Trademarks
Subscribe to Trademarks's Posts

Coffee, tea, or doctrine of foreign equivalents?

The US Court of Appeals for the Federal Circuit reversed a Trademark Trial & Appeal Board decision upholding refusal of the KAHWA mark for cafés and coffee shops, holding that the doctrine of foreign equivalents was inapplicable since KAHWA has a well-established alternative English meaning. In re Bayou Grande Coffee Roasting Co., Case No. 2024-1118 (Fed. Cir. Dec. 9, 2025) (Moore, Hughes, Stoll, JJ.)

In February 2021, Bayou applied to trademark KAHWA for cafés and coffee shops, claiming use since 2008. The examiner refused, deeming the mark generic or descriptive under the doctrine of foreign equivalents, asserting that KAHWA means “coffee” in Arabic. Bayou argued that it instead refers to a specific type of Kashmiri green tea not sold in US cafés or coffee shops. The examiner upheld refusals on both grounds and denied reconsideration.

On appeal, the Board affirmed the examiner’s refusals based on the Kashmiri green tea meaning but did not address the Arabic meaning. The Board found KAHWA generic and descriptive for cafés and coffee shops due to record evidence showing relevant customers regarded KAHWA as the generic description for a type of green tea beverage, and cafés and coffee shops serve a variety of tea beverages. Bayou appealed.

The Federal Circuit first determined that the Board’s generic and merely descriptive findings based on the Kashmiri green tea meaning did not constitute new grounds of rejection. The Court also reversed the Board’s generic and merely descriptive findings based on the Kashmiri green tea meaning.

The Federal Circuit concluded that the Board’s generic finding was not supported by substantial evidence because of undisputed evidence that no café or coffee shop in the United States sells kahwa. Therefore, whether relevant customers understood KAHWA to refer to a specific type of Kashmiri green tea was insufficient to establish genericness. The Court also held that the Board’s merely descriptive finding was not supported by substantial evidence because kahwa is neither a product/feature of café and coffee shop services nor a tea variety typically offered there. Moreover, registering KAHWA would not grant Bayou rights against cafés or coffee shops merely selling kahwa, and potential future sales were irrelevant to the descriptiveness analysis.

Finally, the Federal Circuit held that because KAHWA’s undisputed English meaning is Kashmiri green tea, translation was unnecessary, and the doctrine of foreign equivalents did not apply. Under the doctrine of foreign equivalents, a foreign mark may be translated into English to evaluate it for genericness or descriptiveness. However, translation is not required when consumers would not translate, or when the mark has a well‑established alternative meaning that makes the literal translation irrelevant.




read more

Game plan backfires: Mark cancelled

The US Court of Appeals for the Federal Circuit affirmed the Trademark Trial & Appeal Board’s cancellation of a registration and dismissal of registrant’s opposition, finding that the cancellation petitioner had priority through a valid assignment of common law rights. Game Plan, Inc. v. Uninterrupted IP, LLC, Case No. 24-1407 (Fed. Cir. Dec. 10, 2025) (Reyna, Prost, Cunningham, JJ.)

Game Plan obtained a federal registration in 2018 for the stylized mark I AM MORE THAN AN ATHLETE. GP GAME PLAN covering charitable fundraising via t-shirt sales. Uninterrupted IP (UNIP) subsequently filed six intent-to-use (ITU) applications for marks incorporating I AM MORE THAN AN ATHLETE and MORE THAN AN ATHLETE for clothing and entertainment services. Game Plan opposed the ITU applications, asserting likelihood of confusion and priority under § 2(d) of the Lanham Act, and claimed common law rights in support of its opposition. UNIP denied any likelihood of confusion and counterclaimed to cancel Game Plan’s registration, asserting priority based on common law rights in MORE THAN AN ATHLETE that UNIP acquired through a 2019 asset purchase agreement (executed after Game Plan filed its Notice of Opposition) from More Than an Athlete (MTAA), which had used the mark since at least 2012, and MTAA’s founder.

