BARBARA B. CRABB, District Judge.
This is an action for trademark infringement and unfair competition, brought under the Lanham Act, 15 U.S.C. §§ 1051-1121. Plaintiff National Council of the United States Society of St. Vincent de Paul, Inc., which is a Catholic charitable organization dedicated to raising money for the poor, contends that defendant St. Vincent de Paul Community Center of Portage County, Inc. has used plaintiff's trademarks and service marks illegally. It seeks injunctive relief, damages and disgorgement of profits. Defendant has asserted the affirmative defenses of laches, acquiescence, waiver, equitable estoppel, abandonment and classic fair use and has brought a counterclaim of unjust enrichment.
Now before the court are plaintiff's motion for summary judgment on its Lanham Act claim for injunctive (but not monetary) relief and defendant's counterclaim and affirmative defenses, dkt. #52, and defendant's motion for summary judgment with respect to laches, dkt. #36. Also before the court is the parties' joint motion to amend or correct the pretrial order, in which the parties ask that the court vacate the remaining pretrial deadlines and set a later trial date. Dkt. #83. For the following reasons, I am (1) denying plaintiff's motion with respect to its Lanham Act claim and defendant's affirmative defenses of laches and classic fair use; (2) granting plaintiff's motion with respect to defendant's unjust enrichment counterclaim and affirmative defenses of acquiescence, waiver, equitable estoppel and abandonment; (3) denying defendant's motion for summary judgment with respect to laches; and (4) granting the parties' joint motion to reset the remaining pretrial deadlines and trial date.
From the parties' proposed findings of fact, I find that the following facts are undisputed, unless otherwise noted. I have not considered the additional proposed findings of fact, dkt. #77, that plaintiff filed in conjunction with its reply brief in support of its motion because defendant did not have the opportunity to dispute or otherwise respond to those proposed findings.
Plaintiff National Council of the United States Society of St. Vincent de Paul, Inc. is a non-profit, charitable, Catholic lay organization that was founded in the United States in 1845. It provides services to the needy in 4,600 communities across the United States, including several communities in Wisconsin. Plaintiff began operating in Wisconsin in 1849, and it formally incorporated under the laws of the state of Delaware on June 13, 1946.
Plaintiff's main office is in St. Louis, Missouri, but it is affiliated with approximately 5,000 independently-operated local "councils" and "conferences" that carry out plaintiff's mission of providing charitable services to individuals in their homes and operating thrift stores, meal programs, housing programs and free pharmacies across the United States. The conferences operate within a specific council area, and both councils and conferences are distinct legal entities. For example, the District Council of Madison, Inc., Society of St. Vincent de Paul was incorporated in 1941; the St. Vincent de Paul Society of Portage, Inc. was incorporated in 1973; the St. John, Marshfield Conference was incorporated in 1982; the St. Vincent de Paul Cabrini Conference in Wausau, Wisconsin was incorporated in 2008; and the St. Vincent de Paul Society St. Joseph Conference, Inc. (or the "Baraboo Conference") has been operating since 1911 and incorporated in 1961.
For most of its history, plaintiff was loosely organized, with only a volunteer, part-time chief executive and three or four full-time employees working out of the St. Louis office. In 2006, plaintiff attempted to form a more sophisticated system of corporate governance and management by making the executive director a paid position; this later became the position of chief executive officer. Plaintiff also organized its operations into several regions that were overseen by volunteer regional vice presidents who serve as liaisons between plaintiff and the local affiliates in their regions. Plaintiff currently has 19 employees in its St. Louis office.
Defendant St. Vincent de Paul Community Center of Portage County, Inc. was organized and incorporated under the laws of Wisconsin in 1984. It is not affiliated or associated with plaintiff. Beginning in 1984, defendant maintained and operated a "St. Vincent de Paul Thrift Store" in Plover, Wisconsin. In 2014, defendant moved the thrift store four miles away, to Stevens Point, Wisconsin, where it sells goods at discount prices using the name "St. Vinnies Thrift Store." It also operates a food pantry and flea market using a similar name.
Plaintiff registered the following design mark on September 14, 1999:
Plaintiff registered the "Society of St. Vincent de Paul" word mark on July 29, 2014; the "St. Vinnys Bistro" mark on October 19, 2015; and the "Mini Vinnies" word mark on February 23, 2016. It filed a trademark application for "St. Vinnie's" on February 8, 2016, and the United States Patent and Trade Office issued a notice of publication with respect to that mark on June 8, 2016. However, defendant has opposed the registration of the St. Vinnie's mark in a separate proceeding.
