SAAD, J.
Defendant appeals the trial court's order that denied its motion for summary disposition and granted plaintiff's request for a permanent injunction. For the reasons stated below, we affirm.
This action is a trademark-infringement suit. Michigan courts have protected trademark rights since the nineteenth century, initially under the common law of unfair competition. Michigan law has offered this protection for the benefit of two related groups: business owners, and the consuming public. Business owners, who invest significant amounts of money and effort to convince consumers to identify their marks with their products and services, needed a remedy against competitors who sought to free ride on this accumulated goodwill by copying or pirating already established marks.
Accordingly, Michigan courts have defined a "trademark" as any "peculiar ... device" or symbol used by a manufacturer or service provider to distinguish its goods or services from those of others.
These interests inform the nature of plaintiff's action and the necessary proofs to protect its trademark. In actions for trademark infringement, courts require a plaintiff to show that (1) its mark was valid (i.e., was being used in the market and was "distinctive," in that consumers associated the mark at issue with plaintiff's business), (2) plaintiff had priority in the mark (i.e., had used it before defendant), (3) defendant's allegedly infringing mark was likely to confuse consumers as to the source of defendant's products or services, and (4) defendant used the allegedly infringing mark.
As American business became more sophisticated and new technologies enabled marketing and branding to take place at a national level, several states and the federal government codified the common law of trademarks. These statutes generally retain the common-law doctrines and principles on which they were based, and do not ordinarily disturb or eliminate the common law of trademarks as a remedy,
In this case, plaintiff owns a restaurant and has used a surname, "Travis," as a mark in connection with the food-service industry since the 1940s. It registered the "TRAVIS"
As at common law, a plaintiff who alleges trademark infringement under MCL 429.42 must show: (1) its mark is valid, (2) it has priority in the mark, (3) it is likely consumers will confuse defendant's mark with its own, and (4) defendant used the allegedly infringing mark. Because multiple individuals can possess the same surname, and thus might need use of the surname in a business capacity,
In this case, plaintiff's mark was registered, and, therefore, defendant has the burden of showing that plaintiff has either not used the "Travis" mark or that it is not distinctive because it lacks secondary meaning to consumers.
Because defendant provides no convincing evidence that plaintiff's mark is not valid, and because plaintiff offers the remaining evidence necessary to show infringement under MCL 429.42, we reject defendant's appeal and affirm the order of the trial court.
This dispute involves marks used in connection with the promotion of plaintiff and defendant's respective restaurant and food-service businesses. Plaintiff and its predecessors have used the mark "TRAVIS" in connection with the advertising and operation of various family-owned restaurants since 1944. Plaintiff registered the mark with the state in 1996, and the registration remains valid through 2016. In 2011, defendant bought a restaurant licensed to use plaintiff's "TRAVIS" mark, but defendant purchased only the restaurant — it did not negotiate with plaintiff to retain the license to use the "TRAVIS" mark. It is unclear whether defendant checked with the Michigan trademark office before or at the time it purchased its restaurant, as defendant could have easily discovered plaintiff's registration of the "TRAVIS" mark in connection with the restaurant industry. Instead, defendant filed a certificate of assumed name with the state, changed the name of the restaurant from "Travis of Chesterfield" to "Travis Grill," and used the latter name on its menus and advertising.
After plaintiff discovered defendant's use of the "Travis Grill" and "famous Travis burger" marks, it filed suit against defendant for trademark infringement under MCL 429.42. Specifically, it alleged that its "TRAVIS" mark was distinctive and possessed secondary meaning to consumers, and that defendant's use of the "Travis Grill" and "famous Travis burger" marks thus confused consumers, who would wrongly believe that defendant's restaurant was owned, operated, licensed, or otherwise affiliated with plaintiff. In addition to evidence of its registration and longstanding use of the "TRAVIS" mark, plaintiff also submitted affidavits from consumers, which stated that they believed
Defendant responded with a motion for summary disposition, and claimed that the plain language of MCL 429.42 allowed a distinction between use of plaintiff's admittedly protected "TRAVIS" mark and defendant's "Travis Grill."
In February 2013, the trial court correctly held that the "TRAVIS" mark had acquired secondary meaning and was thus a valid trademark under MCL 429.31 et seq. It accordingly denied defendant's motion for summary disposition and granted plaintiff's request for a permanent injunction against defendant's use of the marks, a decision we affirm.