The Board dismissed Game Plan’s opposition because it submitted no evidence during its trial period, explaining that Game Plan could not sustain its § 2(d) claims based on common law rights alone. The Board also found that UNIP had acquired valid and enforceable common law rights in the mark from MTAA and its founder and therefore held that UNIP had priority based on the 2019 assignment. Game Plan appealed.

Game Plan argued that the assignment was an invalid “assignment in gross” and violated 15 U.S.C. § 1060(a)(1) and 37 C.F.R. § 2.133(a). The Federal Circuit concluded that the assignment was not in gross because:

  • It expressly transferred “all of the goodwill of this business related to” the mark.
  • UNIP’s subsequent use was substantially similar to the assignor’s use.
  • The assignor remained engaged as a consultant, supporting continuity of goodwill.

The Federal Circuit further held that § 1060(a)(1) did not apply because UNIP did not assign its pending ITU applications. Rather, it received an assignment of existing common law rights to a mark in use. Likewise, the Court found that § 2.133(a) did not bar the Board’s priority determination because the Board relied on UNIP’s independent common law rights, which independently predated Game Plan’s filing date, rather than any amendment to UNIP’s application.

The Federal Circuit also affirmed the Board’s refusal to consider Game Plan’s evidence, noting that Game Plan was advised of the proper procedures for submitting evidence at trial but failed to follow those procedures. Game Plan attempted to rely on materials attached to its motion for summary judgment that were not reintroduced into evidence during the testimony period as required by Board rules. The Court concluded that the Board acted within its discretion to exclude the evidence not submitted during the designated [...]

Continue Reading




read more

No curtain call yet: Mixed verdict in patent, trademark, standing case

The US Court of Appeals for the Federal Circuit addressed a wide array of issues in a long-running dispute over shower curtain technology. The Court provided important guidance on patent claim scope using intrinsic evidence, trademark standing and ownership of the mark in issue, trade dress functionality under TrafFix, and the need for district courts to provide a reviewable explanation when issuing patent infringement summary judgment based on the facts of this case. Focus Products Grp. Int’l, LLC v. Kartri Sales Co., Inc., Case No. 23-1446 (Fed Cir. Sept. 30, 2025) (Moore, Clevenger, Chen, JJ.)

The decade-long dispute started when Focus Products sent a cease-and-desist letter to Kartri Sales and its supplier, Marquis Mills International. The letter asserted patent infringement but was largely ignored. Focus Products then filed suit asserting three utility patents, two trademarks (HOOKLESS® and EZ ON), and unregistered trade dress rights in the appearance of its shower curtains.

Four months after the Supreme Court’s 2017 decision in TC Heartland v. Kraft Foods Group Brands, Kartri raised a venue objection and filed a motion to dismiss or transfer venue. The district court denied the motion, finding it to be unreasonably late, especially considering that Kartri actively conducted litigation after TC Heartland.

The district court construed several disputed claim terms. Based on its constructions, it found no triable issue of fact and granted summary judgment of patent infringement to Focus Products. However, the district court found genuine disputes of material fact regarding trademark and trade dress infringement and ordered a bench trial on those issues.

On the eve of trial, Kartri asserted unclean hands and equitable estoppel defenses. The district court denied these defenses because they were improperly raised for the first time immediately preceding trial.

After a bench trial, the district court held that:

  • Focus Products had standing to enforce the unregistered EZ ON mark.
  • Kartri infringed the mark and Focus Products’ trade dress, which was determined to be nonfunctional.
  • Kartri infringed Focus Products’ HOOKLESS® mark.

Accordingly, the district court awarded lost profits, reasonable royalties, attorneys’ fees, and enhanced damages for willful infringement. Kartri appealed.

The Federal Circuit affirmed the district court’s denial of Kartri’s motion to transfer venue under TC Heartland, finding Kartri’s objection untimely. Kartri waited four months after TC Heartland to raise the issue, during which time discovery had progressed significantly. The Court emphasized that venue objections must be raised seasonably and that continued litigation in the chosen forum may constitute forfeiture.

