Westside Windery v. Sans Liege - grasshopper wine trademark complaint.pdf

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Transcript of Westside Windery v. Sans Liege - grasshopper wine trademark complaint.pdf

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    1

    Jon A. Birmingham (CA SBN 271034)

    FITCH, EVEN, TABIN & FLANNERY LLP21700 Oxnard Street, Suite 1740

    Los Angeles, California 91367

    Telephone: (818) 715-7025

    Facsimile: (818) 715-7033Email: [email protected]

     Attorney for Plaintiffs

    WESTSIDE WINERY LLC AND THACHER WINERY & VINEYARD, I NC. D/B/A THACHER

    WINERY 

    UNITED STATES DISTRICT COURTCENTRAL DISTRICT OF CALIFORNIA

    WESTSIDE WINERY LLC AND THACHER

    WINERY & VINEYARD, I NC. D/B/A/ 

    THACHER WINERY,

    Plaintiffs,

    v.

    SANS LIEGE I NC., THE FABLEIST WINE

    COMPANY, 22 HUNDRED CELLARS, I NC. 

    D/B/A FIELD R ECORDINGS WINERY, CURT

    SCHALCHLIN, AND A NDREW JONES,

    Defendants.

    Civil Action No.

    COMPLAINT FOR TRADEMARK AND TRADE

    DRESS INFRINGEMENT AND UNFAIR 

    COMPETITION 

    DEMAND FOR JURY TRIAL

    Case 2:16-cv-01959-DSF-SS Document 1 Filed 03/22/16 Page 1 of 13 Page ID #:1

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    COMPLAINT 

    Plaintiffs, Westside Winery LLC and Thacher Winery & Vineyard, Inc. d/b/

    Thacher Winery (individually and collectively referred to herein as “Thacher Winery”)

     bring this suit for trademark and trade dress infringement and federal, state and commonlaw unfair competition against Defendants, Sans Liege Inc., The Fableist Wine Company

    22 Hundred Cellars, Inc. d/b/a Field Recordings Winery, Curt Schalchlin, and Andrew

    Jones, and alleges as follows:

    NATURE OF ACTION, JURISDICTION AND VENUE

    1.  This Court has original subject matter jurisdiction over this action pursuant to

    28 U.S.C. §§ 1331 and 1338(a) and 15 U.S.C. § 1121. This Court has original subjec

    matter jurisdiction over this action pursuant to 28 U.S.C. §§ 1331 and 1338(a) and 15

    U.S.C. § 1121.

    2. 

    This is a complaint for trademark and trade dress infringement and unfai

    competition arising under Section 43(a) of the Lanham Act, 15 U.S.C. §§ 1114 an

    l125(a) regarding use of Defendants’ mark for wine products and services, which i

    identical, indistinguishable or highly similar and confusingly similar to Thacher Winery’

    common law Grasshopper marks used in connection with wine products and services and

    federally registered Grasshopper marks for wines.

    3. 

    This Court has supplemental jurisdiction over the state law claims pursuan

    to 28 U.S.C. §§ 1338(b) and 1367(a) as all claims herein form part of the same case o

    controversy.

    4. 

    This Court has personal jurisdiction over Defendants because, among othethings, Defendants conduct and solicit business in this jurisdiction and, on information

    and belief, are residents in this jurisdiction and/or have committed at least some of the

    conduct discussed herein in this district.

    Case 2:16-cv-01959-DSF-SS Document 1 Filed 03/22/16 Page 2 of 13 Page ID #:2

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    5.  Venue is proper in this district under 28 U.S.C. § 1391(b) as Defendants are

    resident in this district and a substantial part of the events giving rise the claims herein

    occurred in this district.

    PARTIES 

    6. 

    Westside Winery LLC, which has done business as Thacher Winery, is

    California Limited Liability Company having a principal place of business at 835

    Vineyard Drive, Paso Robles, California 93446. Westside Winery LLC is the owner o

     premises and assets used in vineyard agriculture and wine production, including but no

    limited to trademarks, trade identity, and trade dress asserted in this complaint.

