WHAT A SMOKE, LLC v. DURACELL US OPERATIONS, INC.

CourtDistrict Court, D. New Jersey
DecidedOctober 30, 2020
Docket2:19-cv-16657
StatusUnknown

This text of WHAT A SMOKE, LLC v. DURACELL US OPERATIONS, INC. (WHAT A SMOKE, LLC v. DURACELL US OPERATIONS, INC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WHAT A SMOKE, LLC v. DURACELL US OPERATIONS, INC., (D.N.J. 2020).

Opinion

Not for Publication

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

WHAT A SMOKE, LLC,

Plaintiff, Civil Action No. 19-16657 v. (JMV) (JAD)

DURACELL U.S. OPERATIONS, INC., OPINION

Defendant.

John Michael Vazquez, U.S.D.J. This matter primarily centers on Plaintiff What A Smoke’s trademark and trade dress infringement claims against Defendant Duracell U.S. Operations, Inc. (“Duracell”). Presently before the Court is Defendant’s motion to dismiss Counts II, IV, V, and VI of Plaintiffs’ Second Amended Complaint (“SAC”). D.E. 37. The Court reviewed all the submissions in support and in opposition1 and considered the motion without oral argument pursuant to Federal Rule of Civil Procedure 78(b) and Local Civil Rule 78.1(b). For the reasons discussed below, the motion to dismiss is GRANTED.

1 Defendant’s brief in support of its motion is referred to as “Def’s Br.,” D.E. 37-1; and Plaintiffs’ brief in opposition is referred to as “Pl. Opp’n,” D.E. 47. I. FACTUAL BACKGROUND2 Plaintiff What A Smoke is a limited liability company organized in New Jersey; it was started in 2008. SAC ¶ 4. Plaintiff “is in the business of bringing safe nicotine delivery device products to the market” and purports to be “a leading innovator, manufacturer and marketer of safe

e-cigarette products under its OPTIMUM brand, including batteries and electric chargers therefor.” Id. ¶ 13. Defendant Duracell is a Delaware corporation that sells and advertises goods and services in New Jersey. Id. ¶ 5. What A Smoke holds two trademark registrations with the United States Patent and Trademark Office (“USPTO”) – Registration Numbers 5,106,639 (“639”) and 5,016,640 (“640”). Id. ¶ 14. 639 pertains to “[p]ower sources, namely, batteries, battery chargers and AC power adapters for electronic cigarettes” in International Class 9, while 640 addresses “[a]tomizers, tanks, refill cartridges and liquids for electronic cigarettes” in International Class 34. Id. (internal quotations omitted). Plaintiff further alleges that it “owns common law trademark rights to its OPTIMUM trademark with respect to batteries, and Trade Dress.” Id. ¶ 58.

Plaintiff continues that its OPTIMUM e-cigarettes and batteries are “distinctly packaged” “utilizing a predominately black, brown and gold color scheme packaging, with the word ‘OPTIMUM’ appearing horizontally within the horizontal brown portion of the packaging” under the name What A Smoke. Id. ¶ 28-29. Plaintiff further alleges that since 2009, the “packaging for its cigarette kit has been . . . consistently black with a brown and gold portion running horizontally across.” Id. ¶ 30. This distinct packaging, along with the marks “What A Smoke” and

2 The factual background is taken from the SAC, D.E. 35. When reviewing a motion to dismiss, the Court accepts as true all well-pleaded facts in the complaint. Fowler v. UPMC Shadyside, 578 F.3d 203, 210 (3d Cir. 2009). 2 “OPTIMUM,” Plaintiff alleges, “is recognized by [its] customers as the source for high quality smoking devices and accessories contained therein.” Id. Plaintiff submits that through the use of a “consistently uniform color scheme,” it has “built a recognizable brand that is identified by consumers with its high quality and safe e-cigarettes, e-

