Fancaster, Inc. v. Comcast Corp.
FANCASTER, INC. v. COMCAST CORPORATION, Comcast Interactive Media, LLC, and Comcast Management, LLC, Defendants/Counterclaimants/Third Party v. Fancaster, Inc. sometimes d/b/a "Target Wireless", Counterclaim-Defendant, and Craig Krueger, Third-Party
Attorneys
Pashman Stein P.C., by: Michael S. Stein, Esq., Sean Mack, Esq., Hackensack, NJ, Matorin Law Office, LLC, by: Mitchell J. Matorin, Esq., Needham, MA, Foley Hoag LLP, by: Michael P. Boudett, Esq., Boston, MA, for Plaintiff., Loeb & Loeb LLP, by: Jodi Sarowitz, Esq., Douglas N. Masters, Esq., Tal E. Dickstein, Esq., New York, NY, for Defendants.
Full Opinion (html_with_citations)
OPINION
This matter arises out of a lawsuit between two companies that offer online video content via their respective websites. On June 12, 2008, Fancaster, Inc. (âFan-casterâ) filed a Complaint against the Comcast Corporation, Comcast Interactive Media, LLC, and Comcast Management, LLC (collectively referred to as âCom-castâ), asserting claims for trademark infringement, 15 U.S.C. § 1114(1), false designation of origin, unfair competition, and trade name infringement, 15 U.S.C. §§ 1125(a), 1117(a), cybersquatting, 15 U.S.C. § 1125(d), under the Lanham Act, and trademark misappropriation, unfair competition, and deceptive practices under N.J.S.A. 56:4-1 and New Jersey common law, and seeking treble damages, attorneyâs fees, and injunctive relief.
On June 24, 2008, Fancaster filed an Amended Complaint to add claims for unjust enrichment and trade name infringement under New Jersey law. On September 18, 2008, Comcast answered and asserted counterclaims against Fancaster and claims via a Third-Party Complaint against Fancasterâs President, Craig Krueger, for fraud on the United States Patent and Trademark Office (âPTOâ), 15 U.S.C. § 1120, and cyber piracy, 15 U.S.C. § 1125(d), and seeking damages, lost profits, attorneyâs fees, declaratory judgment that the Fancaster mark was (1) abandoned; (2) not used in commerce; and (3) obtained and/or maintained by fraud, 15 U.S.C. §§ 1064, 1119, and injunctive relief. On November 1, 2010, Fancaster filed a Supplemental Complaint setting forth allegations of continued infringement.
On April 29, 2011, Comcast filed a Motion for Summary Judgment on all of Fan-casterâs claims, pursuant to Federal Rule of Civil Procedure 56(a), as well as a Motion in Limine to exclude the reports and testimony of Fancasterâs damages expert, pursuant to Federal Rule of Evidence 702, 703, and 403. That same day, Fancaster and Mr. Krueger filed a Motion for Summary Judgment on Comcastâs counterclaims and third-party claims, pursuant to Federal Rule of Civil Procedure 56(a), and a Motion to Strike Comcastâs affirmative defenses of fraud, unclean hands, laches, and acquiescence, pursuant to Federal Rule of Civil Procedure 12(f). On May 5,
For the reasons set forth below, Com-castâs Motion for Summary Judgment is GRANTED in part and DENIED in part. Fancasterâs infringement-related claims are dismissed because the record does not support a likelihood of confusion among the marks at issue in this case. In addition, Fancaster is not entitled to seek corrective advertising as a remedy for those claims.
Fancasterâs and Mr. Kruegerâs Motion for Summary Judgment is also GRANTED in part and DENIED in part. Com-castâs claim for fraud on the PTO is dismissed because there is no evidence in the record from which a jury could infer fraudulent intent. Comcastâs claim for declaratory judgment is also dismissed because it is duplicative of its claim for fraud on the PTO. However, Comcastâs claim for cyber piracy may move forward as there remain factual questions regarding distinctiveness and bad faith.
Fancasterâs Motions in Limine are GRANTED in part and DENIED in part. The majority of testimony of Comcastâs PTO and cyber piracy experts is excluded, while Comcastâs consumer confusion expertâs March 2009 survey and testimony related thereto is also excluded. Finally, Fancasterâs Motion to Strike Comcastâs affirmative defenses of fraud, unclean hands, laches, and acquiescence is GRANTED.
I. BACKGROUND
A. The Fancaster Mark
On June 13, 1989, Fancasterâs president and sole director, Craig Krueger, registered the term FANCASTER with the PTO for use as a trademark in connection with âbroadcasting services.â (Dickstein Decl. [ECF No. 130], Ex. 11.) In doing so, he swore under oath that he â âhas adopted and is using the trademark shown in the accompanying drawing for the following goods: communicationsâ and/or âbroadcasting services,â and that â[t]he trademark was first used on the goods in Interstate commerce on July 15, 1988; and is now in use in such commerce.ââ (Perry Cert. [ECF No. 138] ¶ 2). The mark incorporates a pair of headphones turned on their side to take the place of the letter âCâ so as to indicate that the mark relates to broadcasting. On September 8, 1994, Mr. Krueger filed a Combined Affidavit of Use and Incontestability for the FANCASTER mark with the PTO. In that affidavit, Mr. Krueger swore that he âwas using the mark in commerce in connection with the broadcasting services that were stated in the registration, and had been doing so for five consecutive years.â (Id. ¶ 14.) As evidence of such use, he submitted blank letterhead and envelopes bearing the FANCASTER mark.
Over the years, Mr. Krueger used the mark in connection with a variety of activities, including selling Fancaster branded radios, see (Id., Exs., 14, 21, 22), charging customers to watch closed-circuit boxing matches, producing karaoke shows, see (Id., Ex. 4, 694:21-296:23), transmitting sponsored news messages to wireless pagers and cell phones, and conducting live
i. Fancaster.com
On July 22, 2006, Fancaster launched its website, fancaster.com. On the siteâs homepage is the most recent version of the FANCASTER mark, which appears in light-blue lowercase lettering, and incorporates the aforementioned headphones taking the place of the letter âcâ.
