ZW United States, Inc. v. PWD Sys., LLC
Opinion
This case involves a trademark dispute between two companies that sell plastic bags for picking up and disposing of dog droppings. ZW USA, Inc. entered the dog-bag market first and registered the mark ONEPUL. PWD, LLC entered the market after ZW under the trade name BagSpot. On its website, PWD uses the phrase "one-pull" to describe some of its products. ZW sued PWD for infringement of its ONEPUL trademark, and PWD countersued claiming that the ONEPUL trademark is invalid. The district court granted summary judgment to PWD on the infringement claim, and to ZW on the validity claim. Both parties appealed.
I. Background
ZW and PWD sell plastic bags that customers use to pick up after their dogs. Both companies sell "wicket" bags (also called "header" bags). Like plastic grocery bags, wicket bags are sold stacked on top of one another and connected to some sort of header strip. Also like grocery bags, wicket bags are dispensed by tearing the bag off the header strip. Wicket bags are designed to be dispensed one at a time, with a single pull of the hand.
ZW, a California company, began selling bags first. ZW stands for "zero waste." At some point, ZW began using the marks "ONEPUL" and "SINGLPUL" with its wicket bags. These marks, of course, are misspelled truncations of the phrases "one-pull" and "single-pull." In 2013, ZW applied for trademarks for ONEPUL and SINGLPUL, which the United States Patent and Trademark Office (PTO) granted in 2014. The PTO did not ask ZW for proof that the marks had acquired distinctiveness in the dog-bag marketplace. Since 2010, ZW has spent some $1.5 million on advertising for all of its products; it is unclear what portion of that sum was spent on advertising ONEPUL wicket bags.
PWD is a Missouri company that began selling wicket bags in 2012. It markets its products under the trade name BagSpot, and competes with ZW for customers. PWD's website identifies its wicket bags using the phrases "one-pull" and "one pull." As part of its marketing strategy, PWD purchased the term "zerowaste" from Google Adwords. As a result, when a person uses Google to search for "zerowaste," PWD's site appears near the top of the results page.
ZW filed suit alleging infringement of its ONEPUL and SINGLPUL trademarks. PWD countersued, claiming that both trademarks were invalid. At summary judgment, the district court determined that, while PWD had not infringed on ZW's marks, PWD had not presented evidence sufficient to overcome the strong presumption that ZW's registered marks were valid. It therefore granted PWD summary judgment on the infringement claim, and granted ZW summary judgment on the validity claim. On appeal, the parties raise the same issues that were before the district court. We address each in turn.
II. Trademark Infringement
ZW contends that PWD's description of its wicket bags as "one-pull"
1
infringes on its ONEPUL trademark.
2
We review this claim de novo.
Frosty Treats Inc. v. Sony Computer Entm't Am., Inc.
,
Trademarks are "any word, name, symbol, or device ... used by a person ... to identify and distinguish his or her goods ... from those manufactured or sold by
others."
To determine the likelihood of confusion, we evaluate six factors:
(1) the strength of the owner's mark; (2) the similarity between the owner's mark and the alleged infringer's mark; (3) the degree to which the products compete with each other; (4) the alleged infringer's intent to "pass off" its goods as those of the trademark owner; (5) incidents of actual confusion; and (6) the type of product, its costs and conditions of purchase.
Co-Rect Prods., Inc. v. Marvy! Advert. Photography, Inc.
,
We start by examining the strength of the ONEPUL mark. "A strong and distinctive" mark is "entitled to greater protection than a weak or commonplace one."
SquirtCo.
,
On the similarity factor, we consider "the impression that each mark in its entirety is likely to have on a purchaser exercising the attention usually given by purchasers of such products."
Duluth News-Tribune
,
"[O]therwise similar marks are not likely to be confused when used in conjunction with [the] clearly displayed name of [the] manufacturer."
As to the degree of competition between ZW and PWD's wicket bags, we agree with the district court that ZW and PWD compete in the market for dog-waste disposal products, which renders confusion more likely.
But see
Kemp v. BumbleBee Seafoods, Inc.
,
We next consider the extent to which the alleged infringer attempts to "pass off" its mark as that of the trademark owner. "While proof of bad intent is not required for success in an infringement or unfair competition claim, 'the absence of such intent is a factor to be considered.' "
Sensient Techs.
, 613 F.3d at 766 (quoting
Frosty Treats
,
On the "actual confusion" factor, we agree with the district court that ZW introduced no evidence that any consumer had ever actually confused ZW's ONEPUL mark with PWD's description of its "one-pull" bags.
Finally, we consider "the kind of product, its cost and the conditions of purchase" to determine "whether the degree of care exercised by the purchaser can eliminate the likelihood of confusion which would otherwise exist."
SquirtCo.
,
Based on that evidence, it seems that an ordinary consumer exercises minimal care when purchasing a low-cost, fungible product like dog-waste disposal bags, even in bulk.
See
Kemp
,
Taken as a whole, the evidence that ZW submitted at summary judgment showed only that ZW and PWD were in competition with one another. And while direct competition can increase the likelihood of confusion,
see
Kemp
,
III. Trademark Validity
We turn now to PWD's counterclaim that ZW's marks are invalid. Before addressing the merits, we must determine the scope of PWD's argument. Two of ZW's registered marks were before the district court: SINGLPUL and ONEPUL. The district court did not pass on the validity of the SINGLPUL mark and, on appeal, PWD makes no affirmative argument as to that mark's validity. Accordingly, we consider the argument waived and express no opinion on the validity of ZW's SINGLPUL mark.