cigarette batteries and charges, atomizers, [and] charging cables.” Id. ¶ 32. Plaintiff adds that its “customers have come to expect high quality batteries and chargers when they buy a black, brown and gold colored package with the word OPTIMUM on it.” Id. Plaintiff contends that the “look and feel” of its OPTIMUM products “has become an asset of substantial value as a symbol of What A Smoke, its high quality products and services, and its goodwill.” Id. ¶ 34. Defendant currently owns two “infringing USPTO trademark applications” – Serial Numbers 88/190,116 for OPTIMUM, and 88/190,119 for DURACELL OPTIMUM. Id. ¶ 6. According to Plaintiff, Defendant “became aware of What A Smoke’s OPTIMUM mark” on November 12, 2018, when it filed trademark applications for OPTIMUM and DURACELL OPTIMUM in Class 9. Id. ¶ 15. In its applications, Duracell signed a declaration which attested

to the following: To the best of the signatory’s knowledge and belief, no other persons, except, if applicable, concurrent users, have the right to use the mark in commerce, either in the identical form or in such near resemblance as to be likely, when used on it in connection with the goods/services of such other persons, to cause confusion or mistake, or to deceive. To the best of the signatory’s knowledge, information, and belief, formed after an inquiry reasonable under the circumstances, the allegations and other factual contentions made above have evidentiary support. The signatory being warned that willful false statements and the like are punishable by fine or imprisonment, or both, under 18 U.S.C. § 1001, and that such willful false statements and the like may jeopardize the validity of the application or submission or any registration resulting therefrom, declares that all statements made of his/her own knowledge are true and all statements made on information and belief are believed to be true. 3 Id. ¶ 15. Plaintiff alleges that the foregoing attestation was at best erroneous because, through a trademark search of the USPTO records prior to filing, Defendant “should have discovered, and undoubtedly it did in fact discover What A Smoke’s two trademark registrations for OPTIMUM in Class 9[.]” Id.

Plaintiff further asserts that the USPTO examiner assigned to review both of Defendant’s trademark applications “refused to register Duracell’s OPTIMUM and DURACELL OPTIMUM marks because the examiner correctly concluded that both [of] Duracell’s marks were confusingly similar to What A Smoke’s senior OPTIMUM mark.” Id. ¶ 16. Plaintiff likewise alleges that the USPTO rejected both of Defendant’s trademark applications “on the grounds of a likelihood of confusion with What A Smoke’s senior OPTIMUM mark.” Id. According to Plaintiff, after Defendant’s trademark applications were rejected by the USPTO, Defendant contacted “What A Smoke asking for permission to use [the] OPTIMUM mark on batteries.” Id. ¶ 17. Duracell “was provided with evidence of What A Smoke’s prior and senior use of the OPTIMUM marks in commerce for batteries,” and while discussions for dispute

resolution were ongoing, “to Plaintiff’s complete and utter shock, and without permission or any communication to Plaintiff whatsoever, Duracell launched its product for batteries using Plaintiff’s OPTIMUM mark.” Id. Plaintiff indicates that since approximately July 15, 2019, Duracell has promoted and sold its batteries in violation of Plaintiff’s senior trademark rights. Id. ¶ 18. Through Defendant’s website, it allegedly “appropriate[s] What A Smoke’s OPTIMUM trademark by using [it] to advertise similar or identical goods, namely, batteries.” Id. ¶ 9. According to the SAC, Defendant uses similar packaging to Plaintiff – including a “similar black and gold color scheme” and “similar positioning of the OPTIMUM mark underneath the company name mark.” Id. ¶ 31. Defendant’s OPTIMUM batteries also allegedly “utilize a

4 predominately black packaging, with gold-brownish coloring, with the word ‘OPTIMUM’ in a contrasting color scheme.” Id. ¶ 32. Plaintiff alleges that Defendant is “using Plaintiff’s trade dress, or a trade dress that is confusingly similar”; that Plaintiff and Defendant sell their respective products to consumers in the same geographical locations; and that “Defendant is a direct

competitor of Plaintiff.” Id. ¶ 36-39.

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