    7.  Thacher Winery & Vineyard, Inc. d/b/a Thacher Winery is a California

    corporation having a principal place of business at 8355 Vineyard Drive, Paso Robles

    California 93446. Thacher Winery & Vineyard, Inc. d/b/a Thacher Winery is in th

     business of vineyard agriculture and wine production with sales and distribution o

     produced wine and related products and services, all as the authorized user of trademarks

    trade identity, and trade dress asserted in this complaint.

    8. 

    On information and belief, Sans Liege Inc. is a California corporation having

    a place of business at 870 Price St., Pismo Beach, California 93449. On information an

     belief, Sans Liege Inc. is in the business of wine production with sales and distribution o

     produced wine. On information and belief, Sans Liege Inc.’s wine products and service

    are sold in competition with Thacher Winery’s products and services.

    9.  On information and belief, Curt Schalchlin is an individual residing and

    doing business in the State of California, having a principal place of business at 870 PricSt., Pismo Beach, California 93449. On information and belief, Curt Schalchlin is in th

     business of wine production with sales and distribution of produced wine. On informatio

    and belief, Curt Schalchlin’s wine products and services are sold in competition with

    Thacher Winery’s products and services.

    Case 2:16-cv-01959-DSF-SS Document 1 Filed 03/22/16 Page 3 of 13 Page ID #:3

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    10.  On information and belief, The Fableist Wine Company, formerly named

    Cane & Fable Wines, Inc., is a California corporation having a place of business at 460

    Marquita Ave., Paso Robles, California 93446 and an agent for service at 100 Wes

    Broadway, Suite 100, Glendale, California 91210. On information and belief, ThFableist Wine Company is in the business of wine production with sales and distribution

    of produced wine. On information and belief, The Fableist Wine Company’s win

     products and services are sold in competition with Thacher Winery’s products an

    services.

    11.  On information and belief, Andrew Jones is an individual residing and doin

     business in the State of California, having a place of business at 460 Marquita Ave., Paso

    Robles, California 93446. On information and belief, Andrew Jones is in the business o

    wine production with sales and distribution of produced wine. On information and belief

    Andrew Jones’ wine products and services are sold in competition with Thacher Winery’

     products and services.

    12.  On information and belief, 22 Hundred Cellars, Inc. d/b/a Field Recording

    Winery is a California corporation having a place of business at 460 Marquita Ave., Paso

    Robles, California 93446. On information and belief, 22 Hundred Cellars, Inc. is in th

     business of vineyard agriculture and wine production with sales and distribution o

     produced wine. On information and belief, the wine products and services of 22 Hundre

    Cellars, Inc. d/b/a Field Recordings Winery are sold in competition with Thache

    Winery’s products and services. 

    FACTS COMMON TO ALL COUNTS 13.  Thacher Winery was founded in 2004 in Paso Robles, California.

    14.  Thacher Winery began vineyard agriculture operations and producing wine

    at least as early as 2004 in connection with a Grasshopper mark for its business, trade

    identity, trade dress, packaging and product labeling, and in marketing and othe

     promotional information and materials.

    Case 2:16-cv-01959-DSF-SS Document 1 Filed 03/22/16 Page 4 of 13 Page ID #:4

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    15.  The image of the grasshopper is associated with the name “Thacher” and i

     part of the traditional Thacher family crest.

    16.  From the time that Thacher Winery began vineyard agriculture operation

    and producing wines, the wine industry and the wine consuming public have knownThacher Winery to use the distinctive, non-functional image of a grasshopper as trad

    dress on its wine label and elsewhere, such that Thacher Winery has come to be known a

    “the Winery with the Grasshopper label” and “the Wine with the Grasshopper label,” o

    the like.

