Viacom International Inc. v. IJR Capital Investments, LLC

242 F. Supp. 3d 563, 2017 WL 1037294, 2017 U.S. Dist. LEXIS 38557
District Court, S.D. Texas·Decided March 17, 2017·No. CIVIL ACTION H-16-257·Published·Cited by 1 cases

Opinion

Amended Memorandum Opinion & Order

Gray H. Miller, United States District Judge

On January 11, 2017, the court issued its original memorandum opinion and order that GRANTED Viacom summary judgment on its common law trademark infringement claim and DENIED summary judgment on its dilution claims. Dkt. 32. Viacom moves for clarification of the court’s January 11, 2017 order and requests injunctive relief. Dkt. 39. On March 15, 2017, the court held a hearing and GRANTED Viacom’s motion for clarification, which is reflected in this amended order in'Section III C, and DENIED Viacom’s motion for injunctive relief. Id, After considering the parties’ arguments, mo-tionSj response, reply, and applicable law, the court is of the opinion that Viacom’s motion for summary judgment (Dkt. 19) should be GRANTED IN PART and DENIED IN PART. ■

I. Background

■ This 'is a 'trademark infringement dispute over the name for IJR’s proposed restaurant, “The Krusty Krab,” which is the same name and spelling of a fictional restaurant in the animated television series, “SpongeBob SquarePants,” that airs on Viacom’s Nickelodeon network. Dkts. 19, 26. Since 1999, Viacom has used “The Krusty Krab” in its television show. Dkt. 19 at 4. The restaurant appeared in 166 of 203 aired episodes. Id. On December 3, 2014, IJR filed a federal trademark application for the mark, “THE KRUSTY KRAB,” under restaurant services.1 Dkt. 19 at 7; Dkt. 21, Ex. 1 at 11-12 (U.S. Trademark Application Serial No. 86470477 (filed Dec. 3, 2014)). On November 23, 2015, Viacom sent IJR a cease and [567] desist letter requesting that IJR change the name of the restaurant, refrain from using any of the SpongeBob marks in connection with the restaurant, and to withdraw the pending trademark application. Dkt. 1, Ex. 1. On November 25, 2015, IJR responded ■ to the letter, stating that it “rejects Viacom’s claim of likelihood of consumer confusion and respectfully declines to cease use,” Dkt. 1, Ex. 2.

On January 29, 2016, Viacom filed the instant lawsuit with nine claims against IJR under the Lanham Act (15 U.S.C. § 1125 (a),(c)) and state common law. Dkt. 1. On September 30, 2016, IJR filed its motion to exclude the plaintiffs expert report and testimony of Dr. Edward Blair. Dkt. 17. While IJR did not dispute the qualifications of the expert himself, IJR made eleven objections to the expert report, alleging “flawed” reasoning and methodology in reaching the survey results. Dkt. 17 at 5. After reviewing the parties’ briefs (Dkts. 17, 23), record, evidence, and applicable law, the court held that Viacom has shown by a preponderance of the evidence that the challenged expert report by Dr. Blair is admissible.2 Dkt. 31. Therefore, IJR’s motion to exclude the expert report and testimony was DENIED. Dkt. 17. Viacom moves for summary judgment on eight of nine claims, which the court will now consider. Dkt. 19.

II. Legal Standard

A court shall grant summary judgment when a “movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(c). “[A] fact is genuinely in dispute only if a reasonable jury could return a verdict for the non-moving party.” Fordoche, Inc. v. Texaco, Inc., 463 F.3d 388, 392 (5th Cir. 2006). The moving party bears the initial burden of demonstrating the absence of a genuine issuer of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). If the party meets its burden, the burden shifts to the non-moving party to set forth specific facts showing a genuine issue for trial. Fed. R. Civ. P. 56(e). The court must view the evidence in the light most favorable to the non-movant and draw all justifiable inferences in favor of the non-movant. Envtl. Conservation Org. v. City of Dall., 529 F.3d. 519, 524 (5th Cir. 2008). The court must review all of the evidence in the record, but make no credibility determinations or weigh any evidence; disregard all evidence favorable to the moving party that the jury is not required to believe; and give credence to the evidence favoring the non-moving party- as well as to the evidence supporting the moving party that is uncontradicted and unimpeached. Moore v. Willis Ind. Sch. Dist., 233 F.3d 871, 874 (5th Cir. 2000).

However, • the non-inovant cannot avoid summary judgment simply by presenting'“conclusory allegations and denials, speculation, improbable inferences, unsubstantiated assertions, and legalistic argumentation.” TIG Ins. Co. v. Sedgwick James of Wash., 276 F.3d 754, 759 (5th Cir. 2002); Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir. 1994) (en banc). By the same token, the moving party will not meet its burden of proof based on conclusory “bald assertions of ultimate facts.” Gossett v. Du-Ra-Kel Corp., 569 [568] F.2d 869, 872 (5th Cir. 1978); see also Galindo v. Precision Am. Corp., 754 F.2d 1212, 1221 (5th Cir. 1985).

III. Analysis

Viacom has nine claims against IJR. Viacom moves for summary judgment on eight of those claims: false designation, unfair competition, and dilution under Texas common law and the Lanham Act; trademark infringement under Texas common law; and refusal of registration under the Lanham Act. Dkts. 1,19.

A. Trademark Infringement (Count 4)

Where a trademark infringement action is brought under Texas common law (as in the case here), courts in the Fifth Circuit analyze the claim under the Lanham Act. 15 U.S.C. § 1125; see Amazing Spaces, Inc. v. Metro Mini Storage, 608 F.3d 225, 236 (5th Cir. 2010) (“The analysis with respect to [plaintiffs] claims under the Lanham Act will be dispositive of its corresponding claims under Texas law as well.”); Elvis Presley Enter., Inc. v. Capece, 141 F.3d 188, 193 (5th Cir. 1998) (“A determination of a likelihood of confusion under federal law is the same as the determination of a likelihood of confusion under Texas law for a trademark infringement claim.”); see also Zapata Corp. v. Zapata Trading Intern., Inc., 841 S.W.2d 45, 47 (Tex. App.-Houston [14th Dist.] 1992, no writ) (“The issues in a common law trademark infringement action under Texas law are no different than those under federal trademark law.”).

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Viacom International Inc. v. IJR Capital Investments, LLC, 242 F. Supp. 3d 563, 2017 WL 1037294, 2017 U.S. Dist. LEXIS 38557 (S.D. Tex. 2017).

242 F. Supp. 3d 563 (Viacom International Inc. v. IJR Capital Investments, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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