The Corps Group v. Afterburner, Inc.

779 S.E.2d 383, 335 Ga. App. 138
CourtCourt of Appeals of Georgia
DecidedNovember 23, 2015
DocketA15A1276; A15A1277
StatusPublished
Cited by4 cases

This text of 779 S.E.2d 383 (The Corps Group v. Afterburner, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Corps Group v. Afterburner, Inc., 779 S.E.2d 383, 335 Ga. App. 138 (Ga. Ct. App. 2015).

Opinion

ELLINGTON, Presiding Judge.

Appellants John Borneman, Kyle Howlin, John Underhill, and Carey Lohrenz 1 are former fighter pilots who, after working for the appellee, Afterburner, Inc., a military aviation-themed business consulting firm, formed their own competing military aviation-themed business consulting firm, appellant The Corps Group, and began advising companies on how to apply military battle methodology to business planning and development. Afterburner sued The Corps *139 Group and the individual appellants, alleging, inter alia, 2 that they had infringed on Afterburner’s trademarks and trade dress in violation of the Lanham Act. 3 A Forsyth County jury returned a verdict finding that each of the appellants had intentionally infringed on Afterburner’s trade dress and four of its trademarks and awarded Afterburner money damages. Thereafter, the trial court entered a final judgment permanently enjoining the appellants from using Afterburner’s trade dress and trademarks. In response to Lohrenz’s motion for judgment notwithstanding the verdict and extraordinary motion for a new trial, the trial court granted a new trial only as to the apportionment of monetary damages among The Corps Group and the individuals. The appellants contend, inter alia, that the trial court erred in denying their motions for a directed verdict and for judgment notwithstanding the verdict as to Afterburner’s Lanham Act claims because the evidence was insufficient to support a finding that they had infringed on Afterburner’s trademarks or trade dress. 4 For the following reasons, we agree and reverse.

“The standard for granting a directed verdict [and] a judgment notwithstanding the verdict are the same.” (Citation and punctuation omitted.) South Fulton Medical Center v. Poe, 224 Ga. App. 107, 108 (1) (480 SE2d 40) (1996).

[O]n appeal from a trial court’s rulings on motions for directed verdict and judgment notwithstanding the verdict, we review and resolve the evidence and any doubts or ambiguities in favor of the verdict; directed verdicts and judgments notwithstanding the verdict are not proper unless there is no conflict in the evidence as to any material issue and the evidence introduced, with all reasonable deductions therefrom, demands a certain verdict.

(Footnote omitted.) Vol Repairs II v. Knighten, 322 Ga. App. 416, 417 (745 SE2d 673) (2013). See also Moore v. Singh, 326 Ga. App. 805, 809 *140 (1) (755 SE2d 319) (2014). Viewed in this light, the evidence presented at trial shows as follows.

Afterburner has been offering business consulting services since 1996. Afterburner’s founder and CEO, James Murphy, is a former Air Force F-15 fighter pilot. After leaving the military, he decided to continue studying military mission-planning methods and to apply those methods to business development. In addition to applying what he had learned from his own military training and experience, Murphy obtained a license to teach a system called the “Prometheus Process,” which was developed by retired Air Force Colonel John Warden, the owner of Venturist, Inc. The Prometheus Process is a military strategic planning model designed to help businesses and organizations define and achieve their goals. Murphy testified that, early on, Afterburner’s business consulting model had many elements of the Prometheus Process incorporated within it. Murphy eventually terminated its licensing agreement with Venturist, Inc., and streamlined Afterburner’s business consulting model.

Murphy described the Afterburner brand as “unique in the consulting space.” It offers motivational keynote speakers, seminars and workshops that feature team-building exercises, corporate coaching, and leadership training. Afterburner focuses less on the long-term strategic planning of the Prometheus Process and more on teaching business people how to execute their goals through a continuous-improvement cycle that Murphy illustrated in a model using the elements: “Plan, brief, execute, debrief, win, lessons learned.” Murphy called this model the “Flawless Execution” model, and it became a key component of Afterburner’s marketing. Afterburner developed a graphic illustrating its model, a single circle containing a spiral of arrows linking the words “plan, debrief, execute, debrief, win!” and used the graphic as a logo on its marketing materials and as a teaching tool in its presentations. The Flawless Execution model involved teaching business people how to avoid “task saturation” — that is, being overburdened by too many tasks — and how to develop “execution rhythm” — that is, an accountability process involving timely debriefings so that people will learn from their mistakes. Afterburner registered its circular logo and the phrases “Flawless Execution” and “task saturation” with the U. S. Patent and Trademark Office. 5 It also *141 contended that it had common law trademark 6 rights in the phrase “execution rhythm.”

Afterburner also claimed that it had the exclusive right to use its “trade dress,” what Murphy described as a fighter pilot motif that pervaded all aspects of its business consulting services. Murphy testified that Afterburner’s use of real pilots wearing standard-issue, sage green flight suits during business consulting presentations constituted the most relevant features of Afterburner’s trade dress. Afterburner also decorated its seminars like military bunkers and squadron rooms, often draping conference rooms with parachutes and camouflage netting. It employed loud music, sirens, and theatrical mock enemy attacks. During consulting exercises, Afterburner often engaged clients in military exercises, using maps, checklists, and other military-style mission-planning paraphernalia. Clients sometimes even wore flight helmets during workshops. Murphy believed that Afterburner had the exclusive right to use fighter pilot and jet plane imagery during its seminars, on its website, and in its brochures and other marketing materials.

John Borneman, the CEO of The Corps Group, testified that when he formed his company in 2008, he knew that it would compete with Afterburner. He testified that he intended to start a Marine Corps aviation-themed business consulting group using a modified “Org-X” version of the Prometheus Process, as well as his own personal experience, in teaching clients how to apply military mission-planning principles to business development. Toward that end, he obtained permission to use the Prometheus Process from Venturist, Inc. Although The Corps Group offered business consulting services *142 that were similar to Afterburner’s, like keynote speakers and team-building seminars and workshops, Borneman testified that its primary focus was on establishing long-term, strategic business planning relationships with clients.

When Borneman was forming The Corps Group, Lohrenz researched their competitors.

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779 S.E.2d 383, 335 Ga. App. 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-corps-group-v-afterburner-inc-gactapp-2015.