Filed: Apr. 08, 2020
Latest Update: Apr. 08, 2020
Summary: NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS APR 8 2020 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT TALENT MOBILE DEVELOPMENT, No. 19-55258 INC., D.C. No. 5:18-cv-00156-DOC-DFM Plaintiff-Counter- Defendant-Appellee, v. MEMORANDUM* HEADIOS GROUP; BASSAM ISTAMBOULI, erroneously sued as Bassam Istanbuli; WALEED SHAKER, Defendants-Counter- Claimants-Appellants. Appeal from the United States District Court for the Central District of California David O. Carter, Distr
Summary: NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS APR 8 2020 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT TALENT MOBILE DEVELOPMENT, No. 19-55258 INC., D.C. No. 5:18-cv-00156-DOC-DFM Plaintiff-Counter- Defendant-Appellee, v. MEMORANDUM* HEADIOS GROUP; BASSAM ISTAMBOULI, erroneously sued as Bassam Istanbuli; WALEED SHAKER, Defendants-Counter- Claimants-Appellants. Appeal from the United States District Court for the Central District of California David O. Carter, Distri..
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NOT FOR PUBLICATION FILED
UNITED STATES COURT OF APPEALS APR 8 2020
MOLLY C. DWYER, CLERK
U.S. COURT OF APPEALS
FOR THE NINTH CIRCUIT
TALENT MOBILE DEVELOPMENT, No. 19-55258
INC.,
D.C. No. 5:18-cv-00156-DOC-DFM
Plaintiff-Counter-
Defendant-Appellee,
v. MEMORANDUM*
HEADIOS GROUP; BASSAM
ISTAMBOULI, erroneously sued as Bassam
Istanbuli; WALEED SHAKER,
Defendants-Counter-
Claimants-Appellants.
Appeal from the United States District Court
for the Central District of California
David O. Carter, District Judge, Presiding
Submitted April 3, 2020**
Pasadena, California
Before: BEA and BADE, Circuit Judges, and DRAIN,*** District Judge.
*
This disposition is not appropriate for publication and is not precedent
except as provided by Ninth Circuit Rule 36-3.
**
The panel unanimously concludes this case is suitable for decision
without oral argument. See Fed. R. App. P. 34(a)(2).
***
The Honorable Gershwin A. Drain, United States District Judge for
the Eastern District of Michigan, sitting by designation.
Appellants Headios Group, Bassam Istambouli and Waleed Shaker appeal
the district court’s denial of their post-judgment motions for a new trial and to
amend the judgment in this trademark-infringement action. We have jurisdiction
pursuant to 28 U.S.C. § 1291. For the reasons that follow, we affirm.
We review the district court’s denial of post-judgment relief under Rules 59
and 60 of the Federal Rules of Civil Procedure for an abuse of discretion. Kode v.
Carlson,
596 F.3d 608, 612 (9th Cir. 2010); Casey v. Albertson’s Inc.,
362 F.3d
1254, 1257 (9th Cir. 2004); see also United States v. Hinkson,
585 F.3d 1247, 1262
(9th Cir. 2009) (en banc) (providing the abuse-of-discretion standard).
Appellants first argue the verdict is not supported by the weight of the
evidence because Appellee Talent Mobile Development, Inc. (“Talent Mobile”)
did not present any evidence of first use of its “Real Caller” and “Real Caller ID”
word marks in commerce. See Rearden LLC v. Rearden Commerce, Inc.,
683 F.3d
1190, 1203 (9th Cir. 2012) (“[T]he party claiming ownership must have been the
first to actually use the mark in the sale of goods or services.”). “A jury’s verdict
must be upheld if it is supported by ‘substantial evidence.’” Wallace v. City of San
Diego,
479 F.3d 616, 624 (9th Cir. 2007) (quoting Johnson v. Paradise Valley
Unified Sch. Dist.,
251 F.3d 1222, 1227 (9th Cir. 2001)). “Substantial evidence is
evidence adequate to support the jury’s conclusion, even if it is possible to draw a
contrary conclusion from the same evidence.”
Id. (quoting Johnson, 251 F.3d at
2
1227).
