Yellowfin Yachts, Inc. v. Barker Boatworks, LLC

237 F. Supp. 3d 1230, 121 U.S.P.Q. 2d (BNA) 1710, 2017 WL 637674, 2017 U.S. Dist. LEXIS 21745
CourtDistrict Court, M.D. Florida
DecidedFebruary 16, 2017
DocketCASE NO. 8:15-cv-990-T-23TGW
StatusPublished
Cited by2 cases

This text of 237 F. Supp. 3d 1230 (Yellowfin Yachts, Inc. v. Barker Boatworks, LLC) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yellowfin Yachts, Inc. v. Barker Boatworks, LLC, 237 F. Supp. 3d 1230, 121 U.S.P.Q. 2d (BNA) 1710, 2017 WL 637674, 2017 U.S. Dist. LEXIS 21745 (M.D. Fla. 2017).

Opinion

ORDER

STEVEN D. MERRYDAY, UNITED STATES DISTRICT JUDGE

Not anchored by a non-competition or a non-solicitation contract, former Yellowfin Yachts executive Kevin Barker left Yellow-fin and founded a competitor, Barker Boatworks. With the aid of nautical architect Michael Peters, Barker designed a twenty-six-foot, center-console bay boat with a “sweeping” or “s” sheer line. Typically co-extensive with a boat’s rubrail, the sheer line describes the intersection of the hull and the deck of a boat. (Appendix 1, which shows common sheer lines) According to Yellowfin Yachts owner Wylie Na-gler, the “sweeping” 'sheer line distinguishes a Yellowfin from other boats, and a Barker’s overall appearance (or “trade dress”) is so similar to a Yellowfin’s that a buyer in the market fqr. a $125,000 center-console likely will confuse the two.

In addition to alleging that Barker infringed Yellowfin’s trade dress, Yellowfin sues (Doc. 26) Kevin Barker and Barker Boatworks for false designation of origin, common law trade-dress infringement, common law unfair competition, misappropriation of'a trade secret, and civil conspiracy. The defendants move (Doc. 86) for summary judgment.

BACKGROUND

In 1998 Wylie Nagler founded Yellowfin Yachts. Nagler’s first model, a thirty-one-foot center-console, borrowed design elements from Conch, another boat manufacturer. (Nagler Depo. at 24-26) Nagler used a Conch as a “buck,” a template, for the Yellowfin and modified the Conch’s design. (Ñagler Depo. at 25) Nagler introduced more models, including smaller, center-console bay boats.

Nagler and Kevin Barker met around 2003 when Barker bought a thirty-six-foot Yellowfin. (Nagler Depo. at 38) Around 2005, Barker and Nagler began discussing Barker’s buying an ownership interest in Yellowfin and, while the ownership discussions continued, Nagler hired Barker as a salesman. (Barker Depo. at 15-17) Prepared to sell Barker an ownership stake in Yellowfin, Nagler drafted a- “shareholder agreement.” (Composite Exhibit 4) Because Nagler’s draft contract included a non-competition clause and a non-solicitation clause, Barker demurred. (Nagler Depo. . at 69) Despite Barker’s refusal to agree to a non-competition or a non-solicitation clause; Nagler permitted Barker to work at Yellowfin (by that time, Barker managed Yellowfin’s inshore division), and Nagler never insisted that Barker sign a non-competition or non-solicitation contract. (Nagler Depo. at 69-70)

In May 2014 Barker resigned from Yellowfin. (Barker Depo. at 26-31) On May 22, 2014—Barker’s last day at the Yellow-fin office—Barker downloaded several hundred files from Yellowfin’s main server. (Barker Depo. at 115) Barker states that the files contained information about his sales and that Barker wanted to preserve the information in case Nagler disputed [1235]*1235the commission owed to Barker.1(Barker Depo. at 115-16) Barker denies using the downloaded files to solicit customers but admits that he contacted several Yellowfin customers and suppliers using contact information stored on his personal phone. (Barker Depo. at 133)

In July 2014 Barker founded Barker Boatworks and hired nautical architect Michael Peters to design Barker’s first model. (Barker Depo. at 26-31) Peters’s notes from the first meeting describe Barker’s vision—a twenty-six-foot bay boat with a 300-or 350-horsepower engine and a draft between fourteen and seventeen inches. (MPYD 239) Also, Peters’s notes state that Yellowfin “looks to[o] much offshore (too much flare).” The phrase “bay boat look” appeal’s beneath the Yellowfin reference, and Barker argues that the phrase evinces an intent to design a boat that looks different from a Yellowfin. After a months-long exchange, Barker and Peters finalized the boat’s design.

