Sie sind auf Seite 1von 30

81,7('67$7(6',675,&7&2857

)257+(:(67(51',675,&72)1257+&$52/,1$
&+$5/277(',9,6,21


  
:+,5/322/3523(57,(6,1& † &LYLO$FWLRQ1RFY)':
:+,5/322/&25325$7,21DQG † '&.
0$<7$*3523(57,(6//& † 
 † 
3ODLQWLIIV † 
 †
Y †
 †
),/7(56)$67//& †
 †
'HIHQGDQW †
 †



:+,5/322/3/$,17,))6¶0(025$1'80,123326,7,2172
'()(1'$17),/7(56)$67¶6027,21)256800$5<-8'*0(17


 

Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 1 of 30


7$%/(2)&217(176

,1752'8&7,21

67$7(0(172))$&76

, 7+(3$57,(6

,, '()(1'$17¶6'(&(37,9(35$&7,&(6

$ )DOVH'HFHSWLYHDQG&RQIXVLQJ'HVFULSWLRQVRIWKH1RQ*HQXLQH
3URGXFWV
% ³%DLWDQG6ZLWFK´7DFWLFV7DUJHWLQJ&RQVXPHUV6HHNLQJ*HQXLQH
:KLUOSRRO)LOWHUV
& 0LVOHDGLQJ3DFNDJLQJDQG/DEHOLQJ
' 'HIHQGDQW¶V$ZDUHQHVV2IDQG'LVUHJDUG7RZDUG&RQVXPHU
&RQIXVLRQ&DXVHG%\,WV3UDFWLFHV
$5*80(17

, :+,5/322/¶6&/$,06$5(127%$6('21,1,7,$/,17(5(67
&21)86,21

,, /,.(/,+22'2)&21)86,21,6$',6387('48(67,212))$&7

,,, '()(1'$17,6127(17,7/('726800$5<-8'*0(1721,76
120,1$7,9()$,586('()(16(

,9 :+,5/322/+$66$7,6),(',76%85'(121'$0$*(6

&21&/86,21


 

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 2 of 30
7DEOHRI$XWKRULWLHV
&DVHV

165 Park Row, Inc. v. JHR Dev., LLC1R&917:/


 '0H1RY 
Anheuser-Busch, Inc. v. L. & L. Wings, Inc.)G WK&LU 
Century 21 Real Estate Corp. v. Lendingtree, Inc.)G G&LU 
Creekside Apts v. Poteat6(G 1&&W$SS 
Ditch Witch of Charlotte, Inc v. Bandit Indus., Inc.1R&9:/
 :'1&-DQ 
Dynamic Aviation Grp., Inc. v. Dynamic Int'l Airways, LLC1R&9
:/ :'9D-XO\ 
Exclaim Mktg., LLC v. DirecTV, LLC)$SS[ WK&LU 
Ferrellgas, L.P. v. Best Choice Prods.:/ 0'1&-XO\
 
Fun-Damental Too, Ltd. v. Gemmy Indus. Corp., )G G&LU 
Hospitality Intern. v. Mahtani1R&9:/ 0'1&
$XJ 
Jacobs v. N.C. Admin. Office of the Courts)G WK&LU 
Kos Pharm., Inc. v. Andrx. Corp.)G G&LU 
Lee v. Town of Seaboard)G WK&LU 
Lorillard Tobacco Co. v. S&M Brands, Inc.)6XSSG ('9D 
Lyons P’ship, L.P. v. Morris Costumes, Inc.)G WK&LU 
Midwestern Pet Foods, Inc. v. Societe des Produits Nestle S.A.)G
)HG&LU 
MishawakaRubber & Wollen Mfg. Co. v. S.S. Kresge Co.86  
Mitchell v. Linville6(G 1&&W$SS 
Nat’l Fed’n of the Blind v. Loompanics Enters.)6XSS '0G 
Nutramax Labs., Inc. v. Theodosakis1R&&%:/ '
0G-XQH 
Polo Fashions, Inc. v. Craftex, Inc.)G WK&LU 
Ray Commc’ns, Inc. v. Clear Channel Commc’ns, Inc.)G WK&LU
 
Rolex Watch, U.S.A., Inc. v. Michel Co.)G WK&LU 
Rosetta Stone Ltd. v. Google, Inc.)G WK&LU 
Sara Lee Corp. v. Kaiser Roth Corp.)G WK&LU 

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 3 of 30
Synergistic Int’l, LLC v. Korman)G WK&LU 
Thrifty Rent-A-Car Sys., Inc. v. Thrifty Auto Sales of Charleston, Inc.)
6XSS '6& 
Tiffany (NJ) Inc. v. eBay Inc.)G G&LU 
Tools USA & Equip. Co. v. Champ Frame Straightening Equip. Inc.)G
WK&LU 
Univ. Furniture Intern., Inc. v. Collezione Europa USA, Inc.)G WK
&LU 
Variety Stores, Inc. v. Wal-Mart Stores, Inc.)G WK&LU 
Xtreme Lashes, LLC v. Xtended Beauty, Inc.)G WK&LU 
6WDWXWHV

86&† D 
2WKHU$XWKRULWLHV

0F&DUWK\RQ7UDGHPDUNVDQG8QIDLU&RPSHWLWLRQ WKHG1RY8SGDWH 


5HVWDWHPHQW 7KLUG RI8QIDLU&RPSHWLWLRQ†  
5XOHV

)HG5&LY3

 

