Justia U.S. 4th Circuit Court of Appeals Opinion Summaries

DRI filed suit against LIA and Ashley under the Lanham Act, 15 U.S.C. 1125(a), alleging that an advertisement placed in a trade magazine by Ashley, and two statements made by the director of LIA's research laboratory, which ran in articles in the same publication, were false and misleading. On appeal, DRI challenged the district court's grant of summary judgment for LIA and Ashley on DRI's false advertising claim. The court agreed with the district court that DRI failed to substantiate a claim that the Ashley Ad is either literally false or impliedly false; that DRI failed to provide sufficient support for a false advertising claim with respect to the director’s statement in the Gunin Article; and that DRI failed to provide sufficient evidence to demonstrate that the director's statement in the Andrews Article was a false or misleading representation of fact. Accordingly, the court affirmed the judgment. View "Design Resources, Inc. v. Leather Indus." on Justia Law

After Radiance published an article online entitled “NAACP: National Association for the Abortion of Colored People” that criticized the NAACP’s stance on abortion, the NAACP sent Radiance a cease-and-desist letter. Radiance sought a declaratory judgment that it had not infringed any NAACP trademarks and the NAACP filed counterclaims alleging trademark infringement and dilution. The court concluded that the NAACP does not have actionable claims for trademark infringement in this case; Radiance's use of the NAACP's marks or colorable imitation falls squarely within the exceptions to trademark dilution specifically included in the Lanham Act, 15 U.S.C. 1051 et seq., to avoid encroaching on free speech rights; and therefore, the court reversed the district court's injunction and remanded with directions that defendant's counterclaims be dismissed. View "The Radiance Foundation, Inc. v. NAACP" on Justia Law

Plaintiff, a dissatisfied applicant in an ex parte trademark proceeding, sought review of an adverse ruling on his trademark application by commencing a de novo action in a federal district court. Under the Lanham Act, if an applicant elects to proceed in district court and no adverse party opposed his application before the Patent and Trademark Office (PTO), the applicant must name the Director of the PTO as a defendant and pay all the expenses of the proceeding, whether or not she succeeds in the action. At the end of the proceeding in this case, the Director of the PTO sought the expenses of the proceeding from Plaintiff, including the PTO’s attorneys fees. The Fourth Circuit affirmed, holding that the imposition of all expenses on a plaintiff in an ex parte proceeding does not constitute “fee-shifting” that implicates the “American Rule” but, rather, constitutes an unconditional compensatory charge imposed on a dissatisfied applicant in an ex parte trademark proceeding who elects to engage the PTO in a district court proceeding. View "Shammas v. Focarino" on Justia Law

This case involved a dispute between two clergymen, each of whom believed himself to be the proper leader of The Protestant Episcopal Church in the Diocese of South Carolina. Bishop Charles vonRosenberg brought this action against Bishop Mark Lawrence, alleging Lanham Act violations and seeking declaratory and injunctive relief. Bishop Lawrence asked the district court to dismiss this federal action for lack of standing or, in the alternative, to abstain and stay this action pending resolution of related state court proceedings. The district court granted the motion to abstain and dismissed the action, concluding that it had broad discretion to decline to grant declaratory relief under the abstention doctrine articulated in Brillhart v. Excess Insurance Co. of Am. and Wilton v. Steven Falls Co. The Fourth Circuit vacated the dismissal order, holding (1) Colorado River Water Conservation Dist. v. United States, which permits a federal court to abstain only in “exceptional” circumstances, properly governed the abstention question in this action; and (2) because the district court did not apply the correct abstention standard, the case is remanded for a determination of whether “exceptional” circumstances are present in this case. View "vonRosenberg v. Lawrence" on Justia Law

This case involved a dispute between two clergymen, each of whom believed himself to be the proper leader of The Protestant Episcopal Church in the Diocese of South Carolina. Bishop Charles vonRosenberg brought this action against Bishop Mark Lawrence, alleging Lanham Act violations and seeking declaratory and injunctive relief. Bishop Lawrence asked the district court to abstain and stay this action pending resolution of related state court proceedings. The district court granted the motion to abstain and stayed the action, concluding that it had broad discretion to decline to grant declaratory relief under the abstention doctrine articulated in Brillhart v. Excess Insurance Co. of Am. and Wilton v. Steven Falls Co. The Fourth Circuit vacated the stay order, holding (1) Colorado River Water Conservation Dist. v. United States, which permits a federal court to abstain only in “exceptional” circumstances, properly governed the abstention question in this action; and (2) because the district court did not apply the correct abstention standard, the case is remanded for a determination of whether “exceptional” circumstances are present in this case. View "vonRosenberg v. Lawrence" on Justia Law

