JOHN E. STEELE, District Judge.
This matter comes before the Court on plaintiff's Motion for Preliminary Injunction (Doc. #24) filed on August 4, 2014. Defendant filed a Response in Opposition (Doc. #29) on August 18, 2014, and the Court heard oral argument on September 15, 2014. Defendant filed supplemental evidence (Doc. #64; Doc. #65), prompting plaintiff to file rebuttal evidence (Doc. #66). For the reasons set forth below, plaintiff's motion is granted.
Plaintiff Nane Jan, LLC (plaintiff) owns and operates a restaurant in Naples, Florida under the registered trademark name "SEA SALT" (SEA SALT or the Mark). Sea Salt opened in November 2008 and offers contemporary seafood cuisine that is prepared from the finest seasonal, organic and sustainable ingredients that come from local farmers and day boat fisherman whenever possible. (
Plaintiff began using the SEA SALT mark on November 15, 2008, and registered it with the State of Florida on December 30, 2008.
On November 13, 2013, defendant Seasalt and Pepper, LLC, formerly known as Sea Salt Miami, LLC (defendant), filed Trademark Application Serial Number 86117966 with the USPTO for the standard character mark SEASALT AND PEPPER for use with restaurant and bar services. (Doc. #1-4.) The following day, defendant filed Trademark Application Serial Number 86118756 with the USPTO for the stylized mark SEASALT AND PEPPER for use with restaurant and bar services. (Doc. #1-5.) On December 7, 2013, defendant opened Seasalt and Pepper, a restaurant located in Miami, Florida. (Doc. #1, ¶ 18.)
Plaintiff, upon learning of Seasalt and Pepper, notified defendant of its federal, state, and common law trademark rights in SEA SALT and demanded that defendant immediately cease and desist using the name Seasalt and Pepper. (Doc. #1-6.) Defendant refused to comply with plaintiff's demands and continues to operate under the name Seasalt and Pepper. (Doc. #1, ¶ 21.) On February 28, 2014, the USPTO rejected defendant's trademark applications due to the likelihood of confusion with plaintiff's Mark. (Doc. #1-7; Doc. #1-8.)
On April 14, 2014, plaintiff filed this lawsuit alleging claims under federal and state law for trademark infringement based on defendant's allegedly improper use of SEA SALT. Plaintiff alleges that defendant's unauthorized use of SEA SALT constitutes infringement, is misleading and deceptive, and is likely to cause consumer confusion. It is further alleged that defendant's unauthorized use of SEA SALT has caused and will continue to cause irreparable harm to plaintiff.
Plaintiff seeks a preliminary injunction to enjoin defendant from using SEA SALT in connection with restaurant and bar services. In order to obtain a preliminary injunction, the movant must demonstrate "(1) a substantial likelihood of success on the merits of the underlying case, (2) the movant will suffer irreparable harm in the absence of an injunction, (3) the harm suffered by the movant in the absence of an injunction would exceed the harm suffered by the opposing party if the injunction is issued, and (4) an injunction would not disserve the public interest."
The first factor in determining whether a preliminary injunction should issue is whether the plaintiff is likely to prevail on the merits of its claims. Plaintiff asserts that it is likely to prevail on its claims for trademark infringement under both federal and state law.
Section 32(1) of the Lanham Act protects trademark owners against the use in commerce of "any reproduction, counterfeit, copy, or colorable imitation of a registered mark in connection with the sale, offering for sale, distribution, or advertising of any goods or services on or in connection with which such use is likely to cause confusion, or to cause mistake, or to deceive." 15 U.S.C. § 111,4(1)(a). To establish a claim of trademark infringement, a plaintiff must show that (1) it owns a valid and protectable mark, and (2) the defendant's use of the mark is likely to cause confusion.
To prevail on its claims of infringement, plaintiff must first establish that it owns a valid mark. Trademark protection "is only available to distinctive marks, that is, marks that serve the purpose of identifying the source of the goods or services."
The four gradations of distinctiveness recognized in trademark law, listed in descending order of strength, are: (1) arbitrary or fanciful; (2) suggestive; (3) descriptive; and (4) generic.
An "arbitrary or fanciful" mark bears no logical relationship to the product it represents.
A "descriptive" mark identifies a characteristic or quality of an article or service, such as its color, odor, function, dimensions, or ingredients.
Registration of a trademark on the principal register of the USPTO is prima facie evidence of validity and establishes a rebuttable presumption that the mark is protectable or distinctive. 15 U.S.C. § 1057(b);
Defendant argues that SEA SALT is merely descriptive and should not be afforded any protection because there is no evidence of secondary meaning. Specifically, defendant asserts that the evidence overwhelmingly reflects that SEA SALT is descriptive because it identifies the ingredients and characteristics of the food and drinks served at plaintiff's restaurant. In response, plaintiff argues that the presence of salt in the food and drinks served at its restaurant does not render the Mark descriptive because plaintiff does not sell salt. The Court agrees with plaintiff.
A suggestive mark suggests some characteristic of the product or service to which it is applied, but requires a leap of the imagination by the consumer to determine the nature of the product or service.