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 4 of 30
,1752'8&7,21

'HIHQGDQW)LOWHUV)DVWKDVHQJDJHGLQD\HDUVORQJFDPSDLJQRIPLVXVLQJ:KLUOSRRO¶V

0DUNVDQGJHQHUDWLQJIDOVHPLVOHDGLQJDQGGHFHSWLYHDGYHUWLVLQJDQGPDUNHWLQJFRQWHQW

GHVLJQHGWRFRQIXVHFRQVXPHUV'HIHQGDQW¶V³EDLWDQGVZLWFK´WDFWLFVLQFOXGHXVLQJLPDJHVRI

JHQXLQH:KLUOSRROILOWHUVRQZHEVLWHOLVWLQJVRIIHULQJQRQ:KLUOSRROILOWHUVIRUVDOHGHVFULELQJ

QRQ:KLUOSRROILOWHUVLQDGHFHSWLYHPDQQHUDQGUHGLUHFWLQJFRQVXPHUVVHDUFKLQJRQOLQHIRU

JHQXLQH:KLUOSRROILOWHUVWRZHESDJHVRIIHULQJQRQJHQXLQHILOWHUVDQGSUHVHQWLQJWKRVH

ZHESDJHVLQDPDQQHUWKDWVXJJHVWVWKHSURGXFWRIIHUHGLVDJHQXLQH:KLUOSRROILOWHU'HIHQGDQW

KDVHQJDJHGLQWKHVHWDFWLFVWRFRQIXVHFRQVXPHUVLQWRSXUFKDVLQJ ORZHUTXDOLW\

JHQHULFUHIULJHUDWRUZDWHUILOWHUV$IWHU'HIHQGDQWLJQRUHG:KLUOSRRO¶VUHSHDWHGIDLUXVH

VXJJHVWLRQV:KLUOSRROILOHGVXLWWRSURWHFWFRQVXPHUVDQGLWVLQWHOOHFWXDOSURSHUW\ULJKWV

7KHUHFRUGLVUHSOHWHZLWKHYLGHQFHWKDW'HIHQGDQWDFWHGLQWHQWLRQDOO\'HIHQGDQW¶V

LQWHUQDOFRQWHPSRUDQHRXVHPDLOVDFNQRZOHGJHWKDWFRQVXPHUVZHUHFRQIXVHGE\LWVDGPLWWHGO\

³GHFHSWLYH´FRQGXFW,QGHHGKXQGUHGVRIPLVOHGFRQVXPHUVFRPSODLQHGWR'HIHQGDQWDIWHU

UHFHLYLQJDQRQJHQXLQHILOWHU$QG:KLUOSRROLVQRWDORQH1XPHURXVRWKHUUHSXWDEOHSURGXFW

PDQXIDFWXUHUVKDYHFRPSODLQHGDQGWKUHDWHQHGOHJDODFWLRQDJDLQVW'HIHQGDQWIRUWKHVDPH³EDLW

DQGVZLWFK´VFKHPHV

'HIHQGDQW¶VPRWLRQVKRXOGEHGHQLHGEHFDXVHWKHRYHUZKHOPLQJHYLGHQFHRIFRQIXVLRQ

LQWKLVFDVHVKRXOGEHSUHVHQWHGWRWKHMXU\7HOOLQJO\'HIHQGDQW¶VPRWLRQGLGQRWDQDO\]HWKH

PXOWLIDFWRU³OLNHOLKRRGRIFRQIXVLRQ´VWDQGDUGWKLV&RXUWPXVWFRQVLGHUZKHQGHFLGLQJWKLV

PRWLRQ,QVWHDGLWUDLVHVLVVXHVWKDWDUHHLWKHULQDSSOLFDEOHWRWKLVFDVHRUUHODWHVROHO\WRWKH

TXDQWXPRIGDPDJHV%HFDXVHWKHUHDUHJHQXLQHGLVSXWHVDVWRPDWHULDOIDFWV'HIHQGDQW¶V

PRWLRQIRUVXPPDU\MXGJPHQWVKRXOGEHGHQLHG

 

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 5 of 30
67$7(0(172))$&76

 7KLVFDVHFRQFHUQV'HIHQGDQW¶VPLVOHDGLQJGHFHSWLYHDQGXQIDLUEXVLQHVVSUDFWLFHV

DLPHGDWFRQIXVLQJFXVWRPHUVLQWREHOLHYLQJWKDWKLJKHUPDUJLQQRQJHQXLQHZDWHUILOWHUVDUH

PDQXIDFWXUHGVROGRURWKHUZLVHVSRQVRUHGDIILOLDWHGZLWKRUHQGRUVHGE\:KLUOSRRO

, 7+(3$57,(6

 :KLUOSRROPDQXIDFWXUHVDQGVHOOVUHIULJHUDWRUZDWHUILOWHUV WKH³:KLUOSRRO)LOWHUV´ 

XQGHUWKH(YHU\'URSŠ:KLUOSRROŠ0D\WDJŠDQG.LWFKHQ$LGŠEUDQGV FROOHFWLYHO\³WKH

0DUNV´  $P&RPSOˆ$SS :KLUOSRROUHIHUVWRLWVILOWHUVDV³)LOWHU´WKURXJK

³)LOWHU´DQGHDFKILOWHUEHDUVLWVRZQXQLTXHPRGHOQXPEHUVXFKDV³('55;'´RU

³´)RUH[DPSOH

:KLUOSRROGHYRWHVVLJQLILFDQWUHVRXUFHVWRSURGXFWGHYHORSPHQWDQGWHVWLQJWRHQVXUHWKDW

FRQVXPHUVKDYHDFFHVVWRTXDOLW\SURGXFWVWKDWGHOLYHUWKHSHUIRUPDQFHDQGVDIHW\WKH\KDYH

FRPHWRH[SHFWIURP:KLUOSRRO)RUH[DPSOHWKH:KLUOSRRO)LOWHUVDUH16)FHUWLILHG

UHPRYLQJFRQWDPLQDQWVVXFKDVOHDGZKLFKDUHKDUPIXOWRKXPDQKHDOWK $SS ,Q

PDNLQJSXUFKDVLQJGHFLVLRQVFRQVXPHUVXVHDQGUHO\RQWKH:KLUOSRRO0DUNVWKHILOWHUPRGHO

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 6 of 30
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 7 of 30
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 8 of 30
$SS 7KLVZDVGHOLEHUDWHDQG 

 $SSsee also $SS $WWKDWWLPH 

 $SS  

 $SS 'HIHQGDQWDOVRPLVOHDGLQJO\XVHGLPDJHVDQGWH[WUHIHUULQJWR

:KLUOSRRO)LOWHUVRQWKLUGSDUW\SODWIRUPVVXFKDVH%D\:DOPDUWDQG6HDUV²EXWZKHQ

SXUFKDVHG'HIHQGDQWVKLSSHGWKHFRQVXPHUD1RQ*HQXLQH3URGXFW)RUH[DPSOH'HIHQGDQW

XVHGWKHIROORZLQJOLVWLQJIRUD1RQ*HQXLQH3URGXFWRQ6HDUVFRP

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 9 of 30


$SSsee also, e.g.$SS 

 'HIHQGDQWKDVDOVRGLVSOD\HGOLVWLQJVIRU1RQ*HQXLQH3URGXFWVSURPLQHQWO\XVLQJWKH

0DUNVRUPRGHOQXPEHUVIRUWKH:KLUOSRRO)LOWHUVLQWLWOHVZLWKRXWPHQWLRQLQJWKHDFWXDOQRQ

2(0EUDQGRUPDQXIDFWXUHULQWKHWLWOHDQGVRPHWLPHVWKHDFWXDOPDQXIDFWXUHULVQRWLGHQWLILHG

RQWKHZHESDJHDWDOO)RUH[DPSOH

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 10 of 30


$SSsee also, e.g.$SS 0RUHEURDGO\'HIHQGDQW¶V

VWDQGDUGSUDFWLFHZDVWREHJLQHYHU\UHIHUHQFHWR1RQ*HQXLQH3URGXFWVRQLWVZHEVLWHZLWKD

FRUUHVSRQGLQJ2(0EUDQGQDPHVXFKDV:KLUOSRRO $SS  

 $SS 

 'HIHQGDQWKDVDOVRFRQIXVLQJO\XVHGWKH:KLUOSRROJHQXLQHILOWHUPRGHOQXPEHUVVXFKDV

('55;'RULQWKHWLWOHRIOLVWLQJVIRU1RQ*HQXLQH3URGXFWV

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 11 of 30


$SSsee also, e.g.$SS 'HIHQGDQW¶V'LUHFWRURI6DOHVDQG&XVWRPHU

6HUYLFHWHVWLILHGWKDW 

 $SS 1RWZLWKVWDQGLQJ:KLUOSRRO¶V

UHSHDWHGUHTXHVWV see $SS RQO\ZLWKLQWKHSDVWIHZZHHNVKDV'HIHQGDQWXSGDWHGLWV

ZHEVLWHWRLGHQWLI\WKH1RQ*HQXLQH3URGXFWVE\WKHLUEUDQGQDPHV e.g.$TXD)UHVK  $SS

 

 $GGLWLRQDOO\WKHZHEVLWH85/VIRUWKH1RQ*HQXLQH3URGXFWVPLVOHDGLQJO\FRQYH\WKDW

WKH1RQ*HQXLQH3URGXFWVDUH:KLUOSRRO)LOWHUV)RUH[DPSOH'HIHQGDQWRIIHUVWKHAquaFresh

:)SURGXFWIRUVDOHDW³KWWSVZZZILOWHUVIDVWFRPSZKLUOSRROHGUU[GHYHU\GURSILOWHU

DVS´ $SS HPSKDVLVDGGHG 

 'HIHQGDQWDOVRPLVUHSUHVHQWVWKHTXDOLW\DQGVDIHW\RIWKH1RQ*HQXLQH3URGXFWV

'HIHQGDQWDGYHUWLVHVWKH1RQ*HQXLQH3URGXFWVDVGLUHFWUHSODFHPHQWVIRUJHQXLQH:KLUOSRRO

ILOWHUVHYHQWKRXJKWKH1RQ*HQXLQH3URGXFWVGRQRWSURYLGHWKHTXDOLW\RUILOWUDWLRQWKDW

FRQVXPHUVGHVLUHDQGH[SHFWIURPWKHLU:KLUOSRROUHIULJHUDWLRQDQGZDWHUGHOLYHU\V\VWHPV

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 12 of 30
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 13 of 30
 % ³%DLWDQG6ZLWFK´7DFWLFV7DUJHWLQJ&RQVXPHUV6HHNLQJ*HQXLQH 
 :KLUOSRRO)LOWHUV

