DEAN D. PREGERSON, District Judge.
Presently before the court is Plaintiff Gibson Brands, Inc. ("Plaintiff")'s Motion to Strike/Dismiss Defendant's Affirmative Defenses and Counterclaims. (Dkt. No. 25.) The matter is fully briefed and suitable for decision without oral argument. Having considered the parties' submissions, the court adopts the following order.
On January 27, 2014, Plaintiff filed its Complaint against Defendant John Hornby Skewes & Co. Ltd. ("Defendant"), alleging trademark infringement, trade dress infringement, trademark counterfeiting, unfair competition, trademark dilution, and other related causes of action under federal, state, and common law. (Complaint ¶ 2.)
In its Complaint, Plaintiff asserts that it is the sole owner of six distinctive guitar body design trademarks: (1) "SG Body Shape Design," (2) "Explorer Body Shape Design," (3) "ES Body Shape Design," (4) "Flying V Body Shape Design," (5) "Flying V Peghead Design," and (6) "Kramer Peghead Design." (
Plaintiff alleges that Defendant, a United Kingdom corporation, offers for sale, sells, and distributes in the United States "unauthorized products" using Plaintiff's six trademarks. (
On May 30, 2014, Defendant filed an Answer to Plaintiff's Complaint, asserting twenty-four affirmative defenses and six counterclaims. (Dkt. No. 19.) Plaintiff now moves to strike twenty-one of the affirmative defenses and dismiss all six of the counterclaims.
The court addresses whether the denoted affirmative defenses and counterclaims should be stricken in turn.
Federal Rule of Civil Procedure 12(f) provides that a court "may order stricken from any pleading any insufficient defense or any redundant, immaterial, impertinent, or scandalous matter." Fed. R. Civ. P. 12(f). "To show that a defense is `insufficient,' the moving party must demonstrate that there are no questions of fact, that any questions of law are clear and not in dispute, and that under no set of circumstances could the defense succeed."
In considering a motion to strike, the court views the pleadings in the light most favorable to the non-moving party.
While motions to strike are generally regarded with disfavor, "where [a] motion [to strike] may have the effect of making the trial of the action less complicated, or have the effect of otherwise streamlining the ultimate resolution of the action, the motion to strike will be well taken."
Plaintiff moves to strike as insufficient and/or immaterial Defendant's affirmative defenses 1-15, 17, and 19-23. In its Motion, Plaintiff separates these defenses into three general categories: (1) defenses that are not affirmative defenses; (2) defenses that are factually insufficient; and (3) defenses that are immaterial and/or redundant. The court addresses the defenses accordingly.
Plaintiff moves to strike Defendant's affirmative defenses 1, 5, 10, 11, 12, 14, 15, 17, 21, and 22 on the ground that they are not actually affirmative defenses under Federal Rule of Civil Procedure 8(c). "Affirmative defenses plead matters extraneous to the plaintiff's prima facie case, which deny plaintiff's right to recover, even if the allegations of the complaint are true."
Plaintiff asks the court to strike Defendant's first affirmative, which alleges that Plaintiff's Complaint "fails to state a claim upon which relief can be granted." (Answer ¶ 67.) Plaintiff asserts that "[f]ailure to state a claim is not an affirmative defense but rather a Federal Rule of Civil Procedure 12(b)(6) attack claiming the Complaint fails to plead sufficient factual matter to state a claim to relief that is plausible." (Motion at 7:5-9.)
The court agrees with Plaintiff that this defense is not an affirmative defense. A claim that "directly attacks the merits of the plaintiff's claim" is not an affirmative defense subject to the requirements of Rule 8(c).
Plaintiff additionally moves to strike affirmatives defenses five, ten, eleven, twelve, fourteen, fifteen, seventeen, twenty-one and twenty-two on the ground that they merely deny liability by attempting to negate an element of Plaintiff's prima facie case. (Mot. at 6:10-21.)
