vs. Case No. 2:14-cv-208-FtM-29CM SEASALT AND PEPPER, LLC,
Defendant and Counter-Plaintiff. ___________________________________/ MOTION FOR PRELIMINARY INJUNCTION AND SUPPORTING MEMORANDUM OF LAW
Plaintiff, Nane Jan, LLC (Plaintiff or Nane Jan), by and through undersigned counsel and pursuant to Federal Rule of Civil Procedure 65, respectfully moves for entry of a preliminary injunction enjoining defendant Seasalt and Pepper, LLC (Defendant or Seasalt and Pepper) from further use of Nane Jans SEA SALT trademark. In support, Nane Jan submits the following Memorandum of Law and the attached declarations of Ingrid Aielli, Nathan Webb, Jason Goddard, and Tanya Buchanan. I. INTRODUCTION Nane Jan owns a restaurant and bar in Naples, Florida, that does business under the service mark 1 SEA SALT. Nane Jan owns both state and federal trademark registrations ensuring its exclusive right to use the SEA SALT trademark in association with its restaurant and bar services. Without Nane Jans permission, Defendant recently opened a restaurant and bar in Miami, Florida, under the trade name Seasalt and Pepper, and attempted to obtain federal
1 For the sake of simplicity, and consistent with common usage, the phrases service mark and trademark are used interchangeably herein. Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 1 of 21 PageID 140
6702718 2 trademark registrations on its business name. Defendants SEASALT AND PEPPER trademark applications were rejected by the United States Patent and Trademark Office (USPTO or Trademark Office) because the trademark Examiner concluded that there was a likelihood of consumer confusion with Plaintiffs registered SEA SALT trademark. The Examiners finding of likelihood of confusion has since been bolstered by growing evidence of actual consumer and supplier confusion. Additionally, the goodwill and excellent reputation that the public has come to associate with Nane Jans SEA SALT trademark has been damaged by a rash of negative publicity associated with Defendant, including: 1) poor food and service reviews; 2) Defendants failure to obtain proper business licenses and permits and pass city inspections; 3) litigation amongst the owners of Defendants business relating to a management coup; 4) shady advertising tactics such as issuing fake celebrity sightings to stir up publicity; 5) a warning from the Florida Environmental Protection Agency after an investigation into the restaurants yacht mooring system deemed it a navigation hazard; and 6) wrongful termination lawsuits against Defendant brought by former employees. There is little doubt that Nane Jan will succeed on the merits of its trademark infringement claim. The Trademark Offices objective conclusion that Defendants SEASALT AND PEPPER trademark creates a likelihood of confusion with Plaintiffs SEA SALT trademark is entitled to substantial weight under the law. Furthermore, it is well-settled that the existence of a likelihood of confusion constitutes irreparable harm, as a matter of law, sufficient to satisfy the requirements of Rule 65 of the Federal Rules of Civil Procedure. Because consumers and suppliers are likely to assume, and have assumed, that Defendants business is affiliated with Plaintiffs business, all of the confusion as to the source of Defendants services, Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 2 of 21 PageID 141
6702718 3 and all of the negative publicity surrounding Defendants restaurant, are irreparably harming Nane Jans reputation and goodwill in the SEA SALT mark in a manner that can only be mitigated by way of this Courts entry of a preliminary injunction. II. FACTS A. Plaintiffs SEA SALT Trademark Nane Jan owns and operates Sea Salt, a contemporary seafood cuisine restaurant located at 1186 Third Street South, Naples, Florida, that opened in November 2008 to both critical and public acclaim. Declaration of Ingrid Aielli 2 (Aielli Declaration, attached hereto as Exhibit 1) 2 ; Complaint 6 (attached, with exhibits, to the Aielli Declaration). 3 Nane Jans Sea Salt restaurant has received a number of accolades since opening including, but not limited to, Wine Spectators Award of Excellence from 2009-2013, Grub Street New Yorks 101 of Americas Most Delicious Noodle Dishes in 2011, Gulfshore Life Magazines Best VIP Dining Service in 2011, and Gulfshore Life Magazines Best Overall Restaurant in 2010. Comp. 10. Additionally, Nane Jan has made continuous use of the SEA SALT mark since November 15, 2008, and has expended substantial sums of money and time in the development, advertising, and promotion of the SEA SALT mark. Id. 15. As a result, the SEA SALT mark has achieved substantial recognition and good will within the restaurant industry and has come to be
2 The Aielli Declaration: 1) states that Ms. Aielli has reviewed the Complaint (Doc. #1), and all of the allegations and associated exhibits contained therein; 2) attests that such allegations are true, except as to those matters alleged upon information and belief, in which case, she believes them to be true; 3) attests that the Complaints Exhibits are true and correct copies of the various documents; and 4) incorporates by reference all factual allegations and associated exhibits contained in the Complaint (Doc. #1) into her Declaration.