The district court determined that the ONEPUL mark was entitled to a strong presumption of validity. The court then concluded that PWD had not presented enough evidence to overcome that presumption, and granted summary judgment to ZW. We review summary judgment de novo, and apply the same standards as the district court.
Frosty Treats
,
In order to receive protection under the Lanham Act, a mark must be distinctive-that is, it must uniquely identify a particular brand.
Two Pesos, Inc. v. Taco Cabana, Inc.
,
The Lanham Act protects both registered and unregistered trademarks.
See
Matal v. Tam
, --- U.S. ----,
The Lanham Act also provides that owners of registered marks may use the registration as evidence of the mark's validity.
The Lanham Act tells us what a mark's registration means, but the ordinary rules of civil procedure tell us what to do with that information. At summary judgment, the evidence is viewed in the light most favorable to the nonmoving party (here, mark owner ZW), and summary judgment is withheld if there are genuine disputes of material fact. Fed. R. Civ. P. 56(a). The court considers the whole record, and refrains from weighing the evidence or making credibility determinations.
Torgerson v. City of Rochester
,
In this case, PWD submitted evidence to show that ONEPUL was either generic or descriptive without secondary meaning. On genericness, PWD submitted printouts from several websites where competitors use the phrases "one pull" or "one-pull" to describe their dog bags, 7 which PWD contends establishes that "one-pull" is just a type of dog bag. On descriptiveness, PWD submitted ZW's product descriptions to show that ONEPUL is a variant of the phrase "one-pull," which PWD argues immediately conveys the manner in which ZW's bags are dispensed: with one pull of the hand. ZW replied with its certificate of registration, and argued that the PTO found ONEPUL to be inherently distinctive.
Viewing the record as a whole, there is a fact dispute as to whether the ONEPUL mark is generic or descriptive. On this record, the only way to grant ZW summary judgment on PWD's validity claims was to decide that ZW's evidence was stronger or more credible than PWD's evidence. Such a determination is improper at summary judgment, and must be left to the trier of fact. We must therefore reverse the district court's grant of summary judgment to ZW on the validity claims. 8
IV. Conclusion
For the foregoing reasons, we affirm the district court's judgment on infringement, and reverse on validity. The case is remanded for proceedings consistent with this opinion.
PWD argues that its use of the phrase "one-pull" was not a "use in commerce" that would subject it to suit for infringement.
See
Sensient Techs. Corp. v. SensoryEffects Flavor Co.
,
In its complaint, ZW also claimed that PWD had infringed its SINGLPUL mark. But PWD's website only uses the phrase "one-pull," ZW presented no evidence in the district court that PWD infringed its SINGLPUL mark, and ZW makes no argument regarding its SINGLPUL mark on appeal. Accordingly, we affirm the district court's grant of summary judgment to PWD on the SINGLPUL infringement claim. See Fed. R. App. P. 28(a)(8)(A).
ZW argues that the district court improperly ignored evidence that its ONEPUL mark is inherently distinctive because the PTO registered the mark without asking for a showing of secondary meaning. We have previously been skeptical of similar arguments.
See
Lovely Skin
,
ZW takes issue with the district court's admission of Exhibit G, which consisted of print-outs of the websites of third-party dog-bag retailers. ZW objects that the exhibit is unauthenticated hearsay. But ZW's argument has no bearing on its infringement claim. The district court based its determination of non-infringement on the websites of ZW and PWD, not third-party websites. The admissibility of Exhibit G is relevant only to the validity of ZW's ONEPUL mark.
In this latter type of case-where the PTO has listed the mark on the Principal Register-the placement of the burden on the challenging party is sometimes called the "presumption of validity."
See
Lovely Skin
,
The content of the evidence provided by a mark's registration is also sometimes called the "presumption of validity."
See
Lovely Skin
,
ZW argues that this evidence should not have been considered by the district court because it is both hearsay and unauthenticated. We disagree. The printed webpages are not hearsay because they are not offered to prove the truth of the matter asserted. See Fed. R. Evid. 801(c)(2). That is, they are not offered to prove the fact that ZW's competitors' bags can actually be dispensed with one pull. They are offered to show the fact that certain of ZW's competitors use the phrase "one-pull" to describe their products. Moreover, there is nothing in the Rules of Evidence that would prevent PWD from authenticating the webpages at trial. See Fed. R. Civ. P. 56(c)(2).
The parties also dispute whether ONEPUL has acquired secondary meaning in the relevant marketplace. The district court did not address this question, and we likewise decline to do so.
Reference
- Full Case Name
- ZW USA, INC., a California Company, Plaintiff-Appellant v. PWD SYSTEMS, LLC, a Missouri Limited Liability Company, Defendant-Appellee ZW USA, Inc., a California Company, Plaintiff-Appellee v. PWD Systems, LLC, a Missouri Limited Liability Company, Defendant-Appellant
- Cited By
- 13 cases
- Status
- Published