leatherman tool group trademark complaint

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  • 8/10/2019 Leatherman Tool Group Trademark Complaint

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    DWT 25442996v5 0093810-000009

    Page 1 FIRST AMENDED COMPLAINT

    DAVIS WRIGHT TREMAINE LLP1300 S.W. Fifth Avenue, Suite 2400

    Portland, Oregon 97201-5610(503) 241-2300 main (503) 778-5299 fax

    JOHN F. MCGRORY, JR., OSB #[email protected] L. FENDALL, OSB #[email protected] WRIGHT TREMAINE LLP1300 S.W. Fifth Avenue, Suite 2400Portland, Oregon 97201-5610Telephone: (503) 241-2300Facsimile: (503) 778-5299

    Of Attorneys for Plaintiff

    IN THE UNITED STATES DISTRICT COURT

    DISTRICT OF OREGON

    AT PORTLAND

    LEATHERMAN TOOL GROUP, INC., anOregon Corporation,

    PLAINTIFF,

    v.

    ARMITAGE HARDWARE ANDBUILDING SUPPLY, INC., an IllinoisCorporation, d/b/a ARMITAGE DIRECTandLEATHERMANTOOL.COM,

    DEFENDANT.

    Case No. 3:14-cv-00823-MO

    FIRST AMENDED COMPLAINT

    Trademark Infringement (15 U.S.C.1114), Unfair Competition and FalseDesignation of Origin (15 U.S.C.1125(a)), and Common Law UnfairCompetition

    DEMAND FOR JURY TRIAL

    For its Complaint against Defendant Armitage Hardware and Building Supply

    (Defendant), Plaintiff Leatherman Tool Group, Inc. (Leatherman Tool) alleges as follows:

    JURISDICTION AND VENUE

    1. This is an action for trademark infringement, unfair competition and false

    designation of origin arising under the Lanham Act, 15 U.S.C. 1051, et seq., and for unfair

    competition under the laws of the State of Oregon.

    Case 3:14-cv-00823-MO Document 34 Filed 12/10/14 Page 1 of 13

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    DAVIS WRIGHT TREMAINE LLP1300 S.W. Fifth Avenue, Suite 2400

    Portland, Oregon 97201-5610

    (503) 241-2300 main (503) 778-5299 fax

    2. This Court has jurisdiction over this action pursuant to 28 U.S.C. 1331,

    1338(a) and (b), and 15 U.S.C. 1121 because it arises under the Lanham Act, 15 U.S.C.

    1051, et seq. Jurisdiction over the Oregon common-law claim is also appropriate as this

    claim is so related to the claims under the Lanham Act that it forms part of the same case and

    controversy, and hence falls within the scope of this Courts supplemental jurisdiction pursuant

    to 28 U.S.C. 1338(b) and 1367.

    3. This Court has personal jurisdiction over Defendant because Defendant has

    engaged in unlawful and purposeful conduct directed towards Leatherman Tool, an Oregon

    corporation, and therefore has caused injury to Leatherman Tool in Oregon. Venue is proper inthe District of Oregon pursuant to 28 U.S.C. 1391(b) because a substantial part of the events

    giving rise to these claims occurred in Oregon, and because Defendant is subject to personal

    jurisdiction in Oregon.

    THE PARTIES

    4. Leatherman Tool is an Oregon corporation, with its principal place of business in

    Portland, Oregon. Leatherman Tool manufactures and distributes engineered multi-tools, pocket

    tools, and knives that are designed for outdoor, tactical, professional, and general use.

    Leatherman Tools products are distributed throughout the United States and internationally.

    5. Defendant is an Illinois corporation, with its principal place of business in

    Chicago, Illinois. On information and belief, Defendant owns and operates both Armitage Direct

    and leathermantool.com, an online retail website that sells multi-tools, pocket tools, and knives

    that are manufactured by Leatherman Tool.

    LEATHERMAN TOOLS TRADEMARK AND BUSINESS

    6. Since 1983, Leatherman Tool has engineered, manufactured, and sold high

    quality multi-tools, pocket tools, and knives.