The Federal Circuit largely reversed the district court’s infringement findings, explaining that the district court erred in its claim construction because Focus Products had disclaimed shower rings with a flat upper edge during prosecution. While an affirmative disclaimer usually originates from the patent applicant, the Court found clear and unmistakable disavowal through the applicant’s acquiescence to the examiner’s species election, claim cancellation, and narrowed claim scope. This disclaimer was reinforced by the prosecution of a related asserted patent, which explicitly claimed the disclaimed feature. A patentee cannot try [...]

Continue Reading




read more

Bank on it: Likelihood of confusion analysis requires factual consistency when evaluating DuPont factors

The US Court of Appeals for the Federal Circuit reversed in part a decision by the Trademark Trial & Appeal Board and remanded for new analysis of two factors under the Dupont likelihood of confusion test. The Court emphasized that the factual determination in factor two (similarity of the parties’ goods or services) should remain consistent through the analyses for factors one and six. Apex Bank v. CC Serve Corp., Case No. 23-2143 (Fed. Cir. Sept. 25, 2025) (Moore, Hughes, Cunningham, JJ.)

CC Serve has held a registration for the word mark ASPIRE in connection with credit card services since 1998. In 2019, Apex Bank, a Tennessee-based banking chain, filed intent-to-use applications at the US Patent & Trademark Office (PTO) for marks incorporating ASPIRE BANK for use in “banking and financing services.” CC Serve, which partners with banks to issue and service credit cards, filed a letter of protest during Apex’s trademark prosecution. Despite CC Serve’s objections, the PTO published Apex’s marks in December 2019. CC Serve then formally opposed the marks, and the Board sustained the opposition, finding a likelihood of consumer confusion. Apex appealed.

The Federal Circuit reviewed the Board’s findings under the DuPont framework, which assesses likelihood of confusion based on multiple factors. Apex challenged the Board’s analysis of three specific factors:

  • Factor two: Similarity of the parties’ goods/services
  • Factor six: Strength of the prior mark in the marketplace
  • Factor one: Similarity of the marks themselves

The Federal Circuit upheld the Board’s finding under factor two, agreeing that “credit card services” and “banking/financing services” are highly similar based on their definitions and market overlap.

However, the Federal Circuit found fault with the Board’s analysis under factor six, which evaluates third-party use of similar marks to determine the strength of the contested mark. Apex submitted many examples of ASPIRE marks used in both the credit card and broader financial services industries. The Board, however, narrowed its focus to only those marks used in credit card services, excluding broader banking and financial services. The Federal Circuit concluded that this was inconsistent with the Board’s finding under factor two regarding the similarity of the parties’ goods and services. The Court instructed that on remand, the Board should consider third-party ASPIRE marks across both industries.

The Federal Circuit also directed the Board to revisit factor one, which assesses the similarity of the marks in light of the strength of the prior mark. Whether the strength of CC Serve’s mark is diminished when viewed in the broader financial services context could affect the “overall commercial impression” of the marks and the likelihood of confusion.

The Federal Circuit emphasized that factual determinations, particularly regarding the similarity of goods and services, must be applied consistently across the DuPont factors. The Court therefore remanded the case to the Board for reconsideration of factors one and six considering this guidance.




read more

Oh brother: Draft settlement agreements carefully

The US Court of Appeals for the Eighth Circuit affirmed a district court judgment, finding that the plaintiff failed to sufficiently prove damages for its copyright claim, the jury instructions accurately applied the sophisticated consumer exception to initial-interest confusion, and the district court properly submitted ambiguous contract language to the jury for interpretation. Hoffmann Brothers Heating and Air Conditioning, Inc. v. Hoffmann Air Conditioning & Heating LLC, Case No. 24-1289 (8th Cir. Sept. 8, 2025) (Graza, Stras, Kobes, JJ.)