A trial court's decision on a motion for summary disposition is reviewed de novo. Johnson v. Recca, 492 Mich. 169, 173, 821 N.W.2d 520 (2012). If the trial court does not specify under which specific subrule it granted or denied a motion for summary disposition, and it considered material outside the pleadings, we review the decision under MCR 2.116(C)(10). Cuddington v. United Health Servs., Inc., 298 Mich.App. 264, 270, 826 N.W.2d 519 (2012). A motion for summary disposition under MCR 2.116(C)(10) tests the factual sufficiency of the complaint. Joseph v. Auto Club Ins. Ass'n, 491 Mich. 200, 206, 815 N.W.2d 412 (2012). "This Court reviews the motion by considering the pleadings, admissions, and other evidence submitted by the parties in the light most favorable to the nonmoving party." Auto Club Group Ins. Ass'n v. Andrzejewski, 292 Mich.App. 565, 569, 808 N.W.2d 537 (2011).
Summary disposition "is proper when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law." McCoig Materials, LLC v. Galui Const, Inc., 295 Mich.App. 684, 693, 818 N.W.2d 410 (2012). "A genuine issue of material fact exists when the record, giving the benefit of reasonable doubt to the opposing party, leaves open an issue upon which reasonable minds could differ." Bronson Methodist Hosp. v. Auto-Owners Ins. Co., 295 Mich.App. 431, 441, 814 N.W.2d 670 (2012).
MCL 429.43 explicitly states that "[a]ny owner of a mark registered under [MCL 429.31 et seq.] may proceed by suit to enjoin" defendant's infringement. MCL 429.43(1). A trial court's decision to grant or deny injunctive relief is reviewed for an abuse of discretion. Wiggins v. City of Burton, 291 Mich.App. 532, 558-559, 805 N.W.2d 517 (2011) (citations omitted). Injunctive relief is an extraordinary remedy that issues only when justice requires, there is no adequate remedy at law, and there is a real and imminent danger of irreparable injury. Id. The decision to grant injunctive relief must be tailored to the facts of the particular case. Soergel v. Preston, 141 Mich.App. 585, 590, 367 N.W.2d 366 (1985).
Courts balance the benefit of an injunction to a requesting plaintiff against the damage and inconvenience to the defendant, and will grant an injunction if doing so is most consistent with justice and equity. Wayne Co. Retirement Sys., 301 Mich.App. at 28-29, 836 N.W.2d 279.
Matters of statutory interpretation are reviewed de novo. People v. Lewis, 302 Mich.App. 338, 341, 839 N.W.2d 37 (2013). When a court interprets a statute, it seeks to ascertain and implement the intent of the Legislature. Huron Mountain Club v. Marquette Co. Road Comm., 303 Mich.App. 312, 323, 845 N.W.2d 523 (2013). The Legislature's intent is best expressed through the plain meaning of the statute's language. Ter Beek v. City of Wyoming, 495 Mich. 1, 8, 846 N.W.2d 531 (2014).
The Trademark Act is based on the common law, and it is therefore appropriate, when interpreting the statute, to consider federal and state cases that apply the common law of trademark. See MCL 429.44 (stating that "[n]othing contained in this act shall adversely affect the rights or the enforcement of rights in marks acquired in good faith at any time at common law") and Ed. Subscription Serv., Inc. v. American Ed. Servs., Inc., 115 Mich.App. 413, 320 N.W.2d 684 (1982) (entertaining a corporate-name dispute brought at common law after passage of Trademark Act). It is also "appropriate to look to federal case law when interpreting a state statute which parallels its federal counterpart,"
In Michigan, there are three sources of trademark law: common law, the state Trademark Act, and the federal Lanham Act. A plaintiff may bring separate trademark-related claims under each body of law. This case is brought under Michigan's Trademark Act, which is codified at MCL 429.31 et seq. The Act states that a "mark" is "any trademark or service mark,"
The Act details a system of registration for trademarks, and also creates a remedy for holders of Michigan trademarks that have been infringed. Specifically, MCL 429.42 states that "any person who shall"
MCL 429.43 also states that "[a]ny owner of a mark registered under this act" may bring suit against a trademark infringer, and that the plaintiff may ask a court to "enjoin the manufacture, use, display or sale of any counterfeits or imitations" of its mark by the defendant. MCL 429.43(1).