    Case 3:14-cv-00823-MO Document 34 Filed 12/10/14 Page 2 of 13

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    Page 4 FIRST AMENDED COMPLAINT

    DAVIS WRIGHT TREMAINE LLP1300 S.W. Fifth Avenue, Suite 2400

    Portland, Oregon 97201-5610

    (503) 241-2300 main (503) 778-5299 fax

    9. Leatherman Tool has expended substantial time and resources promoting and

    advertising its products under the LEATHERMAN mark both throughout the United States and

    internationally. Due to the widespread promotion of the LEATHERMAN mark, consumers,

    potential consumers, and the general public have come to rely upon the LEATHERMAN mark

    as an indication that the products sold under the name or mark originate from or are otherwise

    associated with Leatherman Tool.

    10. Additionally, consumers, potential consumers, and the general public associate

    the LEATHERMAN mark with exceptional design, quality, and customer service. As a result of

    this recognition, Leatherman Tool has developed significant goodwill and reputation and derivessubstantial value from use of the LEATHERMAN mark to identify their products and business.

    DEFENDANTS UNLAWFUL CONDUCT

    11. Defendant is currently neither an authorized distributor nor an authorized reseller

    of Leatherman Tools products, and is not authorized to sell LEATHERMAN brand products

    online. Defendant is not authorized by Leatherman Tool to operate a website for the sale of

    Leatherman Tool products, and is not authorized to use the LEATHERMAN mark. Defendant,

    nonetheless, is using the LEATHERMAN mark in connection with its website, email

    solicitations, and services in a manner which is confusingly similar to Leatherman Tools own

    official website, www.leatherman.com, and services.

    12. Any prior permission by Leatherman Tool, whether express or implied, regarding

    Defendants use of the LEATHERMAN mark or Defendant's website has been revoked.

    13. Despite the fact that Defendant is not authorized to distribute or sell Leatherman

    Tool products online, Defendant promotes and sells multi-tools, pocket tools, and knives

    designed manufactured by Leatherman Tool on its website, leathermantool.com, which

    prominently says "Leathermantool.com" on the top of every page. A true and correct copy of a

    screenshot of Defendants leathermantool.com homepage as is appeared when this lawsuit was

    initiated is attached hereto as Exhibit 1.

    Case 3:14-cv-00823-MO Document 34 Filed 12/10/14 Page 4 of 13

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    DAVIS WRIGHT TREMAINE LLP1300 S.W. Fifth Avenue, Suite 2400

    Portland, Oregon 97201-5610

    (503) 241-2300 main (503) 778-5299 fax

    used on Defendants leathermantool.com website (a) as of the filing of the lawsuit, and (b) as of

    the filing of this Amended Complaint, are attached hereto as Exhibit 3.

    17.

    Defendants use of the leathermantool.com domain name and website, and

    Defendant's use of the LEATHERMAN mark in the meta tags for its website, is not only

    intended but likely to misdirect consumers intending to purchase Leatherman Tool products from

    Leatherman Tools website at www.leatherman.com by taking these consumers or potential

    consumers directly to Defendants infringing website. For instance, a search on web browser

    Google.com using the search term leatherman tool ranks Defendants leathermantool.com

    website highly among its many search results. True and correct screenshots of this search onGoogle.com (a) as of the filing of the lawsuit, and (b) as of the filing of this Amended

    Complaint, are attached hereto as Exhibit 4.

    18. Defendant has also used the LEATHERMAN mark in sending email solicitations

    to sell goods via its infringing website.

    19. Defendants use of the LEATHERMAN mark in the URL leathermantool.com,

    the text and meta tags of its infringing website, and it its email solicitations, are likely to cause

    confusion, to cause mistake, or to deceive consumers and the public into believing that

    Defendants leathermantool.com website is associated with and/or sponsored or endorsed by

    Leatherman Tool. Indeed, Defendant's use of the LEATHERMAN mark has already caused

    confusion among consumers.

    20. Defendants use of the LEATHERMAN mark in the domain name and website is

    also more than is reasonably necessary to describe and conduct Defendants business of selling

    multi-tools, pocket tools, and knives manufactured by Leatherman Tool.

    21. Leatherman Tool has had constructive or actual notice of Defendants

    leathermantool.com website for fourteen years.

    22. Leatherman Tool initially filed this suit on May 19, 2014. Leatherman Tools

    initial complaint sought damages and injunctive relief.