3 All facts and/or exhibits which have been verified as true, by way of the Aielli Declaration, are hereinafter cited only with reference to the Complaint (Doc. #1) and any associated Exhibit, instead of both the Aielli Declaration and the Complaint. Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 3 of 21 PageID 142
6702718 4 recognized and relied upon as originating exclusively with the Sea Salt restaurant and being of a very high quality. Id. To protect its valuable trademark rights, and associated goodwill, Nane Jan registered its SEA SALT mark in Florida on December 30, 2008 (Trademark Registration No. T08000001417). Compl. 12, and Ex. 1 and 2 thereto. Nane Jans SEA SALT trademark was subsequently registered with the Trademark Office on March 12, 2013 for use in association with bar and restaurant services (Trademark Registration No. 4,299,923). 4 Id. 13, and Ex. 3 thereto. These trademark registrations remain valid and enforceable, and Nane Jan is the owner of all right title and interest to the SEA SALT mark in association with restaurant and bar services. B. Defendants Willful Infringement of the SEA SALT Trademark Over five years after Plaintiffs first use of the SEA SALT mark on December 7, 2013 Defendant opened a seafood restaurant and bar, located at 422 NW North River Drive, Miami, FL 33128, under the name Seasalt and Pepper. Id. 18; Defendants Answer and Counterclaim (Doc. #19) 18. Defendant uses the SEASALT AND PEPPER name in association with its two concept business; Seasalt Brasserie is the name for the restaurant, while Pepper is the name of the attached bar, lounge and members club. Defendant also uses the SEA SALT mark in advertising its restaurant and bar services on its website, www.seasaltandpepper.com. Compl. 19; Defendants Answer and Counterclaim 19. Defendant is situated only 125 miles from Plaintiff, and is in the same media market. Nane Jan soon discovered the opening of Defendants Seasalt and Pepper restaurant, and the fact that Defendant had filed two federal trademark applications (one for a standard character mark, the
4 The phrase SEA SALT is hereinafter used to describe Plaintiffs federal, state and common law trademarks. Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 4 of 21 PageID 143
6702718 5 other for a stylized version) for SEASALT AND PEPPER in association with restaurant and bar services. Compl. 16-17, and Ex. 4-5 thereto. Nane Jan took swift action to prevent Defendant from fully committing to an infringing business name. On December 16, 2013 only nine days after Seasalt and Pepper restaurant opened Nane Jan sent Defendants trademark attorney, Jorge Espinoza, correspondence demanding that Defendant terminate all use of the SEA SALT mark. Id. Compl. 20 and Ex. 6 thereto; Aielli Declaration 7. Specifically, Nane Jan put Defendant on notice of its state and federal trademark registrations and advised that formal legal action would be pursued if infringing use of the SEA SALT mark did not cease within 10 days. Compl. 20, and Ex. 6 thereto; Aielli Declaration 7. Mr. Espinoza and Nane Jans trademark attorney subsequently engaged in settlement talks which resulted in the presentation of a formal offer of settlement. Aielli Declaration 8. Unfortunately, the parties failed to reach a settlement; on January 30, 2014, Mr. Espinoza advised that Defendant was unwilling to accept all of Nane Jans generous settlement terms; Nane Jan replied that without a formal settlement agreement on all settlement issues it was likely that a formal trademark opposition proceeding before the USPTO would be pursued against Defendants trademark applications. Id. 8-9. After receiving no additional communications from Defendants trademark attorney, Nane Jan monitored the scope and effects of Defendants infringing conduct. Id. 10 This investigation revealed that two of Nane Jans best suppliers of restaurant and bar materials, Freshpoint and Prime Line Distributors, Inc., were confused about the affiliation, or lack thereof, between Plaintiffs Sea Salt restaurant in Naples and Defendants Seasalt and Pepper restaurant in Miami. Declaration of Jason Goddard 8-9 (Goddard Declaration, attached hereto as Exhibit 2). Written correspondence from Freshpoint and Prime Line Distributors, Inc. requested Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 5 of 21 PageID 144
6702718 6 that Nane Jan designate all future orders as Sea Salt Naples. Id., and Attachments A and B thereto. Freshpoint stated that such specification was to ensure that our customer service team will not confuse your account with another restaurant named Sea Salt that is in Miami. Goddard Declaration, 2, and Ex. A. thereto. Even after Plaintiff began designating its food orders as Sea Salt Naples Plaintiff has encountered supplier confusion, including supply orders placed by Plaintiff Sea Salt being mistakenly delivered to Defendant Seasalt and Pepper in Miami. Goddard Declaration 10. Nane Jan also learned that the USPTO had foreshadowed the actual confusion occurring in the marketplace: both of Defendants federal trademark applications were rejected on February 28, 2014, after the trademark Examiner concluded there was a likelihood of confusion with Nane Jans SEA SALT trademark registration number 4299923. Complaint, 23-24, and Ex. 7 and 8 thereto. Of particular note in the Examiners reasoning were the fact that both marks contain the dominant terms SEA SALT and that [b]ecause the wording [SEA SALT] is arbitrary for restaurant services, it is a strong source identifier. Id., at Ex. 7, p. 2 and Ex. 8, p. 2. In conjunction with the fact that the services are identical, both being restaurant services, Defendants applications for trademark registration were refused over Nane Jans pre- existing SEA SALT registration. Id., at Ex. 7, p. 2 and Ex. 8, p. 2. Remarkablyeven after Nane Jan put Defendant on notice of its federal SEA SALT trademark registration, and even after the USPTO officially rejected Defendants trademark applications, concluding there is a likelihood of confusion with Nane Jans SEA SALT mark Defendant continues, to this date, unabated in its use of the SEA SALT mark to advertise its restaurant and bar services. Defendants Answer to Complaint and Counterclaim 3 (Doc. #19).
