USA Nutraceuticals Group, Inc. v. BPI Sports, LLC

165 F. Supp. 3d 1256, 2016 U.S. Dist. LEXIS 21132, 2016 WL 695596
CourtDistrict Court, S.D. Florida
DecidedFebruary 22, 2016
DocketCase No. 15-CIV-80352-Bloom/Valle
StatusPublished
Cited by3 cases

This text of 165 F. Supp. 3d 1256 (USA Nutraceuticals Group, Inc. v. BPI Sports, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
USA Nutraceuticals Group, Inc. v. BPI Sports, LLC, 165 F. Supp. 3d 1256, 2016 U.S. Dist. LEXIS 21132, 2016 WL 695596 (S.D. Fla. 2016).

Opinion

ORDER DENYING MOTION FOR PRELIMINARY INJUNCTION

BETH BLOOM, UNITED STATES DISTRICT JUDGE

This cause is before the Court upon Defendants, BPI Sports, LLC and BPI Sports Holdings, LLC’s Motion for Preliminary Injunction, ECF No. [48] (“Motion”). The Court has reviewed the Motion, all supporting and opposing filings, the record in this case, and convened the parties for oral argument on February 18, 2016 in Miami, Florida. Accordingly, the Court is now fully advised as to the premises. After thorough review of the submitted evidence and the parties’ arguments, the Court finds that the Motion must be denied.

I. BACKGROUND

This case initially involved the alleged misappropriation and use of Plaintiffs/Counter-Defendants, USA Nutraceu-ticals Group, Inc., and Ultra-Lab Nutrition, Inc. d/b/a Beast Sports’ trade dress and related false advertising and unfair competition claims. See generally Amended Complaint, ECF No. [47]. Specifically, Plaintiffs/Counter-Defendants, USA Nu-traeeuticals Group, Inc., and Ultra-Lab Nutrition, Inc. d/b/a Beast Sports (collectively, “Beast”) assert eight claims against Defendants/Counter-Plaintiffs, BPI Sports, LLC and BPI Sports Holdings, LLC (collectively, “BPI”): trade-dress infringement and false advertisement under § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a) (Counts I, IV, and VI); unfair competition under both federal and state law (Counts II, III, and VIII); and a violation of the Florida Deceptive and Unfair Trade Practices Act (“FDUTPA”), Fla. Stat. § 501.204 (Count VII).1 Id. On June 4, 2015, BPI filed its Answer and Affirmative Defenses, ECF. No. [32], which was subsequently amended to assert five counterclaims mimicking those claims brought by Beast: trademark infringement in violation of the Lanham Act, 15 U.S.C. § 1114(a), and Florida common law (Counterclaims I and III, respectively); false designation of origin and unfair competition under § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), and Florida common law (Counterclaims II and IV, respectively); and a violation of FDUTPA, Fla. Stat. § 501.204 (Counterclaim V). See Amended Answer, Affirmative Defenses, and Counterclaims (“BPI Counterclaims”), ECF No= [44],

