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Cross Commerce Media, Inc. v. Collective, Inc.

Citations: 841 F.3d 155; 2016 WL 6575071Docket: Docket No. 15-782

Court: Court of Appeals for the Second Circuit; November 6, 2016; Federal Appellate Court

Narrative Opinion Summary

The case concerns a trademark dispute between two companies, Collective, Inc. (Cl) and Cross Commerce Media, Inc. (CCM), over the use of the term 'collective.' Cl owns several registered trademarks incorporating 'collective' and claimed common-law rights to the unregistered mark, while CCM used 'Collective[i]' and sought a declaratory judgment of non-infringement. The district court ruled in favor of CCM, classifying 'collective' as descriptive and dismissing Cl's counterclaims. However, the appellate court reversed these decisions, determining that 'collective' is suggestive and entitled to protection without proving secondary meaning. The appellate court criticized the district court for prematurely granting summary judgment without adequately addressing factual disputes about the distinctiveness and prior use of the mark. It vacated the finding of abandonment of registered marks due to sufficient evidence of ongoing use by Cl. The appellate court also vacated the award of attorney's fees to CCM, as neither party had prevailed, and remanded the case for further proceedings, including a re-evaluation of the trademark infringement claims using the appropriate legal framework.

Legal Issues Addressed

Attorney's Fees under the Lanham Act

Application: The award of attorney's fees to CCM was vacated as premature since neither party had prevailed, emphasizing that such fees are reserved for 'exceptional' cases.

Reasoning: Consequently, the court also vacated the award of attorney's fees, noting that such fees under the Lanham Act are reserved for 'exceptional' cases.

Summary Judgment Standards

Application: The district court's premature summary judgment on the registered marks was criticized, as the court failed to thoroughly analyze the factual disputes surrounding the distinctiveness and prior use of the mark.

Reasoning: The appellate court has reversed and vacated parts of these decisions and remanded for further proceedings.

Trademark Abandonment

Application: The appellate court vacated the finding of abandonment of the trademarks 'Collective Network' and 'Collective Video' due to sufficient evidence presented by Cl indicating ongoing use.

Reasoning: The appellate court found Hoskins' affidavit and exhibits sufficient to create a genuine issue of material fact regarding Cl's use of the trademarks.

Trademark Distinctiveness under the Lanham Act

Application: The appellate court determined that the mark 'collective' is suggestive rather than descriptive, thus granting it protection without needing to prove secondary meaning.

Reasoning: The mark 'collective' is determined to be suggestive of Cl's products rather than descriptive.

Trademark Infringement Analysis

Application: The court vacated the dismissal of Cl's counterclaim for infringement of the registered marks due to the district court's failure to apply the Polaroid factors for likelihood of confusion.

Reasoning: The district court failed to apply this analytical framework to Cl's counterclaim.