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6702718 7 C. The Present Litigation and Mounting Evidence of Irreparable Harm On April 14, 2014, Nane Jan filed the present lawsuit, alleging infringement of its federal, state and common law trademark rights. See generally Compl. Instead of immediately serving the Complaint, however, Nane Jan reached out to Mr. Espinoza in yet another effort to determine whether the dispute could be resolved. Declaration of Nathan Webb 3 (Webb Declaration, attached hereto as Exhibit 3). In correspondence dated April 14, 2014, Nane Jan offered to settle the pending litigation if Defendant would agree to, among other terms, an orderly transition to a new business name; the deadline to respond to the settlement correspondence was two weeks. Id. Mr. Espinoza waited eleven days before informing the undersigned that he no longer represented Defendant. Id. 5. Nane Jan therefore amended the April 14 correspondence and sent a new settlement correspondence directly to the owners of Defendant Seasalt and Pepper on April 30, 2014; the deadline to respond to the settlement correspondence was extended until May 14, 2014. Id. 6. The next day, the undersigned received a telephone call from Chris Weisman, at attorney at the firm of Defendants current counsel to discuss potential settlement terms. Id. 7. The undersigned was informed at that time that Defendant would evaluate the offer and respond in due course. Id. The May 14, 2014 deadline included in Nane Jans settlement correspondence came and went without receiving a reply from Defendants counsel. Id. 8. Nane Jan was left with little choice but to serve the Complaint and proceed with the lawsuit; verification of service of the Complaint was entered with the Court on May 30, 2014 See, Verification of Service (Doc. #4). On June 13, 2014, just days before Defendants Answer to the Complaint was due, Himanshu Patel, another attorney at the firm of Defendants current counsel, contacted the undersigned and request a two-week extension of time to file its Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 7 of 21 PageID 146
6702718 8 responsive pleading; Nane Jan agreed to the extension, and once again broached the subject of settlement; Mr. Patel advised that he was only recently retained by Defendant, was unsure if he would be lead counsel in the case, and was otherwise unfamiliar with the settlement terms offered his client, but would take the matter under advisement and be in contact. Webb Declaration 10-11. On July 1, 2014, without having first responded to Nane Jans continuing invitation to discuss settlement, Defendant filed its Answer and Counterclaims (Doc. #19). Webb Declaration 12. Nane Jans continuing investigation into the impact of Defendants infringing activities revealed yet further confusion and damage to Plaintiffs good will and reputation. The General Manager at Nane Jans Sea Salt restaurant, who routinely interacts with customers about their dining experience, has personally received approximately thirty (30) inquiries as to whether Sea Salt has any affiliation with Seasalt and Pepper. Declaration of Tanya Buchanan 6 (Buchanan Declaration, attached hereto as Exhibit 4). Of those approximately thirty (30) customer inquiries, approximately twenty (20) have concerned questions related to Nane Jans involvement with negative press accounts associated with Defendants Seasalt and Pepper restaurant; including, at least, questions about whether Nane Jan was involved in Defendants numerous pending lawsuits. Id. 7 (and as further detailed below). Numerous customers of Defendant Seasalt and Pepper have called Plaintiff Nane Jan to make inquiries about their restaurant bills. Id. 8. Still other customer comments expressed surprise that Nane Jan had opened another restaurant in Miami. Id. 13. Additionally, negative press and publicity seemed to be associated with Defendants every move. One article described how Seasalt and Pepper had been shut down by a City Fire Marshallonly four days after its openingfor failure to secure a Certificate of Use, Business Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 8 of 21 PageID 147
6702718 9 Tax Receipt license and pass a routine fire inspection; shortly thereafter, the Florida Environmental Protection Agency characterized Seasalt and Peppers yacht mooring system as a navigation hazard in a formal letter of admonishment. Webb Declaration, at Attachment H, pp. 2-5. Other journalists wrote articles describing lawsuits involving Defendant Seasalt and Pepper and/or its respective owners: 1) a lawsuit between owners of Seasalt and Pepper asserting a management coup over control of the company (Id. at Attachment D); 2) lawsuits brought by Seasalt and Pepper against its investors in reaction to a loan dispute that included threats to foreclose the restaurants loan (Id. at Attachments A and B); 3) lawsuits by former Seasalt and Pepper employees who alleged wrongful termination (Id. at Attachment F); and 4) lawsuits involving Seasalt and Peppers owners failure to pay homeowners association fees. Id. at