Top Brand LLC v. Cozy Comfort Company LLC

CourtCourt of Appeals for the Federal Circuit
DecidedJuly 17, 2025
Docket24-2191
StatusPublished

This text of Top Brand LLC v. Cozy Comfort Company LLC (Top Brand LLC v. Cozy Comfort Company LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Top Brand LLC v. Cozy Comfort Company LLC, (Fed. Cir. 2025).

Opinion

Case: 24-2191 Document: 48 Page: 1 Filed: 07/17/2025

United States Court of Appeals for the Federal Circuit ______________________

TOP BRAND LLC, SKY CREATIONS LLC, E STAR LLC, FLYING STAR LLC, Plaintiffs/Counter-Defendants-Appellants

JOHN NGAN, Counter-Defendant/Counter-Claimant-Appellant

v.

COZY COMFORT COMPANY LLC, Defendant/Counter-Claimant-Appellee

BRIAN SPECIALE, MICHAEL SPECIALE, Defendants/Counter-Defendants-Appellees ______________________

2024-2191 ______________________

Appeal from the United States District Court for the District of Arizona in No. 2:21-cv-00597-SPL, Judge Steven P. Logan. ______________________

Decided: July 17, 2025 ______________________

GREGORY A. CASTANIAS, Jones Day, Washington, DC, argued for plaintiffs/counterclaim defendants-appellants and counter-defendant-appellant. Also represented by JOHN CHARLES EVANS, Cleveland, OH; MARLEE HARTENSTEIN, Pittsburgh, PA; ERIC MICHAEL FRASER, Case: 24-2191 Document: 48 Page: 2 Filed: 07/17/2025

Osborn Maledon P.A., Phoenix, AZ.

JOHANNA WILBERT, Quarles & Brady, LLP, Milwaukee, WI, argued for defendant/counter-claimant-appellee and defendants-appellees. Also represented by MICHAEL PIERY, CHRISTIAN G. STAHL. ______________________

Before DYK, REYNA, and STARK, Circuit Judges. DYK, Circuit Judge. Top Brand and Cozy Comfort compete in the market of oversized hooded sweatshirts. Cozy Comfort owns U.S. De- sign Patent No. D859,788 (the “D788 patent”) and two trademarks for the “THE COMFY” for goods and services relating to blanket throws. Top Brand sought declaratory relief of noninfringement of the design patent. Cozy Com- fort counterclaimed for infringement of the design patent and trademarks. After trial, the jury found infringement of both the patent and the trademarks. The district court denied judgment as a matter of law (“JMOL”) to Top Brand and entered judgment on the jury verdict. We hold that the principles of prosecution history dis- claimer apply to design patents and that Top Brand was entitled to JMOL of noninfringement of the design patent because the accused infringing design was within the scope of the subject matter surrendered during prosecution. We also conclude that substantial evidence does not support the jury’s verdict of trademark infringement. We therefore reverse. Case: 24-2191 Document: 48 Page: 3 Filed: 07/17/2025

TOP BRAND LLC v. COZY COMFORT COMPANY LLC 3

BACKGROUND I Appellees are Cozy Comfort Company LLC (“Cozy Comfort”), Brian Speciale, and Michael Speciale. 1 Appel- lees sell an oversized “wearable blanket,” with an appear- ance allegedly similar to an oversized sweatshirt, called “The Comfy.” J.A. 24397 (23:2–14). Appellants are John Ngan and four companies of which he is the sole owner: Top Brand LLC, E Star LLC, Flying Star LLC, and Sky Crea- tions LLC (collectively, “Top Brand”). Three of the compa- nies (Top Brand LLC, E Star LLC, and Flying Star LLC (collectively, “the Top Brand Companies”)) sell “hooded sweatshirts and wearable blankets,” 2 J.A. 10928, through Amazon.com and websites such as www.tirrinia.net and www.cataloniastore.com under the brand names Tirrinia and Catalonia. Cozy Comfort owns the D788 patent, titled “Enlarged Over-Garment with an Elevated Marsupial Pocket.” The D788 patent claims “[t]he ornamental design for an en- larged over-garment with an elevated marsupial pocket, as shown and described.” J.A. 28. The D788 patent includes ten figures, six of which are shown below.