According to Fancasterâs October 2009 business plan, âFancaster is an early-stage Company that intends to develop a 21st century communications portal where user-generated video content is created by the fans and for the fans who want to emulate broadcasters or submit commentary on management, coaches, players, or teams.â (Id., Ex. 13 at 4.) Fancaster also âintends to produce content that traditional media ignore, such as videos of fans at unique events such as La Tomatina in Spain, Ostrich racing in Arizona, the Westminster Kennel Club Dog Show and the annual Nathanâs Hot Dog Eating Contest.â (Id. at 6.)
The business plan further states that â[t]he target market initially will be sports fans. The Company contemplates, however, expansion of its offerings to include both music and movie fans at later stages. For sports fans, Fancaster intends to focus on the ever-capricious but nonetheless influential demographic of 18-to-35 year old males.â (Id. at 4.) As of October 2009, Fancaster identifies âother fan sites such as www.fannation.com as well as larger user-generated and social networking sites such as YouTube and Facebookâ as competitors. (Id. at 6.)
Mr. Krueger has marketed fancaster.com online on a few sports-oriented websites and those of several local pubs; however, he testified that most of Fancasterâs marketing efforts have not been geared toward the Internet. See (Id., Ex. 6 at 194-195.) He has instead focused marketing the website at sporting events, bars, on local television channels in Sioux Falls, South Dakota and Sioux City, Iowa, on radio stations in Charleston, South Carolina, and via flyers and handbills.
B. Comcastâs âThe Fanâ
Comcast, the well-known cable and broadband provider, offers television programming and movie channels to millions of customers across the United States. In 2003, Comcast began developing a means to deliver this content over the Internet.
C. Comcastâs FANCAST
Comcast later sought to develop a standalone version of âThe Fanâ that would be available on a separate website. During the winter of 2006, Comcast paid an independent branding agency to conduct research and testing of possible names for this new media player. The agency was of the understanding, among other things, that (1) â[t]he name should help communicate that Website X is the ultimate interactive destination for TV and Movie fans,â and (2) âthe name should somehow tie back to Comcast, [but] the name Comcast should not be used.â (Young Decl. [ECF No. 131], Ex. 1.) Using these criteria, the agency generated twenty-three potential names.
During the spring and summer of 2006, Comcast hired another branding agency to devise poteiitial names under similar criteria. According to the agencyâs reports, Comcastâs primary target was 29-54 yearolds, of which 60% are female and 40% are male, that use âportal-centric authority sitesâ such as MSN, AOL, Amazon.com, ebay.com, and Netflix. (Id., Ex. 2.) Com-castâs secondary target was 18 to 28 year olds that use sites like YouTube.com, ifilm, myspace.com, feedroom, atomfilms, Jib Jab, MeFeedia.com, and del.icio.us. (Id.) On June 23, 2006, the branding agency proposed the name âFanCast.com,â in addition to five other names. (Id., Ex. 4.) Shortly thereafter, the agency conducted consumer research, which indicated that âFancast.comâ performed the best overall. In addition, two members of the team at Comcast in charge of choosing a name for the new website testified that the FAN-CAST name was a logical joinder of âThe Fanâ and the Comcast name. See (Dickstein Decl. [ECF No. 130], Ex. 3, 4.) Consequently, Comcast decided to use the FANCAST name and began developing its website.
Comcast purchased the fancast.com domain name and filed an application with the PTO to conduct business using the FANCAST mark in August of 2006.
i. Comcastâs Meeting with Mr. Krueger
On July 13, 2006, Mr. Krueger met with Comcast employees to pitch a program of his called Mobile Voter. At that meeting, he also pitched fancasterâs services and website, which he advised was about to be launched. Five days later, Mr. Krueger discovered that Fox SportsNet New England
ii. Comcast Launches Fancast.com
In January 2008, Comcast launched a fully operational version of the FANCAST website that allowed users to watch full-length premium mainstream media over the Internet, including television programming from basic channels like ABC, CBS, NBC, and Fox, as well as full-length studio movies offered by premium cable channels like HBO and Showtime. Indeed the FANCAST homepage states that visitors can use the site to âWatch Full TV Shows and Movies.â (Id., Ex. 44); (Poret Decl. [ECF No. 164], Appx. E.) The FANCAST website also offers certain sports-related television and movie content. FANCAST did not offer any user-generated content whatsoever.
Fancast.com features the FANCAST mark that appears in uppercase black letters next to a pastel âexpanding universe design.â (Def. Br. [ECF No. 128] 3.) According to Comcast, the mark was intended â[t]o emphasize that FANCAST aggregated all forms of popular premium television and movie content.â (Id.)
Comcast marketed FANCAST to a national audience that consumes mainstream media. (Young Decl. [ECF No. 131] ¶ 4.) Comcast bought advertisements in various mainstream print publications, including The New York Times, LA Times, USA Today, Entertainment Weekly, and on television channels distributed via Com-castâs cable television service. Comcast also bought banner ads on Comcast.net
iii. Comcast Dismantles Fancast.com and Starts XfinityTV.com
By late 2009, Comcast had lost roughly $80 million on the FANCAST website, which relied entirely on advertising revenue. According to Comcast, this was due to âthe unexpectedly high cost of distributing video content on the internet.â (Id.) Therefore, Comcast began to phase out the FANCAST service by offering a website branded âFANCAST Xfinity TVâ, which was functionally identical to the existing FANCAST website, but allowed Comcast cable subscribers to access certain premium cable television content through a service called Xfinity TV. By the end of March 2011, Comcast took down the FAN-CAST website entirely and instead offered the Xfinity TV service exclusively to subscribers. All web traffic to www.fancast. com was redirected to www.Xfinitytv.com.
D. The Instant Lawsuit
On June 12, 2008, Fancaster filed a Complaint against Comcast asserting claims for trademark infringement, false designation of origin and unfair competition, trade name infringement, and cybersquatting under the Lanham Act, and trademark misappropriation, unfair competition and deceptive practices under New Jersey law, and seeking treble damages, attorneyâs fees, and the following injunctive relief against âDefendants, their officers, agents, servants, attorneys, and all those persons in active concert and participation with themâ: (1) a permanent injunction from using the FANCAST mark or any other mark âconfusingly similar to Fancasterâs FANCASTER markâ (Compl. [ECF No. 1] ¶ 9(a)); (2) and order requiring them âto deliver to the court for destruction, or show proof of destruction of, any and all products, labels, signs, prints, packages, wrappers, receptacles, marketing materials and advertisements in Defendantsâ possession or control which use or depict the designation FANCAST, or any other mark or name that is confusingly similar to Fancasterâs FANCASTER markâ (id. at ¶ 9(b)); (3) an order âto file with the court and serve upon Fancaster, within thirty (30) days after entry and service on Defendants of an injunction, a report in writing and under oath setting forth in detail the manner and form in which Defendants have complied with the injunctionâ (id. at ¶ 9(c)); and (4) an order âto transfer to Fancaster ownership of the domain name registrations for www. fancast.com, www.phancast.com, www. fancas.com, www.fancst.com, www. fancastic.com, and any other domain names containing the design or designation FANCAST,â or any other mark or name that is confusingly similar to Fancasterâs FANCASTER mark (id. at ¶ 9(d)).