Attachment I. Still other press accounts of Seasalt and Peppers activities read like a tabloid page, with one article alleging first-hand knowledge that restaurant management has been known to issue fake celebrity sightings in an attempt to stir up publicity. Id. at Attachment C. Perhaps most damaging of all, however, were poor or lukewarm food reviews warning Go to Seasalt and Pepper for the View, but Not the Food. Id. at Attachment E. Presented with mounting evidence that Defendants use of Plaintiffs SEA SALT mark was doing serious and irreparable damage to its reputation, and uncertain of the full extent of consumer and supplier confusion, Plaintiff was left with no choice but to prepare and file the present request for entry of a preliminary injunction. III. ARGUMENT A. Standard of Review The purpose of the Lanham Act is [t]o protect trademarksto protect the public from deceit, to foster fair competition, and to secure to the business community the advantages of Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 9 of 21 PageID 148
6702718 10 reputation and goodwill by preventing their diversion from those who have created them to those who have not. See Truck Equip. Serv. Co. v. Fruehaf Corp, 536 F.2d 1210, 1215 (8 th Cir. 1976). To meet this purpose, the Lanham Act prohibits infringement of trademarks and specifically authorizes an injunction according to the principles of equity and upon such terms as the court may deem reasonable to prevent the violation of any right of the registrant of a mark in the Patent and Trademark Office. 15 U.S.C. 1051 et seq., 116(a). To obtain a preliminary injunction, Nane Jan must show: (1) a substantial likelihood of succeeding on the merits; (2) a substantial threat of irreparable injury if relief is denied; (3) an injury that outweighs the opponent's potential injury if relief is granted; and (4) that an injunction would not harm or do a disservice to the public interest. See Suntrust Bank v. Houghton Mifflin Co., 252 F. 3d 1165, 1166 (11th Cir. 2001); Am. Red Cross v. Palm Beach Blood Bank, 143 F.3d 1407, 1410 (11th Cir. 1998). B. Nane Jan Demonstrates a Substantial Likelihood of Success on the Merits Nane Jan has a substantial likelihood of success on its trademark infringement claims. 5
In order to succeed on the merits of a trademark infringement claim [under 15 U.S.C. 1114(1) or 1125(a)(1)], a plaintiff must show that the defendant used the mark in commerce without its consent and that the unauthorized use was likely to deceive, cause confusion, or result in mistake. Davidoff & Cie, S.A. v. PLD Int'l Corp., 263 F.3d 1297, 1300-01 (11th Cir. 2001) (quoting McDonald's Corp. v. Robertson, 147 F.3d 1301, 1307 (11th Cir. 1998)). Essentially, Nane Jan must show that it owns the mark in question, that the defendant's mark is similar to or
5 For the sake of brevity, Nane Jan cites only to federal trademark law in analyzing the likelihood of success on its claims, since the elements of state and common law trademark law are not appreciably different for the purposes of evaluating this motion. See, e.g., Investacorp, Inc. v. Arabian Inv. Banking Corp., 931 F.2d 1519, 1521 (11 th Cir. 1991) (analysis of Florida statutory and common law trademark infringement claims and unfair competition is the same for federal trademark infringement claims); La Dove, Inc. v. Playtex Jhirmack, Inc., 1991 WL 187473, at *3 (S.D. Fla. 1991) (same). Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 10 of 21 PageID 149
6702718 11 the same as the plaintiff's mark, and that defendant's use of the mark is likely to cause confusion among consumers. Dunkin' Donuts Inc. v. Gav-Stra Donuts, Inc., 139 F. Supp. 2d 147, 158 (D. Mass. 2001). Notably, the Trademark Office conducts substantially the same analysis, as further demonstrated below, in determining whether a trademark application should be granted a federal registration. Where, as here, the Trademark Office has declined to register defendants mark because of plaintiffs registration, that refusal is entitled to great weight on the issue of likelihood of confusion in a later trademark action. Syntex Labs., Inc. v. Norwich Pharm. Co., 437 F.2d 566, 569 (2d Cir. 1971); Carling Brewing Co. v. Philip Morris, Inc., 297 F. Supp. 1330, 1337 (N.D. Ga. 1968) (Trademark Office decisions entitled to the most respectful consideration); see also Cullman Ventures, Inc. v. Columbian Art Works, Inc., 717 F. Supp. 96, 120 (S.D.N.Y. 1989) (decision by the PTO is entitled to great weight); Natl Customer Engineering, Inc. v. Lockheed Martin Corp., 1997 WL 363970, at *1 (C.D. Cal. Feb. 14, 1997) (Trademark Offices determination was entitled to serious consideration). Both Nane Jans arguments and the legal conclusions of the Trademark Office support the assertion that there is a strong likelihood of Nane Jan succeeding at trial on the merits of its claims. 1. Nane Jan Owns Valid Federal and State Trademark Registrations The Lanham Act provides that marks registered on the Principal Register shall be prima facie evidence of the validity of the registered mark, of its registration, of the registrant's ownership, and of the registrant's exclusive right to use the mark on the goods or services specified in the registration. 15 U.S.C.A. 1115(a). Nane Jan is the owner of SEA SALT trademark registrations in Florida (Trademark Registration No. T08000001417) (Dec. 30, 2008) and the USPTO (Trademark Registration No. 4,299,923) (March 12, 2013). Compl., at Ex. 1 and Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 11 of 21 PageID 150