Brothers Tom and Robert Hoffmann were partners in Hoffmann Brothers. After Robert bought out Tom, they entered into a settlement agreement that included a four-year restriction barring Tom from using the name “Hoffmann” in connection with an HVAC business. After four years, Tom began using “Hoffmann Air Conditioning & Heating, LLC” (Hoffmann AC). Hoffmann AC’s advertising agency later mistakenly used pictures of Hoffmann Brothers. Hoffmann Brothers sued for trademark and copyright infringement. Hoffmann AC prevailed on some issues at summary judgment, and the jury reached a mixed verdict on the remaining claims. Both parties were denied attorneys’ fees, and Hoffmann Brothers appealed.

On appeal, the Eighth Circuit affirmed that Hoffmann Brothers did not sufficiently prove damages for its copyright claim based on Hoffmann AC’s use of its photographs. Because the photographs were unregistered works, Hoffmann Brothers was required to prove actual damages and/or additional profits of the infringer attributable to the infringement. Hoffmann Brothers’ only evidence of actual damages was Hoffmann AC’s monthly fee paid to its marketing agency. The Court found that using the monthly fee was too speculative because it did not reflect the benefit to Hoffmann AC or the harm to Hoffmann Brothers. For evidence of additional profits, Hoffmann Brothers’ expert report failed to link the use of the photographs to Hoffmann AC’s gross revenue. The Court explained that the Hoffmann Brothers could have linked additional profits attributable to the use of the photographs by, for example, demonstrating that:

  • Hoffmann AC gained customers because of the ads.
  • The photographs actually influenced purchasing decisions.
  • There was spike in monthly revenue that coincided with use of the photographs.

Regarding Hoffmann Brothers’ trademark claim, the jury found that the names were not so similar as to cause confusion. Hoffmann Brothers appealed, arguing that the district court erred in its jury instructions. The Eighth Circuit rejected the argument, finding the instructions fair and legally adequate. The instruction was directed to the issue of initial-interest confusion (a concept not adopted by Missouri courts), which occurs when consumer confusion arises at the outset, even if no sale ultimately results. The Court explained that under Eighth Circuit precedent, a sophisticated consumer exception applies to this theory, meaning that consumers who exercise a high degree of care are less likely to be initially confused. Here, the district court instructed the jury to consider initial-interest confusion only if it found that Hoffmann Brothers’ customers were not sophisticated. While the Eighth Circuit acknowledged some hesitation about the assumption that sophisticated consumers are never susceptible to initial-interest [...]

Continue Reading




read more

Solidarity: Union’s commercial use may be Lanham Act violation

The US Court of Appeals for the Ninth Circuit reversed and remanded a district court’s dismissal of a Lanham Act action, finding that this case was not the rare instance where there was no plausible likelihood that a reasonably prudent consumer would be confused about the origin of the goods that allegedly bore the distinctive marks at issue. Trader Joe’s Co. v. Trader Joe’s United, Case Nos. 24-720; -2826 (9th Cir. Sept. 8, 2025) (Sanchez, Thomas, Donato, JJ.)

Trader Joe’s, a US grocery store chain, owns the red typeface logoTrader's Joe's TypeFace Logo and sells reusable tote bags and other branded goods bearing its marks. Trader Joe’s United (TJU), a labor union representing certain Trader Joe’s employees, markets (for profit) various products via its website, including reusable tote bags. Its website header features a logo that uses the distinctive red typeface and the concentric circle design in Trader Joe’s logo. The image below shows totes from Trader Joe’s (left) and TJU (right).

Trader's Joe's Tote Bags

TJU allegedly began using Trader Joe’s marks in commerce, and Trader Joe’s sent TJU a cease-and-desist letter. Trader Joe’s noted that its demand was directed solely at TJU’s commercial use of the marks on merchandise sold to consumers on the TJU website, not the reference to Trader Joe’s to identify the union or discuss the union’s cause.