On June 24, 2008, Fancaster filed an Amended Complaint to add claims for unjust enrichment and trade name infringement under New Jersey law. On September 18, 2008, Defendants answered and asserted counterclaims against Fan-caster and claims against Mr. Krueger for fraud on the PTO and cyber piracy, and seeking damages, lost profits, attorneyâs fees, declaratory judgment that the Fan-caster mark was (1) abandoned; (2) not used in commerce; and (3) obtained and/or maintained by fraud, and the following injunctive relief against Mr. Krueger and Fancaster, and their agents servants, employees, attorneys, and all others in active concert and participation
On February 23, 2009, Defendants filed an Amended and Supplemental Answer and Counterclaims setting forth additional allegations in support of their counterclaims, and seeking similar relief as that sought in their initial answer and counterclaims.
E. Proposed Evidence of Potential Confusion Between Fancast.com and Fancaster.com
i. Internet Searches
Faneaster submits a number of screen-shots, dated between May 31, 2009 and April 22, 2011, reflecting the results of internet searches using a variety of search engines, including Google, Yahoo!, AOL, Altavista, Bing, and Dogpile, for the following search terms: âfaneasterâ, âfan-casteâ, âfaneâ, âfaneaâ, âfaneasâ, âfancastâ, and â+faneasterâ. See (Boudett Decl., [ECF No. 160] Exs. 18-27, 30.) Those screenshots indicate that when one inputs one or more of those terms into those search engines, the results include (1) paid sponsored links to fancast.com and âxfinitytv.fancast.comâ; (2) organic (i.e. non-sponsored) links to CSNNEâs Faneaster and www.fancast.com; and/or (3) suggested search terms for âfancastâ, âfaneaster comcastâ, âFanCaster Comcastâ, âfancast reviewâ, and âfancast xfinity tvâ, among others. See (id.)
ii. Overlapping Content
1. Sports
Faneaster submits a number of screen shots to show that both fancast.com and fancaster.com feature sports-related content. Specifically, Faneaster submits undated
Fancaster also submits screenshots, dated March 21, 2011 and May 3, 2011, of Google search results for the terms âfan-cast sportsâ, âfancast baseballâ, âfancast basketballâ, âfancast kentucky derbyâ, âfancast breederâs cupâ, âfancast nfl lockoutâ, âfancast sports triviaâ, âfancast trivia contestâ, and âfancast triviaâ, â all of which provide links to fancast.com. See (id., Exs. 31, 32, 35, 37, 38, 39, 44.) Fancaster juxtaposes these screenshot with screenshots of fancaster.com offering video clips related to those search terms. See (id.)
Specifically with respect to basketball, Fancaster submits screenshots, dated March 27, 2011, of (1) faneast.comâs page entitled âCBS Sports NBAâ featuring short video clips of â[t]he latest from around the NBA, including news, player interviews and press conferences, features, breakdowns of the biggest games, expert opinion, analysis and moreâ; (2) fan-cast.comâs page entitled âBig Ten College Basketballâ featuring similar short clips relating to college basketball; (3) a short video clip on fancast.com of a college basketball coach giving a press conference; (4) a short video clip on fancast.com of an interview with a college basketball coach; and (5) a short video clip on fancast.com of a college basketball player giving a press conference. See (id., Ex. 31.) Fancaster juxtaposes those screenshots with screen-shots, dated May 3, 2011, from fancaster.com of short video clips related to college and professional basketball. See (id.)
2. Celebrities
Fancaster also submits a number screenshots to show that fancast.com and fancaster.com share celebrity-related content, including screenshots, dated May 3, 2011, of Google search results for the terms âfancastâ followed by the name of a number of celebrities offering links to fan-cast.com.
3. Other Content
Finally, Fancaster submits screenshots to show that fancast.com and fancaster.com share content beyond sports and celebrities. Specifically, Fancaster submits screenshots, dated March 21, 2011, of Google search results for the terms âfan-cast chocolate showâ and âchocolate show fancastâ that offer links to fancast.com, juxtaposed with a screenshot, dated May 3, 2011, of chocolate-related video content on fancaster.com. See (id., Ex. 36.) Fancaster also submits (1) a screenshot, dated March 21, 2011, of Google search results for the term âfancast Westminsterâ offering links to fancast.com, (2) a screenshot, dated September 3, 2009, of a page from fancast.com entitled âThe Westminster Kennel Club Dog Show (1996-2009)â offer
iii. Presence in Social Media Outlets
1.YouTube
Fancaster submits screenshots to show that both fancast.com and fancaster.com have videos posted on YouTube. Specifically, Fancaster submits screenshots, dated May 3, 2011, of video clips on www. youtube.com depicting interviews with various celebrities. See (Boudett Deel. [ECF No. 160], Ex. 47.) Those screenshots feature the FANCAST mark either in the corner of the video, the title of the video, on the background wall of the set where the video was shot, and/or on the microphone being held by the interviewer. See (id.) However, the screenshots indicate that these videos were posted under a number of different YouTube usernames. See (id.) Thus, it is unclear whether these videos were posted on YouTube by Com-cast or by individuals who culled them independently from fancast.com or another source without Comcastâs permission.
Fancaster juxtaposes these screenshots with screenshots, dated May 3, 2011, of video clips on www.youtube.com depicting a celebrity interview and groups of fans reacting to certain sporting events. See (id., Ex. 48.) As with the purported FAN-CAST videos, the fancaster videos feature the fancaster mark either in the corner of the screen or on the interviewerâs microphone. See (id.) However, In contrast to the purported FANCAST videos, the screenshots of the fancaster videos clearly indicate that they were posted by Fancasterâs YouTube channel. See (id.)