 'HIHQGDQW¶VZHEVLWHDQGRQOLQHDGYHUWLVHPHQWVEDLWFRQVXPHUVWRSURGXFWOLVWLQJV

SXUSRUWLQJWREHJHQXLQH:KLUOSRRO)LOWHUVEXWDUHDFWXDOO\OLVWLQJVIRU1RQ*HQXLQH3URGXFWV

)RUH[DPSOHFRQVXPHUVZKRSXUFKDVHSURGXFWVIURP'HIHQGDQW¶VZHEVLWHPD\XVHLWVVHDUFKRU

³)ULGJH)LOWHU)LQGHU´WRROVZKLFKSURYLGHOLVWLQJVWKDWGHVFULEHDQGLOOXVWUDWHOLQNVWRSURGXFW

SDJHVWKDWRIIHUJHQXLQH:KLUOSRRO)LOWHUV+RZHYHUZKHQDFRQVXPHUFOLFNVRQVXFKOLVWLQJV

IRUWKH:KLUOSRRO)LOWHUVWKH\DUHUHGLUHFWHGWRDSDJHRIIHULQJD1RQ*HQXLQH3URGXFW $SS

 7KHVHSDJHVGHFHSWLYHO\DQGPLVOHDGLQJO\GHVFULEHGWKRVH1RQ*HQXLQH

3URGXFWVDVGHWDLOHGDERYH

 'HIHQGDQWDOVRSXUFKDVHVDGYHUWLVHPHQWVVXFKDVVSRQVRUHGVHDUFKDGVGLVSOD\HGRQ

VHDUFKHQJLQHV VXFKDV*RRJOHDQG%LQJ OLVWLQJVRQVKRSSLQJSODWIRUPVVXFKDV*RRJOH

6KRSSLQJDQGEDQQHUDGV 

 $SS )RU

H[DPSOH'HIHQGDQW¶VDGYHUWLVHPHQWVSXUSRUWWRWDNHWKHXVHUWRDSDJHWRSXUFKDVHJHQXLQH

:KLUOSRRO)LOWHUVDVVKRZQEHORZ

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 14 of 30
 $SS +RZHYHUZKHQDFRQVXPHUFOLFNVRQWKHOLQNWKHFRQVXPHULVGLUHFWHGWRDOLVWLQJ

IRUD1RQ*HQXLQH3URGXFWZKLFKLWVHOIXVHVWKHPLVOHDGLQJDQGGHFHSWLYHWDFWLFVRXWOLQHG

DERYH $SS  

 $SS 

'HIHQGDQWKDVDOVRGHVLJQHGLWVZHESDJHVVHOOLQJ1RQ*HQXLQH3URGXFWVWRDSSHDULQ

VHDUFKHQJLQHTXHULHVVXFKDV³:KLUOSRRO)LOWHU´,WGRHVVRNQRZLQJWKHFRQVXPHULVVHHNLQJ

DJHQXLQH:KLUOSRRO)LOWHUEXWLQVWHDGGLUHFWVWKHFRQVXPHUWRDOLVWLQJIRUD1RQ*HQXLQH

3URGXFWVXFKDVWKHH[DPSOHEHORZ

$SSsee also, e.g.$SS ,QGHHGRQWKRVHIHZSURGXFWSDJHVRQ'HIHQGDQW¶V

ZHEVLWHZKHUHJHQXLQH:KLUOSRRO)LOWHUVDUHVROGWKHSDJHVdo not even offerWKH:KLUOSRRO

)LOWHUZKHQDFFHVVHG,QVWHDGWKHVHSDJHVGLVSOD\D1RQ*HQXLQH3URGXFWZLWKDQ³$GGWR

&DUW´RSWLRQIRUWKH1RQ*HQXLQH3URGXFWRQO\FRQVXPHUVPXVWVHOHFWDQRWKHUGLVSOD\WRILQG

WKHGHVLUHG:KLUOSRRO)LOWHU E.g.$SS 7KLV³EDLWDQGVZLWFK´DFWLYLW\SDUWLFXODUO\

ZKHQFRPELQHGZLWKWKHGHFHSWLYHDQGPLVOHDGLQJGHVFULSWLRQVRIWKH1RQ*HQXLQH3URGXFWVLQ

WKHZHESDJHWLWOHVGHVFULSWLRQVDQG85/VLVOLNHO\WRFRQIXVHPLVOHDGRUGHFHLYHFRQVXPHUV

& 0LVOHDGLQJ3DFNDJLQJDQG/DEHOLQJ

 7KHSDFNDJLQJRIWZR$TXD)UHVKEUDQGILOWHUVWKH:)DQG:)SURPLQHQWO\DQG

PLVOHDGLQJO\GHVFULEHWKHILOWHUVDVD³5HSODFHPHQW:KLUOSRROŠILOWHU´ $SS 7KH

SDFNDJLQJRIWKH$TXD)UHVK:)ILOWHUPLVOHDGLQJO\GHVFULEHVWKHILOWHUDVD³5HSODFHPHQWIRU

:KLUOSRRO:)´ $SS 

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 15 of 30
' 'HIHQGDQW¶V$ZDUHQHVV2IDQG'LVUHJDUG7RZDUG&RQVXPHU&RQIXVLRQ&DXVHG
%\,WV3UDFWLFHV

 'HIHQGDQWKDVNQRZQLWVGHFHSWLYHDQGPLVOHDGLQJSUDFWLFHVFRQIXVHFRQVXPHUVLQWR

SXUFKDVLQJKLJKHUPDUJLQ1RQ*HQXLQH3URGXFWV'HIHQGDQWPDLQWDLQVDFXVWRPHUVHUYLFH

GHSDUWPHQWWKDWKDQGOHVFRPSODLQWVIURPFXVWRPHUVZKRGLGQRWH[SHFWWRUHFHLYH1RQ*HQXLQH

3URGXFWV'HIHQGDQW¶V'LUHFWRURI6DOHVDQG&XVWRPHU([SHULHQFH 

 $SS 'HIHQGDQWDOVRPRQLWRUVSXEOLFUHYLHZVZKHUHFXVWRPHUV

IUHTXHQWO\FRPSODLQDERXW'HIHQGDQW¶VGHFHSWLYHDQGPLVOHDGLQJVDOHVWDFWLFV $SS

 

 +XQGUHGVRIFRQVXPHUVKDYHUHSRUWHGWKDWWKH\KDYHEHHQFRQIXVHGE\'HIHQGDQW¶V

WDFWLFVUHFHLYLQJQRQ2(0ILOWHUVWKDWWKH\GLGQRWEHOLHYHWKH\KDGRUGHUHG See $SS

 ,QGHHG

FRQVXPHUVUHSHDWHGO\FRPSODLQDERXWLVVXHVWKH\DUHH[SHULHQFLQJIURPWKHLUSRRUTXDOLW\1RQ

*HQXLQH3URGXFWRIWHQZLWKRXWHYHQUHDOL]LQJWKDWWKHILOWHUWKH\SXUFKDVHGZDVQRWDJHQXLQH

:KLUOSRRO)LOWHU E.g.$SS 7R'HIHQGDQWFRQIXVHGFXVWRPHUVDUHWKHFRVW

RIGRLQJEXVLQHVVZKHQ 

 $SS 

$5*80(17

 6XPPDU\MXGJPHQWLVDSSURSULDWHRQO\ZKHUHWKHPRYDQWHVWDEOLVKHVWKHUHLVQRJHQXLQH

GLVSXWHDVWRDQ\PDWHULDOIDFW)HG5&LY3³µ$GLVSXWHLVJHQXLQHLIDUHDVRQDEOHMXU\

FRXOGUHWXUQDYHUGLFWIRUWKHQRQPRYLQJSDUW\¶DQGµDIDFWLVPDWHULDOLILWPLJKWDIIHFWWKH

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 16 of 30
RXWFRPHRIWKHVXLWXQGHUWKHJRYHUQLQJODZ¶´Variety Stores, Inc. v. Wal-Mart Stores, Inc.