Trader Joe’s sued TJU, asserting several claims, including trademark infringement, and sought to permanently enjoin TJU from using Trader Joe’s trademarks in connection with the sale of commercial merchandise on the TJU website. Trader Joe’s also sought the destruction of all infringing merchandise and recovery of damages. TJU moved to dismiss, arguing that Trader Joe’s filed its trademark infringement complaint in retaliation over an ongoing labor dispute and asserting that there was no plausible likelihood that a consumer would believe that products sold on TJU’s website were sponsored, endorsed, or approved by Trader Joe’s.

Applying the Sleekcraft likelihood-of-confusion factors, the district court agreed with TJU and noted several differences between the marks. The district court also explained that Trader Joe’s does not sell many of the products sold on TJU’s website, including buttons, t-shirts, and mugs. The district court concluded that confusion about the origin of these products was unlikely for a reasonable consumer because TJU’s website clearly identified itself as a website of a labor union and was openly critical of Trader Joe’s labor practices. Trader Joe’s appealed.

The Ninth Circuit concluded that when the allegations were viewed in the light most favorable to Trader Joe’s, the district court erred when applying the fact-specific likelihood-of-confusion test. To prevail on a trademark infringement claim, Trader Joe’s would need to establish that it had a protectible ownership interest in the mark and that TJU’s use of the mark was likely to cause consumer confusion. To determine whether a reasonably prudent consumer [...]

Continue Reading




read more

Fifth Circuit untangles damages in trademark battle

The US Court of Appeals for the Fifth Circuit reinstated a jury’s lost profits and breach damages awards that the district court set aside during post-trial proceedings, finding that sufficient evidence supported the awards. I&I Hair Corp. v. Beauty Plus Trading Co., Case No. 24-10374 (5th Cir. Sept. 5, 2025) (Haynes, Ho, Oldham, JJ.) (per curiam).

I&I Hair, the seller of EZBRAID synthetic braids, sued competitor Beauty Plus for trademark infringement, unfair competition, and breach of a 2019 settlement agreement that prohibited Beauty Plus from using the EZBRAID mark or confusingly similar terms. At trial, the jury awarded approximately $70,000 for infringement, $1.15 million in lost profits for unfair competition, and $1.3 million for breach of the settlement agreement.

After trial, the district court set aside the unfair competition and breach awards, concluding I&I failed to prove lost profits with reasonable certainty. I&I appealed.

The Fifth Circuit reversed, emphasizing that Texas law requires only competent evidence permitting a jury to determine lost profits with reasonable certainty, not precise proof of the exact amount awarded. The Court found that I&I had met this standard, highlighting evidence that EZBRAID sales surged by 400% in 2017 – 2018 and 70% in 2018 – 2019 but slowed to 10% growth in 2019 – 2020 after Beauty Plus began selling similar products. I&I’s sales declined further as Beauty Plus sold more than $5 million in infringing goods from 2019 to early 2022, with Beauty Plus making sales to nearly half of I&I’s customers. I&I also introduced revenue and profit margin data, as well as testimony that brand dilution and supply chain disruption amplified the harm. The Court concluded that the jury may have rationally considered I&I’s pre-infringement growth in revenue and net income, as well as testimony regarding customer confusion, to reach the damages awarded.

The Fifth Circuit rejected each of Beauty Plus’ arguments. First, it rejected Beauty Plus’ claim that the unfair competition award improperly mirrored Beauty Plus’ profits, explaining that the question was whether the number fell within the range supported by evidence, not whether it matched I&I’s calculations precisely. Second, the Court dismissed Beauty Plus’ challenge to the breach award, noting that Texas law requires certainty only as to the fact of damages, not the exact amount. Finally, the Court found I&I had adequately preserved its opposition to Beauty Plus’ judgment as a matter of law motion.

Accordingly, the Fifth Circuit reinstated the jury’s full verdict and remanded the case for further proceedings on attorneys’ fees.




read more

When is a word too common to trademark? Asking for a four-letter friend

In response to artist and entrepreneur Erik Brunetti’s ongoing efforts to register FUCK as a trademark for various goods and services, the US Court of Appeals for the Federal Circuit vacated the Trademark Trial & Appeal Board’s refusal to register the term but agreed with the Board’s position on the registrability of widely used “all-purpose words.” The Court ordered the remand because it found the Board’s reasoning insufficiently clear and lacking a coherent standard. In re Brunetti, Case No. 23-1539 (Fed. Cir. Aug. 26, 2025) (Dyk, Reyna, JJ.) (Lourie, J., dissenting).