2. Faeebook
Fancaster submits screenshots of the pages that it and Comcast (FANCAST) maintain on Faeebook. See (id., Exs. 49-50.) However, the FANCAST page on Facebook advertises for âXfinityâ and directs visitors to www.xfinityTV.com. See (id., Ex. 50.)
3. Twitter
Finally, Fancaster submits screenshots of its and Fancastâs respective Twitter feeds. See (id., Exs. 51-52.) The FAN-CAST Twitter page is a trivia site. See (id., Ex. 52.)
iv. Survey Evidence
Comcast submits survey evidence to show that there is little risk of confusion between the FANCAST and fancaster marks. Specifically, Comcast submits two surveys devised by Hal Poret, a consumer perception and trademark survey expertâ in March 2009 and March 2011, respectively. Mr. Poret intended for surveys to test for reverse confusion â a concept that will be discussed later in this opinion. Based on these two surveys, Mr. Poret opines âthat there is no likelihood of confusion created by Comcastâs use of the mark FANCAST in connection with the Fancast website.â (Poret Decl. [ECF No. 132] ¶10.)
1. The Survey Respondents
Mr. Poret chose respondents from â[c]omsumers who use or would be likely to use the internet to view, post, or discuss sports-related contentâ because they constituted Fancasterâs âcustomers and prospective customers.â (Id. ¶ 11.) Accordingly, he narrowed the survey universe to âmales and females ages 16 or older who: (a) in the past 3 months have used an internet site to view, post, or discuss sports-related content; and/or (b) in the
Mr. Poret sampled from this universe by utilizing interviewing facilities at shopping malls around the United States. Specifically, he chose two markets in each U.S. Census region (Northeast, South, Midwest, and West) by sampling from metropolitan areas within those regions. This sampling yielded the following markets: Chicago, Cleveland, Los Angeles, Miami, New York, Pittsburgh, Portland (OR), and Spartan-burg (SC). Mr. Poret then chose a mall in each market based on the capacity of its interviewing facilities.
2. The March 2009 Survey
The March 2009 survey used a format known as a Sequential Lineup. That format involves âfirst exposing respondents to the defendantâs mark prior to showing respondents the plaintiffs mark (as well as other marks), thereby simulating a scenario in which a consumer comes to learn about defendantâs mark and then encounters plaintiffs mark.â (Id. ¶ 28.) Out of 419 qualified respondents, Mr. Poret randomly assigned 209 to a Test Group and 210 to a Control Group. Each respondent in the Test Group was shown a three-page printout of www.fancast.com. The printout was taken away and the â[r]espondents were then instructed that they were going to be shown some websites and asked some questions.â (Id. ¶ 33.) âOne at a time, respondents were then shown and asked about four websites: (a) Fancaster.com; (b) Veoh.com; (c) Musicvideocast.com; and (d) Tvfanonline.com.â (Id. ¶ 34.) In contrast to the printout if the FANCAST website, these websites were shown to respondents as static screenshots on a computer screen.
Respondents were not only shown fan-caster.com after viewing the fancast.com printout because, according to Mr. Poret, â[s]howing respondents plaintiffs service as but one of a number of services in a series created as close to a realistic consumer experience as possible.â (Id. ¶ 35.) Thus, Veoh.com, Musicvideocast.com, and Tvfanonline.com were shown in addition to Fancaster.com because âthey all permit users to view, post and/or discuss various forms of media-related content.â (Id.) âTvfanonline.com and Musicvideocast.com were specifically included because they are examples of the many websites that contain superficial name elements in common with [Lancaster (âfanâ and âcastâ respectively) but do not come close to being confusingly similar.â (Id.)
Upon seeing each of the four websites, the Test Group respondents were asked whether they believed the given website and the printout were from (1) the âsame companyâ, (2) âdifferent companiesâ, or (3) whether they had no opinion. (Id. ¶ 36.) âRespondents who answered âsame company5 were asked what made them think so.â (Id.) âRespondents who did not answer âsame company5 were asked a second question, namely, whether the company the current website is from is affiliated with or received authorization from the company the printed-out website is from.â (Id. ¶ 37.) âRespondents who answered âyes5 were asked what made them think so.â (Id.) This series of questions was given for each website. Mr. Poret then tallied the total number of respondents who said that fancaster was from or affiliated with the same company as FANCAST.
Of the 209 respondents in the Test Group, 65 (81.1%) made a connection between Fancast and Fancaster.
3. â The March 2011 Survey
In contrast to the March 2009 surveyâs Sequential Lineup format, the March 2011 used an Eveready format, under which ârespondents are exposed only to use of one partyâs mark and are asked questions to see whether they confuse it with the other partyâs mark.â (Id. ¶ 27.) âIn the context of reverse confusion, an Eveready survey involves exposing respondents to
209 respondents participated in the March 2011 survey. Instead of a printout, they were first âshown the current, live [Lancaster web site (starting on the home page) and asked to take as much time as they needed to review it.â (Id. ¶45.) They were also given a mouse and allowed to click around any section of the website. âRespondents were then asked whether they had an opinion about what company the website they just saw is from.â (Id. ¶ 46.) âRespondents who did have an opinion were asked what company the website is from, and what made them think so.â (Id.)
âRespondents were next asked whether they think the company the website comes from provides any other services or operates any other websites.â (Id. ¶ 47.) âRespondents who answered in the affirmative were asked to identify any such services or websites and to give their reasons for why they think such services or websites are provided or operated by the company whose website they were shown.â (Id.) âFinally, respondents were asked whether they think the company whose website they were shown is affiliated with or received authorization from any other company, and what makes them think so.â (Id. ¶ 48.)
Of the 209 respondents, just two â(slightly under 1%) gave an answer indicating possible confusion with Comcast or Fancast in response to any survey question.â (Id. ¶ 67.) According to Mr. Poret, this figure âis well within the range of typical survey noise.â
F. Evidence of Damages
Fancaster retained Weston Anson, chairman of an intellectual asset consulting firm that specializes in licensing, valuation, and expert services, for the sole purpose of âdetermin[ing] the level of corrective advertising expenditures neededâ to cure any consumer confusion between FANCAST and fancaster. (Sarowitz Decl. [ECF No. 137], Ex. 11.) After reviewing various Comcast records, Mr. Anson found that, as of March 24, 2011, Comcast spent $83,067,778 in marketing and advertising the FANCAST mark. (Id.) Mr. Anson further found that Comcast spent an addition $200,000,000 in advertising and marketing âto promote Xfinity TV that featured or displayed the Fancast Brand, and drove traffic to Fancast.com, either indirectly or though Xfinity and/or Comcast websites.â (Id.)