Plaintiff gives verbal authorization to properly established local councils and conferences in good standing to license and use its trade name, trademarks, service marks and logo upon written request, in accordance with its policies and directives. On September 2, 2006, plaintiff's national council issued a resolution providing in relevant part that "approval and authorization to use the name and or logo can only be secured through a written request and provided by a written response. Properly established Conferences and Councils are permitted to use the Society's name and logo consistent with this policy." Dkt. #55, exh. C.
The Madison Council uses the contested marks to advertise and promote its thrift store goods and services. In 2006, the Madison Council issued a press release with the title "Vinnie's to Vend Variety of Vinyl," and in 2008, it started a program called "Vinny's Lockers," which provides a safe location for people without permanent housing to secure and protect their personal items. The Madison Council's Waunakee thrift store advertises and promotes its goods and services through a Facebook page entitled "Vinnys Waunakee." In 2011, the Madison Council decided to increase its use of the St. Vinny's mark in advertising its thrift stores because members of the public already used the term and identified it with the thrift stores. It created commercials called "Let's Go Shop St. Vinny's" and "Shop St. Vinny's" that air on television and YouTube. Also in 2011, the Madison Council registered the internet domain names shopvinnies.com and shopvinnys.com, which direct users to the website svdpmadison.org. Around 2014, the Madison Council purchased and installed a large street sign entitled "St. Vinny's Thrift Store," which is also featured on the Madison Council's website.
Defendant began using the names "St. Vincent de Paul Community Center, Inc.," "St. Vincent de Paul's Thrift Center," "St. Vincent de Paul," "St. Vincent de Paul Store" and "St. Vincent de Paul Thrift Store" to refer to its thrift store and services in 1984 and 1985. In 1986, it used the name "St. Vincent de Paul Society" on its donation receipts. Defendant had the following sign on its thrift store in Plover:
In 1993, defendant published a quarterly newsletter titled "Vinnie's Newsletter." In one of these newsletters, defendant stated:
Dkt. #54, exh. 6.
In November 2014, defendant moved its thrift store from Plover to Stevens Point, Wisconsin, which Tom Fahl, a member of plaintiff's board of directors, viewed as a greater threat to plaintiff's marks. (Defendant disagrees with this characterization, and the parties dispute the size and scope of the Stevens Point market.) Defendant named the new store "St. Vinnies Thrift Store" and displayed signs with that name. On November 28, 2014, the Stevens Point Journal published an article about defendant's new thrift store location, stating that "[t]he local store is a part of the St. Vincent de Paul Society," a "Catholic volunteer organization dedicated to serving the poor and disadvantaged." Dkt. #55, exh. 5.
Defendant also promotes and markets its services online. From 2007 to 2015, defendant operated the website svdpplover.com and currently has the websiste stvinniesthriftstore.com and a Facebook page.
Although defendant has been aware of plaintiff's existence and the process of affiliating with plaintiff since defendant first started operating its thrift store, it never received permission from plaintiff to use these names or logos. Approximately every three months, members of the public inquire whether defendant is affiliated with plaintiff and defendant responds that it is not. However, defendant does not otherwise inform the public that it does not have an affiliation with plaintiff.
In 1984, Joe Jersey became chairman of defendant's board of directors. At that time, the community center was struggling, so Jersey approached local Catholic parishes for help, but they were all too busy. However, he and other individuals wanted to move the charity forward even without the help of the parishes because there was a need for it in the community. In 1985, Jersey sent a letter and questionnaire to several of plaintiff's conferences that operated thrift stores, stating that defendant intended to operate a thrift store "consistent with all of the objectives of the Society of St. Vincent De Paul [sic]." Dkt. #39, exh. 5. The letterhead states "St. Vincent de Paul Community Center, Inc." and is addressed to "Dear Fellow Associate, St. Vincent DePaul [sic] Society."
Minutes from defendant's February 21, 1985 board meeting state that "[a]pparently, there was never a bona fide conference established but there should be one." Dkt. #51 at 41. The April 23, 1985 board meeting minutes reflect that defendant's board discussed being "able to do things typical of the St. Vincent De Paul style" and changing its operations to be similar to thrift stores affiliated with plaintiff.