6702718 12 3 thereto. A plaintiff can establish that it possesses valid marks by identifying the registration numbers of each mark and providing copies of the marks from the Trademark Offices website. FSC Franchise Co., LLC v. Express Corp. Apparel, LLC, 2011 U.S. Dist. LEXIS 34064 (M.D. Fla. Feb, 28, 2011). Apart from its state and federal trademark registrations, Nane Jan also owns common law trademark rights by virtue of its earlier use of the SEA SALT mark as compared to Defendant. Nane Jan has plainly proven that it owns the exclusive right to use the SEA SALT mark in association with restaurant and bar services. 2. Defendants Mark is the Same As Nane Jans SEA SALT Mark The Trademark Office concluded that Defendants SEASALT AND PEPPER trademark was too similar to Plaintiffs SEA SALT mark to be registered with the USPTO. Compl., at Ex. 7 and 8. This conclusion is entitled to great weight, as a matter of both law and common sense. See Syntex Labs., 437 F.2d at 569. As the trademark Examiner pointed out, both marks contain the dominant terms SEA SALT and because [c]onsumers are generally more inclined to focus on the first word, prefix, or syllable in any trademark or service mark there is a likelihood of confusion with Nane Jans SEA SALT mark. Compl., at Ex. 7, p. 2 and Ex. 8, p. 2 (citing to Palm Bay Imps., Inc. v. Veuve Clicquot Ponsardin Maison Fondee En 1772, 396 F. 3d 1369, 1372 (Fed. Cir. 2005)); Presto Prods., Inc. v. Nice-Pak Prods., Inc., 9 U.S.P.Q. 2d 1895, 1897 (TTAB 1988) (it is often the first part of a mark which is most likely to be impressed upon the mind of a purchaser and remembered when making purchasing decisions). Moreover, Defendants mere addition of the word Pepper to Nane Jans SEA SALT mark is entirely incapable of avoiding confusion. A defendant in a trademark infringement or unfair competition case cannot prevail by simply adding a word to one that it shares with the plaintiff[as] Courts have repeatedly held that the confusion created by use of the same word Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 12 of 21 PageID 151
6702718 13 as a primary element in a trademark is not counteracted by the addition of another term. Coherent, Inc. v. Coherent Tech., Inc., 1990 U.S. Dist. LEXIS 5715, at 26 (Colo. 1990); see also Contl Connector Corp. v. Contl Specialties Corp, 492 F. Supp. 1088, 1095 (D. Conn. 1979). Defendants use of SEASALT AND PEPPER is identical, or impermissibly similar, to Nane Jans SEA SALT mark. 3. Defendants Use of SEASALT AND PEPPER is Likely to Be Confused with Nane Jans SEA SALT Mark
The Eleventh Circuit has consistently referred to the following seven factors when determining whether a likelihood of confusion exists: (1) the type of mark; (2) the similarity of the mark; (3) the similarity of services; (4) the identity of purchasers and the similarity of retail outlets; (5) the similarity of advertising campaigns; (6) the intent of the defendants; and (7) actual confusion. The Trademark Office concluded that Defendants SEASALT AND PEPPER trademark applications were not entitled to be registered with the USPTO because of a likelihood of confusion with Plaintiffs SEA SALT trademark. Compl., at Ex. 7 and 8 thereto. The Trademark Offices conclusion is entitled to great weight, but an examination of the factors that are considered in this analysis further demonstrates why the trademark Examiners conclusion was well-founded. See Syntex Labs., 437 F.2d at 569. a. The Type of the Mark The first factor raises the issue whether the marks adopted and used by Nane Jan are "strong," and therefore deserving of protection, or "weak," and not entitled to protection. Bellsouth Adver. & Publg Corp. v. The Real Color Pages, Inc., 792 F. Supp. 775, 781 (M.D. Fla. 1991) (citing University of Georgia Athletic Ass'n. v. Laite, 756 F.2d 1535 (11th Cir. 1985)). The strength of a trademark is measured in the marketplace by its tendency to identify the source of the goods; there are essentially four types of marks, ranging in degree of identification, and Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 13 of 21 PageID 152