Brunetti filed four intent-to-use applications to register FUCK as a trademark for goods, including sunglasses, jewelry, and backpacks, and services such as retail store offerings. The US Patent & Trademark Office (PTO) refused registration, asserting that the term failed to function as a trademark under Sections 1, 2, 3, and 45 of the Lanham Act and citing its widespread use as a commonplace expression conveying varied sentiments.

The Board affirmed the PTO’s decision, concluding that FUCK was “arguably one of the most expressive words in the English language” and that consumers were accustomed to seeing it used by various sources on similar goods. The Board reasoned that such ubiquity rendered the term incapable of serving as a source identifier. It rejected Brunetti’s constitutional arguments and distinguished the Supreme Court’s prior decision in Iancu v. Brunetti, which invalidated the PTO’s refusal to register the mark FUCK on grounds of immorality. Brunetti appealed.

The Federal Circuit agreed that the Board had properly considered third-party use and the expressive nature of the term. However, the Court found the Board’s decision wanting in clarity and consistency. It criticized the Board’s failure to articulate a workable standard for when “all-purpose word marks” such as FUCK can function as trademarks, especially in light of other registrations for similarly ubiquitous terms such as LOVE and even FUCK itself for snow globes and gummy candies.

The Federal Circuit emphasized that the Board must engage in reasoned decision-making under the Administrative Procedure Act and provide sufficient guidance for future cases. The Court therefore vacated the decision and remanded for further proceedings.

Despite the remand, the Federal Circuit dismissed Brunetti’s argument that the PTO had retaliated against him for his prior Supreme Court victory in Iancu v. Brunetti. Brunetti claimed that the timing of the refusals (following his successful challenge to the PTO’s immoral/scandalous bar) suggested retaliation. The Court found this argument unpersuasive, noting that Brunetti offered no evidence beyond timing, and that the Board’s analysis remained viewpoint-neutral and focused on whether the mark functioned as a source identifier.

Judge Lourie dissented, arguing that the Federal Circuit should have affirmed the Board’s refusal on grounds that the term FUCK is too ubiquitous and expressive to function as a source identifier for the goods and services in question. He emphasized that the word’s widespread use across varied emotional contexts prevents consumers from associating it with a specific brand. From Judge Lourie’s perspective, FUCK on its own [...]

Continue Reading




read more

Standing: Don’t get owned by incorrect trademark ownership

The US Court of Appeals for the Second Circuit affirmed a district court’s dismissal of a trademark and unfair competition suit, ruling that the plaintiff did not own the asserted trademark. The Court also held that the owner of the trademark failed to ratify the action and therefore the plaintiff did not have standing to assert unfair competition claims. Ripple Analytics Inc. v. People Ctr., Inc., Case No. 24-490 (2d Cir. Aug. 26, 2025) (Park, Nathan, Perez, JJ.)

In March 2018, the US Patent & Trademark Office granted Ripple Analytics a federal trademark for RIPPLE in connection with human resources software. The following month, Ripple assigned all rights to its intellectual property to co-founder Noah Pusey via an assignment agreement. Around the same time, People Center applied to register RIPPLING for similar software. It later abandoned the application but continued to operate under the Rippling name.

Ripple sued People Center in 2020 for trademark infringement and unfair competition. During discovery, Ripple produced the assignment agreement. People Center responded by moving to amend its answer, seeking dismissal for failure to prosecute in the name of the real party in interest and requesting summary judgment.

The district court found that Pusey, not Ripple, was the real party in interest and dismissed the case because Pusey had not ratified the action under Federal Rule of Civil Procedure 17. It also dismissed the unfair competition claims for lack of standing and denied Ripple’s motion to amend the complaint as futile. Ripple appealed.