Based on his experience in branding and advertising, Mr. Anson opined that âit will take at least one yearâs of Comcast[âs] average annual advertising expenditures to correct any inaccurate impressions in the marketplace.â (Id.) Mr. Anson thus arrived at a âreasonable estimateâ of $73,163,977 owed to Fancaster in corrective advertising expenditures to ârebuild
Indeed, Mr. Anson foresees a âsubstantial amount of advertisingâ to regain this goodwill, including national advertising on television, the Internet, and in print. (Id.) This is so that Fancaster can compete with Comcastâs âFaneast/Xfinity behemothâ and âlevel the playing field.â (Id.) To be sure, Mr. Anson assumes that Comcast and Fancaster compete in the same digital media market, which also includes websites like hulu.com and TV.com, and therefore discusses the methods and costs of advertising in that market.
II. DISCUSSION
Comcast now moves for summary judgment on all of Fancasterâs claims. In doing so, it argues that (1) there is no likelihood of confusion between the FANCAST and fancaster marks, and (2) Fancaster is not entitled to corrective advertising damages.
The parties also move to exclude certain evidence from the record. Specifically, Comcast moves to exclude the testimony of Fancasterâs damages expert, Weston An-son, arguing that (1) he did not employ a reliable methodology in opining that Fan-caster is entitled to corrective advertising damages, (2) he applied that methodology in a speculative manner, (3) his report and testimony do not fit the facts of this case, and (4) permitting him to testify on the damages in this case would be prejudicial to Comcast. Fancaster moves to exclude the testimony and surveys conducted by Mr. Poret, arguing that he used unreliable methods in conducting the surveys and that those methods do not fit the facts of this case. Fancaster also moves to exclude the reports and testimony of Com-castâs PTO and cyber piracy experts, Gary Krugman and Greg Lastowka, arguing that they usurp the role of the Court in opining on several legal issues in this case.
Finally, Fancaster moves to strike the affirmative defenses of fraud, unclean hands, laches, and acquiescence from the pleadings, arguing that there is no evidence that (1) it unreasonably delayed commencement of this lawsuit; (2) it acquiesced in Comcastâs infringement; or (3) Comcast relied upon its actions and has been prejudiced as a result of such reliance.
A. Standard of Review
Summary judgment is proper where âthere is no genuine dispute as to any
The party moving for summary judgment has the burden of showing that no genuine dispute of material fact exists. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). When the moving party does not bear the burden of proof at trial, it may discharge its burden under the summary judgment standard by showing that there is an absence of evidence to support the nonmoving partyâs case. Id. at 325, 106 S.Ct. 2548. If the moving party can make such a showing, then the burden shifts to the non-moving party to present evidence that a genuine factual dispute exists and a trial is necessary. Id. at 324, 106 S.Ct. 2548. In meeting its burden, the non-moving party must offer specific facts that establish a material dispute, not simply create âsome metaphysical doubt as to the material facts.â Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986).
In deciding whether an issue of material fact exists, the Court must consider all facts and their reasonable inferences in the light most favorable to the non-moving party. See Pa. Coal Assân v. Babbitt, 63 F.3d 231, 236 (3d Cir.1995). The Courtâs function, however, is not to weigh the evidence and rule on the truth of the matter, but rather to determine whether there is a genuine issue for trial. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). If there are no issues that require a trial, then judgment as a matter of law is appropriate. Id. at 251-52, 106 S.Ct. 2505. âFailure to strictly observe the principles governing summary judgment becomes particularly significant in a trademark or tradename action, where summary judgments are the exception.â Doeblersâ Pa. Hybrids, Inc. v. Doebler, 442 F.3d 812, 820 (3d Cir.2006) (quotations and citation omitted).
B. Fancasterâs Motions in Limine
Before dealing with the substantive claims in this case, the Court will first address the two motions in limine submitted by Fancaster in order to properly define the scope of the record for summary judgment. Fancaster moves to (1) exclude the expert testimony of Hal Poret and the two surveys conducted by him, and (2) exclude the testimony of Gary Krugman and Greg Lastowka.
Rule 702 governs the admissibility of expert testimony. It allows a qualified individual who possesses âscientific, technical, or other specialized knowledgeâ to testify as an expert if âit will assist the trier of fact to understand the evidence or to determine a fact in issue.â FRE 702. A witness may be qualified by âknowledge, skill, experience, training, or education.â Id. The expert may offer his or her opinion on matters outside the scope of his personal knowledge only if â(1) the testimony is based upon sufficient facts or data, (2) the testimony is the product of reliable principles and methods, and (3) the witness has applied the principles and methods reliably to the facts of the case.â FRE 702. Put another way, âRule 702 has three major requirements: (1) the proffered witness must be an expert, i.e., must be qualified; (2) the expert must testify about matters
The âproponent of expert testimony must establish his expert is qualified and his testimony is admissible by a preponderance of the evidence.â Poust v. Huntleigh Healthcare, 998 F.Supp. 478, 490 (D.N.J.1998). The Court has an obligation to act as a âgatekeeperâ to ensure the âreliability and relevancy of expert testimonyâ presented to the finder of fact. Kumho Tire Co. v. Carmichael, 526 U.S. 137, 152, 119 S.Ct. 1167, 143 L.Ed.2d 238 (1999); See also Daubert v. Merrell Dow Pharms., 509 U.S. 579, 592-593, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993).
