do.’.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Id. (quoting Twombly, 550 U.S. at 570, 127 S.Ct. 1955). At the motion to dismiss stage, a court must evaluate all plausible inferences derived from the facts of the complaint in favor of the plaintiff. Whitwam v. JetCard Plus, Inc., 34 F.Supp.3d 1257, 1259 (S.D.Fla.2014). One caveat to the general pleading standard of Rule 8 is that “[i]n alleging fraud — a party must state, with particularity the circumstances constituting fraud.” Fed. R. Civ.P. 9(b). In considering a motion to dismiss brought under Federal Rule of Civil Procedure 12(b)(6), a court limits its “consideration to the well-pleaded factual allegations, documents central to or referenced in the complaint, and matters judicially noticed.” La Grasta v. First Union Sec., Inc., 358 F.3d 840, 845 (11th Cir.2004).

III. Analysis

A. Shotgun Pleading

Free access — add to your briefcase to read the full text and ask questions with AI

Spiral Direct, Inc. v. Basic Sports Apparel, Inc., 151 F. Supp. 3d 1268, 2015 WL 9450575, 2015 U.S. Dist. LEXIS 178299 (M.D. Fla. 2015).

151 F. Supp. 3d 1268 (Spiral Direct, Inc. v. Basic Sports Apparel, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related