    17.  Based on Thacher Winery’s extensive and exclusive use of its Grasshoppe

    mark and filing of Application No. 78850669 on March 30, 2006 for its THACHER

    WINERY and Grasshopper mark on wine labelling with use in commerce at least as early

    as November 1, 2006, the United States Patent and Trademark Office on October 21, 200

    issued to Thacher Winery Registration No. 3522613 for the mark:

    specifying “Wine.” A photocopy of this referenced Registration is attached as Exhibit A.

    18. 

    The specimen of use from the file history of Registration No. 3522613

     below, presents the typical trade dress for how Thacher Winery has used and continues to

    use the Grasshopper mark on bottle labels:

    Case 2:16-cv-01959-DSF-SS Document 1 Filed 03/22/16 Page 5 of 13 Page ID #:5

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    19.  Beginning with certain 2011 and 2012 vintages of wine, Thacher Winery

    introduced an updated Grasshopper mark on wine labelling and elsewhere beginning a

    least as early as June 22, 2013, and based on Thacher Winery’s extensive and exclusive

    use in commerce of its updated Grasshopper mark and filing of Application No. 8623825on April 1, 2014, the United States Patent and Trademark Office on October 28, 2014

    issued to Thacher Winery Registration No. 4628609 for the mark:

    specifying “Wine.” A photocopy of this referenced Registration is attached as Exhibit B.

    20. 

    The specimen of use from the file history of Registration No. 4628609

     below, presents the typical trade dress for how Thacher Winery has used and continues to

    use the updated Grasshopper mark on bottle labels:

    21.  Thacher Winery has actively and consistently promoted its Grasshoppe

    marks in connection with branded products and services in the United States through sale

    of wine products and related souvenirs and merchandise, through operating wine tastin

    onsite and at public events, through advertising, publicity and social media, and through

    offering and hosting onsite wedding and corporate events. Through its efforts, the Thache

    Case 2:16-cv-01959-DSF-SS Document 1 Filed 03/22/16 Page 6 of 13 Page ID #:6

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    Winery has established and is further establishing, substantial goodwill and valuabl

    trademark rights in the Grasshopper mark.

    22.  Based on Thacher Winery’s longstanding use of the Grasshopper marks fo

    wine products and services and ownership of Registration Nos. 3522613 and 4628609 fowine (the marks, the trade dress and the common law rights and statutory rights in th

    marks are herein comprehensively referred as the “Grasshopper marks”), the relevan

     public trading in or purchasing such goods and services, have long ago come to recogniz

    the “Grasshopper” term, grasshopper image and trade dress as being exclusive source

    identifiers for Thacher Winery goods and services.

    23.  The Defendants Sans Liege Inc., The Fableist Wine Company, 22 Hundred

    Cellars, Inc. d/b/a Field Recordings Winery, Curt Schalchlin, and Andrew Jones all reside

    and operate their wine related businesses in and around Paso Robles, the same city in

    California where Thacher Winery established and operates its winery and related

     business.

    24.  Long after Thacher Winery established U.S. rights in the Grasshopper mark

     by use and registration, the Defendants Sans Liege Inc., The Fableist Wine Company, 22

    Hundred Cellars, Inc., Curt Schalchlin, and Andrew Jones collaborated in the production

    sale and distribution of wine having the image of a grasshopper as a source identifying

    mark (the trade dress and mark are herein comprehensively referred as “Defendants

    mark”) prominently displayed on labelling, as displayed below:

    25. 

    On information and belief, the Defendants first sold 2013 vintage wine

    having the Defendants’ mark on labelling on or about September 2014.

    Case 2:16-cv-01959-DSF-SS Document 1 Filed 03/22/16 Page 7 of 13 Page ID #:7

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    26.  On information and belief, since the time that Defendants began using th

    Defendants’ mark for wine, the Defendants have promoted the wine in close connection

    with the term “Grasshopper” and the image of a grasshopper on wine labels and

    elsewhere.27.

     

    The Defendants had prior actual knowledge or had reason to know of the

    Grasshopper marks belonging to Thacher Winery.

    28. 

