ANDREWS, Presiding Judge.
James Parton and Inkaholics, LLC (Parton's tattoo studio) sued Inkaholiks Luxury Tattoos Georgia, LLC and its owner, Uchechukwu Nwaneri, alleging trade name infringement. The suit alleged that the plaintiffs had protected rights in the name Inkaholics for their tattoo business, which operated in the metro Atlanta area, and that the defendants subsequently infringed on the name and damaged the plaintiffs' business by using a confusingly similar name, Inkaholiks, to establish a competing tattoo business in the same area. The plaintiffs sought to permanently enjoin the defendants from using the name Inkaholiks, and the award of damages, under three counts based on the Uniform Deceptive Trade Practices Act (UDTPA) (OCGA § 10-1-370 et seq.); the Fair Business Practices Act (FBPA) (OCGA § 10-1-390); and the trademark infringement law at OCGA § 10-1-440 et seq.
The defendants appeal from the trial court's pre-trial order granting the plaintiffs an interlocutory injunction which, pending final resolution of the case, enjoined the defendants from using the name Inkaholiks. We find under the circumstances of this case that the trial court did not abuse its discretion and affirm to the extent the court granted the interlocutory injunction for the metro Atlanta area in which evidence showed the plaintiffs operated their business. To the extent the court granted the interlocutory injunction beyond the metro Atlanta area in which the plaintiffs business operates, we find no basis for the injunction and reverse.
1. Trademarks and trade names are protected from infringement in Georgia by statute and common law. Eckles v. Atlanta Technology Group, Inc., 267 Ga. 801, 485 S.E.2d 22 (1997); Giant Mart Corp. v. Giant Discount Foods, Inc., 247 Ga. 775, 279 S.E.2d 683 (1981). In count 1 of the complaint, the plaintiffs allege infringement under the UDTPA. The UDTPA provides for injunctive relief to prevent damage caused by a deceptive trade practice, including the use of a confusingly similar trade name which infringes on a protected trade name. Future Professionals, Inc. v. Darby, 266 Ga. 690, 470 S.E.2d 644 (1996). Relief may be obtained from the deceptive practice, whether or not the protected trade name was registered, and without proof that the alleged infringer intended to deceive the public by causing confusion. Id.; Eckles, 267 Ga. at 802, 485 S.E.2d 22. In count 2 of the complaint, the plaintiffs allege infringement under the FBPA. The FBPA protects businesses from unfair or deceptive practices in the conduct of trade or commerce, including passing off goods or services as those of another, or causing actual confusion as to the source, sponsorship, approval, or certification of goods or services, and provides for damages and injunctive relief. OCGA §§ 10-1-393(b)(1), (2); 10-1-399(a). Thus, the FBPA broadly protects against infringement on a protected trade name by use of a confusingly similar name. See Isbell v. Credit Nation Lending Service, LLC, 319 Ga.App. 19, 30, 735 S.E.2d 46 (2012). Finally, in count 3 of the complaint, the plaintiffs allege infringement under OCGA § 10-1-440 et seq. Trademarks
To obtain the relief sought on the trade name infringement claim, the initial
After a hearing on the plaintiffs' motion for injunctive relief, the trial court granted an interlocutory injunction finding that the plaintiffs presented evidence showing:
In support of their petition for injunctive relief, the plaintiffs presented sworn evidence showing the following: The plaintiffs have continuously used the trade name Inkaholics in the metro Atlanta area since August 2008 when they incorporated Inkaholics, LLC, started their tattoo business under that name, and later registered the name in Georgia. Beginning in 2008 and 2009, the plaintiffs advertised Inkaholics as their tattoo business in the metro Atlanta area on radio and television and through community fund raisers. The plaintiffs provided evidence that, pursuant to these efforts and the continuous operation of the plaintiffs' tattoo business since 2008, members of the tattoo-buying public in the metro Atlanta area, and a well-known tattoo business competitor in the area, have since 2008 come to associate the name Inkaholics with the tattoo services provided by the plaintiffs. The plaintiffs further showed that the defendants first used the trade name Inkaholiks in the metro Atlanta area starting in November 2011 when they incorporated their tattoo business in the name Inkaholiks Luxury Tattoos Georgia, LLC. The defendants subsequently advertised their tattoo business in the metro Atlanta area by radio and other methods using the abbreviated name Inkaholiks — a name similar in appearance and phonetically indistinguishable from the plaintiffs' name Inkaholics. The plaintiffs also produced evidence