    Case 3:14-cv-00823-MO Document 34 Filed 12/10/14 Page 6 of 13

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    DAVIS WRIGHT TREMAINE LLP1300 S.W. Fifth Avenue, Suite 2400

    Portland, Oregon 97201-5610

    (503) 241-2300 main (503) 778-5299 fax

    23. Leatherman Tool is no longer seeking damages for past infringement. Leatherman

    Tool concedes that Leathermans delay establishes unreasonable delay for the purposes of

    establishing a laches defense as to any claim for damages based on Defendants past

    infringement and that such damages are therefore barred due to Leathermans delay. However,

    despite the conceded delay in bringing this suit, the elements of laches have not been established

    as to any claim by Leatherman Tool for prospective injunctive relief.

    FIRST CLAIM FOR RELIEF

    (Trademark Infringement Lanham Act 15 U.S.C. 1114)

    24.

    Leatherman Tool realleges and incorporates by reference the allegations

    contained in Paragraphs 1 through 23 above.

    25. The LEATHERMAN mark is distinctive, has become well-recognized in the

    mind of consumers, potential consumers, and the general public with Leatherman Tools

    products, and has come to represent the goodwill and reputation associated with Leatherman

    Tools products and customer service.

    26. Without Leatherman Tools current authorization or permission, and having

    knowledge of Leatherman Tools rights in the LEATHERMAN mark, and the fact that

    Defendants infringing leathermantool.com domain and website uses marks identical and/or

    confusingly similar to the LEATHERMAN mark, Defendant is using and operating

    leathermantool.com to sell Leatherman Tool products in direct competition with Leatherman

    Tool, diverting consumer internet traffic to Defendants infringing website.

    27. Defendants unlawful and unauthorized use of the LEATHERMAN mark in

    conjunction with its infringing leathermantool.com domain and website, is likely to cause

    confusion, or to cause mistake, or to deceive consumers, potential consumers, and the public into

    believing that Defendants infringing website originates from, is associated with, or is otherwise

    authorized by Leatherman Tool in violation of 15 U.S.C. 1114.

    Case 3:14-cv-00823-MO Document 34 Filed 12/10/14 Page 7 of 13

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    Page 8 FIRST AMENDED COMPLAINT

    DAVIS WRIGHT TREMAINE LLP1300 S.W. Fifth Avenue, Suite 2400

    Portland, Oregon 97201-5610

    (503) 241-2300 main (503) 778-5299 fax

    28. As a result of Defendants infringement, Leatherman Tool is likely to be injured,

    either by a direct diversion of sales from Leatherman Tool to Defendant, or by a lessening of

    goodwill or reputation associated with Leatherman Tools products.

    29. Leatherman Tool has no adequate remedy at law and, if the Defendants activities

    are not enjoined, Leatherman Tool will continue to suffer irreparable harm and injury to its

    goodwill and reputation.

    30. Defendants unlawful and unauthorized use of the LEATHERMAN mark in

    connection with its infringing leathermantool.com domain and website is both knowing and

    intentional, and thus Defendants actions constitute exceptional, willful, and deliberate conduct,entitling Leatherman Tool to recover its reasonable attorneys fees and costs incurred in

    connection with this lawsuit pursuant to 15 U.S.C. 1117.

    SECOND CLAIM FOR RELIEF

    (Unfair Competition and False Designation of Origin Lanham Act 15 U.S.C. 1125(a))

    31. Leatherman Tool realleges and incorporates by reference the allegations

    contained in Paragraphs 1 through 30 above.

    32. Defendants infringing leathermantool.com domain and website offers the same

    nature and type of products sold and offered for sale by Leatherman Tool, and therefore

    Defendants unlawful, unauthorized, and willful use of the LEATHERMAN mark in connection

    with leathermantool.com is likely to cause confusion among consumers, potential consumers,

    and the general public.

    33. Defendants unlawful use of the LEATHERMAN mark in connection with its

    infringing leathermantool.com domain and websiteError! Hyperlink reference not valid. is

    likely to cause confusion, or to cause mistake, or to deceive consumers, potential consumers, and

    the public into believing that Defendants infringing website originates from, is associated with,

    or is otherwise authorized by Leatherman Tool in violation of 15 U.S.C. 1125(a).

