Sweetwater Brewing Co. LLC v. Great American Restaurants, Inc.

266 F. Supp. 2d 457, 2003 U.S. Dist. LEXIS 10444, 2003 WL 21382579
CourtDistrict Court, E.D. Virginia
DecidedMay 16, 2003
DocketCIV.A. 02-802-A
StatusPublished
Cited by5 cases

This text of 266 F. Supp. 2d 457 (Sweetwater Brewing Co. LLC v. Great American Restaurants, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sweetwater Brewing Co. LLC v. Great American Restaurants, Inc., 266 F. Supp. 2d 457, 2003 U.S. Dist. LEXIS 10444, 2003 WL 21382579 (E.D. Va. 2003).

Opinion

MEMORANDUM OPINION

LEE, District Judge.

THIS Matter is before the Court on the parties’ cross motions for summary judgment. This is a trademark infringement action instituted by Plaintiff regarding Defendants Great American Restaurant *459 Inc.’s, et al, (“GAR” or “Defendants”) use of a mark entitled “Sweetwater Tavern,” in connection with its three Sweetwater Tavern restaurants and the sale of restaurant services, and on beer brewed by Old Dominion Brewing Company (“old Dominion”). Plaintiff specifically challenges Defendants’ use of the mark for all the beers that Defendants brew and sell from their menu at the restaurants, beers sold at the restaurant in special containers, called growlers, for customers to take off-site, beers sold in kegs that are then sold to Defendants’ affiliated restaurants, and bottled beer sold in retail stores in regions of close proximity to Defendants’ restaurants.

The issue before the Court is whether the Court should grant either party’s motion for summary judgment on Plaintiffs trademark infringement and unfair competition claims when (1) Plaintiff owns the registered trademark “Sweetwater Brewing Company” in connection with the sale of beer, specifically a microbrew or craft beer and related promotional items; and (2) Defendants use the mark “Sweetwater Tavern” on their restaurants/tavems/brew-pubs, and “Sweetwater Light” on their craft beer and related promotional items. Upon review of the submissions and arguments of the parties, this Court holds that Plaintiff Sweetwater Brewing Company is entitled to judgment as a matter of law on its trademark infringement claim because it has a protectable interest in the Mark and it has demonstrated that a likelihood of confusion exists by Defendant’s use of the mark.

I. BACKGROUND

SBC instituted the present litigation on June 5, 2002, to enforce its Trademark after it discovered Defendant’s use of the name “Sweetwater Tavern” for three area restaurants and on beer sold in the restaurant and through Northern Virginia wholesalers.

Plaintiff Sweetwater Brewing Company, LLC (“SBC”), is a limited liability company that is based in Atlanta, Georgia. SBC operates as a microbrewery, which makes and sells bottled and keg beer, under the name “Sweetwater Brewing Company.” SBC also uses the Mark on its logo, “advertising materials, t-shirts, glasses, hats, bar items, and other related products, some of which are offered for sale.” (Pl.’s Statement of Material Uncontested Facts Supp. Mot. Partial Summ. J. at 2) (hereinafter “Pl.’s Statement of Facts”). According to Plaintiff, the Mark “displays ‘Sweetwater’ prominently, with ‘Brewing Company’ used in much smaller letters, on a scroll. SBC uses a trout jumping through its logo, and on occasion fishermen catching a trout in a stream.” (Id.)

On July 6, 1999, the Patent and Trademark Office (“PTO”) awarded SBC a trademark covering the Sweetwater Brewing Company trademark 1 . The PTO awarded the trademark based on SBC’s previously filed “intent to use” application, which was submitted on July 30, 1996. Sweetwater’s registration rights regarding the Mark pertain to “malt beverages, namely, beer, ale, stout, lager and pilsner.” (Id. at 3.) Plaintiff, however, claims continuous use of the mark since November 1995.

SBC “brewed its first beer for sale in January 1997 and sold its first beer on February 17, 1997,” in Atlanta, Georgia. (Id. at 4.) SBC began selling beer in Virginia in February 2001. (Defs.’ Br. Supp. Mot. Summ. J. at 1.) SBC states that “from the beginning” its “marketing plan was to target the Southeast....” (Pl.’s Statement of Undisputed Facts at 4.) Ac *460 cording to SBC, the Southeast “includes Virginia and the Washington, D.C. area.” (ZdXquoting Bensch Decl., ¶ 6.) SBC maintains that it sells its beer in the following areas: North Carolina, Florida, Alabama, Virginia, Illinois, South Carolina, “and to internet beer clubs that distribute beer nationally.” (Id.) SBC also contends that the majority of its estimated $2 million revenue for this year will come “from the sale of the beer under the Mark.” (Id. at 6.)

Defendant GAR is a Virginia corporation that operates a chain of seven restaurants and one bakery in northern Virginia, and the surrounding Washington, D.C. metropolitan area. “GAR oversees the management of three brewpub restaurants under” the mark “SWEETWATER TAVERN,” and GAR also oversees the “manufacture, sale and marketing of beer under this mark.” (Defs’. Br. Supp. Mot. Summ. J. at 1.) Defendants acknowledge using the mark “for beer brewed by Old Dominion Brewing Company (“Old Dominion”) ... which is sold ... (a) in kegs to Defendants’ affiliated restaurants (Carlyle Grand Café, Mike’s American Grill, Artie’s and Silvera-do); and (b) in bottles to retail stores in the proximity of Defendants’ restaurants.” (Id.)

Defendant’s first tavern, Sweetwater Tavern, opened in September 1996. “None of the Taverns, however, have directly sold bottled or keg beer for consumption outside of the restaurants” and “[t]he only Tavern beer with ‘Sweetwater’ as its name is Sweetwater Light.” (Pl.’s Statement of Facts at 7) (quoting Norton Deck, ¶ 71). Sweetwater Light, Defendant’s beer, was first sold in one of Defendants’ taverns on November 27, 1996. (Id.)

Defendants assert that neither party knew of the other’s existence until approximately October 1997, when both companies attended the Great American Beer Festival in Colorado. However, according to GAR, “SBC did not complain about Defendants’ use of their [SBC’s] mark until early 2000.” (Id.)

II. STANDARD OF REVIEW

Rule 56(c) of the Federal Rules of Civil Procedure provides that a motion for summary judgment will be granted if it is shown that there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. See Fed. R. Civ. P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 322-324, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Once a motion for summary judgment is properly made and supported, the opposing party has the burden of showing that a genuine dispute exists. See Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). Only disputes over facts that might affect the outcome of the suit under governing law will properly preclude the entry of summary judgment. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment.

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266 F. Supp. 2d 457, 2003 U.S. Dist. LEXIS 10444, 2003 WL 21382579, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sweetwater-brewing-co-llc-v-great-american-restaurants-inc-vaed-2003.