)G WK&LU  TXRWLQJJacobs v. N.C. Admin. Office of the Courts)G

 WK&LU &RXUWV³PXVWµYLHZWKHHYLGHQFHLQWKHOLJKWPRVWIDYRUDEOHWRWKH

QRQPRYLQJSDUW\DQGUHIUDLQIURPZHLJKLQJWKHHYLGHQFHRUPDNLQJFUHGLELOLW\GHWHUPLQDWLRQV¶´

Id. TXRWLQJLee v. Town of Seaboard)G WK&LU 

 'HIHQGDQWUHTXHVWVVXPPDU\MXGJPHQWRQIRXUJURXQGV  :KLUOSRRO¶VFODLPVFRQFHUQ

LQLWLDOLQWHUHVWFRQIXVLRQ  'HIHQGDQW¶VXVHRIWKHPDUNVLVQRWFRQIXVLQJGHFHSWLYHRUXQIDLU

 'HIHQGDQWHQJDJHVLQQRPLQDWLYHIDLUXVHDQG  :KLUOSRRO¶VGDPDJHVH[SHUWGLGQRW

HVWDEOLVKDFDXVDOQH[XVEHWZHHQ'HIHQGDQW¶VZLGHVSUHDGXQODZIXODFWLYLW\DQGHDFKDQGHYHU\

VDOHRIWKH1RQ*HQXLQH3URGXFWVE\'HIHQGDQW(DFKRIWKHVHDUJXPHQWVODFNPHULW

, :+,5/322/¶6&/$,06$5(127%$6('21,1,7,$/,17(5(67
 &21)86,21

 &RQWUDU\WR'HIHQGDQW¶VDUJXPHQW:KLUOSRRO¶VFODLPVDUHQRWEDVHGRQDQLQLWLDOLQWHUHVW

WKHRU\RIFRQIXVLRQ5DWKHU:KLUOSRROFRQWHQGVWKDW'HIHQGDQW¶VFRQGXFWLVOLNHO\WRFDXVH

FRQIXVLRQthroughoutWKHSXUFKDVLQJSURFHVVDQGEH\RQGDQGLQIDFWKDVFDXVHGZLGHVSUHDG

DFWXDOFRQIXVLRQLQWKHPLQGVRIFRQVXPHUVSeeAnheuser-Busch, Inc. v. L. & L. Wings, Inc.

)G WK&LU $VGHVFULEHGLQGHWDLOEHORZDJHQXLQHGLVSXWHRIPDWHULDO

IDFWSODLQO\H[LVWVDVWRZKHWKHU'HIHQGDQW¶VXVHRIWKH0DUNVDQGIDOVHDGYHUWLVLQJKDYHFUHDWHG

DOLNHOLKRRGRIFRQIXVLRQWKURXJKWKHSRLQWRISXUFKDVH



 7KHUHPDLQGHURIWKH$PHQGHG&RPSODLQWPDNHVFOHDUWKDW:KLUOSRRODOOHJHVWKDW
'HIHQGDQW¶VGHFHSWLYHDQGPLVOHDGLQJDFWLYLWLHVDUH³OLNHO\WRFDXVHFRQIXVLRQGHFHSWLRQDQG
PLVWDNHDPRQJFRQVXPHUV´DQGHDFK&RXQWLQWKH$PHQGHG&RPSODLQWDOOHJHVWKDW'HIHQGDQW¶V
DFWLYLWLHVDUHOLNHO\WRFRQIXVHDQGGHFHLYHFRQVXPHUVZLWKRXWUHIHUHQFHWRLQLWLDOLQWHUHVW
FRQIXVLRQ $P&RPSOˆˆ 8QOLNHLQDitch Witch of Charlotte, Inc. v.
Bandit Indus., Inc.1R&9:/DW  :'1&-DQ WKHUHLV
DFOHDUUHFRUGRI'HIHQGDQW¶VGHFHSWLYHDQGPLVOHDGLQJFRPPXQLFDWLRQVWRFRQVXPHUV

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 17 of 30
,, /,.(/,+22'2)&21)86,21,6$',6387('48(67,212))$&7

 %\LWVYHU\QDWXUHWKHOLNHOLKRRGRIFRQIXVLRQLQTXLU\LV³LQKHUHQWO\IDFWXDO´³GHSHQGV

RQWKHXQLTXHIDFWVDQGFLUFXPVWDQFHVRIHDFKFDVH´DQGLV³SDUWLFXODUO\DPHQDEOHWRUHVROXWLRQ´

E\DFURVVVHFWLRQRIFRQVXPHUV²i.e. DMXU\Anheuser-Busch)GDW'HIHQGDQW

DUJXHVWKDWWKLV&RXUWVKRXOGILQG²DVDPDWWHURIODZ²WKDWQRUHDVRQDEOHMXU\FRXOGILQGWKDW

'HIHQGDQW¶VZLGHVSUHDGPLVXVHRIWKH0DUNVDQGIDOVHDGYHUWLVLQJFUHDWHGDOLNHOLKRRGRI

FRQIXVLRQ7KLVFODLPLVZLWKRXWPHULWDQG'HIHQGDQW¶VPRWLRQIRUVXPPDU\MXGJPHQWVKRXOG

EHGHQLHG

 7RGHWHUPLQHZKHWKHUDOLNHOLKRRGRIFRQIXVLRQH[LVWVFRXUWVH[DPLQHWKHIROORZLQJ

IDFWRUV

 WKHVWUHQJWKRUGLVWLQFWLYHQHVVRIWKHSODLQWLII
VPDUNDVDFWXDOO\XVHGLQWKH
PDUNHWSODFH  WKHVLPLODULW\RIWKHWZRPDUNVWRFRQVXPHUV  WKHVLPLODULW\
RIWKHJRRGVRUVHUYLFHVWKDWWKHPDUNVLGHQWLI\  WKHVLPLODULW\RIWKHIDFLOLWLHV
XVHGE\WKHPDUNKROGHUV  WKHVLPLODULW\RIDGYHUWLVLQJXVHGE\WKH
PDUNKROGHUV  WKHGHIHQGDQW
VLQWHQW  DFWXDOFRQIXVLRQ  WKHTXDOLW\RIWKH
GHIHQGDQW
VSURGXFWDQG  WKHVRSKLVWLFDWLRQRIWKHFRQVXPLQJSXEOLF

Variety)GDW FLWDWLRQRPLWWHG ³µ>7@KHUHLVQRQHHGIRUHDFKIDFWRUWRVXSSRUW>WKH

SODLQWLII¶V@SRVLWLRQRQWKHOLNHOLKRRGRIFRQIXVLRQLVVXH¶´Id. TXRWLQJSynergistic Int’l, LLC v.



 'HIHQGDQWDUJXHVWKDWWKHOLNHOLKRRGRIFRQIXVLRQDQDO\VLVXQGHUWKH1RUWK&DUROLQD
8QIDLUDQG'HFHSWLYH7UDGH3UDFWLFHV$FWLV³HVVHQWLDOO\WKHVDPH´DVWKHDQDO\VLVXQGHUIHGHUDO
ODZ (&)1RDW 7KH8'73$LVEURDGHUWKDQWKH/DQKDP$FWDQGDSUDFWLFHPD\EH
³XQIDLU´XQGHU1RUWK&DUROLQDODZHYHQLILWGRHVQRWYLRODWHWKH/DQKDP$FWMitchell v.
Linville6(G 1&&W$SS  ³µ8QIDLUQHVV¶LVDEURDGHUFRQFHSWWKDQDQG
LQFOXGHVWKHFRQFHSWRIµGHFHSWLRQ¶´ Creekside Apts. v. Poteat6(G 1&&W
$SS  VLPLODU 8QIDLUSUDFWLFHVLQFOXGHSUDFWLFHVWKDWDUH³XQHWKLFDORUXQVFUXSXORXV´
DQG³DQ\FRQGXFWWKDWDFRXUWRIHTXLW\ZRXOGFRQVLGHUXQIDLU´Univ. Furniture Intern., Inc. v.
Collezione Europa USA, Inc.)G WK&LU  FLWDWLRQRPLWWHG 'HIHQGDQW¶V
SUDFWLFHVLQDGGLWLRQWREHLQJGHFHSWLYHDUHDOVRXQIDLUXQHWKLFDODQGXQVFUXSXORXV )LUVW$P
&RPSOˆ 'HIHQGDQWKDVQRWVKRZQWKDWVXPPDU\MXGJPHQWVKRXOGEHJUDQWHGRQ
:KLUOSRRO¶VXQIDLUFRPSHWLWLRQFODLP