    Case 3:14-cv-00823-MO Document 34 Filed 12/10/14 Page 8 of 13

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    DAVIS WRIGHT TREMAINE LLP1300 S.W. Fifth Avenue, Suite 2400

    Portland, Oregon 97201-5610

    (503) 241-2300 main (503) 778-5299 fax

    34. As a result of Defendants improper use of the LEATHERMAN mark in

    connection with its infringing leathermantool.com domain and website, Leatherman Tool is

    likely to be injured, either by a direct diversion of sales from Leatherman Tool to Defendant, or

    by a lessening of goodwill or reputation associated with Leatherman Tools products.

    35. Leatherman Tool has no adequate remedy at law and, if the Defendants activities

    are not enjoined, Leatherman Tool will continue to suffer irreparable harm and injury to its

    goodwill and reputation.

    36. Defendants unlawful use of the LEATHERMAN mark in connection with its

    infringing domain and website is both knowing and intentional, and thus Defendants actionsconstitute exceptional, willful, and deliberate conduct, entitling Leatherman Tool to recover its

    reasonable attorneys fees and costs incurred in connection with this lawsuit pursuant to

    15 U.S.C. 1117.

    THIRD CLAIM FOR RELIEF

    (Common Law Unfair Competition)

    37. Leatherman Tool realleges and incorporates by reference the allegations

    contained in Paragraphs 1 through 36 above.

    38. As a result of Leatherman Tools efforts in designing, manufacturing, and

    promoting Leatherman Tools products, Leatherman Tool has built-up valuable goodwill in the

    LEATHERMAN mark. As such, the LEATHERMAN mark has not only become associated

    with Leatherman Tools products, but has also come to represent Leatherman Tools exceptional

    design, quality, and customer service.

    39.

    Defendant, with full knowledge of Leatherman Tools ownership and interest in

    the LEATHERMAN mark, is using such mark in operating its leathermantool.com domain and

    website in order to divert consumer traffic to defendants infringing website. Defendants

    unauthorized and unlawful use of the LEATHERMAN mark in connection with

    Case 3:14-cv-00823-MO Document 34 Filed 12/10/14 Page 9 of 13

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    Page 12 FIRST AMENDED COMPLAINT

    DAVIS WRIGHT TREMAINE LLP1300 S.W. Fifth Avenue, Suite 2400

    Portland, Oregon 97201-5610

    (503) 241-2300 main (503) 778-5299 fax

    control and supervision of Leatherman Tool, or otherwise sponsored, approved, or endorsed by

    Leatherman Tool.

    2.

    Defendant be ordered to modify its website so that it prominently identifies

    Defendant at the top of each page of the website, along with a prominent disclaimer, also at the

    top of each page of the website, indicating Defendant is not affiliated with Leatherman Tool;

    with the cost of such modifications to be paid for by Leatherman Tool.

    3. Defendant be ordered to move its website to a new domain, with the cost of the

    new domains registration to be paid for by Leatherman Tool; and to cancel, forfeit, or transfer

    the domain name leathermantool.com to Leatherman Tool, at which point Leatherman Tool, atits own cost, will host a website at leathermantool.com which (1) clearly indicates that the

    website formerly located at leathermantool.com and operated by Armitage has moved to a new

    domain; (2) provides a link to Armitages website at its new domain; (3) provides a link to

    Leatherman Tools own website at leatherman.com; and (4) will remain online for a period of

    two (2) years, or whatever period of time this Court deems just and equitable.

    4. Defendant be ordered to file with this Court and serve on Leatherman Tools

    counsel within thirty (30) days after the Courts issuance of a judgment, a report setting forth in

    detail the manner and form in which Defendant has complied with Paragraphs 1 through 3 of

    Leatherman Tools Prayer for Relief.

    5. Defendant be required to pay costs of suit, including reasonable attorneys fees

    and expert witness fees.

    Case 3:14-cv-00823-MO Document 34 Filed 12/10/14 Page 12 of 13

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    DAVIS WRIGHT TREMAINE LLP1300 S.W. Fifth Avenue, Suite 2400

    Portland, Oregon 97201-5610

    6. Leatherman Tool be granted such other and further relief as this Court deems just

    and equitable.

    DATED this __ day of December, 2014.

    DAVIS WRIGHT TREMAINE LLP

    By /s/ John F. McGrory, Jr.John F. McGrory, Jr., OSB #[email protected] L. Fendall, OSB #[email protected]: (503) 241-2300

    Facsimile: (503) 778-5299

    Of Attorneys for Plaintiff

    Case 3:14-cv-00823-MO Document 34 Filed 12/10/14 Page 13 of 13

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