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AMID, Inc. v. Medic Alert Foundation United States, Inc.

Citations: 241 F. Supp. 3d 788; 2017 WL 1021685; 2017 U.S. Dist. LEXIS 37699Docket: CIVIL ACTION NO. H-16-1137

Court: District Court, S.D. Texas; March 16, 2017; Federal District Court

Narrative Opinion Summary

In a dispute between two companies producing medical-identification jewelry, American Medical ID (AMID) sought to prevent MedicAlert Foundation from employing marketing materials that allegedly infringe on its trade dress and copyright. The case involved claims of trade dress and copyright infringement alongside a common-law unfair competition claim. AMID's request for a preliminary injunction was denied, as the court found its trade dress lacked inherent distinctiveness and secondary meaning, rendering the trade-dress infringement claim under the Lanham Act unlikely to succeed. However, AMID showed a likelihood of success on the copyright claim, though it did not prove irreparable harm. MedicAlert's motion to dismiss AMID's unfair competition claim was also denied, as it was not preempted by the Texas Uniform Trade Secrets Act. The court noted significant delays in AMID's pursuit of the injunction, further weakening its claims of irreparable injury. Consequently, AMID's request for an injunction was denied, and a status conference was scheduled for further proceedings.

Legal Issues Addressed

Copyright Infringement

Application: AMID demonstrated ownership and a likelihood of success in its copyright infringement claim, but failed to show a substantial threat of irreparable harm.

Reasoning: AMID has demonstrated a substantial likelihood of success regarding its copyright-infringement claim, although it has not proven that the infringement presents a significant threat of irreparable injury.

Preemption under Texas Uniform Trade Secrets Act

Application: AMID's common-law unfair-competition claim is not preempted by TUTSA, allowing it to proceed without the necessity of proving trade secret protection.

Reasoning: The court finds that AMID’s common-law unfair-competition tort claim is not preempted, as it can succeed on this claim without needing to prove the information is a protected trade secret.

Preliminary Injunction Standards

Application: The court denied AMID's application for a preliminary injunction due to failure to demonstrate a likelihood of success and irreparable harm.

Reasoning: AMID has not shown a substantial likelihood of success on its trade-dress infringement claim under the Lanham Act.

Trade Dress Infringement under the Lanham Act

Application: AMID failed to demonstrate that its trade dress is inherently distinctive or has acquired secondary meaning, undermining its claim for trade-dress infringement.

Reasoning: AMID is unlikely to succeed in establishing a protected trade dress for its marketing materials, as the trade dress lacks inherent distinctiveness, has not acquired secondary meaning, and is deemed functional.