As mentioned earlier, trademark law thus advances two interests — the private right of the trademark holder to prevent others from using his mark to reap monetary reward, and the public right to protection from deceptive practices — and seeks to align those interests so that the private trademark holder will pursue infringers, thereby protecting the broader public from fraudulent trade practices. See Hanover Star Milling Co. v. Metcalf, 240 U.S. 403, 412-413, 36 S.Ct. 357, 60 L.Ed. 713 (1916), and Shakespeare Co., 334 Mich. at 113, 54 N.W.2d 268.
Accordingly, a plaintiff who brings a trademark-infringement suit under MCL 429.42 must demonstrate that (1) the mark the plaintiff claims to hold is valid, in that it actually functions as a trademark,
Under the Trademark Act and at common law, trademarks only receive legal protection when they are (1) used in connection with the sale and advertising of products or services, and (2) distinctive, in that consumers understand the mark to designate goods or services as the "product of a particular manufacturer or trader." Shakespeare Co., 334 Mich. at 113, 54 N.W.2d 268. In other words, a "distinctive" mark serves as a source identifier to consumers. Wal-Mart Stores, Inc. v. Samara Bros., Inc., 529 U.S. 205, 212, 120 S.Ct. 1339, 146 L.Ed.2d 182 (2000).
"The right to a trademark grows out of its use, and covers the area in which it is used." Interstate Brands Corp. v. Way Baking Co., 403 Mich. 479, 481, 270 N.W.2d 103 (1978). In Michigan, a mark is used when it is
Courts assess a mark's distinctiveness using the "now-classic test"
By contrast, "descriptive (`Soft Soap') or generic (`soap') terms do not inherently distinguish a good as coming from a particular source," and therefore may not generally serve as trademarks. American Eagle, 280 F.3d at 635. Generic marks "refer[], or [have] come to be understood as referring, to the genus of which the particular product is a species." Abercrombie, 537 F.2d at 9.
Likewise, marks that are "merely descriptive"
Descriptive marks differ from generic marks in one crucial respect, however: it is possible for descriptive marks to become source identifiers, and thus valid trademarks. A descriptive mark gains source-identifying capacity when it acquires "secondary meaning," which occurs when a descriptive mark has "become associated in the minds of purchasers or customers with the source or origin of goods or services rather than with the goods or services themselves." Burke v. Dawn Donut Sys., Inc., 147 Mich.App. 42, 46, 383 N.W.2d 98 (1985) (citations and quotation marks omitted). Like other descriptive marks, a surname-mark can become a valid trademark if it acquires secondary meaning. Buscemi's, 96 Mich.App. at 717, 294 N.W.2d 218. To determine whether a plaintiff's mark has acquired secondary meaning, a court considers the "length of use of the symbol or mark, nature and extent of popularizing and advertising the symbol, and the efforts expended by plaintiff in promoting the connection in the minds of the general public of his mark or symbol with a particular product." Boron Oil Co., 50 Mich.App. at 583-584, 213 N.W.2d 836.
In this case, plaintiff registered its mark "TRAVIS" in connection with the restaurant and food-service industry in 1996, and the registration remains good through 2016. Plaintiff's registration serves as prima facie evidence that the mark is valid, and the burden of production thus shifts to defendant to show that it is not. MCL 429.34(3). Defendant notes that plaintiff's mark is a surname, and therefore must acquire secondary meaning to be a valid trademark — something defendant asserts the mark has not done. It also claims that plaintiff's evidence of secondary meaning is not actual evidence of secondary meaning. Defendant accordingly asks us to reverse the trial court's decision, which held that the "TRAVIS" mark possessed secondary meaning and was a valid trademark.
Defendant correctly identifies plaintiff's mark as a surname and argues that, because surname-marks are descriptive, "TRAVIS" must possess secondary meaning to be a valid trademark. Buscemi's,
And, though plaintiff was not required to prove validity under the statute, it nonetheless gave evidence that its mark possessed secondary meaning, in the form of (1) the 60-year span over which plaintiff or its predecessors have used the "TRAVIS" mark in the restaurant business, (2) defendant's use of the "famous Travis burger" on its menu, the same wording plaintiff's licensee uses (and has used) to describe its hamburger, and (3) affidavits from customers who patronized defendant's restaurant and believed it to be operated by or under the authority of plaintiff. As noted, a plaintiff can show the existence of secondary meaning through the "length of use of the symbol or mark" and "direct consumer testimony and consumer surveys." Boron Oil Co., 50 Mich.App. at 583, 213 N.W.2d 836; Wolf Appliance, 686 F.Supp.2d at 887.