1 Appellees Brian and Michael Speciale are the co- founders and members of Cozy Comfort LLC. Top Brand LLC v. Cozy Comfort Co., 688 F. Supp. 3d 924, 931 (D. Ariz. 2023). 2 The fourth company-appellant, Sky Crea- tions LLC, “licenses to the [Top Brand Companies] some of the clothing they sell.” J.A. 6959 n.1. Case: 24-2191 Document: 48 Page: 4 Filed: 07/17/2025

J.A. 30–37. During prosecution of the application leading to the D788 patent, the examiner initially rejected the de- sign as anticipated by U.S. Patent No. D728,900 (“White”). To obtain allowance, Cozy Comfort agreed that its design differed from the White design in particular respects, Case: 24-2191 Document: 48 Page: 5 Filed: 07/17/2025

TOP BRAND LLC v. COZY COMFORT COMPANY LLC 5

thereby disclaiming the significance of specific features in the Cozy Comfort design (as we explain further below). Cozy Comfort also owns two registered trademarks for “THE COMFY,” one for blanket throws and one for online retail store services featuring blanket throws. 3 J.A. 18557; J.A. 18627. II Cozy Comfort accused some of Top Brand’s hooded sweatshirts and wearable blankets of infringing the D788 patent. In response, on February 20, 2020, Top Brand LLC and Sky Creations LLC filed a declaratory judgment action against Cozy Comfort in the Northern Dis- trict of Illinois, seeking determinations of noninfringement and invalidity of the D788 patent. The case was then transferred to the District of Arizona. Cozy Comfort coun- terclaimed for infringement of the D788 patent and as- serted trademark infringement under the Lanham Act. During the course of the proceedings, Top Brand advo- cated for a detailed verbal limiting construction of the D788 patent claim based on Cozy Comfort’s statements during prosecution. The district court declined to adopt such a construction. At trial, the jury was simply in- structed that it “must determine whether or not there is infringement by comparing the accused products to the de- sign defined in the [D788] patent.” J.A. 14554. The jury returned a verdict finding, as relevant here, that Top Brand failed to show the D788 patent was invalid;

3 Reg. No. 5608347, in International Class 24 for “[b]lanket throws, namely, whole body blankets,” J.A. 18557; Reg. No. 5712456, in International Class 35 for “[o]n-line retail store services featuring blanket throws, namely, whole body blankets,” J.A. 18627. Case: 24-2191 Document: 48 Page: 6 Filed: 07/17/2025

that Top Brand infringed the D788 patent; 4 and that Top Brand infringed the trademarks. J.A. 14523–38. 5 The jury awarded $15.4 million in disgorged profits for the D788 pa- tent infringement, J.A. 14524, and awarded $3.08 million total in disgorged profits for trademark infringement, J.A. 14533, 14535. The district court denied JMOL and en- tered judgment pursuant to the jury verdict against Top Brand. Top Brand appealed. We have jurisdiction under 28 U.S.C. § 1295(a)(1). 6

4 The jury found that seven of the Top Brand Com- panies’ product lines infringed the D788 patent: HD100, HD100S1, HD120, HD200, HD201, HD210, and HD250 (collectively, “the accused products”). J.A. 14524. For pur- poses of this appeal, we treat the HD250 product as repre- sentative. 5 The jury also found that the Top Brand Companies were alter egos of Mr. Ngan. J.A. 14538. 6 After filing the notice of appeal in this action, ECF No. 1, Appellants Top Brand LLC, Sky Creations LLC, E Star LLC, Flying Star LLC, and John Ngan filed for bankruptcy, ECF No. 41. The bankruptcy court issued an order granting relief from the automatic stay under 11 U.S.C. § 362. See Order Granting Motion for Relief from Automatic Stay, In re Flying Star LLC, No. 2:25-bk-11380 (C.D. Cal. Bankr. Mar. 10, 2025), ECF No. 38; see also Or- ders Granting Motion to Approve Joint Administration of Cases filed in In re E Star LLC, No. 2:25-bk-11388 (C.D. Cal. Bankr. Feb. 27, 2025), ECF No. 8; In re Flying Star LLC, No. 2:25-bk-11380 (C.D. Cal. Bankr. Feb. 27, 2025), ECF No. 9; In re John Shun On Ngan, No. 2:25-bk-11416 (C.D. Cal. Bankr. Feb. 28, 2025), ECF No. 11; In re Sky Cre- ations LLC, No. 2:25-bk-11384 (C.D. Cal. Bankr. Feb. 27, 2025), ECF No.

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Top Brand LLC v. Cozy Comfort Company LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/top-brand-llc-v-cozy-comfort-company-llc-cafc-2025.