United States v. Washington Mint, LLC.

115 F. Supp. 2d 1089, 2000 U.S. Dist. LEXIS 13968, 2000 WL 1375168
CourtDistrict Court, D. Minnesota
DecidedSeptember 18, 2000
DocketCivil 99-1768(JRT-FLN)
StatusPublished
Cited by7 cases

This text of 115 F. Supp. 2d 1089 (United States v. Washington Mint, LLC.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Washington Mint, LLC., 115 F. Supp. 2d 1089, 2000 U.S. Dist. LEXIS 13968, 2000 WL 1375168 (mnd 2000).

Opinion

MEMORANDUM OPINION AND ORDER

TUNHEIM, District Judge.

Plaintiff, the United States of America (the “government”), brings this action against defendants for copyright infringement, trademark infringement, trademark dilution, and false advertising. 1 The government’s copyright claims arise from defendants’ alleged production of, or partic *1092 ipation in the production of, a gold coin replica of the -recently issued United States dollar coin featuring an image of Sacagawea (the “Sacagawea dollar”). The government’s trademark claims arise from the use of the “Washington Mint” name by defendant Washington Mint, LLC (the ‘Washington Mint”) to designate its products. The government asserts that this name is confusingly similar to its registered trademark, the “United States Mint.” The government further claims that defendants engaged in false advertising through a variety of misrepresentations made by the Washington Mint in communications to the public about its products. This matter is before the Court on the government’s motion for a preliminary injunction prohibiting defendants from continuing to manufacture and sell replicas of the Sacagawea dollar, and from using the Washington Mint” trade name, the registered trademark “The Washington Mint LLC,” or the Internet domain name “washingtonmint.com.” This matter is also before the Court on a motion for summary judgment brought by defendants Suvon Limited Partnership (“Suvon”), Novus Marketing, Inc. (“Novus”), Henry Cousi-neau III (“Cousineau”), Scott Jagodzinski (“Jagodzinski”), and ’ Damian Topousis (“Topousis”) (collectively, the “Suvon defendants”), 2 and on a separate motion for partial summary judgment brought by defendants Thomas R. Brokl (“Brokl”) and the Washington Mint (collectively, the “Washington Mint defendants”).

BACKGROUND

The Relationships Between the Defendants

Suvon owns or controls 100 percent of the stock in the Washington Mint, while Novus acts as a marketing and advertising agency for the Washington Mint. No-vus owns the Internet domain name against which the government seeks an injunction, “washingtonmint.com.” Novus contends, however, that the Washington Mint leases the web site from it and that only the Washington Mint has control over its content. Novus is also more directly connected with the Washington Mint through its employees, as Novus purports to “lease” a number of its employees to the Washington Mint to provide services for that company. Importantly, these employees include not only the Washington Mint’s ordinary staff members, but also defendant Brokl, who is the president and CEO of the Washington Mint. Thus, the managerial employee who apparently exercises the most control over the Washington Mint’s activities is actually employed by Novus and then' contracted out to perform those duties.

Cousineau is both a limited partner in Suvon and the sole owner of Novus. He is also on the board of directors of the Washington Mint. Jagodzinski is a limited partner in Suvon and is a co-CEO, co-president, CFO, COO, treasurer and secretary of Novus. He is also on the board of directors of-the Washington Mint and acts as its treasurer and secretary. Topousis is a limited partner in Suvon and is a co-CEO and co-president of Novus. He is also on the board of directors of the Washington Mint and acts as its chief manager. ■

Background Pertaining to Alleged Copyright Violations

The United States Mint, an agency of the government, employs a number of artisans and engravers who ordinarily are responsible for designing the figures depicted on coins issued as legal tender. In 1997, however, the government began the process of designing a new one-dollar coin to replace the Susan B. Anthony dollar. Rather than delegating the design process to artists employed by the United States Mint, the government invited both United States Mint employees and a select group of private artists to submit designs for the *1093 obverse and reverse sides of the new coin. Private artists received $1,000 each in exchange for their participation. The government required each • private artist to assign to it all rights in -the designs and materials submitted in order to participate.

The United States Mint formed a committee of persons to solicit input from United States Mint employees, members of Congress, coin collectors, artists and other members of the community, and to choose, from the designs submitted based on the input received. The selection process was anonymous, such that committee members were unaware of the identity of the artist who designed a given submission, and did not know whether the artist was a government employee or a private artist until after the selections were made.'

The committee ultimately selected a design of Sacagawea submitted by Glenna Goodacre (“Goodacre”), on October 21, 1998, for the obverse side of the new coin. Upon selecting Goodacre’s design, the government became obligated to pay her an additional $5,000. Goodacre is not a government employee. The cpmmittee selected a design submitted by Thomas Rogers (“Rogers”), a United States Mint employee, for the reverse side of the coin.

On May 4,1999, Hillary Rodham Clinton unveiled the design of the new dollar coin at a public White House ceremony. At the same time, the United States Mint made photographs of the new coin available to the public on its website.

In August 1999, general counsel for the United States Mint became aware that the Washington Mint was advertising, manufacturing and selling oversized, 3/&-inch replicas of the Sacagawea dollar. Defendants freely admit that the Washington Mint created and produced its replica from public information released by the government pertaining to the new Sacagawea dollar, calling their product an “exquisite adaptation of the new United States Dollar coin.” The government has submitted photographs and examples of the Sacagaw-ea dollar and the replica of it produced by the Washington Mint. An inspection of these exhibits reveals that the Washington Mint’s product could not have been an original design, but rather, is a direct and intentional copy of the Sacagawea dollar. Moreover, the Washington Mint admitted in its answers to interrogatories that in April or May 1999 it commissioned another company to design “a near replica or adaptation of the proposed new [Sacagawea dollar] design which the United States Mint publicly had posted on its website.” Thus, it is indisputable that the Washington Mint intentionally copied the design on the Sacagawea dollar coin based on government publicity issued prior to the date that it released the coin into circulation.

Soon after learning about the Washington Mint’s replica, the government registered two copyrights in connection with Goodacre’s designs. The first'registration, Number VA-966-985, documents the government’s copyright in the original three-dimensional plaster sculpture of Sacagaw-ea submitted by Goodacre. The second registration, Number VA-966-986, documents the government’s copyright in a second plaster sculpture constituting a slightly modified version of the original design. The government has submitted evidence indicating that these minor modifications were necessary in order to preserve the design during mass production, but that no.

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Bluebook (online)
115 F. Supp. 2d 1089, 2000 U.S. Dist. LEXIS 13968, 2000 WL 1375168, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-washington-mint-llc-mnd-2000.