The evidence at trial demonstrated that Talent Mobile’s registered “Real
Caller” word mark, U.S. Reg. 4671180, was first used in commerce in connection
with its sales of the “Real Caller” application on Apple’s iTunes store in October
of 2013. The evidence at trial also demonstrated that Talent Mobile’s predecessor-
in-interest, Troy Anderson, developed a smartphone application branded “Real
Caller ID” that was first used in commerce in 2011. The evidence further showed
that Troy Anderson sold his rights to the “Real Caller ID” application to Talent
Mobile in 2017. Conversely, Headios Group’s first use of the “Reel Caller” mark
on the Apple iTunes store occurred in December of 2013. The evidence also
showed that prior to naming the application “Reel Caller,” Appellants’ caller
identification application was called “Arab Real Caller” and was sold in Arab
countries. Moreover, Appellants abandoned the “Arab Real Caller” application in
November of 2013 by discontinuing its use. Appellants cannot assert any
trademark rights in their abandoned “Arab Real Caller” mark by tacking the “Arab
Real Caller” onto “Reel Caller.” Abdul-Jabbar v. General Motors Corp.,
85 F.3d
407, 411–12 (9th Cir. 1996).
The likelihood of confusion between Talent Mobile’s “Real Caller” and
“Real Caller ID” word marks and Headios Group’s “Reel Caller” mark is evident.
During the trial, the district court repeatedly sought to clarify for the record
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whether the parties were referring to “real” or “reel.” The district court did not
abuse its discretion by concluding that substantial evidence supports the jury’s
verdict.
Appellants also argue that the jury’s verdict is inconsistent, however they
have waived this argument because they failed to raise it prior to the district court
discharging the jury. A party “waive[s] its objection to the jury’s verdict . . . by
not objecting to the alleged inconsistency prior to the dismissal of the jury.” Home
Indem. Co. v. Lane Powell Moss & Miller,
43 F.3d 1322, 1331 (9th Cir. 1995).
Even if Appellants had not waived their challenge to the jury verdict on
inconsistency grounds, their challenge would still fail. The evidence admitted
during the trial was that the “Real Caller” logo was unique and different in
comparison to Appellants’ “Real Caller” logo, which is written in softer pastel
colors and in a different font. The jury could reasonably conclude, without
inconsistency, that Appellants infringed the “Real Caller” and “Real Caller ID”
word marks, but not the “Real Caller” logo mark.
Appellants also argue that the damages award of $710,261.00 is excessive.
“Generally, we will not reverse the jury’s assessment of the amount of damages
unless the amount is ‘grossly excessive or monstrous,’” if “the evidence clearly
does not support the damage award,” or “if it ‘could only have been based on
speculation or guesswork.’” Blanton v. Mobil Oil Corp.,
721 F.2d 1207, 1216 (9th
4
Cir. 1983) (citations omitted). Shaker testified that between 2014 through 2017,
Headios Group was making roughly $1,000.00 to $1,500.00 per day with monthly
expenses of $15,000.00. The district court did not abuse its discretion by
concluding that the jury’s $710,261.00 damages award was reasonable, supported
by the evidence, fairly computed by the jury and not excessive given the findings
of infringement and the diversion of consumers away from Talent Mobile.
Finally, there is adequate basis to assess damages against Shaker and
Istambouli, who both directed and participated in Headios Group’s infringement.
Coastal Abstract Serv., Inc. v. First Am. Title Ins. Co.,
173 F.3d 725, 734 (9th Cir.
1999). The evidence at trial revealed that Istambouli and Shaker are the only
employees of Headios Group. Both control the developer account in the Google
Play store that markets and sells Headios Group’s “Reel Caller” application.
Additionally, both Istambouli and Shaker were put on notice by Talent Mobile,
Google and Apple of the potential infringement of Talent Mobile’s “Real Caller”
application. Yet, Istambouli and Shaker merely changed the name of their
application to “Reel Caller” and continued to divert consumers to Headios Group’s
other caller-identification applications including Numberbouk, Pro Caller and Arab
Real Caller. Both Istambouli and Shaker were affirmative actors behind Headios
Group’s infringement of Talent Mobile’s “Real Caller” and “Real Caller ID”
5
marks. The district court did not abuse its discretion by declining to amend the
judgment so that it is not joint and several.
AFFIRMED.
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