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Nat'l Prods., Inc. v. Arkon Res., Inc.

Citation: 294 F. Supp. 3d 1042Docket: NO. C15–1553–JPD

Court: District Court, W.D. Washington; February 13, 2018; Federal District Court

Narrative Opinion Summary

This case involves a dispute between National Products, Inc. (NPI) and Arkon Resources, Inc. (Arkon) following a jury trial addressing claims of trade dress infringement under the Lanham Act and violations of the Washington Consumer Protection Act (WCPA). NPI asserted that Arkon infringed its trade dress associated with an hourglass-shaped mounting arm, resulting in consumer confusion. The jury ruled in favor of NPI on the trade dress infringement claim, awarding $193,598 in damages, but found for Arkon on the WCPA claim, concluding that NPI failed to meet the public interest requirement under the Hangman Ridge test. Post-trial, NPI filed a renewed motion for judgment as a matter of law under Rule 50(b), which the Court denied, affirming the jury's verdict. Arkon's motion for a new trial or remittitur was granted conditionally, with the Court ordering a reduction in damages to $167,239.55 unless NPI accepted the remittitur. Arkon's motion to alter or amend the judgment was also denied. The Court upheld the jury's findings of willful trade dress infringement but not a WCPA violation, emphasizing the distinction between federal and state claims in satisfying public interest. The case highlights the nuanced interpretation of consumer protection and intellectual property laws and the standards for post-trial motions and damages adjustment.

Legal Issues Addressed

Motion for Judgment as a Matter of Law (Rule 50(b))

Application: The Court denied NPI's renewed Rule 50(b) motion for judgment as a matter of law regarding Arkon's violation of the WCPA, emphasizing that a reasonable jury could have found in favor of Arkon.

Reasoning: NPI's Renewed Rule 50(b) Motion for Judgment as a Matter of Law regarding Arkon's violation of the WCPA is denied.

Motion to Alter or Amend Judgment (Rule 59(e))

Application: Arkon's motion to alter or amend the judgment was denied due to lack of newly discovered evidence, clear error, or changes in law necessary to amend the judgment.

Reasoning: Arkon's motion to alter or amend the judgment was denied.

Remittitur in Awarding Damages

Application: The Court ordered a remittitur, reducing the damages from $193,598 to $167,239.55, unless NPI accepted the reduced damages award, based on the maximum supported by evidence.

Reasoning: The Court denies Arkon's motion for a new trial, contingent on NPI accepting a remittitur reducing the damages from $193,598 to $167,239.55, based on the maximum supported by evidence from NPI’s expert, Mr. Voth.

Trade Dress Infringement under the Lanham Act

Application: The jury found in favor of NPI on the trade dress infringement claim, determining the trade dress was valid and that the infringement was willful, awarding NPI $193,598.

Reasoning: The jury found in favor of NPI on the trade dress infringement claim, determining the trade dress was valid and that the infringement was willful, awarding NPI $193,598.

Washington Consumer Protection Act (WCPA) Violation

Application: The Court upheld the jury's verdict that Arkon did not violate the WCPA, as the jury found that the public interest element was unmet despite the finding of willful infringement.

Reasoning: NPI's trade dress was deemed not inherently distinctive or strong, leading the jury to reasonably conclude that the 'public interest' element of the Hangman Ridge test was unmet, thereby supporting the finding that Arkon did not violate the Washington Consumer Protection Act (WCPA).