On December 19, 1990, two individuals from the Baraboo conference gave a presentation to defendant's board of directors about the need for either affiliating with plaintiff or taking its sign down. (The parties dispute whether the representatives stated that they were representing the national organization or only the Baraboo conference.) The representatives stated that affiliation required a conference of at least four people, who are members of the Catholic Church, to meet every two weeks, pay annual dues of $75 to the national society (plaintiff), pay additional dues to the diocese and submit an annual report to plaintiff. Conference members were permitted to decide how to use store proceeds and would not have to turn over any proceeds to plaintiff. After the meeting, defendant decided to wait to see what plaintiff would do and never took action to affiliate with plaintiff.
In 2007, Greg Dickhut, the president of the Green Bay Council, became aware that defendant was using the St. Vincent de Paul mark and name and approached defendant about joining the national society. Dickhut told Fahl, who was a member of plaintiff's board of directors at the time, about defendant's thrift store in Plover. Fahl spoke over the telephone with Patrick McGinley, who was the president of defendant's board of directors. McGinley is now deceased, but Fahl avers that his conversation with McGinley led him to believe that defendant was working with its local Catholic parish to form a conference to affiliate with plaintiff. Fahl took no further action with respect to defendant at that time, in part because he did not perceive defendant's use of the marks in Plover as a serious threat to plaintiff's trademark rights.
In 2013, Fahl learned that defendant had never affiliated with plaintiff or stopped using the St. Vincent de Paul name. Fahl contacted Richard O'Sullivan, a member of defendant's board of directors, to inquire about defendant's interest in affiliation. Although O'Sullivan expressed some interest in affiliation, he stated that defendant was "amenable" to changing its name but needed time to do so.
On June 14, 2013, plaintiff sent defendant a cease-and-desist letter, notifying defendant that it was infringing plaintiff's intellectual property rights and should stop using plaintiff's marks immediately. Defendant did not respond, but after one of plaintiff's board member's contacted it, O'Sullivan requested information about affiliation in April 2014. Hearing nothing further from O'Sullivan or defendant, plaintiff made additional attempts to offer defendant assistance with the affiliation process. However, defendant's board of directors never discussed forming a conference.
On November 3, 2014, after defendant opened its new store in Stevens Point, plaintiff sent defendant a second cease and desist letter. Plaintiff made continued attempts to resolve the matter and encourage defendant to seek affiliation. On June 15, 2016, plaintiff sent defendant another cease and desist letter and filed its complaint in this lawsuit. Defendant never changed its name and did not pursue an affiliation with plaintiff.
The Lanham Act defines a trademark as:
15 U.S.C. § 1114(1) (registered marks), or unfair competition, 15 U.S.C. § 1125(a) (common law marks and trade names). "To prevail on either claim, a plaintiff must establish that (1) its mark is protectable and (2) the defendant's use of the mark is likely to cause confusion among consumers."
For the reasons explained below, I agree that plaintiff has failed to adduce sufficient evidence to prove as a matter of law that any of its claimed marks are protectable under the first element of its Lanham Act claim. Because I am denying plaintiff's motion for summary judgment on this ground, it is unnecessary to discuss the parties' arguments with respect to the second element related to likelihood of confusion.
Determining whether a party has established protectable rights in a trademark is made on a case by case basis, considering the totality of the circumstances.
Although registration of a mark with the United States Patent and Trademark Office provides the owner certain benefits, trademark ownership is not acquired by federal or state registration but rather from "prior appropriation and actual use in the market."
"The law recognizes five categories of trademarks, in ascending order of distinctiveness: generic, descriptive, suggestive, arbitrary, and fanciful."
If a mark is registered, the Act provides a plaintiff one of two presumptions as of the filing date: (1) that the registered trademark is not merely descriptive or generic; or (2) that if descriptive, the mark is accorded secondary meaning.
Plaintiff contends that as early as 1845, it starting using "St. Vincent de Paul Society" and "Society of St. Vincent de Paul" to promote and market its goods and services. Plaintiff also contends that it and members of the public began referring to the society by the abbreviations or nicknames of "St. Vinnie's," "St. Vinnies," "St. Vinny's," "Vinnies" and "SVDP" by the 1940s and that it has used those marks to promote its goods and services, including its thrift store services, since that time.