Defendant's fifth affirmative defense asserts that any infringement was "innocent." (Ans. ¶ 71.) Defendant's tenth affirmative defense states Defendant "has not infringed any applicable trademarks." (
The court agrees with Plaintiff that defenses 5, 10, 11, 14, 17, 21, and 22 are not defenses to liability but, rather, attempts to negate Plaintiff's prima facie case and deny Plaintiff's right to damages. If the allegations in Plaintiff's Complaint were found to be true and Plaintiff were able to establish its prima facie case, this scenario would necessarily preclude Defendant's contrary assertions that, for example, the infringement was "innocent," that Defendant did not cause Plaintiff's damages, or that the marks were not famous. In other words, the defenses are not independent bases to deny recovery. These defenses are not, therefore, affirmative defenses.
The court disagrees with Plaintiff that the fifteenth defense, "Adequacy of Remedy at Law," is not an affirmative defense. Even assuming all of Plaintiff's allegations were true, Plaintiff could conceivably be denied the right to recovery if it had no right to seek equitable relief in the first place. However, Plaintiff is correct that Defendant has not provided an adequate factual basis to support this affirmative defense in its Answer and the defense should therefore be stricken. Unlike the other defenses in this category, however, the fifteenth affirmative defense is not fatally flawed.
The court, accordingly, strikes defenses 5, 10, 11, 12, 14, 17, 21, and 22 without leave to amend. The court strikes defense 15, but grants Defendant leave to amend.
Plaintiff moves to strike affirmative defenses two, six, seven, nine, thirteen, and twenty-three on the ground that they "fail to provide notice to Gibson as to what the defense entails or fail[] to plead sufficient facts to make the defense plausible on its face." (Mot. at 9:22-24.)
"Motions to strike can . . . be used to challenge affirmative defenses as insufficiently pleaded."
Here, the affirmative defenses at issue are insufficiently pleaded because they amount to "conclusory statements asserting the existence of an affirmative defense" with no explanation as to why they are applicable.
Similarly, Defendant's sixth affirmative defense states only: "The claims made in the Complaint are barred, in whole or in part, by applicable statutes of limitations." (
Defendant's ninth affirmative defense states, "Each of the purported claims set forth in this Complaint is barred by the doctrines of waiver, acquiescence, and estoppel." (
Moreover, Plaintiff is correct that defenses thirteen and twenty-three are duplicative because "unclean hands" and "trademark misuse" are the same affirmative defense.
Because none of these affirmative defenses provide sufficient factual support to satisfy the requirement of plausibility, the court strikes defenses 2, 6, 7, 9, 13, and 23. However, as Defendant has pled only bare conclusions, the court cannot determine that these affirmative defenses are insufficient as a matter of law. Defendant, therefore, is granted leave to amend its Answer.
Plaintiff additionally moves to strike Defendant's nineteenth defense, which states: "Upon information and belief, the claims made in the complaint are barred, in whole or in part, by Plaintiff's actions which amounted to a fraud on the United States Patent & Trademark Office during the prosecution of the applications that matured into the registrations of the asserted marks." (Ans. ¶ 85.) Plaintiff asserts that this defense fails to meet the heightened fraud pleading standard of Federal Rule of Civil Procedure 9(b). (Mot. at 14:16-17.)
The court agrees. "In alleging fraud or mistake, a party must state with particularity the circumstances constituting fraud or mistake." Fed. R. Civ. P. 9(b). "Particularity" means that fraud allegations must be accompanied by "the who, what, when, where, and how" of the misconduct charged.
The court, therefore, strikes the nineteenth affirmative defense with leave to amend.
Plaintiff moves to strike defenses three, four, eight, and twenty on the ground that they are immaterial and/or redundant. "To the extent that [the defendant] restates negative defenses that exist in other parts of the complaint, those defenses are redundant pursuant to Rule 12(f) and should be struck so as to simplify and streamline the litigation."
The court agrees with Plaintiff that Defendant's fourth, eighth, and twentieth affirmative defenses are redundant. Defendants fourth affirmative defense states that Plaintiff's claims are barred "on the basis that any marks and use of marks at issue are generic, or otherwise unprotectable as said marks lack secondary meaning and/or do not serve as source identifiers." (Ans. ¶ 70.) This defense repeats the denials in paragraphs 10-15 of Defendant's Answer and is, therefore, redundant. (
As to the Defendant's third affirmative defense, the court cannot determine with certainty whether it is redundant or immaterial. The third affirmative defense states only: "One or more of the asserted trademark registrations is invalid, or otherwise unenforceable." (
Defendant's sixteenth, eighteenth, and twenty-fourth affirmative defenses are not at issue. Thus, Defendant may raise these defenses as affirmative defenses.