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 18 of 30
Korman)G WK&LU 'HIHQGDQW¶VPRWLRQRQO\DGGUHVVHVWKHVHYHQWK

IDFWRU²DFWXDOFRQIXVLRQ²ZKLFKLURQLFDOO\RYHUZKHOPLQJO\VXSSRUWV:KLUOSRRO¶VFODLPV

 ,WLVDSSURSULDWHWREHJLQZLWKWKHVHYHQWKIDFWRUDFWXDOFRQIXVLRQ$OWKRXJKHYLGHQFHRI

DFWXDOFRQIXVLRQLVQRWQHFHVVDU\IRUDSODLQWLIIWRPHHWLWVEXUGHQRISURRIVariety)GDW

VXFKHYLGHQFHLV³SDWHQWO\WKHEHVWHYLGHQFHRIOLNHOLKRRGRIFRQIXVLRQ´Tools USA &

Equip. Co. v. Champ Frame Straightening Equip. Inc.)G± WK&LU 

FLWDWLRQRPLWWHG ,QPDQ\FDVHVDFWXDOFRQIXVLRQLVVKRZQYLDDQHFGRWDOLQFLGHQWV+HUHWKH

HYLGHQFHRIDFWXDOFRQIXVLRQJRHVIDUEH\RQGLVRODWHGDQHFGRWHV

7KHHYLGHQFHRIDFWXDOFRQIXVLRQLQFOXGHV   

$SS   KXQGUHGVRIVWDWHPHQWVIURPFXVWRPHUVZKRZHUH

FRQIXVHGXSRQUHFHLYLQJDQRQ2(0ILOWHUWKH\GLGQRWRUGHU $SS   HPDLOV

GLUHFWHGWRZDUG'HIHQGDQWZKLFKUHYHDOFRQIXVLRQUHJDUGLQJWKHRULJLQDIILOLDWLRQRU

VSRQVRUVKLSRIQRQ2(0ILOWHUV e.g. $SS DQG  SXEOLFFRQVXPHU

FRPSODLQWVDERXW'HIHQGDQW¶VGHFHSWLYHRUPLVOHDGLQJVDOHVSUDFWLFHV $SS 



 'HIHQGDQWPLVFKDUDFWHUL]HVWKHHYLGHQFHLQFDWHJRULHV    DQG  DV³KHDUVD\´,WLV
VHWWOHGODZWKDWVWDWHPHQWVIURPFRQVXPHUVDUHDGPLVVLEOHHYLGHQFH³>6@WDWHPHQWVRI
PLVLGHQWLILFDWLRQE\FRQVXPHUVDUHQRWKHDUVD\ZKHQRIIHUHGWRSURYHDFWXDOFRQIXVLRQ´
Dynamic Aviation Grp., Inc. v. Dynamic Int'l Airways, LLC1R&9:/
DW ± :'9D-XO\  FLWLQJLyons P’ship, L.P. v. Morris Costumes, Inc.
)G WK&LU $GGLWLRQDOO\FRQVXPHUVWDWHPHQWVUHIOHFWLQJFRQIXVLRQ
TXDOLI\XQGHUWKHWKHQH[LVWLQJVWDWHRIPLQGH[FHSWLRQWRWKHUXOHDJDLQVWKHDUVD\Id.see also,
e.g.Fun-Damental Too, Ltd. v. Gemmy Indus. Corp., )G± G&LU 
Kos. Pharm.)GDW165 Park Row, Inc. v. JHR Dev., LLC1R&917
:/DW  '0H1RY cfTools USA)G ILQGLQJDFWXDO
FRQIXVLRQEDVHGRQUHSRUWVRIFRQVXPHUFRQIXVLRQSURYLGHGE\WHVWLPRQ\IURPWKHplaintiff’s
HPSOR\HHV 'HIHQGDQWFLWHVDQ(OHYHQWK&LUFXLWRSLQLRQUHYLHZLQJDDaubert2UGHUWRODEHOLWV
RZQFXVWRPHUUHFRUGVDV³XQFRQILUPHGDQHFGRWDOHYLGHQFH´EXWWKLVW\SHRIHYLGHQFHLV
UHFRJQL]HGWREHKLJKO\SUREDWLYHLQWUDGHPDUNFDVHV (&)1RDW 

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 19 of 30


PDQ\FRQVXPHUVQHYHUUHDOL]HWKH\KDYHEHHQGHFHLYHGSee Sara Lee Corp.

v. Kaiser Roth Corp.)G WK&LU  ³>:@HFDQEXWZRQGHUKRZRIWHQWKH

H[SHULHQFHVUHODWHGE\WKH>VL[@WULDOZLWQHVVHVKDYHEHHQUHSHDWHG²EXWQRWUHSRUWHG²LQVWRUHV

DFURVVWKHFRXQWU\´ see alsoKos Pharm., Inc. v. Andrx. Corp.)G G&LU

  ³>(@YLGHQFHRIDFWXDOFRQIXVLRQµLVGLIILFXOWWRILQGEHFDXVHPDQ\LQVWDQFHVDUH

XQUHSRUWHG¶7KHUDULW\RIVXFKHYLGHQFHPDNHVHYHQDIHZLQFLGHQWVµKLJKO\SUREDWLYHRIWKH

OLNHOLKRRGRIFRQIXVLRQ¶´ FLWDWLRQRPLWWHG 

 'HIHQGDQW¶VUHFLWDWLRQRIWKHHYLGHQFHLQWKLVFDVH²ZKLFKLVVWULNLQJO\LQFRPSOHWH²

³RQO\UDLVHVDQLVVXHDVWRWKHamountRIFRQIXVLRQDQGQRWWKHIDFWRIDFWXDOFRQIXVLRQ´Thrifty

Rent-A-Car Sys., Inc. v. Thrifty Auto Sales of Charleston, Inc.)6XSS '6&

 ,QSara Lee Corp.VL[FRQVXPHUVWHVWLILHGWKDWWKH\ZHUHFRQIXVHGE\WKHGHIHQGDQW¶V

PDUNHWLQJDQGWKHSODLQWLII¶VHPSOR\HHVWHVWLILHGRI³PDQ\RFFDVLRQV´ZKHUHWKH\REVHUYHG

FRQVXPHUFRQIXVLRQ)GDW7KH)RXUWK&LUFXLWFKDUDFWHUL]HGWKLV³DQHFGRWDO

HYLGHQFH´DV³QHDUO\RYHUZKHOPLQJ´HYLGHQFHRIDFWXDOFRQIXVLRQId.0DNLQJDOOLQIHUHQFHVLQ

:KLUOSRRO¶VIDYRUDVUHTXLUHGWKLV&RXUWVKRXOGFRQFOXGHWKDWDMXU\FRXOGUHDVRQDEO\ILQG

DFWXDOFRQIXVLRQH[LVWVSee Tools USA)GDW

 7KHVL[WKIDFWRULQWHQWLVDOVRKLJKO\SUREDWLYHVariety)GDW ³7KHLQWHQWRI

WKHGHIHQGDQWLVVRPHWLPHVDPDMRUIDFWRULQLQIULQJHPHQWFDVHV´ FLWDWLRQRPLWWHG $FWXDO

FRQIXVLRQPD\EHLQIHUUHGXSRQDILQGLQJWKDWDGHIHQGDQWLQWHQGHGWRFRQIXVHFRQVXPHUV

Hospitality Intern. v. Mahtani1R&9:/DW  0'1&$XJ

 +HUHWKHUHFRUGFRQWDLQVFOHDUHYLGHQFHRI'HIHQGDQW¶VLQWHQWWRFRQIXVHFRQVXPHUV

0RVWQRWDEO\'HIHQGDQWLQWKHZRUGVRILWV([HFXWLYH93+HDWKHU4XLQQ 

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 20 of 30


 $SS  

 $SS

 

