Bonkers Attorney's Fees Ruling Results In SDCC Getting $4 Million Out Of SLCC AFter $20k Jury Award

from the make-it-up-on-the-back-end dept

The last time we checked in on the trademark dispute between the San Diego Comic-Con and the Salt Lake Comic Con, we were in the wake of the jury's decision that SLCC did in fact violate the trademark rights of the SDCC by daring to use the term "Comic Con." We pointed out at the time that this is pretty plainly insane as a matter of trademark law, both because of the generic nature of festivals all over the country using some version of "comic con" in their names and the fact that the term itself is almost purely descriptive, being a shortened version of "comic convention", which is what all of these shows are. While the verdict didn't come down as predicted, the jury did manage to only award SDCC $20k in damages, finding that the infringement was not willful. The last checkpoint in the case was SDCC petitioning to get attorney's fees out of SLCC and to prevent it from calling itself a "comic convention."

Well, Judge Anthony Battaglia has ruled on both requests and, holy shit, he both granted most of the injunction requests and somehow managed to award $4 million dollars in attorney's fees to SDCC in a case that resulted in a $20k judgement.

In yet another victory for Comic-Con in its long-running battle over the rights to its name, a San Diego judge has ordered organizers of Salt Lake City’s comic convention to pay nearly $4 million in attorney fees and costs.

The ruling Thursday by U.S. District Judge Anthony Battaglia also granted a permanent injunction barring the Salt Lake convention from using various versions of San Diego Comic-Con’s trademarked names, a decision that eventually could have a more wide-ranging impact on other conventions that continue to incorporate variations of the Comic-Con name.

Battaglia justified the high dollar award by claiming that the case was "exceptional" in nature, essentially arguing that SLCC's defense was needlessly robust in ways that caused SDCC to have to spend more on its legal fees than it otherwise would have. That justification appears to ignore the reality of the situation, one in which SLCC for some reason had to defend its use of a shortened descriptor for the exact kind of show it was putting on. The injunction is somehow even more insane, with the court barring a comic convention from calling itself by any name that remotely approaches the term "comic-con" except for the term "comic convention", from which that shortened term is directly derived. In other words, a comic convention can call itself a "comic convention" but not a "comic con." That "vention" appears to be doing a great deal of heavy lifting in Battaglia's mind.

SLCC, of course, immediately signaled its intent to appeal.

“We do not expect a $4 million attorney fee award predicated on a $20,000 jury verdict to survive appellate review,” they said. “We have instructed our attorneys to begin working on an appeal to the Ninth Circuit — while we prepare for what we expect to be our best event ever, starting September 6."

The money is one thing, but the injunction is what will really have an impact for other conventions throughout the country. Suddenly, SDCC has a legal win that includes forcing another comic convention in another state to not be able to accurately call itself anything other than a "comic convention" specifically, with all other variations on that term being verboten. That sound you hear right now is hundreds of organizers of comics festivals falling out of their chairs.

Hopefully this all gets corrected on appeal.

Filed Under: comic-con, comiccon, trademark
Companies: salt lake comic con, san diego comic-con

Court Allows San Diego Comic-Con's Suit Against The Salt Lake City Comic Con To Move Forward

from the groan dept

A few months ago, we alerted our readers that a trademark dispute between the San Diego Comic-Con and a company producing a Salt Lake City Comic Con, originally filed in 2014, was still going on. In fact, the district court hearing the case just recently ruled on several motions from both parties, including motions for judicial notice (essentially having the court affirm basic facts about the case), motions to exclude expert testimony, and motions for summary judgement. On the face of it, the news is mostly bad for the Salt Lake City convention, with nearly every ruling coming down against it. However, digging into the ruling itself, there is a light at the end of the tunnel.

As for the bad news, it seems to be mostly of the Salt Lake City Comic Con's own making, or the making of its legal team. The court points out that the defendant's lawyers motion and defenses are all over the place, in some places arguing for generecide -- or that "comic con" has become a generic term -- while in others arguing that "comic con" is generic ab initio -- or that the term was generic even prior to San Diego Comic-Con's initial use of it. It's an important distinction for a couple of reasons, including that the defenses SLC has stated it will make revolve around genericide, yet much of the evidence in the motions in this ruling revolve around generic ab initio and, more importantly, the 9th Circuit doesn't have any precedent or acknowledgement of generic ad initio as a matter of law, and this district court is governed by 9th Circuit precedent.

Unfortunately for Defendants, the Ninth Circuit has not recognized a genericness ab initio theory of defense. Instead, the Ninth Circuit very clearly states that there are only five categories of trademarks: (1) generic; (2) descriptive; (3) suggestive; (4) arbitrary; and (5) fanciful. KP Permanent Make-Up, Inc. v. Lasting Impression I, Inc., 408 F.3d 596, 602 (9th Cir. 2005). No case law from this circuit separates genericness into two different types nor have Defendants provided the Court with Ninth Circuit precedent that adopts their arguments. Accordingly, as there is no dispositive basis or Ninth Circuit jurisprudence to accept an argument revolving around a generic ab initio defense, the Court GRANTS Plaintiff’s motion for summary judgment on this contention.

So, yeah, not a real good look on the part of the SLC's legal team. Later in the ruling, the court goes on to rule against SLC's motion for summary judgement, which was essentially asking the court to rule that "comic con" is now a generic term. The court declined to do so, moving the case forward. But it's important to note that the court, in a ruling that otherwise dealt somewhat harshly with SLC's lawyers, makes a point of noting that it did not deny the motion because Salt Lake City doesn't have the facts on its side. Instead, the court notes that in motions like this, favorable weight is generally given both to the plaintiff and to any holder of a valid trademark (the plaintiff again, in this case), and that's what precludes the court from granting a summary judgement. The ruling goes on to state:

After a careful review of the parties’ moving papers, the applicable law, and the evidence on the record, the Court finds that Defendants have satisfied their burden of demonstrating a genuine issue of material fact as to genericide. “Federal courts [] view usage of [a] term by competitors in the industry as strong evidence of how the public perceives them.” Classic Foods Int’l Corp. v. Kettle Foods, Inc., 468 F. Supp. 2d 1181, 1190 (C.D. Cal. 2007). “The more members of the public see a term used by competitors in the field, the less likely they will be to identify the term with one particular producer.” Id. Here, Defendants produce evidence that demonstrates that “comic cons” are held in nearly every state of the United States including New York Comic Con, Amazing Arizona Comic Con, Emerald City Comic Con, and Tampa Bay Comic Con. (Doc. No. 223-1 at 39, 101, 129, 160.) This evidence of over 100 competitors using the unhyphenated form of Plaintiff’s trademark strongly suggests that the mark is generic. Consequently, this is persuasive evidence of genericide. See CG Roxane LLC v. Fiji Water Co. LLC, 569 F. Supp. 2d 1019, 1027 (N.D. Cal. 2008) (holding that a competitors use of a mark is compelling evidence of genericness as it reflects how the public identifies the term).

Due to that, the court denied San Diego Comic-Con's motion to deny SLC that defense. So, when the trial moves forward now, it should be clear exactly what the defense by Salt Lake City will be: generecide. Given this ruling's opinion of the facts on that question, it appears that defense will be quite strong.

It's something of a canary in the coal mine for the SDCC, in other words. I somewhat expect we'll now hear more talks of a settlement before this goes much further.

Filed Under: comic con, comiccon, dan farr, salt lake city, san diego, trademark
Companies: salt lake comic con, san diego comic con