Here, plaintiff uses SEA SALT in conjunction with a restaurant and bar offering contemporary seafood cuisine. Although salt serves as a focal point at plaintiff's restaurant, plaintiff does not sell salt. Due to the disconnect between the term "sea salt" and restaurant and bar services, the Court finds that SEA SALT does not convey an immediate idea of the services offered by plaintiff and requires an effort of the imagination to connect SEA SALT to restaurant and bar services. In fact, "sea salt" is primarily used in connection with cooking salts and spices or packaged food, not restaurant and bar services.
To determine whether there is a likelihood of confusion, the Eleventh Circuit has set out seven factors for consideration: (1) the type of mark; (2) the similarity of the marks; (3) the similarity of the services; (4) the similarity of the parties' retail outlets, trade channels, and customers; (5) the similarity of advertising media; (6) the defendant's intent; and (7) actual confusion.
Classifying the type of mark a plaintiff has determines whether it is strong or weak. "The stronger the mark, the greater the scope of protection accorded it, the weaker the mark, the less trademark protection is receives."
Another important factor in gauging the strength of a mark is the degree to which third parties make use of the mark.
The next factor to consider in evaluating the likelihood of confusion is the degree to which the marks are similar. In undertaking such an evaluation, the court compares the marks at issue and considers the overall impressions that the marks create, including the sound, appearance, and manner in which they are used.
In this matter, the marks are indisputably similar in one key way, both use the terms "sea" and "salt." Defendant, however, argues that the similarity stops there because "Seasalt and Pepper" contains additional words and is stylized in a different fashion. A review of the marks (shown below) confirms that they use different fonts, colors, and pictures. A comparison of the marks also reveals that the dominant focus of both marks is on the terms "sea" and "salt."
The evidence also shows that both the media and Carlos Miranda, a co-owner of Seasalt and Pepper, LLC, commonly refer to defendant's restaurant as "Seasalt." (Doc. #24-3, pp. 8, 10, 12, 16, 18-20, 22-23, 25; Doc. #64-2, p. 1.) The Court finds this to be indicative of similarity.
Because the marks are similar in some regards and distinct in others, the Court concludes that this factor weighs, albeit slightly, in favor of plaintiff.
The evidence shows that both parties provide restaurant and bar services with a focus on seafood. Because the services provided are of a similar nature, the Court finds that this factor weighs in favor of plaintiff.
The fourth factor takes into consideration where, how, and to whom the parties' products are sold.
Plaintiff contends that parties' retail outlets and customer bases are similar because both parties cater to high-end consumers of seafood cuisine and offer their services at up-scale venues. The record, however, is void of evidence suggesting any customer overlap or similarities in the parties' retail outlets. As such, the Court finds that this factor favors defendant.
This factor looks to each party's method of advertising. Plaintiff concedes that it has no evidence as to the scope or nature of defendant's advertising campaigns. The Court will therefore construe this factor in favor of defendant.
The sixth factor in the likelihood of confusion analysis is whether the defendant acted in bad faith. This factor alone may justify an inference of confusion if it can be shown that a defendant adopted a plaintiff's mark with the intention of deriving a benefit from the plaintiff's business reputation.
The final factor in the likelihood of confusion analysis is actual consumer confusion. Evidence of actual confusion is the best evidence of a likelihood of confusion but is not a prerequisite to the issuance of a preliminary injunction.
The evidence also establishes that two of plaintiff's suppliers, Freshpoint and Prime Line Distributors, were confused about the affiliation, or lack thereof, between "Sea Salt" and "Seasalt and Pepper." (Doc. #1-9, p. 1; Doc. #24-1, p. 2; Doc. #24-2, pp. 1-3.) The Eleventh Circuit has noted that supplier confusion is relevant evidence of actual confusion because a supplier is presumably "familiar with an enterprise since he is actually providing it with goods."
The Court has considered the seven factors in light of the evidence submitted by the parties and concludes the balance of factors indicates there is a likelihood of confusion among consumers in the marketplace. Plaintiff has therefore demonstrated a substantial likelihood of success on the merits of its trademark infringement claims.
The Eleventh Circuit has acknowledged that "once a plaintiff establishes a likelihood of success on the merits of a trademark infringement claim," there is a "presumption of irreparable harm."
The Court need not apply the presumption in this matter because the evidence establishes a likelihood of irreparable harm. As already discussed, plaintiff has demonstrated a likelihood of confusion in that consumers may incorrectly associate "Seasalt and Pepper" with "Sea Salt." Plaintiff has also presented ample evidence of negative press and publicity associated with defendant's restaurant. (Doc. #24-3.) The operation of defendant's restaurant under the name "Seasalt and Pepper" is likely to cause irreparable harm to plaintiff's reputation because plaintiff will not have the ability to control the quality of the services provided
The Court is satisfied that the risk to the reputation and goodwill associated with plaintiff's Mark should defendant's use of Seasalt and Pepper continue outweighs any hardship caused by enjoining the use sea salt.
An injunction is not adverse to the public interest because the public interest is served by preventing consumer confusion in the marketplace.
Accordingly, it is hereby
1. Plaintiff's Motion for Preliminary Injunction (Doc. #24) is