7KLVZDVQ¶WDQLVRODWHGSUDFWLFH'HIHQGDQW¶V'LUHFWRURI6DOHVDQG&XVWRPHU([SHULHQFH

 $SS  

 $SS  

 E.g.,$SS

  

$SS 7KHHYLGHQFHRIDFWXDOFRQIXVLRQFRXSOHGZLWK

'HIHQGDQW¶VLQWHQWDORQHZDUUDQWGHQLDORIWKHSUHVHQWPRWLRQ

 +RZHYHUWKHUHPDLQLQJIDFWRUVZHLJKLQ:KLUOSRRO¶VIDYRUDVZHOO5HJDUGLQJWKHILUVW

IDFWRUWKHVWUHQJWKRIWKH0DUNV:KLUOSRROVSHQGVKXQGUHGVRIPLOOLRQVRIGROODUVHYHU\\HDU

SURPRWLQJLWV:KLUOSRRO.LWFKHQ$LG0D\WDJ-HQQ$LUDQG$PDQDEUDQGV 

 $SS :KLUOSRRO¶V

0DUNVDUHDVVRFLDWHGZLWKVRPHRIWKHPRVWWUXVWHGEUDQGVFRQVXPHUVEULQJLQWRWKHLUKRPHV

$SS 

 7KHVHFRQGDQGWKLUGIDFWRUVZHLJKKHDYLO\LQIDYRURI:KLUOSRROEHFDXVH'HIHQGDQWLV

XVLQJ:KLUOSRRO¶V0DUNVLQDPDQQHULGHQWLFDOWRKRZ:KLUOSRROXVHVLWVRZQPDUNVLQ

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 21 of 30
FRQQHFWLRQZLWKILOWHUVDQG'HIHQGDQWKDVXVHG:KLUOSRRO¶V0DUNVIRUSURGXFWVWKDWLWFODLPVDUH

GLUHFW³UHSODFHPHQWV´IRUJHQXLQH:KLUOSRRO)LOWHUV

 7KHIRXUWKDQGILIWKIDFWRUVDOVRZHLJKKHDYLO\LQIDYRURI:KLUOSRRO7KH:KLUOSRRO

)LOWHUVDQG1RQ*HQXLQH3URGXFWVDUHVROGWKURXJKRQOLQHUHWDLOHUV'HIHQGDQWVHOOVERWK

JHQXLQH:KLUOSRRO)LOWHUVDQG1RQ*HQXLQH3URGXFWVRQLWVZHEVLWHXVLQJVLPLODUO\GHVLJQHG

ZHESDJHV

 7KHHLJKWKDQGQLQWKIDFWRUVZHLJKLQ:KLUOSRRO¶VIDYRUWRR7KH1RQ*HQXLQH3URGXFWV

GRQRWGHOLYHUWKHVDPHOHYHORISHUIRUPDQFHRUILOWUDWLRQDVWKH:KLUOSRRO)LOWHUV&RQVXPHUV

DUHJHQHUDOO\QRWIDPLOLDUZLWKUHSODFHPHQWZDWHUILOWHUVDQGSXUFKDVHWKHSURGXFWVLQIUHTXHQWO\

DQGIRUWKDWUHDVRQUHO\KHDYLO\RQ:KLUOSRRO¶V0DUNVDQGPRGHOQXPEHUVWRJXLGHWKHPWR

TXDOLW\DQGVDIHILOWHUSURGXFWV $SS %HFDXVHWKHVHSXUFKDVHVDUHPDGH

LQIUHTXHQWO\LWLVHYHQOHVVOLNHO\WKDWWKLVFRQIXVLRQLVGLVSHOOHGRQFHLWDULVHV

 'HIHQGDQWIDXOWV:KLUOSRROIRUQRWVXEPLWWLQJVXUYH\HYLGHQFH%XW³>V@XUYH\HYLGHQFH

LVFLUFXPVWDQWLDOQRWGLUHFWHYLGHQFHRIWKHOLNHOLKRRGRIFRQIXVLRQ6XUYH\VGRQRWPHDVXUHWKH

GHJUHHRIDFWXDOFRQIXVLRQE\UHDOFRQVXPHUVPDNLQJPLVWDNHQSXUFKDVHV´0F&DUWK\RQ

7UDGHPDUNVDQG8QIDLU&RPSHWLWLRQ† WKHG1RY8SGDWH :KHUHWKHUHLV

VXEVWDQWLDOGLUHFWHYLGHQFHRIDFWXDOFRQIXVLRQDVLQWKLVFDVHVXUYH\HYLGHQFHLVXQQHFHVVDU\

Id.Midwestern Pet Foods, Inc. v. Societe des Produits Nestle S.A.)G )HG

&LU 0F&DUWK\† ³>:@KLOHVXUYH\HYLGHQFHKDVEHFRPHPRUHFRPPRQWKDW

GRHVQRWPHDQWKDWLWLVQHHGHGUHTXLUHGRULQWURGXFHGLQWKHPDMRULW\RIFDVHV´ 7KH

FRQWHPSRUDQHRXVHYLGHQFHRIDFWXDOFRQIXVLRQLVVXSHULRUWRDOLWLJDWLRQGULYHQVXUYH\DQGLV

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 22 of 30
PRUHWKDQVXIILFLHQWWRSURYLGHDEDVLVIRUWKHMXU\WRFRQFOXGHWKDWFRQVXPHUVLQWKHPDUNHWSODFH