Plaintiff has submitted a variety of evidence in support of its contention that its marks are protectable and that it acquired superior rights to those marks, including declarations from long-time volunteers and employees, corporate records (articles of incorporation and internal newsletters), newspaper articles, online advertising and other publicly-available documents. In its response to plaintiff's motion and proposed findings of fact, defendant generally questions the admissibility and relevancy of some of plaintiff's evidence, argues that plaintiff's trademarks are unprotectable generic marks, challenges plaintiff's alleged use of the marks in conjunction with thrift stores and argues that defendant's use of the contested marks is an appropriate fair use of a descriptive term. For the most part, defendant has not developed its arguments in any meaningful way, failing to support them with admissible evidence or relevant legal authority. However, as discussed below, plaintiff has not adduced sufficient evidence to warrant judgment in its favor regarding the length and extent of its use of the claimed marks and whether the marks were distinctive before registering them.
In an initial argument, defendant challenges plaintiff's claimed use of "St. Vinnie's" and other marks in conjunction with thrift stores on the ground that the local conferences and councils, and not plaintiff, operate the thrift stores. However, as plaintiff points out:
15 U.S.C. § 1055. A licensee is a related company if the license is valid.
Noting that plaintiff has only oral license agreements with the local conferences and councils, defendant states generally that "it is not clear by what legal mechanism the conferences' use of the mark inures back to the benefit of the plaintiff for common law purposes." Dkt. #67 at 5. However, the fact that a license is not written does not in itself make the license invalid.
3
In support of its contentions that it has regularly used variations of the St. Vincent de Paul Society mark nationwide since the early 1900s, plaintiff relies primarily on the declarations of Thomas Fahl, a long-term volunteer and current member of plaintiff's board of directors, dkt. #55; Ernie Stetenfeld, the current chief executive officer and executive director of the Madison Council in Wisconsin, dkt. #56; and Ralph Middlecamp, a volunteer and former chief executive officer and executive director of the Madison Council, dkt. #57. In response to plaintiff's proposed findings of fact on this issue, defendant makes general "hearsay" and "lack of foundation" objections. Although defendant's arguments are not well developed, they are valid.
The declarations of Stetenfeld, Fahl and Middlecamp include vague and conclusory statements such as: "SVDP Society has continuously since 1845 used, directly and through its licensees, certain trade names, trademarks and service marks, and promoted and marketed its services and goods under a number of common law and/or federally registered marks," Decl. of Fahl, dkt. #55 at 14; "[t]he Madison Council has continuously promoted and marketed thrift store goods and services under the marks ST. VINCENT DE PAUL SOCIETY, ST. VINCENT DE PAUL, and ST. VINCENT DE PAUL STORE, as well as the mark ST. VINNY'S, since at least as early as the 1950s," Decl. of Middlecamp, dkt. #57 at ¶ 12; and "[t]he Madison Council opened its first thrift store in 1942 and since then has continuously promoted and marketed that store's services under the marks ST. VINCENT DE PAUL SOCIETY, ST. VINCENT DE PAUL, ST. VINCENT DE PAUL STORE, and ST. VINNY'S," Decl. of Stetenfeld, dkt. #56 at ¶ 6. Such statements lack foundation and have minimal evidentiary value.
It is not reasonable to infer that Fahl, Stetenfeld or Middlecamp had personal knowledge of plaintiff's use of trademarks since the late 1800s or early 1900s. According to their declarations, Middlecamp first began volunteering with the Madison Council in 1985, dkt. #57 at ¶ 5, and Stetenfeld became a volunteer with the same council in 1991, dkt. #56 at ¶ 3, so any knowledge they acquired about plaintiff's use of marks post-dates defendant's first use of the marks in 1984 and 1985. Even though Stetenfeld and Middlecamp aver that they were residents of the local community in the 1980s and referred to the Madison Council's thrift stores as "St. Vinny's" at that time, dkt. #56 at ¶ 9 and #57 at ¶ 16, it is not reasonable to conclude from that fact alone that they had knowledge of plaintiff's nationwide operations and marketing. The same is true of Fahl, who was a volunteer with plaintiff in the 1970s but did not take on a wider role in plaintiff's operations until he became a regional vice president in 2005. Dkt. #55 at ¶¶ 4, 8-9. Additionally, a few conclusory statements that plaintiff has "used" certain marks for a certain period of time is not sufficient to establish ownership of a nationwide trademark as a matter of law.