6702718 14 hence protection; they are, from strongest to weakest: (1) arbitrary or fanciful; (2) suggestive; (3) descriptive; and (4) generic. See e.g., Soweco Inc. v. Shell Oil Co., 617 F.2d 1178, 1183-1184 (5th Cir. 1980) (cert. denied, 450 U.S. 981 (1981)). Regarding the strength of Nane Jans mark, the trademark Examiner afforded it the greatest strength available on the distinctiveness spectrum by stating that SEA SALT is arbitrary for restaurant services.[and] is a strong source identifier. Compl., at Ex. 7, p. 2 Ex. 8, p. 2. Since SEA SALT is completely arbitrary for restaurant and bar services, it is a very strong mark. This factor plainly weighs toward a likelihood of confusion. b. Similarity of the Marks As a preliminary observation, it is worth noting that "where the products are closely related, less similarity in the trademarks is necessary to support a finding of infringement." Squirtco v. Seven-Up Co., 628 F.2d 1086, 1091 (8th Cir. 1980). Defendants trademark applications are for restaurant and bar services (Compl., at Ex. 4-5); Plaintiffs trademark registrations are for restaurant and bar services. Id., at Ex. 1 and 3 thereto. Thus, less similarity in the trademarks is required. Notwithstanding this fact, for the reasons stated above, the similarity of the Plaintiffs and Defendants respective marks was deemed by the Trademark Office to be significant, with the appendage of PEPPER being of no consequence, since the addition of a word to a registered mark is widely recognized as incapable of avoiding infringement liability. Contl Connector, 492 F. Supp. at 1095. More importantly, however, is the fact that evidence of actual consumer and supplier confusion has been well-documented. Goddard Declaration 5-10; Buchanan Declaration 5-12. This factor indisputably favors a likelihood of confusion.
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6702718 15 c. Similarity of Services Defendants trademark applications are for restaurant and bar services (Compl. At Ex. 4-5 thereto); Plaintiffs trademark registrations are for restaurant and bar services (Id. at Ex. 1, 3 thereto); thus, there is no question that the services are identical; a fact the Trademark Office also acknowledged. Id. at Ex. 7-8 thereto. d. The Identity of Purchasers and the Similarity of Retail Outlets Both parties cater to high end consumers of seafood cuisine, and both parties offer their restaurant and bar services at up-scale venues. Compl. 6-10; Defendants Answer and Counterclaim 6-9. This factor increases the likelihood of confusion between the two restaurants. See Contra Amstar Corp. v. Domino's Pizza, Inc., 615 F.2d 252, 262 (5th Cir.) (cert. denied, 449 U.S. 899 (1980)). e. The Similarity of Advertising Campaigns Nane Jan has not yet obtained discovery on the scope and nature of Defendants advertising campaigns. Nonetheless, Nane Jan asserts, broadly, and with reservation of rights to further supplement this argument when additional discovery becomes available, that two Florida businesses advertising seafood restaurant and bar services under the SEA SALT mark are by their very nature similar. This factor weighs in favor of a finding of a likelihood of confusion. f. Intent of the Defendant Nane Jan believes that discovery will establish Defendants intention to trade off of the good will associated with Nane Jans SEA SALT mark in adopting and using the trade name Seasalt and Pepper. Certainly, after being put on notice of Nane Jans state and federal trademark registrations, and being admonished by the USPTO that there is a likelihood of confusion with another federally registered mark (and Florida business), it cannot be disputed Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 15 of 21 PageID 154
6702718 16 that Defendant intends to use the SEA SALT mark in a willful and malicious manner. Given Nane Jans widespread recognition and acclaim, it can be inferred that adoption and continuing use of the SEA SALT mark was an intentional effort to benefit from the excellent reputation Nane Jan had already achieved. See generally, Bellsouth, 1991 U.S. Dist. LEXIS 20124, at *20 (citing John H. Harland Co. v. Clarke Checks, Inc., 711 F. 2d 966, 977 (11 th Cir. 1983)). g. Evidence of Actual Confusion "Although evidence of actual confusion is not necessary to a finding of likelihood of confusion, it is nevertheless the best evidence of likelihood of confusion." Amstar Corp. v. Domino's Pizza, Inc., 615 F.2d 252, 263 (5 th Cir. 1980). Evidence of actual confusion can be established by way of declarations or affidavits. Bellsouth, 1991 U.S. Dist. LEXIS 20124, at *21. Nane Jan has presented evidence that at least 30 customers have expressed confusion as to whether there was an affiliation between Nane Jans Sea Salt restaurant in Naples and Defendants Seasalt and Pepper restaurant in Miami. Buchanan Declaration 7. Nane Jan has also presented evidence that two of its best suppliers were confused as to an affiliation between Nane Jans Sea Salt restaurant in Naples and Defendants Seasalt and Pepper restaurant in Miami; one of the suppliers accidentally sent a food order placed by Nane Jan to the Defendants restaurant in Miami, thereby disrupting Nane Jans normal business operations. Goddard Declaration 10. The evidence of actual marketplace confusion is well-established, without the parties even having conducted any formal discovery. This factor is clearly established by the presented evidence, and forms the fundamental gravamen of a trademark infringement claim Nane Jan will succeed on the merits of its trademark infringement claims.