ZHUHFRQIXVHGE\'HIHQGDQW¶VGHFHSWLYHDQGPLVOHDGLQJSUDFWLFHV6XFKLVWKHFDVHKHUH

 $JDLQVWWKLVEDFNGURS'HIHQGDQWGLVSDUDJHVWKHFUHGLELOLW\RILWVRZQFXVWRPHUVEHFDXVH

DFFRUGLQJWR'HIHQGDQWFRQVXPHUVDUHRIWHQPRWLYDWHGWRREWDLQIUHHUHWXUQVKLSSLQJ (&)1R

DW  $QGZLWKJRRGUHDVRQ²WKHVHFRQVXPHUVKDYHEHHQGHFHLYHG 'HIHQGDQW

K\SRWKHVL]HVWKDWFRPSHWLWRUVQRQFXVWRPHUVRURQHGLVJUXQWOHGFXVWRPHUDUHUHVSRQVLEOHIRUDOO

RI'HIHQGDQW¶VQHJDWLYHUHYLHZVDQGVWDWHVWKDW:KLUOSRRO¶VZHEVLWHFRQWDLQVQHJDWLYHUHYLHZV

(&)1RDW 7KHVHDUHQRWSURSHUVXPPDU\MXGJPHQWDUJXPHQWVFRXUWVPXVW³UHIUDLQ

IURPµZHLJK>LQJ@WKHHYLGHQFHRUPDN>LQJ@FUHGLELOLW\GHWHUPLQDWLRQV¶´Variety)GDW

TXRWLQJLee)GDW 7KDWLVWKHMXU\¶VUROH)RUWKLVUHDVRQDORQH'HIHQGDQW¶V

PRWLRQPXVWEHGHQLHG

,,, '()(1'$17,6127(17,7/('726800$5<-8'*0(1721,76
120,1$7,9()$,586('()(16(

 1H[W'HIHQGDQWUDLVHVWKHDIILUPDWLYHGHIHQVHRIQRPLQDWLYHIDLUXVH$FFRUGLQJO\³LW

PXVWFRQFOXVLYHO\HVWDEOLVKDOOHVVHQWLDOHOHPHQWVRIWKDWGHIHQVH´DQGLVQRWHQWLWOHGWRVXPPDU\

MXGJPHQWLI:KLUOSRRO³FRPH>V@IRUZDUGZLWKVSHFLILFIDFWVVKRZLQJWKHUHLVDJHQXLQHLVVXHIRU

WULDO´Ray Commc’ns, Inc. v. Clear Channel Commc’ns, Inc.)G WK&LU 

FLWDWLRQVRPLWWHG 



 'HIHQGDQWDUJXHVWKDWWKHFRQIXVLRQLV³GHPLQLPLV´DQGIDOOVEHORZWKH³OHYHORI
DFWLRQDEOHFRQIXVLRQXQGHUWUDGHPDUNODZ´'HIHQGDQWLVPLVWDNHQ7KHFLWHGSRUWLRQRIWKH
0F&DUWK\WUHDWLVHUHODWHVWRsurvey resultsQRWDFWXDOFRQIXVLRQ0F&DUWK\†7KH
SHUFHQWDJHILJXUHLVLUUHOHYDQWWRWKHSUHVHQWLQTXLU\See0F&DUWK\† H[SODLQLQJ
HYLGHQWLDU\XVHRIVXUYH\GDWD (YLGHQFHRIDFWXDOFRQIXVLRQSURYLGHVDVXIILFLHQWEDVLVIRUWKH
MXU\WRFRQFOXGHDOLNHOLKRRGRIFRQIXVLRQH[LVWVDULVLQJIURPDOOSRWHQWLDOFRQVXPHUVDULVLQJ
IURP'HIHQGDQW¶VFRQGXFWSeeXtreme Lashes, LLC v. Xtended Beauty, Inc.)G
WK&LU  ³>&@RXUWVPD\QRWLJQRUHFRPSHWHQWHYLGHQFHRIDFWXDOFRQIXVLRQ´ 

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 23 of 30
 $VDQLQLWLDOPDWWHU'HIHQGDQWDFNQRZOHGJHVWKDWWKHDIILUPDWLYHGHIHQVHRIQRPLQDWLYH

IDLUXVHKDVQRWEHHQDGRSWHGE\WKH)RXUWK&LUFXLWRosetta Stone Ltd. v. Google, Inc.)G

 WK&LU 2WKHUGLVWULFWFRXUWVZLWKLQWKLV&LUFXLWFRQIURQWLQJQRPLQDWLYHIDLUXVH

GHIHQVHVKDYHGHFOLQHGWRHYHQconsiderVXFKGHIHQVHVLorillard Tobacco Co. v. S&M Brands,

Inc.)6XSSG ('9D  ³1RPLQDWLYHIDLUXVHIDOOVRXWVLGHRIWKH

W\SLFDOVWDWXWRU\XQGHUVWDQGLQJRIWUDGHPDUNODZ´ Nat’l Fed’n of the Blind v. Loompanics

Enters.)6XSS '0G 7KLV&RXUWVKRXOGGHQ\VXPPDU\MXGJPHQWRQ

WKLVEDVLVDORQH

 1HYHUWKHOHVV'HIHQGDQW¶VGHFHSWLYHDQGPLVOHDGLQJSUDFWLFHVZRXOGQRWTXDOLI\XQGHUD

QRPLQDWLYHIDLUXVHWHVWDUWLFXODWHGE\DQRWKHUMXULVGLFWLRQ$QRPLQDWLYHIDLUXVHby definitionLV

DXVHWKDW³GRHVQRWFUHDWHµFRQIXVLRQDERXWWKHVRXUFHRI>WKH@GHIHQGDQW¶VSURGXFW¶´Rosetta

Stone)GDW TXRWLQJTiffany (NJ) Inc. v. eBay Inc.)G G&LU 

7KHUHFRUGFRQWDLQVRYHUZKHOPLQJHYLGHQFHRIFRQIXVLRQDULVLQJIURP'HIHQGDQW¶VSUDFWLFHV

%H\RQGWKDWDVXFFHVVIXOQRPLQDWLYHIDLUXVHGHIHQVHRQVXPPDU\MXGJPHQWZRXOGUHTXLUH

FRQFOXVLYHSURRI

  WKDW WKH XVH RI SODLQWLII


V PDUN LV QHFHVVDU\ WR GHVFULEH ERWK WKH SODLQWLII
V
SURGXFWRUVHUYLFHDQGWKHGHIHQGDQW¶VSURGXFWRUVHUYLFH  WKDWWKHGHIHQGDQW
XVHV RQO\ VR PXFK RI WKH SODLQWLII¶V PDUN DV LV QHFHVVDU\ WR GHVFULEH SODLQWLII
V
SURGXFW DQG   WKDW WKH GHIHQGDQW¶V FRQGXFW RU ODQJXDJH UHIOHFW WKH WUXH DQG
DFFXUDWHUHODWLRQVKLSEHWZHHQSODLQWLIIDQGGHIHQGDQW
VSURGXFWVRUVHUYLFHV

Century 21 Real Estate Corp. v. Lendingtree, Inc.)G G&LU 'HIHQGDQW

IDLOVWRDQDO\]HOHWDORQHFRQFOXVLYHO\HVWDEOLVKWKHODWWHUWZRIDFWRUV

 $VH[SODLQHGDERYH'HIHQGDQWKDVXVHG:KLUOSRRO¶V0DUNVLQP\ULDGGHFHSWLYHDQG

PLVOHDGLQJZD\V)RUH[DPSOH'HIHQGDQWKDVXVHG:KLUOSRRO¶V0DUNVRQOLVWLQJVIRUWKH1RQ

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 24 of 30
*HQXLQH3URGXFWVZLWKQRUHIHUHQFHWRWKHDFWXDOQRQ2(0EUDQG,QGHHG'HIHQGDQW¶V

FRPSDQ\ZLGHQDPLQJFRQYHQWLRQIRUQRQ2(0SURGXFWOLVWLQJVIHDWXUHGWKH2(0EUDQGRU

PRGHOQXPEHUDVWKHfirst ZRUGLQWKHSURGXFWWLWOHLPSO\LQJWKDWWKHOLVWLQJZDVIRUDQ2(0

SURGXFW $SS 'HIHQGDQW¶VDSSURDFKWRGHVFULELQJWKH1RQ*HQXLQH3URGXFWVZDV

 $SS

 7KLVLVQRWIDLUXVH/HVWWKHUHLVDQ\GRXEW 

 $SS 

 :KLUOSRROGRHVQRWGLVSXWHWKHJHQHUDOSURSRVLWLRQWKDWDVHOOHURIUHSODFHPHQWSDUWVFDQ

XVHDQRWKHU¶VPDUNVWRLQGLFDWHFRPSDWLELOLW\,QGHHG:KLUOSRROUHSHDWHGO\SURYLGHGJXLGDQFH

WR'HIHQGDQWRQKRZWRIDLUO\GHVFULEHWKH1RQ*HQXLQH3URGXFWV E.g.$SS <HW

'HIHQGDQWGLGQRWXQGHUWDNHWRLPSOHPHQWWKHVHVXJJHVWLRQVXQWLO2FWREHU2018 $SS

 'HIHQGDQWIXUWKHUFRQWHQGVWKDWLWVZHEVLWHDQGFHUWDLQSDFNDJLQJFRQWDLQVGLVFODLPHUVDV

WRSURGXFWDIILOLDWLRQ (&)1RDW EXWJORVVHVRYHUWKHIDFWWKDWLWZDVDGGHGRQ

2FWREHU2018²PRUHWKDQD\HDUDIWHUWKLVODZVXLWZDVILOHG $SS 

,9 :+,5/322/+$66$7,6),(',76%85'(121'$0$*(6

 'HIHQGDQWGRHVQRWGLVSXWHWKDWLWVFRQGXFWDVVXPLQJLWLVXQODZIXOKDVLQMXUHG

:KLUOSRROE\PHDQVRIORVWVDOHVDQGGDPDJHWRJRRGZLOO7KH/DQKDP$FWSURYLGHVIRU

UHFRYHU\RIGDPDJHVPHDVXUHGE\WKH³GHIHQGDQW¶VSURILWV´DQGRU³DQ\GDPDJHVVXVWDLQHGE\

WKHSODLQWLII´See86&† D :KLUOSRROVHHNVGDPDJHVPHDVXUHGE\WKHIRUPHU



 'HIHQGDQWDVVHUWVWKDW³>L@WLVXQGLVSXWHGWKDWWKHVHILOWHUVDUHDQGKDYHDOZD\VEHHQ
DSSURSULDWHO\EUDQGHGDQGVROGXQGHUWKHLUUHVSHFWLYHEUDQGV´ (&)1RDW :KLUOSRRO
GLVDJUHHV7KHUHFRUGLQWKLVFDVHLVUHSOHWHZLWKH[DPSOHVRIWKH1RQ*HQXLQH3URGXFWVEHLQJ
RIIHUHGIRUVDOHZLWKnoUHIHUHQFHWRWKHSURGXFWV¶DFWXDOEUDQGQDPHRUPRGHOQXPEHURUZKHUH
VXFKLQIRUPDWLRQLVGLVSOD\HGPXFKOHVVSURPLQHQWO\WKDQ:KLUOSRRO¶V0DUNV $SS
 7KLVGLVSXWHDORQHSUHFOXGHVVXPPDU\MXGJPHQWRQ'HIHQGDQW¶VDIILUPDWLYHGHIHQVH

