United States Hosiery Corp. v. Gap, Inc.

707 F. Supp. 800, 10 U.S.P.Q. 2d (BNA) 1721, 1989 U.S. Dist. LEXIS 1511, 1989 WL 14653
CourtDistrict Court, W.D. North Carolina
DecidedFebruary 13, 1989
DocketST-C-87-136
StatusPublished
Cited by3 cases

This text of 707 F. Supp. 800 (United States Hosiery Corp. v. Gap, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Hosiery Corp. v. Gap, Inc., 707 F. Supp. 800, 10 U.S.P.Q. 2d (BNA) 1721, 1989 U.S. Dist. LEXIS 1511, 1989 WL 14653 (W.D.N.C. 1989).

Opinion

MEMORANDUM AND ORDER

ROBERT D. POTTER, Chief Judge.

I. PRELIMINARY STATEMENT

THIS MATTER is before the Court on (1) Defendant’s Motion for Summary Judgment, filed September 27, 1988, (2) Plaintiffs’ Motion for Partial Summary Judgment, filed September 27, 1988, and (3) Plaintiffs’ Further Motion for Partial Summary Judgment, filed October 11, 1988.

On October 24, 1988, a hearing on these motions was held, the undersigned presiding. 1 Attorneys W. Thad Adams, III, and Margaret Ann Behringer appeared at the hearing on Plaintiffs’ behalf, and attorneys John H. Hasty, Martin R. Greenstein, and Phil Zadeik appeared on Defendant’s behalf. After hearing counsel’s arguments, the undersigned took the outstanding motions under advisement.

For the reasons set forth below, this Court will (1) grant in part and deny in part Defendant’s Motion for Summary Judgment, (2) dismiss Plaintiffs’ Third Claim for Relief, (3) deny Plaintiffs’ Motion for Par *803 tial Summary Judgment, (4) grant Plaintiffs’ Further Motion for Partial Summary Judgment, and (5) dismiss Defendant’s Counterclaim.

II. NATURE OF THE CASE

This is essentially a trademark case arising under federal trademark laws, 15 U.S. C.A. §§ 1051-1127 (West 1976, 1982 & Supp.1988), with pendent state claims for unfair trade practices and common law trademark infringement. This Court’s subject-matter jurisdiction rests upon 28 U.S.C. A. §§ 1331 & 1338(a), (b) (West 1976 & Supp.1988), and 15 U.S.C.A. § 1121 (West Supp.1988).

Plaintiffs are seeking relief under five separate causes of action: First Claim for Relief, trademark infringement of Plaintiffs’ registered trademark “WORKFORCE” (Reg. No. 1,156,470), pursuant to 15 U.S.C. § 1114; Second Claim for Relief, false designation of origin, pursuant to Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); Third Claim for Relief, false or fraudulent registration; Fourth Claim for Relief, unfair trade practices, N.C.Gen. Stat. § 75-1.1; and Fifth Claim for Relief, common law trademark infringement. Plaintiffs are seeking injunctive relief, monetary damages, punitive damages, an accounting of Defendant’s sales and profits, destruction of all allegedly infringing labels, tags, packages, etc. bearing the “WORKFORCE” mark, and costs and attorney’s fees. Plaintiffs have demanded a jury trial on all issues triable to a jury. 2

Defendant has answered Plaintiffs’ allegations by denying them, in general, and by raising seven affirmative defenses, including, inter alia, an assertion that The Gap’s use of the “WORKFORCE” mark on its products in its company-owned stores, in conjunction with its logos, precludes any likelihood of confusion. Defendant has also counterclaimed seeking the cancellation of Plaintiffs’ “WORKFORCE” mark, Reg. No. 1,156,470. Defendant is seeking consequential damages, costs, and attorney’s fees.

Defendant has moved for summary judgment on all of Plaintiffs’ claims for relief. Plaintiff has moved for summary judgment on Defendant’s counterclaim and Defendant's Third Affirmative Defense, which alleged the invalidity of Reg. No. 1,156,470.

III. SUMMARY JUDGMENT STANDARD OF DECISION

Rule 56(c) of the Federal Rules of Civil Procedure establishes the standard of decision this Court must use when determining the present motions for summary judgment:

The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.

Fed.R.Civ.P. 56(c).

Recently, the United States Supreme Court has had several occasions to construe the summary judgment standard established in Rule 56. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) (antitrust conspiracy case); Anderson v. Liberty Lobby, 477 U.S. 242, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986) (libel action); Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986) (asbestos related wrongful death action); Adickes v. S.H. Kress Co., 398 U.S. 144, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1969) (alleged conspiracy to violate civil rights). These cases provide substantial guidance to this Court in its determination of the present motions for summary judgment.

In Matsushita Electric Industrial Co. v. Zenith Radio Corp., 475 U.S. 574, 106 *804 S.Ct. 1348, 89 L.Ed.2d 538 (1986), the Supreme Court noted:

When the moving party has carried its burden under Rule 56(c), its opponent must do more than simply show that there is some metaphysical doubt as to the material facts. In the language of the Rule, the non-moving party must come forward with “specific facts showing that there is a genuine issue for trial.” Where the record taken as a whole could not lead a rational trier of fact to find for the non-moving party, there is no “genuine issue for trial.”

Id. 106 S.Ct. at 1356 (emphasis in original; footnote and citations omitted; quoting Fed.R.Civ.P. 56).

Stated another way, it is the moving party’s burden to show that there are no genuine issues of material fact and that it is entitled to judgment as a matter of law. Magill v. Gulf & Western Indus., Inc., 736 F.2d 976, 979 (4th Cir.1984); Polo Fashions, Inc. v. Gordon Group, 627 F.Supp. 878, 886 (M.D.N.C.1985). If that burden has been met, then the non-moving party must establish that there are indeed genuine issues of material fact; usually this is done by producing affidavits of persons with personal knowledge setting forth specific information to be offered at trial.

In Celotex Corporation v. Catrett,

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707 F. Supp. 800, 10 U.S.P.Q. 2d (BNA) 1721, 1989 U.S. Dist. LEXIS 1511, 1989 WL 14653, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-hosiery-corp-v-gap-inc-ncwd-1989.