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Marshak v. Reed

Citation: 87 F. App'x 208Docket: No. 01-7961(L), 01-9227(CON)

Court: Court of Appeals for the Second Circuit; February 9, 2004; Federal Appellate Court

Narrative Opinion Summary

The case involves an appeal by an individual, Reed, against a district court's decision to reinstate a summary judgment in favor of Marshak, Williams, and Five Platters, Inc., regarding the rights to the service mark 'The Platters' under the Lanham Act Section 43(a). The district court initially granted the appellees' motion for summary judgment, enjoining Reed from using the service mark, citing a 1987 Stipulation of Settlement that included an escape clause contingent on a court ruling. While Reed's appeal was pending, the Ninth Circuit issued a decision in a related case, prompting the Second Circuit to vacate the district court's cancellation of Reed's service mark and remand for further consideration. On remand, the district court determined that the Ninth Circuit's order did not activate the escape clause. Reed appealed once more, but the Second Circuit affirmed the district court's judgment, providing de novo review and dismissing Reed's arguments as meritless, thereby upholding the injunction against Reed's use of the service mark.

Legal Issues Addressed

Appellate Review and Remand

Application: The Second Circuit vacated the cancellation of Reed's service mark and remanded the case to assess the impact of a Ninth Circuit order, eventually affirming the district court's conclusions.

Reasoning: The Second Circuit vacated the cancellation and remanded the case to consider the Ninth Circuit's impact on the escape clause.

Lanham Act Section 43(a) - Unauthorized Use of Service Mark

Application: The appellees sought declaratory and injunctive relief under this section, arguing that Reed's use of the service mark 'The Platters' was unauthorized.

Reasoning: The appellees sought declaratory and injunctive relief under Section 43(a) of the Lanham Act, asserting Reed’s unauthorized use of the service mark.

Stipulation of Settlement and Escape Clause

Application: The 1987 Stipulation allowed Reed to claim rights to the name if a competent court ruled that The Five Platters, Inc. had no rights. However, the district court found the Ninth Circuit's order did not trigger this escape clause.

Reasoning: This Stipulation included an escape clause permitting Reed to claim rights to the name if a competent court ruled that The Five Platters, Inc. had no rights to it.

Summary Judgment Standards

Application: The district court granted summary judgment in favor of the appellees, indicating no genuine dispute of material fact existed regarding the unauthorized use of the service mark.

Reasoning: On February 1, 2001, the district court granted summary judgment for the appellees, denied Reed’s motion, and issued an injunction preventing Reed from using the name 'The Platters.'