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 25 of 30
'HIHQGDQWHUURQHRXVO\DUJXHVWKDW:KLUOSRROPXVWSURYHHDFKDQGHYHU\LQGLYLGXDOVDOHZDV

DWWULEXWDEOHWR'HIHQGDQW¶VZURQJIXOFRQGXFW (&)1RDW 7KDWLVQRWWKHODZ

 7RWKHFRQWUDU\XSRQSURRIRIDYLRODWLRQWKH/DQKDP$FWSURYLGHV

In assessing profits the plaintiff shall be required to prove defendant’s sales only;
defendant must prove all elements of cost or deduction claimed,IWKHFRXUW
VKDOOILQGWKDWWKHDPRXQWRIWKHUHFRYHU\EDVHGRQSURILWVLVHLWKHULQDGHTXDWHRU
H[FHVVLYHWKHFRXUWPD\LQLWVGLVFUHWLRQHQWHUMXGJPHQWIRUVXFKVXPDVWKHFRXUW
VKDOOILQGWREHMXVWDFFRUGLQJWRWKHFLUFXPVWDQFHVRIWKHFDVH

86&† D  HPSKDVLVDGGHG 7KHWH[WRIWKHVWDWXWHLVFOHDURQFHDSODLQWLIIKDV

HVWDEOLVKHGDYLRODWLRQDSODLQWLIIVHHNLQJGDPDJHVPHDVXUHGDFFRUGLQJWRWKHGHIHQGDQW¶VSURILWV

³VKDOOEHUHTXLUHGWRSURYHGHIHQGDQW¶VVDOHVRQO\´Id. 7KLVLVH[SOLFLWO\DEXUGHQVKLIWLQJ

IUDPHZRUNSee, e.g.Exclaim Mktg., LLC v. DirecTV, LLC)$SS[ WK&LU

 7KLVLVQRWDORVWSURILWVDQDO\VLV'LVJRUJHPHQWGDPDJHVDUHDVWDWXWRU\approximation

RIWKHDFWXDOLQMXU\DSODLQWLIIKDVVXIIHUHGSee, e.g.Polo Fashions, Inc. v. Craftex, Inc.

)G WK&LU  ³7KHGHIHQGDQWV¶SURILWVKRZHYHUDUHDURXJKPHDVXUHRIWKH

SODLQWLII
VGDPDJHV,QGHHGWKH\DUHSUREDEO\WKHEHVWSRVVLEOHPHDVXUHRIGDPDJHVDYDLODEOH´ 

 :KLUOSRROKDVLGHQWLILHG'HIHQGDQW¶VVDOHVDVVRFLDWHGZLWKWKHGHFHSWLYHDFWVDQG

SUDFWLFHVDWLVVXH7KHUHFRUGGHPRQVWUDWHVWKHSUDFWLFHVZHUHZLGHVSUHDGDFURVVWKH1RQ

*HQXLQH3URGXFWV7KHRQO\FDVHFLWHGE\'HIHQGDQWRolex Watch, U.S.A., Inc. v. Michel Co.

)G WK&LU LVUHDGLO\GLVWLQJXLVKHG,QRolexWKHSODLQWLII¶VGDPDJHV

SURRIZDVLQVXIILFLHQWEHFDXVHWKHSODLQWLIIGLGQRWGLVWLQJXLVKEHWZHHQSURGXFWVVXEMHFWWRWKH

LQIULQJLQJFRQGXFWDQGSURGXFWVXQUHODWHGWRWKHSODLQWLII¶VFODLPVId.DW+HUHE\FRQWUDVW

:KLUOSRROKDVUHVWULFWHGLWVVKRZLQJWRWKHVDOHVRIWKH1RQ*HQXLQH3URGXFWVLPSDFWHGE\WKH

GHFHSWLYHFRQGXFWGHVFULEHGDERYH²LWLVQRWVHHNLQJGLVJRUJHPHQWIRUVDOHVRIDOOSURGXFWVVROG

E\'HIHQGDQWLQFOXGLQJDLUILOWHUVRURWKHUZDWHUILOWHUEUDQGV

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 26 of 30
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 27 of 30
Respectfully submitted this 12th day of December, 2018.

s/ Paul J. Osowski
Paul J. Osowski
NC Bar No. 23423
Craig N. Killen
NC Bar No. 43980
NELSON MULLINS RILEY
& SCARBOROUGH, L.L.P.
301 S. College Street, 23rd Floor
Charlotte, North Carolina 28202
Telephone: (704) 417-3000
Facsimile: (704) 377-4814
E-Mail: paul.osowski@nelsonmullins.com
E-Mail: craig.killen@nelsonmullins.com

Jeffrey D. Harty (IA AT0003357)


(appearing pro hac vice)
Allison E. Kerndt (IA AT0002923)
(appearing pro hac vice)
David T. Bower (IA AT0009246)
(appearing pro hac vice)
Matthew A. McGuire (IA AT0011932)
(appearing pro hac vice)
Ryan Stefani (IA AT0012387)
(appearing pro hac vice)
NYEMASTER GOODE, P.C.
700 Walnut Street, Ste. 1600
Des Moines, IA 50309-3899
Telephone: (515) 283-3100
Facsimile: (515) 283-3108
Email: jharty@nyemaster.com
Email: akerndt@nyemaster.com
Email: dbower@nyemaster.com
Email: mmcguire@nyemaster.com
Email: rstefani@nyemaster.com

Attorneys for Plaintiffs

28
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 28 of 30
&(57,),&$7,21

 7KH XQGHUVLJQHG KHUHE\ FHUWLILHV WKDW WKLV %ULHI LQ 2SSRVLWLRQ FRPSOLHV ZLWK WKH

UHTXLUHPHQWVRIWKH&DVH0DQDJHPHQW2UGHUˆ F LL LQWKDWLWGRHVQRWH[FHHGZRUGV

H[FOXGLQJWKHFDSWLRQWDEOHVFHUWLILFDWLRQVDQGVLJQDWXUHV

 7KLVWKHWKGD\RI'HFHPEHU

/s/ Jeffrey D. Harty 


 

 
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 29 of 30
CERTIFICATE OF SERVICE

The undersigned hereby certifies that on December 12, 2018, I electronically filed the
foregoing with the Clerk of Court by using the CM/ECF system, a copy of which will be served
upon all counsel of record registered with the CM/ECF system via Notice of Electronic Filing.

s/ Paul J. Osowski
Paul J. Osowski
NELSON MULLINS RILEY
& SCARBOROUGH, L.L.P.
301 S. College Street, 23rd Floor
Charlotte, North Carolina 28202
Telephone: (704) 417-3000
Facsimile: (704) 377-4814
E-Mail: paul.osowski@nelsonmullins.com

30
Case 3:17-cv-00601-FDW-DCK Document 90 Filed 12/12/18 Page 30 of 30

Das könnte Ihnen auch gefallen