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6702718 17 C. There is a Substantial Threat Of Irreparable Harm if an Injunction is Not Issued Once a plaintiff establishes a likelihood of success on the merits of a trademark infringement claim, a presumption of irreparable harm arises. Fantasia Distrib., Inc. v. S. Wholesale, LLC, 2014 U.S. Dist. LEXIS 19884, at **3-4 (M.D. Fla. Feb. 18, 2014); see also Bellsouth Adver. & Publg Corp. v. Real Color Pages, Inc., 792 F. Supp. 775, 784 (M.D. Fla. 1991) (The law is well settled that the existence of a likelihood of confusion constitutes irreparable injury, as a matter of law, sufficient to satisfy the requirements of Federal Rule of Civil Procedure 65.). As such, Defendants trademark infringement is an offense that, by its very nature, causes irreparable injury. See Delta Sigma Theta Corority, Inc. v. Bivens, 2014 WL 1330018 at *2 (M.D. Fla. April 1, 2014); citing Tally-Ho, Inc. v. Coast Cmty. Coll. Dist, 889 F, 2d 1018, 1029 (11 th Cir. 2989) (It is generally recognized in trademark infringement cases that (1) there is not [an] adequate remedy at law to redress infringement and (2) infringement by its nature causes irreparable harm.). Even without the presumption of irreparable harm, however, the evidence establishes that irreparable harm can only be mitigated by entry of a preliminary injunction. Nane Jan has no ability to control the quality of the food and services being offered by Defendant under the SEA SALT mark. As a result, consumers who have a negative dining experience at Defendants Seasalt and Pepper restaurant may pass along a negative review of the restaurant to their friends or families, thereby potentially causing customers to avoid Nane Jans restaurant, and tarnishing the reputation and goodwill that Nane Jan has invested so heavily to establish. Furthermore, the evidence establishes that customers are actually confused about an affiliation between Sea Salt restaurant in Naples and the Seasalt and Pepper restaurant in Miami, and that the majority of these confused customers are also wrongfully attributing the negative publicity surrounding Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 17 of 21 PageID 156
6702718 18 Defendants numerous lawsuitsand perhaps even other bad press, ranging from failed inspections and false advertising to poor food reviews and public hazards to the conduct of Nane Jan. See Buchanan Declaration 5-7. A negative press article regarding Defendant particularly where Plaintiff is situated only 125 miles away and in the same media market poses a high risk of tarnishing the reputation of Nane Jan. It is difficult to quantify the scope or measure of damages associated with this damage to Nane Jans reputationonly issuance of a preliminary injunction can mitigate this irreparable harm. 6
D. Nane Jans Injury Outweighs the Defendant's Potential Injury if Relief is Granted
Defendant will not suffer substantial harm from the Court granting Plaintiff Nane Jans Motion; Defendant will be able to continue operating its business, offering restaurant and bar services in Miami, as Nane Jan does not seek to enjoin all sales of Defendants' services, but only to halt sales of services using Plaintiff's SEA SALT mark. See Delta Sigma, 2014 WL 1330018 at *3. Defendant can advertise and operate its business under any name that does not contain the SEA SALT mark, or any confusingly similar name. E. An Injunction Would Not Harm or Do a Disservice to the Public Interest Protecting consumers from confusion and deception is in the public interest. See Teledyne
6 Defendant has indicated that it will assert that Plaintiffs purported delay in seeking a preliminary injunction undermines its assertion of irreparable harm. As the facts establish, however, of the roughly eight months between the opening of Defendants restaurant and the filing of this motion, Nane Jan has spent nearly four full months in efforts to settle the dispute; the remaining four months have involved an ongoing investigation into the impact of infringement and the appropriate forum and avenues for obtaining relief; and it has only been one month since Nane Jans continuing settlement overtures were finally foreclosed by Defendants commitment to proceeding with litigation by way of its Answer and Counterclaims. None of these time periods are counted as delay against Plaintiff. See, e.g. Rebel Debutante, LLC v. Forsythe Cosmetic Group, Ltd, 799 F. Supp. 2d 558, 580 (M.D. N.C. 2011). Additionally, Plaintiff is entitled to some latitude to assess both the impact of anothers use of an allegedly infringing trademark as well as the wisdom of pursuing litigation on the issuePlaintiffs delay of seven to eight months is not an unreasonable amount of delay, and does not necessitate the preclusion of a finding of irreparable injury. Bellsouth, 1991 U.S. Dist. LEXIS 20124, at *26. Nane Jan reserves the right to brief this issue further in its reply brief. Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 18 of 21 PageID 157
6702718 19 Indus., Inc. v. Windmere Prod., Inc., 433 F. Supp. 710, 740 (S.D. Fla. 1977) (stating customer confusion is by its very nature against the public interest). The Middle District of Florida courts have long recognized the gravity of protecting the public in trademark infringement cases, including stating: [i]n a trademark infringement or unfair competition case, a third party, the consuming public, is present and its interests are paramount.... When a trademark is said to have been infringed, what is actually infringed is the right of the public to be free of confusion and the synonymous right of the trademark owner to control his products' reputation.