Because defendant has not shown that plaintiff's mark lacked secondary meaning, it has failed to show that plaintiff's mark is invalid under the Trademark Act, and we affirm the trial court's holding that plaintiff's mark is valid.
"Trademark rights arise out of appropriation and use. Generally, the right belongs to one who first appropriates and uses the mark." Interstate Brands Corp. v. Way Baking Co., 79 Mich.App. 551, 555, 261 N.W.2d 84 (1977), rev'd on other grounds 403 Mich. 479, 270 N.W.2d 103. In this case, it is undisputed that plaintiff used the mark in commerce earlier than defendant: plaintiff's predecessors have used the "TRAVIS" mark in connection with restaurants since 1944, and defendants do not claim they used the "Travis Grill" or "famous Travis burger" marks before that date. Plaintiff thus has priority in the "TRAVIS" mark.
After a trademark-infringement plaintiff demonstrates that its mark is valid (or, as here, the defendant fails to demonstrate that the plaintiff's mark is invalid) and possesses priority over the defendant's mark, the plaintiff must show that the defendant's mark is so similar to its own that it is likely to create confusion among consumers as to the source of defendant's goods or services. MCL 429.42(a); Boron Oil Co., 50 Mich.App. at 584, 213 N.W.2d 836. "Actual confusion of customers, clients, or the public at large does not need to be shown; it is sufficient if the acts of the defendant indicate that probable confusion will occur." Boron Oil Co., 50 Mich.App. at 584, 213 N.W.2d 836; see also 220 Bagley Corp. v. Julius Freud Land Co., 317 Mich. 470, 475, 27 N.W.2d 59 (1947).
Courts assess the likelihood of confusion by considering the particular facts of each case. Boron Oil Co., 50 Mich.App. at 584, 213 N.W.2d 836. Prior factors courts have found relevant when assessing the likelihood of confusion include
To analyze the strength of a mark, a court "`focuses on the distinctiveness of a mark and its recognition among the public.'" Express Welding, Inc. v. Superior Trailers, LLC, 700 F.Supp.2d 789, 797 (E.D.Mich., 2010) (citation omitted). Plaintiff's mark "TRAVIS" is descriptive and has acquired secondary meaning. It is accordingly not as strong as an "arbitrary or fanciful" or "suggestive" mark,
When these factors are weighed against defendant's mere unsupported statement that no likelihood of confusion exists,
To be liable for infringement, a defendant must "use" the allegedly infringing mark. MCL 429.42(a). As noted, a mark is "used" under the Trademark Act when
In this case, it is undisputed that defendant used the marks "Travis Grill" and "famous Travis burger" "in the sale or advertising of services" that were "rendered" in the state of Michigan. Defendant has thus used the allegedly infringing mark under MCL 429.42(a).
The trial court properly granted plaintiff's request for an injunction against defendant's use of the "Travis Grill" and "famous Travis burger" marks under MCL 429.43 because defendant failed to show that plaintiff's "TRAVIS" mark was invalid, and plaintiff showed that (1) it had priority in the trademark, (2) defendant's marks confused consumers and suggested that defendant's business was associated with plaintiff, and (3) defendant used the confusing mark in the sale or advertising of services rendered in Michigan. Though the trial court did not analyze the case in the precise method outlined above, it reached the correct result,
Affirmed.
WILDER, P.J., and KIRSTEN FRANK. KELLY, J., concurred with SAAD, J.
Federal courts have interpreted this provision to mean that registration of a mark relieves the mark holder of the burden of proving validity and secondary meaning and "shifts the burden of proof to the contesting party, who must introduce sufficient evidence to rebut the presumption of the holder's right to protected use." Qualitex Co. v. Jacobson Prod. Co., Inc., 13 F.3d 1297, 1301 (C.A.9, 1994), rev'd on other grounds 514 U.S. 159, 115 S.Ct. 1300, 131 L.Ed.2d 248 (1995).
A "fanciful" mark is a coined term that has no commonplace meaning whatsoever, and is "completely fabricated by the trademark holder[]." Kellogg Co. v. Toucan Golf, Inc., 337 F.3d 616, 624 (C.A.6, 2003). Examples include "Kodak" film, "Exxon" oil, and "Clorox" bleach. Id.; Exxon Corp. v. XOIL Energy Resources, Inc., 552 F.Supp. 1008, 1014 (S.D.N.Y., 1981); Clorox Chem. Co. v. Chlorit Mfg. Corp., 25 F.Supp. 702, 705 (E.D.N.Y., 1938).