    The Defendants have not received consent from Thacher Winery to sell win

    with the Defendants’ mark.

    29.  The Defendants’ mark is indistinguishable from and highly similar to th

    Thacher Winery’s Grasshopper marks.

    30. 

    The Defendants have used and are using the Defendants’ mark to sell wine

     products in the same markets and channels, including but not limited to the same retai

    outlets, in which Thacher Winery sells products and services and to sell to the sam

    customers to whom Thacher Winery is selling or attempting to sell.

    31.  On information and belief, the Defendants have had at all relevant time

    specific knowledge of the Grasshopper marks belonging to Thacher Winery and despit

    this specific knowledge, the Defendants introduced wine products and continue to

     promote, sell and distribute wine products in connection with the Defendants’ mark in th

    same markets and channels in which Thacher Winery sells products and services and to

    sell to the same customers to whom the Plaintiffs are selling or attempting to sell.

    32. 

    The Defendants’ infringement of the Grasshopper marks and trade dress ha

    caused consumers to mistake the Defendants’ mark as identifying wine originating from

    or affiliated with Thacher Winery.33.  Defendants’ infringement of the Grasshopper marks is causing actua

    confusion in the marketplace, and will continue to cause actual and likely confusion in th

    marketplace, regarding the source, origin and/or affiliation of the Defendants’ product

    with the products and services of Thacher Winery.

    Case 2:16-cv-01959-DSF-SS Document 1 Filed 03/22/16 Page 8 of 13 Page ID #:8

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    34.  Thacher Winery notified the Defendants that their infringement of th

    Grasshopper marks is causing actual and likely confusion with the Thacher Winery

    Grasshopper mark and causing irreparable damage to Thacher Winery.

    35. 

    Despite actual notice and reasonable time to cease infringement, theDefendants have continued use of the infringing Defendants’ mark.

    36. 

    All the foregoing acts of the Defendants have caused damage to Thache

    Winery, and unless restrained by this Court, will continue to cause, serious and irreparabl

    injury, including, but not limited to, loss of competitive advantage, loss of busines

    reputation and goodwill, loss of sales and profits, and other losses, for which Thache

    Winery has no adequate remedy at law.

    COUNT I

    INFRINGEMENT UNDER LANHAM ACT 

    37. 

    Thacher Winery incorporates by reference herein paragraph nos. 1-36.

    38.  Without consent of Thacher Winery, each of the Defendants have used, in

    connection with the sale, offering for sale, distribution or advertising of the infringing

     products, a mark that infringes upon the registered marks of Thacher Winery.

    39.  On information and belief, these acts of infringement have been committed

    with the intent to cause confusion, mistake or deception, and are in violation of 15 U.S.C

    § 1114.

    40. 

    The foregoing acts of the Defendants constitute willful infringement o

    registered marks in violation of the Lanham Act, 15 U.S.C. § 1114.

    41. 

    As a direct and proximate result of the infringing activities of each and all othe Defendants, Thacher Winery has suffered substantial damage.

    Case 2:16-cv-01959-DSF-SS Document 1 Filed 03/22/16 Page 9 of 13 Page ID #:9

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    COUNT II

    FALSE DESIGNATION OF ORIGIN UNDER LANHAM ACT 

    42.  Thacher Winery incorporates by reference herein paragraph nos. 1-41.

    43. 

    The conduct of each and all Defendants constitutes the use of words, termssymbols or devices to falsely describe the infringing products, within the meaning of 1

    U.S.C. § 1125(a)(1). The Defendants’ conduct has caused and is likely to caus

    confusion, mistake, or deception by or in the public as to the affiliation, connection

    association, origin, sponsorship or approval of the infringing products to the detriment o

    each and both of the Plaintiffs and in violation of 15 U.S.C. § 1125(a)(1).

    44.  The foregoing acts of the Defendants constitute willful false designation o

    origin and violation of the Lanham Act, 15 U.S.C. § 1125(a).

    45. 

