/f3d/932/0589-01

United States Court of Appeals for the Seventh Circuit · 2019-08-02

Original case on neochart.com

Case and law context

15 U.S.C. § 1125(a)

Role: applied; posture: Appeal from summary judgment for defendants; fair-use defense reviewed de novo; confusion was not adjudicated.; result: claimant-lost; claim:

Instances and excluded annotation blocks

Annotation blocks, including explicitly excluded context
CaseElementHolding and scopeVariantExact source quotations
/f3d/932/0589-01 — United States Court of Appeals for the Seventh Circuit · 2019Good-faith descriptive use other than as a marksatisfied
Counted merits instance
applied / merits

basis: law; party: Gatorade and PepsiCo; theory: Nontrademark descriptive use in good faith; subject: party=Gatorade and PepsiCo; theory=Nontrademark descriptive use in good faith

All three defense prongs were sustained on summary judgment. [law] records the defense being legally established on a record viewed favorably to SportFuel; it does not signify trial factfinding or a concession. The DSL has no affirmative-defense summary-judgment-success basis.
descriptive-use/sports-nutrition-slogan
In short, to raise the fair use defense successfully, Gatorade must show that (1) it did not use "Sports Fuel" as a trademark, (2) the use is descriptive of its goods, and (3) it used the mark fairly and in good faith.
Source: docroot/ir/caselaw/f3d_932.jsonl#/f3d/932/0589-01; Unicode character offsets [7033:7251] (end exclusive); SHA-256 f6820bdcc4c8d1f7c57b328a6c51f8af1f265db990f6acb029ef1ed054bfa251.

Evidence kind: rule; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

The products' individual packaging and displays feature Gatorade's house mark and G Bolt logo more prominently.
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Evidence kind: fact; polarity: supports; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

First, producers of nutritional products for athletes regularly invoke the "Sports Fuel" terminology to describe the products they sell. Gatorade provided numerous examples of this widespread industry use to the district court, including, for example, Twin Laboratories' "SPORT FUEL" and Trident Sports' "SPORTS FUEL."
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Evidence kind: fact; polarity: supports; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Gatorade's stated purpose in adopting the challenged slogan was to help the company better describe its business and the products it sells. Nothing in the record actually contradicts this purpose.
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Evidence kind: fact; polarity: supports; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

SportFuel emphasizes that Gatorade employed a "TM" symbol with the slogan and obtained a trademark for the slogan.
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Evidence kind: fact; polarity: cuts-against; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Accordingly, we do not believe the district court erred in determining that Gatorade never employed the term "Sports Fuel" as a trademark in its "Gatorade The Sports Fuel Company" slogan.
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Evidence kind: held; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

We conclude that Gatorade's slogan uses "Sports Fuel" in a descriptive sense.
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Evidence kind: held; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Further, it is clear from the record that Gatorade provided sufficient evidence that it used the term "Sports Fuel" fairly and in good faith.
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Evidence kind: held; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

/f3d/932/0589-01 — United States Court of Appeals for the Seventh Circuit · 2019Likely consumer confusion about source or sponsorshipnot_reached
Excluded from merits counts
rule-announced / merits

Claimed confusion supplies context only; the court resolves the case through fair use without deciding that confusion exists or is absent.
confusion/reverse-confusion
"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." CAE, Inc. , 267 F.3d at 673-74.
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Evidence kind: rule; polarity: not recorded; absent flag: 0; quoted-rule flag: 1 (1 = tagged; 0 = not tagged)

In this case, the alleged reverse confusion would occur when Gatorade used its house mark alongside the term "Sports Fuel," which would effectively coopt SportFuel's trademark and confuse consumers by leading them to believe the companies were related.
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Evidence kind: fact; polarity: supports; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Court interpretations recorded from this case

interpretation

"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." CAE, Inc. , 267 F.3d at 673-74.

/f3d/932/0589-01 — United States Court of Appeals for the Seventh Circuit · 2019

"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." CAE, Inc. , 267 F.3d at 673-74.
Source: docroot/ir/caselaw/f3d_932.jsonl#/f3d/932/0589-01; Unicode character offsets [5934:6141] (end exclusive); SHA-256 f6820bdcc4c8d1f7c57b328a6c51f8af1f265db990f6acb029ef1ed054bfa251.

Protectability is doctrinal; ownership/enforceable licensing rights, priority, distinctiveness and territorial scope must be established. SportFuel states the trademark species test, not a universal requirement for every subsection (a) theory.

interpretation

In short, to raise the fair use defense successfully, Gatorade must show that (1) it did not use "Sports Fuel" as a trademark, (2) the use is descriptive of its goods, and (3) it used the mark fairly and in good faith.

/f3d/932/0589-01 — United States Court of Appeals for the Seventh Circuit · 2019

In short, to raise the fair use defense successfully, Gatorade must show that (1) it did not use "Sports Fuel" as a trademark, (2) the use is descriptive of its goods, and (3) it used the mark fairly and in good faith.
Source: docroot/ir/caselaw/f3d_932.jsonl#/f3d/932/0589-01; Unicode character offsets [7033:7251] (end exclusive); SHA-256 f6820bdcc4c8d1f7c57b328a6c51f8af1f265db990f6acb029ef1ed054bfa251.

This defense does not require defendant to prove absence of all confusion. Nominative use and expressive-use analysis are separate and jurisdiction-sensitive. Jack Daniel’s (2023) rejects the special Rogers threshold when the challenged designation is used as a mark for defendant’s own goods; parody may still affect confusion.