In his declaration, Middlecamp refers to a book titled
Similarly, Stetenfeld attaches to his declaration a copy of a photograph of a mural from the 1970s that he states contains the term "St. Vinnies" and depicts plaintiff's thrift store fashion show, but none of this is clear from the copy of the photograph. Dkt. #56, exh. D. The other newspaper articles, websites and letters to the editor attached to his declaration all post-date defendant's first use of the contested marks.
Finally, with respect to the "St. Vinnie's" mark in particular, plaintiff submits more recent articles, advertising and corporate records—all dated after approximately 2006—that seem to provide stronger evidence that plaintiff used and was commonly known by that mark or marks with slightly varied spellings. However, the evidence is not conclusive. Even though defendant did not change the name of its store to "St. Vinnie's Thrift Store" until 2014, there is some evidence that defendant used the term "Vinnies" in its quarterly newsletter as early as 1993.
In sum, plaintiff's motion for summary judgment must be denied because plaintiff has failed to show with certainty whether it adopted each of its claimed marks and used them in a "sufficiently public" manner to identify its services before defendant began using allegedly similar marks.
Plaintiff has the burden of showing that its claimed marks are distinctive, meaning that they distinguish plaintiff's goods and services in the mind of an appropriate segment of the public. Although plaintiff says that it offers in-home charitable services and organizes volunteer programs and community service projects, the good or service discussed by the parties are the St. Vincent de Paul (or St. Vinnies) thrift stores operated by plaintiff's affiliates to raise money for charity. Defendant also operates such a store using the names St. Vincent de Paul and St. Vinnies. In order to be protected, plaintiff's claimed mark must be either inherently distinctive because it is suggestive or have achieved secondary meaning as a descriptive term. Although plaintiff is entitled to a presumption that the marks it has registered (
Plaintiff contends that the name "St. Vincent de Paul" is "suggestive" and not merely descriptive because it does not directly describe the content or characteristics of a thrift store but rather suggests that the thrift store is charitable in nature because St. Vincent de Paul is the patron saint of charity.
Defendant has not refuted this argument directly or otherwise discussed whether the contested marks are descriptive rather than suggestive. Rather, in a conclusory argument, defendant contends that plaintiff's marks are unprotectable "generic" terms because "St. Vincent de Paul" is the name of a saint used by many charitable and religious organizations, such as the "Sisters of Charity of St. Vincent de Paul" and the "Daughters of Charity of St. Vincent de Paul." (Defendant also identifies one organization in Texas that does charity work, but that organization posts a conspicuous disclaimer that it is not affiliated with plaintiff.) To the extent that defendant is arguing that the names of religious institutions and sects are not protectable as trademarks or as part of trademarks, it is incorrect.
As plaintiff points out, the name "St. Vincent de Paul" is not synonymous with a type or kind of good that courts have found to be generic, like the terms "church," "sandwich" or "beef stick."
Although I agree that defendant has not adduced sufficient evidence to rebut the presumption that plaintiff's registered marks are distinctive as of the filing date of registration, I am not persuaded that plaintiff has met its burden with respect to the classification of its marks before that time. The line between descriptive and suggestive is not clear in this case.
The Court of Appeals for the Seventh Circuit has explained that the general purpose of the rule is to prevent a person from using his own name in his own business, raising concerns that granting a monopoly on a name deprives the consuming public of valuable information about particular goods or services.
In cases like this one, in which the claimed mark is not limited to a surname, a court should examine the rationale of the general rule classifying surname-based marks as descriptive and determine whether it applies.
The first factor is not applicable in this case because St. Vincent de Paul has been deceased for hundreds of years, but the name is not necessarily uncommon, as evidenced in part by the religious groups that use it. Although one would think that there are alternative names for defendant's thrift store, defendant at least makes the argument that preventing it from using the mark would deprive the public of valuable information about the charitable nature of its services. In sum, without more information from the parties on this issue, I cannot find that there is no doubt that plaintiff's marks should be classified as suggestive.
Further, if plaintiff's marks must be considered descriptive, plaintiff must show that they achieved secondary meaning with respect to its thrift stores during the relevant time period. "A court may consider several factors to decide whether secondary meaning has been acquired or established: (1) the amount and manner of advertising; (2) the sales volume; (3) the length and manner of use; (4) consumer testimony; and (5) consumer surveys."
Defendant contends that it is not trying to pass itself off as one of plaintiff's affiliates and has used the "St. Vincent de Paul" name and variations on that name fairly to describe its charity work. Defendant's argument invokes the affirmative defense of "fair use," which requires defendant to show that (1) it is not using the term as a mark; (2) the term is descriptive of its goods or services; and (3) it used the term "fairly and in good faith" only to describe its goods or services.
