Water Pik, Inc. v. Med-Systems, Inc.

848 F. Supp. 2d 1262, 2012 WL 224447, 2012 U.S. Dist. LEXIS 8681
CourtDistrict Court, D. Colorado
DecidedJanuary 25, 2012
DocketCivil Action No. 10-cv-01221-PAB-CBS
StatusPublished
Cited by3 cases

This text of 848 F. Supp. 2d 1262 (Water Pik, Inc. v. Med-Systems, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Water Pik, Inc. v. Med-Systems, Inc., 848 F. Supp. 2d 1262, 2012 WL 224447, 2012 U.S. Dist. LEXIS 8681 (D. Colo. 2012).

Opinion

ORDER

PHILIP A. BRIMMER, District Judge.

This matter is before the Court on the Motion for Summary Judgment [Docket No. 63/65] filed by plaintiff Water Pik, Inc. and two Motions to Supplement the Record [Docket Nos. 126, 155] filed by defendant Med-Systems, Inc. As a threshold matter, the Court grants defendant’s motions to supplement the record.

I. INTRODUCTION

On May 26, 2010, plaintiff Water Pik brought this declaratory judgment action against Med-Systems after Med-Systems opposed the registration of Water Pik’s SinuSense tm mark before the Trademark Trial and Appeals Board (“TTAB”). See Docket No. 1. Water Pik seeks: (1) a declaratory judgment of non-infringement of defendant’s trademarks under 15 U.S.C. § 1114; (2) a declaratory judgment of non-infringement of defendant’s alleged trade dress under 15 U.S.C. § 1125(a); (3) a declaratory judgment of no federal unfair competition under 15 U.S.C. § 1125(a); (4) a declaratory judgment of no trademark dilution under 15 U.S.C. § 1125(c); and (5) a declaratory judgment finding that Water Pik has the right to register and use the SinuSenseTM mark.

In response, Med-Systems alleges counterclaims against Water Pik for: (1) federal trademark infringement under 15 U.S.C. § 1114; (2) federal trade dress infringement under 15 U.S.C. § 1125(a); (3) unfair competition under 15 U.S.C. § 1125(a); (4) trademark dilution under 15 U.S.C. § 1125(c); and (5) injunctive relief under 15 U.S.C. § 1116.

In its motion for summary judgment, Water Pik claims that, because Med-Systems cannot establish a likelihood of confusion and there have been no instances of actual confusion, the Court should enter [1268]*1268summary judgment with respect to Med-Systems’ counterclaims for trademark infringement and unfair competition. Additionally, Water Pik contends that, because Med-Systems’ trade dress is not inherently distinctive nor has it acquired secondary meaning, Med-Systems’ counterclaim for trade dress infringement fails as a matter of law. Finally, Water Pik argues that the Court should enter summary judgment with respect to Med-Systems’ trademark dilution claim because Med-Systems cannot establish that SinuCfecrose® is a famous mark. Water Pik also asserts that, if summary judgment is granted with respect to all of Med-Systems’ counterclaims, then the Court should enter a final judgment in favor of Water Pik for all relief sought in the complaint.

II. BACKGROUND1

A. The SinuCleanse® Mark

Med-Systems was formed in 1997 by David Gallo and Dr. Diane Heatly. Med-Systems sells sinus irrigation products utilized by customers to open and irrigate nasal passages. Med-Systems markets its products under the SinuCtecrose® mark, which was registered on November 24, 1998. Docket No. 95-15 at 1. Dr. Heatly and Mr. Gallo independently created the SinuCfecmse® mark and settled on the mark because it best described the purpose of their product: cleansing sinuses. Docket No. 57-1 at 3 (Heatly Dep. 12:16-21).

Between 1997 and 2007, Med-Systems’ trade dress for SinuCleanse® products depicted wavy lines and incorporated a red and blue color scheme. Docket No. 95-2 at 18 (Gallo Dep. 186:7-10); Docket No. 57-2 at 25. The Sinu Cleanse® mark was a prominent feature on the trade dress as the “sinu” portion of the mark was highlighted in standard block red font, Docket No. 57-2 at 8 (Gallo Dep. 185:21-22), while “Cleanse” was italicized in blue font. Id. at 9 (Gallo Dep. 186:22-25).

Med-Systems initially focused its business on the sale of neti pots2; however, it now offers other sinus irrigation products such as saline refills and squeeze bottles. Med-Systems’ products are available on the internet and in pharmaceutical departments nationwide. Potential consumers usually encounter the Sinu Cleanse® mark in its stylized form (i.e. with color theme and italics), but may also find the non-stylized Sinu Cleanse® mark (i.e. without a color theme or italics) on Med-Systems’ website or other forms of advertising.

In November 2007, Med-Systems hired Masterson Marketing, Inc. (“Masterson”) to design and develop a new trade dress for Sinu Cleanse® products. Med-Systems desired a new “look and feel” for the Sinu Cleanse® product line. Docket No. 57-5 at 40. The partnership between Med-Systems and Masterson lasted until October 2010, when it was terminated because of licensing disagreements. Docket No. 57-2 at 23 (Gallo Dep. 222:14-16). Med-Systems and Masterson are currently involved in litigation, Med-Systems, Inc. v. Masterson Marketing, Inc., 11-cv-0695-JLS-BLM (S.D.Cal.2011), regarding ownership of the copyrights for certain SinuCleanse® packaging. See Docket No. 95-16.

Between November 2007 and October 2010, Med-Systems’ SinuCleanse® trade dress underwent several changes. In 2008, Med-Systems modified the trade dress because the company launched its own private label brand and, as a result, [1269]*1269had two versions of its sinus irrigation products for sale in stores. The new version of the SinuCZecmse® trade dress had the prefix “Sinu” altered from the red font to a blue font. Docket No. 57-2 at 15 (Gallo Dep. 194:11-13).

In 2009, Med-Systems’ packaging again underwent significant changes. Masterson provided Med-Systems with several package designs; however, some of these models were never utilized and never appeared on store shelves. Id. at 12 (Gallo Dep. 191:18-20); Docket No. 57-4 at 3-6.

Notwithstanding the alterations made to its packaging, Med-Systems asserts that, from 2007 until early 2011, its trade dress was consistent and unique, incorporating a light blue and white theme of the sky, clouds, and a stream of water flowing through its packaging design. Med-Systems alleges that its mark is not only unique, but that it is famous and has acquired secondary meaning. Med-Systems claims that every year since 1997 it has spent 30% or more of its total sales on marketing and advertising, Docket No. 95-2 at 21 (Gallo Dep. 205:10-25), has advertised SinuCZecrose® through channels such as television, radio, newspapers, and tradeshows, see generally Docket No. 95-10, and, most notably, SinuCZecmse® had a feature on the Oprah Winfrey show with Dr. Mehmet Oz in December 2007. Id. at 4. Med-Systems states that, after the Oprah Winfrey show, it saw a sharp increase in its reputation and goodwill as evidenced by the rising sales of its neti pot. Id. at 22.

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848 F. Supp. 2d 1262, 2012 WL 224447, 2012 U.S. Dist. LEXIS 8681, Counsel Stack Legal Research, https://law.counselstack.com/opinion/water-pik-inc-v-med-systems-inc-cod-2012.