    As a direct and proximate result of the infringing activities of each and all o

    the Defendants, Thacher Winery has suffered substantial damage.

    COUNT III

    COMMON LAW UNFAIR COMPETITION 

    46. 

    Thacher Winery incorporates by reference herein paragraph nos. 1-45.

    47.  Without consent of Thacher Winery, each and all of the Defendants hav

    used, in connection with the sale, offering for sale, distribution or advertising of the

    infringing products, marks and trade dress that infringe upon marks and trade dres

     belonging to and used by Thacher Winery.

    48.  The foregoing acts of the Defendants constitute willful trademark

    infringement and unfair competition in violation of the common law of California and/oother States.

    Case 2:16-cv-01959-DSF-SS Document 1 Filed 03/22/16 Page 10 of 13 Page ID #:10

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    COUNT IV

    CALIFORNIA BUSINESS & PROFESSIONS CODE 

    49.  Thacher Winery incorporates by reference herein paragraph nos. 1-48.

    50. 

    On information and belief, each and all of the Defendants in the course otheir business caused and are causing likelihood of confusion and misunderstanding as to

    the source of Defendants’ goods and services.

    51. 

    The foregoing acts of the Defendants constitute willful trademark and trad

    dress infringement and unfair competition in violation of the California Business and

    Professions Code Section 17200 et seq.

    PRAYER FOR RELIEF 

    WHEREFORE, Thacher Winery prays for the following relief:

    1) 

    A preliminary injunction ordering that each of the Defendants, and any of it

     principals, officers, directors, shareholders, owners, affiliates and subsidiaries, and al

    others acting in concert or participation with the Defendants, shall not use, directly o

    indirectly, the Defendants’ mark, or any other mark that is confusingly similar to th

    Grasshopper marks;

    2)  A permanent injunction ordering that each of the Defendants, and any of it

     principals, officers, directors, shareholders, owners, affiliates and subsidiaries, and al

    others acting in concert or participation with the Defendants, shall not use, directly o

    indirectly, the Defendants’ mark, or any other mark that is confusingly similar to th

    Grasshopper marks;

    3) 

    An award of damages, including prejudgment interest, sustained by ThacheWinery as a result of the wrongful acts of the Defendants;

    4)  An increase and/or trebling of damages pursuant to 15 U.S.C. § 1117, or any

    other applicable statutory or common law basis;

    5) 

    An accounting of any and all profits derived from the wrongful acts of th

    Defendants;

    Case 2:16-cv-01959-DSF-SS Document 1 Filed 03/22/16 Page 11 of 13 Page ID #:11

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    6)  An award of costs and attorney's fees pursuant to 15 U.S.C. § 1117 or any

    other statutory or common law basis; and

    7)  Such other and further relief as the Court may deem just and proper.

    Respectfully submitted,

    Westside Winery LLC and Thacher Winery &

    Vineyard, Inc. d/b/a Thacher Winery 

    Date: March 22, 2016 /s/ Jon A. Birmingham

    Jon A. Birmingham

    FITCH, EVEN, TABIN & FLANNERY 

    21700 Oxnard Street, Suite 1740Los Angeles, CA 91367

    Telephone: (818) 715-7025

    Facsimile: (818) 715-7033

     Attorney for Plaintiffs 

    731342

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    DEMAND FOR JURY TRIAL 

    Plaintiffs hereby request a jury trial on all issues raised in this complaint.

    Respectfully submitted,

    Westside Winery LLC and Thacher Winery &

    Vineyard, Inc. d/b/a Thacher Winery 

    Date: March 22, 2016 /s/ Jon A. Birmingham

    Jon A. Birmingham

    FITCH, EVEN, TABIN & FLANNERY 

    21700 Oxnard Street, Suite 1740Los Angeles, CA 91367

    Telephone: (818) 715-7025

    Facsimile: (818) 715-7033

     Attorney for Plaintiffs 

    Case 2:16-cv-01959-DSF-SS Document 1 Filed 03/22/16 Page 13 of 13 Page ID #:13