"[T]he grant or denial of an interlocutory injunction rests in the sound discretion of the trial judge according to the circumstances of each case." Zant v. Dick, 249 Ga. 799, 294 S.E.2d 508 (1982). "The purpose for granting interlocutory injunctions is to preserve the status quo, as well as balance the conveniences of the parties, pending a final adjudication of the case." Grossi Consulting, LLC v. Sterling Currency Group, LLC, 290 Ga. 386, 388, 722 S.E.2d 44 (2012). Based on the evidence presented by the plaintiffs showing they had achieved secondary meaning in the name Inkaholics in the metro Atlanta area before the defendants commenced using the similar name Inkaholiks in that area (and evidence of resulting confusion), we cannot find it was an abuse of the trial court's discretion to grant an interlocutory injunction protecting the plaintiffs' trade name, pending final adjudication, to the extent the interlocutory injunction was limited to the metro Atlanta area. Multiple Listing Service, Inc. v. Metropolitan Multi-List, Inc., 223 Ga. 837, 841-843, 159 S.E.2d 52 (1968); Bijou Salon & Spa, LLC v. Kensington Enterprises, Inc., 283 Ga.App. 857, 860, 643 S.E.2d 531 (2007) (although not controlling, trial court may consider merits of the case in balancing the equities in favor of temporary injunctive relief). The evidence showed that metro Atlanta was the trade area in which the plaintiffs achieved secondary meaning in the name Inkaholics and the right to protection of the name in that area. Accordingly, to the extent the injunction protecting the plaintiffs' trade name extended beyond the metro Atlanta area, the trial court abused its discretion and we reverse. We find no merit in the defendants' contention that the trial court failed to properly balance the equities in granting the injunctive relief.
2. The defendants contend that the trial court erred by finding that their Answers and Defenses were not verified, and therefore the court erroneously failed to consider statements of fact set forth in their Answer and Defenses. The record shows that the defendants' Answer and Defenses, filed unverified on October, 26, 2012, was later verified by sworn verifications dated December 14, 2012, filed a couple of weeks before the court's February 21, 2013 order granting the interlocutory injunction. Even if the court should have considered the later verified Answers and Defenses, that pleading admits that the defendants first used the trade name Inkaholiks in the metro Atlanta area in 2011, and contains no other statement of fact which would have required denial of the motion for an interlocutory injunction. Any error was harmless. On January 28, 2013, the defendants filed their unverified Amended Answer and Counterclaims, which incorporated and re-alleged the original Answer and Defenses and amended by setting forth Counterclaims. Contrary to the defendants' contention, the record shows that the Counterclaims filed on January 28, 2013, were not verified.
3. There is no merit to the defendants' claim that the trial court erred because the interlocutory injunction enjoining the defendants from using the name Inkaholiks fails to maintain the status quo by allowing the defendants to continue their existing use of that name. In a trademark infringement case, the status quo to be preserved by an interlocutory injunction "is not the situation of contested rights, but the last, peaceable, noncontested status of the parties ... [In other words,] the situation prior to the time the junior user began use of its contested mark." J. Thomas McCarthy, McCarthy on Trademarks and Unfair Competition § 30:50 (4th ed.).
4. Citing only to allegations in their unverified counterclaims,
In the absence of a verified counterclaim or any sworn facts in the record to establish a factual basis for this argument, we find no error in the trial court's refusal to deny interlocutory injunctive relief on this basis. But even assuming that these facts could be established, there is no evidence that, when the plaintiffs first used the name Inkaholics in the metro Atlanta area in 2008, they had actual knowledge of the defendants' prior use of the name Inkaholiks outside of Georgia. In that case, the plaintiffs would be entitled to a "limited area" defense under 15 USC § 1115(b) which would: (1) allow the plaintiffs to use the name Inkaholics in the metro Atlanta area if evidence showed they continuously used the name and achieved secondary meaning prior to the defendants' federal registration, and (2) enjoin the defendants from infringing on the plaintiffs' mark in that area. Burger King of Fla., Inc. v. Hoots, 403 F.2d 904 (7th Cir.1968); McCarthy, supra at § 26:43 to 26:45. Even considering the allegations in the defendants' counterclaims, the trial court did not err in granting the interlocutory injunction to the plaintiffs for the metro Atlanta area.
Judgment affirmed in part and reversed in part.
DILLARD and McMILLIAN, JJ., concur.