The Second Circuit affirmed the dismissal, finding that Ripple had “unambiguously” assigned all intellectual property rights, including the trademark at issue, to Pusey, making him the real party in interest. The Court emphasized that the assignment agreement transferred all of Ripple’s “claims, causes of action, and rights to sue,” regardless of when those claims arose. Ripple argued that Pusey satisfied Rule 17 by ratifying the pleadings and agreeing to be a plaintiff. The Court rejected this argument, noting that Pusey’s declaration stating his involvement in the case and strong interest in its outcome did not amount to an agreement to be bound by the suit, a requirement for ratification.

The Second Circuit determined that Ripple’s Lanham Act unfair competition claims failed because they were based on the inaccurate assertion that Ripple owned the RIPPLE mark. The Second Circuit also upheld the district court’s denial of Ripple’s motion to amend its complaint, explaining that the assignment agreement expressly barred Ripple from bringing suit.

Practice note: Before initiating trademark litigation, practitioners should conduct thorough due diligence on ownership to avoid standing issues. Defendants should consider initiating early discovery on ownership of the rights being asserted.




read more

Wrestling with prevailing defendant’s post-trial fee request in copyright dispute

The US Court of Appeals for the Fifth Circuit affirmed a district court’s denial of attorneys’ fees to the defendant after it prevailed at trial in a copyright infringement suit, concluding that the district court adequately addressed the Supreme Court’s Fogarty factors and did not abuse its discretion. Booker T. Huffman v. Activision Publ’g, Inc., et al., Case No. 22-40072 (5th Cir. Aug. 6, 2025) (Richman, Elrod, Oldham, JJ.) (Oldham, J., dissenting) (nonprecedential).

Booker Huffman, a retired professional wrestler, alleged that Activision’s “Prophet” character in Call of Duty: Black Ops IV infringed his G.I. Bro comic book poster. The case proceeded to trial, and the jury returned a verdict in favor of Activision. Activision then sought attorneys’ fees under 17 U.S.C. § 505, arguing that Huffman’s claims were frivolous, objectively unreasonable, and brought in bad faith, citing a lack of supporting evidence and substantial proof of independent creation. The district court found that the claims involved unsettled areas of law and were neither frivolous nor objectively unreasonable. Applying the factors the Supreme Court outlined in Fogarty v. Fantasy (1994), the district court concluded that an award of attorneys’ fees was not warranted. Activision appealed.

Activision argued that the district court failed to follow Fifth Circuit precedent, which holds that fee awards are “the rule rather than the exception” for prevailing parties in copyright actions. Activision contended that Huffman’s claims were meritless due to a lack of evidence establishing access, striking similarity, or causation. The Fifth Circuit rejected these arguments, emphasizing that there is no automatic entitlement to fees and that the district court’s six-page Fogerty analysis was more thorough than in other cases in which the Fifth Circuit has sustained lower court fee decisions. The Fifth Circuit highlighted that the district court carefully analyzed whether Huffman’s claims were objectively unreasonable, noting that the case implicated areas of unsettled law. The panel emphasized the district court’s denial of Activision’s pretrial motions, the evidence supporting Huffman’s access and similarity, and the district court’s evaluation of the evidentiary record.

The Fifth Circuit also rejected Activision’s argument that the district court abused its discretion by failing to analyze each of the Fogerty factors separately, finding that the judge recited the parties’ arguments for the relevant factors and that it could be inferred that the district court did not find Activision’s arguments persuasive. Throughout its analysis, the Court emphasized that a district court’s attorneys’ fees decision is reviewed only for abuse of discretion and not to relitigate the merits.

Judge Oldham dissented, concluding that Huffman’s claims were “speculation piled on fantasy piled on a pipe dream” and that overwhelming evidence of independent creation made the suit clearly unreasonable. Judge Oldman would have awarded fees to compensate Activision for defending against what he characterized as a baseless $32 million claim and to deter similarly unmeritorious lawsuits in the future.




read more

STAY CONNECTED

TOPICS

ARCHIVES