[1260]*1260Beast develops, markets, and sells a wide range of sports nutrition supplements (the “Beast Products”). Amended Complaint (“Amend. Compl.”), ECF No. [47] at ¶¶ 2, 18. Throughout the years, the Beast Products have been branded with various trademarks, including, but not limited to, “Beast,” “Beast Sports,” “Beast Mode,” and “Train Like a Beast.” Id. Since approximately 2013, the Beast Products have been packaged using the color “Beast Blue,” as well as various trademarks and “a prominent ’B’ in black lettering.” Id. The stylized “B” represents Beast’s house mark, which Beast has used since 2008. See Declaration of Anthony Altieri (“Alti-eri Deck”), ECF No. [54-3] at ¶ 3. According to the Amended Complaint, the Beast Products have had substantial success and have been awarded “Break Out Brand of the Year” in 2014 by BodyBuilding.com. Amend. Compl. at ¶ 15. Beast contends that this success “has been based largely on its unique and distinctive Beast Blue trade dress.” Id. at ¶ 17. Similarly, BPI manufactures, markets, and sells competing products (the “BPI Products”) using the marks “BPI” and “Be Better. Be Stronger. BPI.” (the “BPI Mark” and the “Be Better Be Stronger Mark,” respectively). See BPI Counterclaims at ¶¶ 6-8. The BPI Mark is the subject of a valid and subsisting trademark registration, U.S. Registration No. 4,252,316, which was obtained on December 4, 2012. Id. at ¶ 7; see also Declaration of Derek Ettinger (“Et-tinger Deck”), ECF No. [48-1] at ¶3. The BPI Mark has been in use since approximately January 2009. Ettinger Deck at ¶ 3. On April 7, 2015, BPI began using the Be Better Be Stronger Mark on its products. BPI Counterclaims at ,¶ 8; Ettinger Deck at ¶ 4. According to BPI’s CEO, BPI invested over $2.5 million on marketing and advertising related expenses for the purpose of building name recognition and public association with the Be Better Be Stronger Mark, and over $10 million on marketing and advertising related expenses with respect to the BPI Mark. Et-tinger Deck at ¶ 5. Both BPI and Beast sell and market their products online, including Amazon.com, as well as through brick and mortar locations such as GNC. Id. at ¶ 7.

On or about October 18, 2015, BPI purportedly discovered that Beast had begun using the BPI Mark to advertise the Beast Products- on Amazon.com (hereinafter, “Amazon”). BPI Counterclaims at ¶ 14; Et-tinger Deck at ¶ 8. Amazon permits entities to purchase advertising keywords, which link Amazon users seeking to purchase a particular product with advertisements tailored to the user’s search. See BPI Counterclaims at ¶ 15; Ettinger Deck at ¶ 8. Beast allegedly purchased the advertising keyword “BPI” from Amazon’s marketing department. BPI Counterclaims at ¶ 15; Ettinger Deck at ¶ 8. Additionally, on approximately November 19, 2015, BPI discovered that Beast had purchased the advertising keywords “BPI Sports” (another federally registered mark owned by BPI), as well as “Best BGAA,” “Best Crea-tine,” and “Whey HD,” each of which represents a product sold by BPI. See Declaration of Frank Hedin (“Hedin Deck”), ECF No. [48-2] at ¶¶ 3-4. When an individual searches for the term “BPI,” “BPI Sports,” “Best BCAA,” “Best Creatine,” or “Whey HD” on Amazon, “a banner advertisement for [the Beast Products] is immediately displayed at the top of the search results page, even above the search results displaying the actual BPI [P]roduets that the user sought.” BPI Counterclaims at ¶ 16; Ettinger Deck at ¶ 8; Hedin Deck at ¶ 4; see also Amazon.com Screenshot, Et-tinger Deck at Exhibit “C,” ECF No. [48-1] at 12; Amazon.com Screenshot, Hedin Deck at Composite Exhibit “A,” ECF No. [48-2] at 4-8 (reproduced below).

[1261]*1261[[Image here]]

slaletn«ni

statement

According to Beast, when the Amazon user clicks on the banner, he or she is immediately directed to a website operated by Beast. See Hedin Decl. at ¶ 5; Ettinger Decl. at ¶ 8. This statement appears to be contradicted; when a user clicks on Beast’s banner advertisement they are directed to a web page within Amazon listing Beast’s nutrition products. See Declaration of Jennifer Jalovee (“Jalovec Deck”), ECF No. [54-4] at ¶ 5. Regardless, BPI contends that Beast is intentionally using the BPI Mark “for the purpose of misleading and confusing potential customers of BPI [P]roducts as to the origin of the Beast [ ] [Products advertised in the banner advertisement and sold at the linked website, as well as to the relationship between BPI and [Beast].” BPI Counterclaims at ¶20.

In addition to purchasing BPI-related keywords from Amazon, Beast has also allegedly commenced infringing activities related to the Be Better Be Stronger Mark.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
165 F. Supp. 3d 1256, 2016 U.S. Dist. LEXIS 21132, 2016 WL 695596, Counsel Stack Legal Research, https://law.counselstack.com/opinion/usa-nutraceuticals-group-inc-v-bpi-sports-llc-flsd-2016.