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Affliction Holdings, LLC v. Utah Vap Or Smoke, LLC

Citation: 935 F.3d 1112Docket: No. 18-4146

Court: Court of Appeals for the Tenth Circuit; August 27, 2019; Federal Appellate Court

Narrative Opinion Summary

In this case, an apparel company, Affliction Holdings, LLC, filed a lawsuit against Utah Vap or Smoke, LLC, alleging trademark infringement under the Lanham Act, among other claims. The dispute centers on the similarity between Affliction's registered trademarks and Utah Vap's marks, which both incorporate a fleur-de-lis and similar wording. Affliction argued that Utah Vap's use of a mark with a right-side-up fleur-de-lis and the phrase 'VAPE AFFLICTION' in a different font led to consumer confusion. Utah Vap sought summary judgment, contending there was no evidence of confusion and that Affliction failed to adequately disclose damages. The district court granted this motion, but Affliction appealed. The appellate court, reviewing de novo, found genuine issues of material fact regarding the likelihood of confusion due to the marks' high degree of similarity and the strength of Affliction's brand. It reversed the district court's decision, remanding the case for further proceedings, including the possibility of additional discovery on damages and consideration of injunctive relief. This outcome underscores the importance of analyzing consumer confusion factors in trademark infringement cases and the procedural requirements for disclosing damages under the Federal Rules of Civil Procedure.

Legal Issues Addressed

Disclosure of Damages under Federal Rules of Civil Procedure

Application: Discussion on the sufficiency of Affliction's damages disclosure and its implications for awarding damages under the Lanham Act.

Reasoning: Utah Vap claims Affliction did not provide a sufficient damages computation as required by Federal Rule of Civil Procedure 26(a)(1)(iii)...

Injunctive Relief in Trademark Cases

Application: The court notes the need for further consideration of injunctive relief on remand, given the reversal of summary judgment.

Reasoning: Affliction has also requested injunctive relief, but this matter was not addressed by the district court due to its prior ruling on likelihood of confusion.

Likelihood of Confusion in Trademark Cases

Application: The appellate court examines the factors influencing consumer confusion, emphasizing the high degree of similarity between the marks and the strength of Affliction's trademark.

Reasoning: The degree of similarity between the marks in this case was deemed high, suggesting a potential for confusion.

Summary Judgment in Trademark Disputes

Application: The district court's grant of summary judgment is reversed due to the presence of genuine issues of material fact regarding likelihood of confusion.

Reasoning: Therefore, a genuine issue of material fact exists regarding the likelihood of confusion, warranting the reversal of the district court's summary judgment.

Trademark Infringement under the Lanham Act

Application: The case discusses the requirements for proving trademark infringement, focusing on the legal right to a mark and the likelihood of consumer confusion.

Reasoning: Trademark infringement requires proof of a legal right to a mark and likelihood of consumer confusion.