To aid in this inquiry, Daubert and United States v. Downing, 753 F.2d 1224 (3d Cir.1985), cite several factors for the Court to consider in examining the expertâs methodology: â(1) whether a method consists of a testable hypothesis; (2) whether the method has been subject to peer review; (3) the known or potential rate of error; (4) the existence and maintenance of standards controlling the techniqueâs operation; (5) whether the method is generally accepted; (6) the relationship of the technique to methods which have been established to be reliable; (7) the qualification of the expert witness testifying based on the methodology; and (8) the non-judicial uses to which the method has been put.â In re Paoli R.R. Yard PCB Litigation, 35 F.3d 717, 742 (3d Cir.1994) citing Daubert and United States v. Downing, 753 F.2d 1224 (3d Cir.1985).
i. Motion to Exclude Hal Poretâs Surveys and Testimony
Fancaster argues that the methodologies of the surveys conducted by Mr. Poret are flawed to the point that they and Mr. Poretâs testimony relating to those surveys should be excluded from the record. In the context of survey evidence, âmere technical flawsâ in methodology go to âthe weight accorded a survey, not its admissibility.â Citizens Financial Grp., Inc. v. Citizens Natâl Bank of Evans City, 383 F.3d 110, 121 (3d Cir.2004); see also In Re Paoli, 35 F.3d at 744 (âThe judge might think that there are good grounds for an expertâs conclusion even if the judge thinks that there are better grounds for some alternative conclusion, and even if the judge thinks that a scientistâs methodology has some flaws such that if they had been corrected, the scientist would have reached a different result.â). However, âfatal flawsâ in a surveyâs methodology merit its exclusion. Citizens Financial Grp., 383 F.3d at 121; see also In Re Paoli, 35 F.3d at 746 (âThe judge should only exclude the evidence of the flaw is large enough that the expert lacks âgood groundsâ for his or her conclusions.â). Fancaster argues that Mr. Poretâs surveys are âfundamentally flawed in several different waysâ that merit their exclusion. (PI. Br. [ECF No. 145] 4.) The Court will address each alleged flaw in turn.
1. The Surveysâ Universe
Fancaster contends that the surveysâ universe was flawed in that it (1) only focused on sports fans, as opposed to sports, movie, and music fans, (2) ignored Fancasterâs initial target of 18-35 year old males, and (3) improperly surveyed participants nationwide because Comcast offers its services only in certain markets. Com-cast argues that the surveys properly (1) limited participants to sports fans because Fancaster focuses on sports-related content, (2) included both men and women because both men and women are part of Fancasterâs target audience, and (3) included participants nationwide because
A proper survey universe is â âthat segment of the population whose perceptions and state of mind are relevant to the issues in the case.â â Citizens Financial Grp., 383 F.3d at 118-19 (quoting 6 McCarthy on Trademarks and Unfair Competition § 32:159 (4th ed. 2003)). â âA survey of the wrong universe -will be of little probative value in litigation.ââ Id. The party offering the survey evidence bears the burden of proving that the universe is proper. Id.
Here, it is undisputed that the likelihood of confusion alleged by Fancaster is âreverse confusion.â In contrast to cases of âforward confusionâ where âthe new or junior user of the mark will use to its advantage the reputation and good will of the senior user by adopting a similar or identical mark ... [rjeverse confusion occurs when a larger, more powerful company uses the trademark of a smaller, less powerful senior owner and thereby causes likely confusion as to the source of the senior userâs goods or services.â Fisons Horticulture Inc. v. Vigoro Indus., Inc., 30 F.3d 466, 474 (3d Cir.1994). In other words, Fancasterâs theory of confusion is that Comcast â a much larger, more powerful company that Fancaster â likely caused confusion as to the source of the fancaster mark and fancaster.comâs services as a result of its use of the FAN-CAST mark.
In a case claiming forward confusion, âthe proper universe to survey is the potential buyers of the junior userâs goods or services.â 6 McCarthy § 32:159 (4th ed. 2011) (emphasis in original). In contrast, âthe universe in a reverse confusion case should be limited to the senior userâs customer base.â Citizens Financial Grp., 383 F.3d at 119 (citing McCarthy § 32:159).
In both the March 2009 and March 2011 surveys, Mr. Poret sampled from a universe of âmales and females ages 16 or older who: (a) in the past 3 months have used an internet site to view, post, or discuss sports-related content; and/or (b) in the next 3 months are likely to use an internet site to view, post, or discuss sports related content.â (Poret Decl. [ECF No. 132] ¶ 11.) It was entirely appropriate for Mr. Poret to sample from sports fans for the March 2009 survey because Fancaster was focused on sports-related content at that time. Indeed, Fan-casterâs October 2009 business plan states that â[t]he target market initially will be sports fans.â (Dickstein Decl. [ECF No. 130], Ex. 13 at 4.)
It was similarly appropriate for Mr. Poret to sample from sports fans for the March 2011 survey because Fancaster maintained its sports focus up to and beyond that point. As of April 21, 2011, the vast majority of video clips and video categories on faneaster.com were sports-related.
Fancasterâs argument that the surveys improperly sampled from both males and females is also unpersuasive. While Fan-casterâs October 2009 business plan states that, â[f]or sports fans, Fancaster intends to focus on the ever-capricious but nonetheless influential demographic of 18-to-35 year old malesâ (Dickstein Decl. [ECF No. 130], Ex. 13 at 4), as previously discussed, the proper survey universe in the reverse confusion context is Fancasterâs actual, not intended, customer base at the time of the survey.
Finally, Fancasterâs argument that it was improper for Mr. Poret to sample nationwide because Comcast does not maintain a nationwide footprint is irrelevant because, as previously discussed, the proper survey universe in this case is Fan-casterâs actual customer base, not Corn-castâs.
2. Use of Non-Probability Mall Intercept Surveys
Fancaster argues that Mr. Poret, in his report, improperly extrapolated the results of both surveys to the general population. Specifically, Fancaster contends that Mr. Poretâs conclusion âthat there is no likelihood of confusion created by Comcastâs use of the FANCAST mark in connection with the Fancast websiteâ (Poret Decl. [ECF No. 132] ¶ 10) is unfounded because the results of non-probability surveys, such as the ones used by Mr. Poret, cannot be reliably extrapolated to the survey universe. Comcast maintains that this does not merit exclusion because non-probability surveys have long been held to be admissible evidence in trademark cases.
Fancaster cites authority from this court stating that non-probability surveys âare weak evidence of behavior patterns in the test universe.â Prince Mfg., Inc. v. Bard Intâl Assoc., No. 88-3816, 1988 WL 142407, *8 (D.N.J. Dec. 22, 1988) (quoting Am. Home Prods. Corp. v. Barr Labs., Inc., 656 F.Supp. 1058, 1070 (D.N.J.1987)); see also Boehringer Ingelheim G.m.b.H v. Phar
3. The March 2009 Survey
Fancaster contends that the March 2009 survey was fatally flawed because it âbore no resemblance whatsoever to marketplace conditions, in many respects.â
Fancaster advances several ways in which the March 2009 survey fails to reflect marketplace conditions, only one of which need be addressed by the Court: that Mr. Poret used a printout and static screenshots of the fancast.com fancaster.com homepages instead of live versions of those websites. Mr. Poretâs use of a printout and static screenshots, instead of live websites, provide ample grounds on which to exclude the March 2009 survey. For one, it is difficult to fathom how presenting a respondent with a paper printout of the FANCAST homepage in anyway replicates how an Internet user would encounter and perceive the FANCAST website in the marketplace.
Comcastâs contends that the printout and static screenshots âprovided a representative snapshot of the content available on the sites.â (Def. Br. [ECF No. 166]
4. The March 2011 Survey
Fancaster argues that it was improper for Mr. Poret to use an Eveready survey in March 2011 because there is no evidence that its respondents had been exposed to the FANCAST mark. Comcast contends that (1) there is ample evidence that FANCAST mark had saturated the marketplace, and (2) any lack of awareness of the FANCAST mark merely cuts against Fancasterâs claim of reverse confusion.
â[A] survey cannot be run in a reverse confusion case prior to the junior userâs saturation of the market with its mark because, until that time, consumers have not been exposed to the relatively large advertising and promotion of the junior user that is the hallmark of a reverse confusion case.â 4 McCarthy on Trademark and Unfair Competition § 23:10 (4th ed. 2011); see also CIT Group, Inc. v. Citicorp, 20 F.Supp.2d 775, 792 (D.N.J.1998) (âIt is Professor McCarthyâs opinion that surveys ... [i]n a situation where the junior user [] has not yet commenced massive use of its name and there has been no advertising or promotion of products and services under that name reverse confusion cannot be measured because the triggering event of market place saturation has not yet occurred.â). Thus, market saturation by a junior user is highly probative of exposure to the junior userâs mark. See A & H Sportswear, Inc. v. Victoriaâs Secret Stores, Inc., 237 F.3d 198, 224 (3d Cir.2000) (money spent on advertising a mark is âclearly relevantâ to consumer recognition of that mark.)
The record indicates that Comcast had launched a substantial nationwide advertising campaign for FANCAST in print, television, and online media. See (Young Decl. [ECF No. 131] ¶ 4-6.) In addition, in September 2009, Mr. Krueger testified that he believed Fancast.com to be âone of the top websites in the worldâ based on several âmeasurement sites that are publicly available on the internet and track the top web sites in the world,â and that Com-cast had âdone a pretty good job of saturating the market.â (Dickstein Decl. [ECF No. 165], Ex. 7.) Thus, by March 2011, shortly before Comcast dismantled the FANCAST website, Comcast had saturated the market.
Fancaster contends that, despite this market saturation, a substantial segment of respondents to the March 2011 survey had no exposure to FANCAST because they resided outside of Comcastâs territorial footprint. This contention is unavailing because the FANCAST website was available to anyone with an Internet connection, and Comcast was marketing it to consumers both in and outside of its footprint. See (Young Decl. [ECF No. 131], Ex. 2 at COMCAST00136.) To be sure, in late 2009, the FANCAST website began offering certain content to Comcast cable subscribers. However, there is no evidence that Comcast altered its marketing
Finally, Fancaster argues that the March 2011 survey was fatally flawed because Mr. Poret failed to screen for respondents that had actually been exposed to Comcastâs Fancast.com advertising campaign. Fancaster cites no authority suggesting that a survey in a reverse confusion case requires screening for those who have actually been exposed to the junior userâs mark, nor is the Court aware of any such authority. Furthermore, this argument fundamentally misconstrues the nature of reverse confusion, which depends on the overall commercial strength of the junior userâs mark. See Commerce Natâl Ins. Servs., Inc. v. Commerce Ins. Agency, Inc., 214 F.3d 432, 444 (3d Cir.2000) (â[I]t is the strength of the larger, junior userâs mark which results in reverse confusion.â); A & II, 237 F.3d at 230 (â[I]f the greater advertising originates from the junior user, reverse confusion is more likely.â). As previously discussed, it is the commercial strength of the junior userâs mark that gives rise to an inference of exposure to that mark. To argue otherwise, as Com-cast points out, is to argue against the theory of reverse confusion itself. Therefore, it was proper for Mr. Poret to use an Eveready survey in March 2011.
In sum, Fancasterâs motion to exclude Mr. Poretâs surveys and testimony will be granted with respect to the March 2009 survey and testimony relating thereto, but denied with respect to the March 2011 survey and testimony relating thereto.
ii. Motion to Exclude Testimony of Mr. Krugman and Mr. Lastowka
According to Comcast, Mr. Krugman intends to testify regarding the policies, practices and procedures of the PTO, while Mr. Lastowka intends to testify regarding technological issues of Internet functionality and cyber piracy.
It is well established in the Court of Appeals for the Third Circuit (as well as elsewhere) that âit is not permissible for a witness to testify as to the governing law since it is the district courtâs duty to explain the law to the jury.â United States v. Leo, 941 F.2d 181, 196 (3d Cir.1991); see In re: Initial Public Offering Sec. Litig., 174 F.Supp.2d 61, 64 (S.D.N.Y.2001) for a listing of numerous authorities supporting the proposition that âin fact, every circuit has explicitly held that experts may not invade the courtâs province by testifying on issues of law.â As will be further discussed below, Mr. Krugmanâs and Mr. Lastowkaâs opinions extend far beyond permissible customs and practices and invade not only the province of the Court but also the province of the jury. While an expert may rely upon treatises or other materials which experts in his field rely upon, he may not make factual findings in a case in the guise of an expert opinion.
1. Mr. Krugmanâs Report
Mr. Krugman is unquestionably qualified to testify about the relevant practices and procedures of the PTO in reviewing, processing, approving or rejecting applications for federal registration of trademarks
Paragraphs 15-16 of the report detail the materials Mr. Krugman reviewed to familiarize himself with the case. It must be noted that, although this was a substantial body of material, it was not by any means a review of the totality of the record in the case.
Mr. Krugman sets forth in Paragraphs 20-26 of his report his expected testimony concerning the examination of trademark and service mark applications/opposition proceedings. This information is technical in nature. The evidence in this case involves proceedings before the PTO, and it would be helpful to the jury to have an overall understanding of the way in which the PTO operates.
Beyond that, however, Mr. Krugmanâs expert opinion is a usurpation either of the role of the Court or that of the fact finder. He details some of the provision the Trademark Act, in particular those concerning âuse in commerceâ, citing cases and regulations to support his interpretation of the term. He moves on to an evaluation of the factual evidence in the case to conclude that:
Based on the foregoing and based on my review of the materials referred to above, it is my opinion that, as of the August 29,1988 application filing date, it does not appear that any broadcasting services were being rendered in commerce under the FANCASTER mark and that, therefore, the application should have been rejected as being void ab initio. In addition, the specimens in support of the Declaration of Continued Use, being the nature of letterheads and envelopes with only the mark and the name and address of Mr. Krueger, should not have been accepted as evidence of continued use of the mark in connection with broadcasting services.
This goes far beyond what Comcast stated was the subject of Mr. Krugmanâs opinion â âthe policies, practices, and procedures of the United States Patent and Trademark Office.â It is based upon an incomplete record. It inappropriately usurps the role of the fact finder. Fan-caster raises other objections to Mr. Krugmanâs Report that need not be addressed. It is sufficient to grant Fancasterâs motion with regard to Mr. Krugman except that a redacted Report containing only Paragraphs 1-17 and 20-26 of the November 18, 2009 Report may be the subject of Krugmanâs testimony.
2. Mr. Lastowkaâs Report
Like Mr. Krugman, Mr. Lastowka is unquestionably qualified to testify in the field in which he is asked to give an expert opinion â the technical issues of internet functionality and cyber piracy. He is a law professor teaching at Rutgers School of Law â Camden, New Jersey. His specialty is Internet law, property and intellectual property, which, he has taught at eminent universities and about which he has written many books and articles. In particular, he is well versed in the new fields of cyber squatting and the AntiCyber Squatting Consumer Protection Act (âACPAâ). Like Mr. Krugmanâs opinion, Mr. Lastowkaâs opinion wanders far from the proper scope of an expertâs opinion.
Paragraphs 1-4 and 6-8 set forth the details of his qualifications and the materials he reviewed in preparation for his
III. Summary of Opinion
9. Based upon the evidence in the various materials I have reviewed, it is my opinion that the Plaintiff, Fancaster, Inc., has registered multiple domain names with a bad faith intent to profit in violation of the ACPA, 15 U.S.C. § 1125(d)(1).
10. As a result, I believe that Plaintiff should be liable to Defendants, if Defendants so elect, for a remedy of $1,000 to $100,000 per relevant registered domain name, with the amount being fixed pursuant to 15 U.S.C. § 1117(d) as the Court deems just.23
Paragraphs 11-14 and 17 describe the origin and development of the system of Internet domain names and the problems created by cyber squatters. This provides a background for the enactment of the ACPA. In the present case, there are claims under the ACPA with which the jury will have to deal. This information in Mr. Lastowkaâs report will be of assistance to the jury as it deals with these claims.
Paragraphs 15 and 16 contain a discussion of the confused legal situation that existed after domain names came into use and before the ACPA was adopted. As Mr. Lastowka puts it, âfor multiple reasons, traditional trademark law was a poor fit for the special trademark problems presented by domain names.â There is no reason to burden a jury with these problems. They would only confuse the jurors and provide no assistance as they wrestle with the cyber squatting claims alleged in this case.
The content of the rest of Mr. Lastowkaâs report is totally inappropriate as the subject of an expertâs report to be presented to the fact finder. From Paragraph 18-30 the report sets forth the authorâs summary of the statutory requirements to establish a violation of 15 U.S.C. § 1125(d). They include an analysis of the âsafe harborâ provision, 15 U.S.C. § 1125(d)(l)(B)(ii) and the remedies available. Reference is made to statutory provisions and case law. A jury should not be receiving instructions on the law from two sources, and however erudite and accurate they may be, Mr. Lastowkaâs instructions will not be allowed to compete with the Courtâs instructions.
Paragraphs 31-46 are totally inappropriate for an expertâs report. Entitled âRelevant Facts and Application of the Law,â those Paragraphs make findings of fact simply on the incomplete evidence that Mr. Lastowka has reviewed and sets forth his understanding of the law. He purports to offer an expert opinion as to whether Fan-casterâs registration and use of at least thirty-two âfancastâ domains subsequent to Comcastâs registration of the domain name âfancast.comâ constitutes bad faith intent to profit in violation of the ACPA. Here, the expert assumes the role of the fact finder and is therefore not performing the role of an expert.
Fancasterâs motion with regard to Mr. Lastowka will be granted except that a report containing only Paragraphs 1-4, 6-8, 11-14 and 17 of Mr. Lastowkaâs report may be the subject of his testimony.
In sum, Fancasterâs motion to exclude the testimony of Gary Krugman and Greg Lastowka will be granted except that Mr. Krugman may testify about the subject matter of Paragraphs 1-17 and 20-26 of his November 18, 2009 report, and Mr.
C. Fancasterâs Claims for Trademark Infringement
âThe Lanham Act defines trademark infringement as use of a mark so similar to that of a prior user as to be âlikely to cause confusion, or to cause mistake, or to deceive.â â Kos Pharmaceuticals, Inc. v. Andrx Corp., 369 F.3d 700, 711 (3d Cir.2004) (quoting 15 U.S.C. § 1114(1)). Thus, â[t]he law of trademark protects trademark owners in the exclusive use of their marks when use by another would be likely to cause confusion.â Commerce Natâl Ins., 214 F.3d at 437 (quoting Interpace Corp. v. Lapp, Inc., 721 F.2d 460, 462 (3d Cir.1983)). âA claim of trademark infringement is established when the plaintiff proves that: (1) its mark is valid and legally protectable; (2) it owns the mark; and (3) the defendantâs use of the mark to identify its goods or services is likely to create confusion concerning the origin of those goods or services.â Id. (citation omitted).
Comcast moves for partial summary judgment on the likelihood of confusion element of Fancasterâs claim for trademark infringement. