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Russell Road Food & Beverage, LLC v. Galam

Citation: 180 F. Supp. 3d 724Docket: Case No. 2:13-cv-00776-RFB-NJK

Court: District Court, D. Nevada; April 13, 2016; Federal District Court

Narrative Opinion Summary

In a trademark dispute between two Las Vegas property owners, Russell Road Food and Beverage, LLC claimed ownership of the 'Crazy Horse III' trademark, while Defendants asserted rights to the 'Crazy Horse Too' mark following a property purchase. The primary legal issue was whether Defendants acquired the Crazy Horse Too trademark during their foreclosure purchase, which Russell Road contested, citing abandonment after the club's closure and lack of acquisition by Defendants. The case involved competing claims of trademark infringement under the Lanham Act and Nevada law. After an initial court decision was vacated and remanded by the Ninth Circuit, further proceedings were conducted. The Court ultimately granted summary judgment in favor of Russell Road, concluding that Defendants did not acquire the trademark, as it was not part of the foreclosure collateral. The Court found Russell Road's 'Crazy Horse III' mark to be protectable and established its priority of use. Additionally, the court found that the Defendants' use of the 'Crazy Horse Too' mark caused likely confusion and dilution of Russell Road's mark, entitling Russell Road to injunctive relief and damages. All of Defendants' counterclaims were denied, reaffirming Russell Road's trademark rights and granting relief, including cancellation of the Defendants' mark registration.

Legal Issues Addressed

Priority of Trademark Use

Application: Russell Road established priority of use of the 'Crazy Horse III' trademark over the Defendants' later use of 'Crazy Horse Too'.

Reasoning: Ownership of a trademark is based on the priority of use in commerce. Russell Road has used the 'Crazy Horse III' mark since its club's opening on September 4, 2009, demonstrating priority over Defendants, who acquired the former Crazy Horse Too property in a foreclosure sale on July 1, 2011, and began promoting it in April 2013.

Summary Judgment Standards

Application: The Court granted summary judgment to Russell Road due to the Defendants' inability to provide sufficient evidence to dispute Russell Road's claims.

Reasoning: For legal proceedings, summary judgment may be granted when there is no genuine dispute regarding material facts... The Court, after reviewing the motions and supplemental briefs, has determined that summary judgment should be granted in favor of Russell Road on all claims and counterclaims.

Trademark Abandonment and Ownership

Application: The Court determined that the Defendants did not acquire the Crazy Horse Too trademark during their foreclosure purchase, as the mark was not included in the collateral.

Reasoning: The Court ultimately determined that Defendants never acquired the Crazy Horse Too trademark, granting summary judgment in favor of Russell Road on all claims and counterclaims.

Trademark Dilution under Nevada Law

Application: The Court found that Russell Road's 'Crazy Horse III' mark was famous within its market and that the Defendants' use of the 'Crazy Horse Too' mark caused dilution.

Reasoning: Russell Road's third claim concerns trademark dilution under Nevada law, specifically referencing N.R.S. 600.436... Consequently, Russell Road is entitled to summary judgment on its trademark dilution claim, including injunctive relief against the Defendants’ use of the Crazy Horse Too mark.

Trademark Infringement under the Lanham Act

Application: Russell Road successfully demonstrated ownership of the 'Crazy Horse III' trademark and established that Defendants' use of 'Crazy Horse Too' was likely to cause confusion.

Reasoning: Russell Road's Complaint includes four claims: trademark infringement under the Lanham Act (15 U.S.C. § 1125(a))... The Court, after reviewing the motions and supplemental briefs, has determined that summary judgment should be granted in favor of Russell Road on all claims and counterclaims.