Yellowfin alleges that Barker copied Yellowfin’s “sweeping” sheer line. The “swept,” “sweeping,” or “s” sheer line appears on most bay boats, although several other sheer lines appear in the market. (Appendix 1, which shows common sheer lines) According to Yellowfin, a Barker and a Yellowfin look so similar that a potential buyer likely will confuse the two.

DISCUSSION

The Lanham Act protects trade dress, which is a product’s overall appearance. John H. Harland Co. v. Clarke Cheeks, Inc., 711 F.2d 966, 980 (11th Cir. 1983). Not a substitute for a patent or copyright, trade dress prevents a junior manufacturer from free-riding on a senior manufacturer’s goodwill by selling a product confusingly similar in appearance to the senior product. Eppendorf-Netheler-Hinz GMBH v. Ritter GMBH, 289 F.3d 351, 354-55 (5th Cir. 2002) (Jones, J.). To prevail on the trade-dress claim, Yellowfin must articulate a distinctive feature the purpose of which is primarily aesthetic. Also, Yellowfin must prove that the feature identifies a boat as a Yellowfin (that is, the feature must have acquired a “secondary meaning”) and must prove that a potential buyer likely will confuse a Barker for a Yellowfin. AmBrit v. Kraft, Inc., 812 F.2d 1531, 1536 (11th Cir. 1986) (stating the elements of a trade-dress claim).

1. Yellowfin’s failure to describe the sheer line sinks the trade-dress claim.

A plaintiff must describe with words the distinctive feature of trade dress, and a plaintiff who seeks protection for a line of products “faces the particularly difficult challenge of showing that the appearance of its several products is sufficiently distinct and unique to merit protection as a recognizable trade dress.” Landscape Forms, Inc. v. Columbia Cascade Co., 113 F.3d 373, 380 (2d Cir. 1997) (Oakes, J.). A plaintiffs inability to identify and describe a distinctive, aesthetic feature exposes a trade-dress claim too vague to succeed. Landscape Forms, 113 F.3d 373 at 380-81.

To describe the allegedly infringed sheer line, Yellowfin includes in the complaint nine pictures that show Yellowfin boats of different length. But a finder of fact cannot “be expected to distill from a set of images those elements that are common to a line of products,” Mike Vaughn Custom Sports, Inc. v. Piku, 15 F.Supp.3d 735, 747 (E.D. Mich. 2014) (Lawson, J.) (dismissing an action where the complaint described the trade dress with a series of images rather than with words) (quoting [1236]*1236Nat'l Lighting Co., Inc. v. Bridge Metal Indus., LLC, 601 F.Supp.2d 556, 562-63 (S.D.N.Y. 2009) (Buchwald, J.) (same)).

The record includes no words that describe the allegedly infringed sheer line. Asked how to measure Yellowfín’s sheer line, Nagler declines to identify the inflection point, the height, the slope, or any distinctive property of the sheer line.2 Rather, Nagler states that, “[i]f you box” and superimpose the Yellowfin and Barker sheer lines, “they line up with each other.” (Nagler Depo. at 37) An interrogatory asks Yellowfin to “[d]escribe in detail Yellow-fín’s alleged protectable trade dress infringed by Defendants ...” (Exhibit K to Barker’s motion for summary judgment) Again, Yellowfín’s answer shows nine pictures of Yellowfin boats. (Exhibit K) Also, the answer states:

The sheer line is the sweeping, curved shape formed by the, upper edge of the side of the hull from the bow to the stern.

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237 F. Supp. 3d 1230, 121 U.S.P.Q. 2d (BNA) 1710, 2017 WL 637674, 2017 U.S. Dist. LEXIS 21745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yellowfin-yachts-inc-v-barker-boatworks-llc-flmd-2017.