Bellsouth Adver., 792 F. Supp. at 785. The facts of this case present a compelling argument for protecting consumers against confusion as to both reputation of the parties and as to the quality of their respective services and this factor weighs heavily in favor of entry of the injunction. IV. CONCLUSION The factors this Court must consider for the issuance of a preliminary injunction are amply satisfied by Plaintiff Nane Jan, which otherwise has no adequate remedy at law. Nane Jan respectfully requests that its Motion be granted, that the Court enter an injunctive order enjoining Defendant Seasalt and Pepper and all those acting in concert with it from infringing upon the SEA SALT mark. Specifically, Nane Jan requests that the Court issue an order requiring the immediate termination of any use of the SEA SALT mark in association with the Defendants services; including advertising or promotion, in any medium, but including at least in print advertisements, radio and television advertisements, store signage and menus, and internet advertising (including deactivation of the its website located at www.seasaltandpepper.com in association with any restaurant or bar services, or other confusingly similar services of Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 19 of 21 PageID 158
6702718 20 Defendant, and the deactivation of any social media accounts using the SEA SALT mark). Plaintiff Nane Jan respectfully submits that the facts of the case should not require Nane Jan to post more than a nominal security bond; Plaintiff requests that the security bond not exceed $1,000. A nominal security bond is justified by the fact that Defendant will not encounter any interruptions in its ability to offer its restaurant and bar services if it is enjoined from using the SEA SALT mark. Defendant merely needs to remove or alter signage and print new menus, alter its website, and terminate all other infringing advertising. These requirements should not disrupt normal business operations in the offering of restaurant and bar services. Additionally, Defendant has been on notice of its infringing conduct for quite some time (by way of both Nane Jan and Trademark Office notice), has had numerous settlement opportunities where an orderly transition to a new business name had been proposed by Plaintiff, and could well have already begun any necessary transition to a new business name. Finally, Plaintiffs likelihood of succeeding on the merits of its trademark claims is extraordinarily high, so the risk of erroneously disrupting Defendants marketing and promotion effortsshould trial result in a finding of no liabilityis exceedingly low, and the security bond should be correspondingly minimal. Should the Court grant this motion, Nane Jan requests that Defendant file with the Court, and serve upon Plaintiff Nane Jan, within fifteen (15) days after service upon Defendant of the injunction, a written report detailing under oath setting forth in detail the manner and form in which it has complied with the injunction and award. Still further, Nane Jan asks that the Court award such other relief it deems just and proper.
Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 20 of 21 PageID 159
6702718 21 HAHN LOESER & PARKS LLP /s/ Nathan B. Webb JEANNE L. SEEWALD Florida Bar No. 175005 MICHAEL C. SHUE Florida Bar No. 029550 HAHN LOESER & PARKS LLP 5811 Pelican Bay Blvd., Suite 650 Naples, FL 34108 Telephone: (239) 254-2900 Facsimile: (239)254-7716 E-Mail: jseewald@hahnlaw.com mshue@hahnlaw.com AND NATHAN B. WEBB (Trial Counsel; admitted pro hac vice) Ohio Bar No. 0084506 HAHN LOESER & PARKS LLP One Gojo Plaza 501 South Main Street, Suite 300 Akron, OH 44311 Telephone: (330) 864-5550 Facsimile: (330) 864-7986 E-Mail: nwebb@hahnlaw.com
Counsel for Plaintiff Nane Jan, LLC
CERTIFICATE OF SERVICE I HEREBY CERTIFY on this 4th day of August, 2014, I electronically filed the foregoing document with the Clerk of Court using CM/ECF. I also certify that the foregoing document is being served this day on all counsel of record in the manner specified, either via electronic transmission through the CM/ECF filing system or in some other authorized manner for these counsel or parties who are not authorized to receive electronic notification.
/s/ Nathan B. Webb Case 2:14-cv-00208-JES-CM Document 24 Filed 08/04/14 Page 21 of 21 PageID 160