Georgia-Pacific Consumer Products LP commenced three separate actions against von Drehle Corporation or its distributors, alleging contributory trademark infringement. In the instant action, a jury found in favor of Georgia-Pacific and awarded Georgia-Pacific $791,431. The district court entered a permanent, nationwide injunction prohibiting von Drehle from infringing Georgia-Pacific’s trademark rights, trebled the jury’s award, awarded attorneys fees, and awarded prejudgment interest and court costs. In the two parallel actions, the district courts ruled against Georgia-Pacific. The Fourth Circuit vacated the district court’s injunction and award of attorneys fees and reversed its award of treble damages and prejudgment interest, holding (1) the Eighth and Sixth Circuits’ rulings against Georgia-Pacific rendered the district court’s injunction unduly broad, and the district court is instructed to narrow it to cover only the geographical area of the Fourth Circuit; and (2) the district court applied the wrong legal standards for trebling the jury award and for awarding attorneys fees and prejudgment interest. View "Georgia-Pacific Consumer Prods. LP v. von Drehle Corp." on Justia Law

McAirlaids filed suit against Kimberly-Clark for trade-dress infringement and unfair competition under section 32(1)(a) and 43(a) of the Trademark Act of 1946 (Lanham Act), 15 U.S.C. 1114(1)(a) and 1125(a), and Virginia law. McAirlaids produces "airlaid," a textile-like material composed of cellulose fiber. McAirlaids fuses shredded cellulose fiber ("fluff pulp") through a patented embossing process that produces a "pixel" pattern for its absorbent products. McAirlaids filed suit against Kimberly-Clark after Kimberly-Clark began using a similar dot pattern on its GoodNites bed mates, an absorbent product manufactured in a manner different from McAirlaid's pads. On appeal, McAirlaids appealed the district court's grant of summary judgment for Kimberly-Clark. The court concluded that McAirlaids has presented sufficient evidence to raise a genuine issue of material fact regarding the functionality of its pixel-pattern. In particular, deciding whether McAirlaid's embossing pattern affects the quality of its pads requires weighing evidence and making credibility determinations. Therefore, the court vacated the district court's grant of summary judgment and remanded for further proceedings. View "McAirlaids, Inc. v. Kimberly-Clark Corp." on Justia Law

Swatch is the owner of three U.S. registrations for the mark SWATCH and for materials bearing that mark. Beehive produces and sells watch bands and faces under the mark SWAP. On appeal, Swatch challenged the district court's denial of its opposition to Beehive's trademark application and dismissal of its related claims for federal, state, and common law trademark infringement, trademark dilution, and unfair competition. The district court held that the Trademark Trial and Appeal Board's (TTAB) determinations were supported by substantial evidence; found facts based on evidence not presented to the TTAB under its authority under 15 U.S.C. 1071(b)(3); concluded that there was no likelihood of confusion between the two marks and likelihood that SWAP would dilute SWATCH; dismissed Swatch's infringement and unfair competition claims as a matter of law; and concluded that Beehive's mark was registrable because it was not merely descriptive. The court concluded that the district court properly reviewed Swatch's dilution-by-blurring claim entirely de novo; the district court also decided Swatch's trademark infringement and unfair competition claims, which were not before the TTAB, de novo; and, although the district court stated that it would apply an impermissible hybrid review to its likelihood of confusion and strength-of-the-mark analyses, there were more than sufficient facts recited in its opinion to support its findings. Accordingly, the court affirmed the judgment of the district court. View "Swatch AG v. Beehive Wholesale, LLC" on Justia Law

In a trademark infringement dispute between Georgia-Pacific and von Drehle involving paper towels and "touchless" paper towel dispensers, the court vacated the district court's award of summary judgment in von Drehle's favor, and remanded the case for a jury determination of whether von Drehle was liable for contributory trademark infringement. Over three months later, von Drehle sought for the first time to amend its answer to include affirmative defenses of claim preclusion and issue preclusion. The court subsequently held that the district court erred in vacating the jury verdict and in awarding judgment in von Drehle's favor because: (1) von Drehle waived the preclusion defenses by failing to assert them in a timely manner; and (2) the district court erred in alternatively considering the preclusion defense sua sponte. Accordingly, the court vacated the district court's award of judgment in von Drehle's favor, and remanded the case to the district court with instructions to reinstate the jury's verdict in favor of Georgia-Pacific. View "Georgia Pacific Consumer Products, LP v. von Drehle Corp." on Justia Law

Alpha sued defendants, foreign corporations, alleging that defendants conspired to steal its tire blueprints, produce infringing tires, and sell them to entities that had formerly purchased products from Alpha. A jury found in favor of Alpha on all claims and the district court upheld the damages award against defendants' post-trial challenges. Defendants subsequently appealed, contesting the verdict and the district court's exercise of personal jurisdiction. The court initially held that the district court properly exercised jurisdiction over defendants. The court affirmed the district court's judgment that defendants were liable to Alpha under the Copyright Act, 17 U.S.C. 101 et seq., and for conversion under Virginia law, but the court dismissed the remaining theories of liability submitted to the jury. Accordingly, the court affirmed the jury's damages award. Finally, the court vacated the district court's award of attorneys' fees. View "Tire Engineering and Distribution, LLC. v. Shandong Linglong Rubber Co." on Justia Law