Plaintiff has presented some strong evidence related to defendant's use of St. Vincent de Paul and St. Vinnies as marks and defendant's intent to use the terms to imply an affiliation with plaintiff. However, for the reasons discussed in conjunction with whether the marks should be classified as suggestive or descriptive, I cannot say there is no doubt about whether the term is merely descriptive of defendant's goods and services. The Court of Appeals for the Seventh Circuit has explained that the fair use defense "`is based on the principle that no one should be able to appropriate descriptive language through trademark registration.'"
"The doctrine of laches is derived from the maxim that those who sleep on their rights lose them."
Typically, the doctrine of laches bars recovery of damages, including wrongfully derived profits, during the time prior to filing suit.
The Court of Appeals for the Seventh Circuit has explained that "the doctrine of laches plays a more important role [with respect to the Lanham Act] than it otherwise might because the Act does not contain a statute of limitations on trademark infringement claims."
The parties dispute when plaintiff should have had constructive knowledge of defendant's thrift store and its use of the claimed marks. However, plaintiff concedes that it learned of defendant's alleged infringement in 2007, seven years before it sent defendant a cease and desist letter and more than 10 years before it filed this lawsuit. Therefore, defendant is entitled to a presumption that laches applies, and "[t]o rebut the presumption, [plaintiff] must offer evidence excusing its delay or demonstrating that [defendant] has not suffered prejudice."
Plaintiff offers reasons for its delay and argues that defendant has not suffered prejudice. For example, plaintiff contends that it did not immediately sue defendant in 2007 because (1) it did not believe that defendant's use of the mark in the small town of Plover, Wisconsin, posed a serious threat to its trademark rights; and (2) it understood from a now deceased member of defendant's board of directors that defendant would obtain a formal affiliation with plaintiff or gradually phase out the use of the mark. According to plaintiff, when it learned in 2013 that defendant had continued to use the mark without seeking an affiliation, it sent its first cease and desist letter, which sparked prolonged discussions about a possible amicable resolution. Relying on the doctrine of progressive encroachment, plaintiff argues that it sued defendant as soon as the parties' negotiations fell apart because defendant materially altered its infringement by relocating its store in what plaintiff considered a higher profile and larger market in 2014.
In its motion for summary judgment with respect to laches, plaintiff correctly points out that even in cases in which laches applies, the law allows the senior user's claim to be revived from estoppel if the senior user can show that "inevitable confusion" would result from dual use of the marks.
Plaintiff also argues that laches will not bar an injunction against an intentional infringer.
Plaintiff contends that defendant asserts the additional affirmative defenses of acquiescence, waiver, equitable estoppel and abandonment in only a conclusory manner and cannot carry its burden of proof on any of them. Defendant says very little in response, identifying the legal standards only with respect to estoppel and waiver and not discussing abandonment or acquiescence at all. Defendant's only argument in support of this affirmative defense seems to be that plaintiff "sat on its hands for 33 years" and failed to police its trademarks. Dkt. #60 at 12.
In addition, plaintiff notes that defendant also listed "generic mark," "goods in trade/merely descriptive" and "no designation of origin" as affirmative defenses in its amended answer, dkt. #23 at ¶¶ 43, 50 and 53, but to the extent that defendant discusses these issues at all, it is in conjunction with its objections to plaintiff's claims that its marks are protectable. Accordingly, I have considered these "defenses" as challenges to the protectability of plaintiff's marks, as discussed above.
For the reasons explained below, I find that plaintiff is entitled to summary judgment with respect to defendant's affirmative defenses of acquiescence, waiver, equitable estoppel and abandonment.
"There are four elements of equitable estoppel: (1) action or non-action; (2) on the part of one against whom estoppel is asserted; (3) which induces reasonable reliance thereon by the other, either in action or non-action; (4) which is to the relying party's detriment."
Apart from its limited argument that plaintiff told defendant to stop using its marks and then said nothing for many years, defendant has not alleged a "relationship or communication between the parties giving rise to a necessary inference" that plaintiff would not enforce its rights. In particular, it has not adduced evidence of any misleading statement or action on plaintiff's part.
These three defenses raise similar issues with respect to how plaintiff has used and protected its claimed marks, and defendant seems to confuse them in its brief. Further, although defendant identifies Wisconsin's general definition of waiver, it does not discuss the affirmative defenses of acquiescence or abandonment at all, arguing only generally throughout its brief that plaintiff did not police its trademarks in a meaningful way and let more than 30 years pass before taking any action against defendant.