Defendant argues that striking the disputed affirmative defenses—even if they are insufficient—"will not remove these issues from the case" nor accomplish anything "in terms of streamlining the case." (Opp. at 3:6-12.) However, allowing Defendant's non-affirmative defenses, insufficiently pleaded defenses, and redundant defenses to stand would inevitably make the litigation more expensive, more complicated, and waste judicial resources. Moreover, Defendant is not precluded from raising its non-affirmative defenses during the course of the litigation.
A complaint will survive a motion to dismiss when it contains "sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face."
Conclusory allegations or allegations that are no more than a statement of a legal conclusion "are not entitled to the assumption of truth."
Plaintiff seeks dismissal of Defendant's counterclaims 1 through 6. In these counterclaims, Defendant contends that each of the six disputed guitar body designs is a generic shape used throughout the industry and should not, therefore, be afforded trademark protection. (
The Lanham Act provides that any person "who believes that he is or will be damaged" by the registration of a trademark on the principal register may file a petition to cancel the mark's registration. 15 U.S.C. § 1064. The party seeking cancellation must prove two elements: "(1) that it has standing; and (2) that there are valid grounds for canceling the registration."
One valid ground for cancellation is when a mark "becomes the generic name for the goods or services, or a portion thereof." 15 U.S.C. § 1064(3). Cases addressing product design suggest that "genericness" covers three situations: (1) if the definition of a product design is overbroad or too generalized; (2) if a product design is the basic form of a type of product; or (3) if the product design is so common in the industry that it cannot be said to identify a proper source.
Moreover, a registered mark that has been in continuous use for five consecutive years and is still in use in commerce can become incontestable. 15 U.S.C. § 1065. Once a mark has become "incontestable," "registration shall be conclusive evidence of the registrant's exclusive right to use the registered mark."
In its six counterclaims, Defendant asserts that Plaintiff's disputed trademarks—including the four designs that have attained incontestable status—should be canceled because they are generic. The counterclaims, however, all fail to plausibly state a claim for genericness. In each of the counterclaims, Defendants merely assert: "For decades, countless other manufacturers have manufactured and sold in the United States electric guitars incorporating a body shape identical or substantially similar to [the disputed guitar body design]." (Ans. ¶¶ 93, 98, 103, 108, 113, 118.) From this assertion, Defendant then concludes, "[a]s a result of the foregoing, [the disputed guitar body design] is a generic electric guitar shape" and "does not function as a source identifier." (
Defendant does not, however, name any of the "countless other manufacturers" who have manufactured or sold guitars with "identical or substantially similar" body designs. As Plaintiff points out, these "other manufacturers" could be Gibson licensees or subsidiaries, which would defeat Defendant's assertion that the marks have attained "generic" status. Nor does Defendant specify the time period or "decades" during which the purported similar guitars were "manufactured and sold." This information is necessary to state a plausible claim for a generic mark because Defendant must show that the allegedly similar and/or identical guitars were being sold at the date when Defendant "entered the market with the disputed mark or term."
The court, accordingly, grants Plaintiff's Motion to Dismiss counterclaims one through six. Defendant is granted leave to amend its Answer as to each of these claims.
For the reasons set forth herein, Plaintiff's Motion to Strike/Dismiss Defendant's affirmative defenses and counterclaims is GRANTED. Accordingly, it is HEREBY ORDERED that:
1. Defendant's affirmative defenses 1, 4, 5, 8, 10, 11, 12, 14, 17, 20, 21, and 22 are STRICKEN WITHOUT LEAVE TO AMEND;
2. Defendant's affirmative defenses 2, 3, 6, 7, 9, 13, 15, 19, and 23 are STRICKEN WITH LEAVE TO AMEND;
3. Defendant's counterclaims 1-6 are DISMISSED WITH LEAVE TO AMEND;
4. Any amended affirmative defenses and counterclaims must be filed within 14 days of the date of this Order; and
5. If Defendant does not elect to amend the affirmative defenses and counterclaims, the Answer filed on January 27, 2014, shall be deemed the operative answering pleading, but all the affirmative defenses and counterclaims therein are stricken.