ZW USA, Inc. v. PWD Systems, LLC

208 F. Supp. 3d 1025, 2016 U.S. Dist. LEXIS 129549, 2016 WL 5236934
CourtDistrict Court, E.D. Missouri
DecidedSeptember 22, 2016
DocketCase No. 4:14-CV-1500-CEJ
StatusPublished
Cited by1 cases

This text of 208 F. Supp. 3d 1025 (ZW USA, Inc. v. PWD Systems, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ZW USA, Inc. v. PWD Systems, LLC, 208 F. Supp. 3d 1025, 2016 U.S. Dist. LEXIS 129549, 2016 WL 5236934 (E.D. Mo. 2016).

Opinion

MEMORANDUM AND ORDER

CAROL E. JACKSON, UNITED STATES DISTRICT JUDGE

This matter is before the Court on plaintiffs motion for partial summary judgment and defendant’s motion for summary judgment, pursuant to Fed. R. Civ. P. 56(a). Responses have been filed, and the issues are fully briefed.

I. BACKGROUND

Plaintiff ZW USA, Inc. and defendant PWD Systems, LLC are competitors in the dog waste disposal industry. Both companies market dog waste disposal bags, which they sell to a variety of customers: individual dog owners, wholesalers, contractors, dog waste removal services, veterinary clinics, apartment complexes, property managers, home owners associations, airports, marinas, and campgrounds. They also sell dog waste disposal bag stations, which are dispensers from which dog owners may obtain the bags.

It is undisputed that dog owners benefit from retrieving the disposal bags by using only one hand and with minimal distraction or effort from the primary task of controlling a leashed dog. The purchasers of these bags also benefit from reducing the incidence of mistakenly dispensed and unused bags, as may happen if a hurried user reaches for a bag and accidentally takes more than one from the dispenser. Hence, the parties agree, a market exists for dog waste disposal dispensers and bags that are designed to permit retrieval of only one bag at a time with one hand.

Among the basic types of dog waste disposal bags are “roll bags” and “wicket bags,” which are also called “header bags.” The primary difference between header [1035]*1035bags and roll bags is the dispensing mechanism they use. Roll bags are packaged in a single roll, with perforations to facilitate tearing a single bag from the roll as it is dispensed from the dispensing station. Evidence has been submitted that some roll bags and dispensers are designed to allow the user to tear an individual bag from the roll with a “single pull” of the hand (ie., in “one pull”). [Doc. #79-7 at 2-14, 17-21]1 Other designs of roll bags and dispensers allegedly do not include this “one-pull” feature. See id.

Wicket bags are hung by the top from prongs or hooks inside or on a dispenser. Like some versions of roll bags, all wicket bags appear to be designed to allow a user to retrieve a single bag with one pull of the hand. The dispute in this case centers on plaintiff and defendant’s marketing and sale of competing wicket bags that both employ this “one pull” or “single pull” feature.

Doing business as Zero Waste USA, plaintiff markets and sells wicket bags on its company-branded website and on several other websites. According to plaintiff, the company began to market and sell wicket bags under the name “ONEPUL” by September 9, 2010, and under the name “SINGLPUL” by October 30, 2010. [Doc. #85 at 6] Plaintiff has marketed wicket bags using several variations of those terms: SINGLPUL® BAGS, SINGLPul® Bags, SINGLPul® Header Bags, ONE-Pul® bags, ONEPul® Bags, ONEPul® Bags, and ONEPul® DOG WASTE BAGS. [Doc. #79-5 at 2-6]. Plaintiff has-also marketed its dog waste disposal bag dispensing system as the ONEPul® Bag Dispenser. Id. It also claims to have “originated the ONE-PULL STRAP technology” that “restricts dispensing” dog waste disposal bags “to ONLY one-bag-at-a-time!” [Doc. #79-4 at 2-5] (emphasis in original).

On October 22, 2013, plaintiff applied for federal trademark protection inthe terms ONEPUL and SINGLPUL. [Doc. #84-4 at 7-10] Neither party submitted copies of plaintiffs applications to register the trademarks. On August 5, 2014, the United States Patent and Trademark Office (USP-TO) granted plaintiffs applications to register ONEPUL (#4,581,881) and SIN-GLPUL (#4,581,879). Id. Plaintiff filed this suit shortly after the USPTO issued the registrations.

The registrations cover the use of such marks “without claim to any particular font, style, size, or color” for “fixed dispensers of metal for pet waste bags” and for “plastic bags for disposing of pet waste.” Id. The USPTO accepted that both marks were first used in commerce on October 30, 2010. Id. It is undisputed that the USPTO granted plaintiffs applications without first requiring plaintiff to submit proof that ONEPUL or SINGLPUL had “become distinctive of’ plaintiffs “goods in commerce,” pursuant to 15 U.S.C. § 1052(f).

[1036]*1036The defendant was incorporated in February 23, 2012, and it does business as BagSpot. In May 2012, defendant began purchasing wicket bags from a third-party supplier.2 By 2013, it began selling wicket bags and roll bags on its website and by phone. Defendant is not licensed or authorized to use plaintiffs trademarks.

On its website and in its advertisements defendant refers to the wicket bags it markets and sells as “one pull” or “one-pull” bags. It has used various formulations of those words to refer to the wicket bags: BagSpot® One-Pull Bags, BagSpot One-Pull Bags, BagSpot One Pull Bags, One Pull Bags, ONE-PULL BAGS, One-Pull Bags, One-Pull bags, One—Pull bags, One—Pull style, One-pull style bags, One-Pull style Bags, and Single pull bags. [Docs. ##79-1 at 2; 82-2 at 5-6, 25-44] (all terms as in original). These bags are advertised as fitting “most header/wicket/one-pull style dispensers.” [Doc. #82-2 at 6]

None of those terms appear on defendant’s bags themselves, which are instead branded with defendant’s phone number, website, and trademarked BagSpot® label. Id. Though plaintiff contends the subject terms are all “identical,” plaintiff has not argued—and no evidence was submitted— that defendant has ever marketed its bags using plaintiffs trademarked terms ONE-PUL or SINGLPUL, or any variant in capitalization thereof. Nor has plaintiff alleged or introduced evidence that defendant has ever employed any form of the unhyphenated, single-word terms “one-pull” or “singlepull.”

Rather, plaintiff primarily notes the alleged similarities between the trademark ONEPUL and the defendant’s use of “One Pull” in advertisements and on its website. In response to defendant’s motion for summary judgment, plaintiff did not submit any relevant data, survey evidence, expert witness depositions or affidavits, or a deposition, declaration, or affidavit from anyone not affiliated with the parties.3 Plaintiff states that it has spent more than $1.5 million for advertising the ONEPUL and SINGLPUL trademarks since it first began using them. Defendant contests that figure, because it appears to represent plaintiffs entire advertising expenditures over several years, rather than advertising unique to the subject trademarks. In any event, the Court assumes here that plaintiffs statement as to the amount it has spent on advertising the trademarks is accurate. Plaintiff also introduces evidence of its sales and revenues from ONEPUL and SINGLPUL bags.

As other evidence of its claims, plaintiff points to an excerpt from Ruth Springer’s deposition. Springer explained that on defendant’s website, several references to “One Pull Bags” are highlighted hyperlinks that direct website patrons to the portion of the webpage where consumers [1037]*1037may purchase those bags. [Doc.

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Bluebook (online)
208 F. Supp. 3d 1025, 2016 U.S. Dist. LEXIS 129549, 2016 WL 5236934, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zw-usa-inc-v-pwd-systems-llc-moed-2016.