To establish abandonment of a trademark, defendant must prove that the mark's "use has been discontinued with intent not to resume such use."
Although a trademark owner can abandon its trademark rights through uncontrolled or "naked" licensing by allowing its licensees to "depart from [the owner's] quality standards," "absent a significant deviation from [such] standards, a licensor does not forfeit its trademark rights through licensing agreements."
Defendant argues that plaintiff does not have strong marks and suggests that plaintiff has abandoned its marks because it does not have a rigorous system of "policing" them, relying on its affiliates to discover potential infringers by "accident." To the extent that defendant is challenging plaintiff's failure to sue defendant for more than 30 years, it is raising the defense of laches. 3
"[A]cquiescence is an equitable doctrine that permits the court to deny relief in an action for trademark infringement if the evidence shows that the owner of the mark has, through his words or conduct, conveyed his consent to the defendant's use of the mark."
Defendant points out that the Wisconsin Supreme Court has defined waiver as the voluntary and intentional relinquishment of a known right,
In any event, even if waiver is a defense to a claim of trademark infringement, it is "more difficult to prove than either laches or acquiescence, as it involves not sleeping on one's rights but intentionally relinquishing them."
In sum, defendant has failed to offer sufficient evidence to allow a reasonable jury to find in its favor on the affirmative defenses of acquiescence, waiver, equitable estoppel and abandonment. Accordingly, plaintiff's motion for summary judgment with respect to these affirmative defenses will be granted.
The parties agree that defendant must prove three elements if it is to establish a claim for unjust enrichment in this case: (1) the plaintiff conferred a benefit upon the defendant; (2) the defendant had an appreciation or knowledge of the benefit; and (3) the defendant accepted or retained the benefit under circumstances making it inequitable for the defendant to retain the benefit without payment of its value.
Dkt. #67 at 15.
In support of its contentions, defendant cites the declaration of Shari Denenberg, the manager and records custodian for defendant, who avers generally that during its 33 years of operation, defendant has helped "tens of thousands of needy individuals and families" by providing food, clothing and furniture for free or at reduced cost; donating "thousands of dollars" in cash and merchandise to local charities; and providing employment for community members "who might otherwise be unemployed or unemployable." Dkt. #45, ¶¶ 9-11, 13, 18. However, even if I accept these sweeping generalizations as true, defendant has not developed any argument or adduced any evidence showing that these services created "goodwill" for plaintiff in particular or that plaintiff had knowledge of this goodwill and accepted it under inequitable circumstances without paying defendant for it. Defendant has presented nothing except a theory that plaintiff must have benefitted because defendant used a similar name to do good work in the community.
Defendant's theory will not suffice to defeat plaintiff's motion for summary judgment.
As the Court of Appeals for the Seventh Circuit has held on numerous occasions, "summary judgment is the `put up or shut up' moment in a lawsuit, when a party must show what evidence it has that would convince a trier of fact to accept its version of events."
The parties have filed a joint motion asking the court to strike the January 19, 2018 deadline for pretrial disclosures and motions in limine, the February 15, 2018 final pretrial conference and the February 20, 2018 trial date to allow sufficient time for resolution of the motions for summary judgment and trial preparation. The parties filed their motion on December 5, 2017, less than two weeks after their cross motions for summary judgment came before the court for decision. As the parties acknowledge, they have requested and were granted numerous extensions in this case, including a three-week extension of the deadline for filing dispositive motions. Dkt. #35.
IT IS ORDERED that
1. The motion for summary judgment filed by plaintiff National Council of the United States Society of St. Vincent de Paul, Inc., dkt. #52, is GRANTED with respect to defendant's unjust enrichment counterclaim and affirmative defenses of abandonment, equitable estoppel, acquiescence and waiver. The motion is DENIED in all other respects.
2. Defendant St. Vincent de Paul Community Center of Portage County, Inc.'s motion for summary judgment, dkt. #36, is DENIED.
3. The parties' joint motion to amend or correct the pretrial conference order, dkt. #83, is GRANTED. The remaining pretrial deadlines and trial date are struck. The clerk of court is directed to set a telephonic scheduling conference before Magistrate Judge Stephen Crocker for the purpose of setting new pretrial deadlines and a new trial date.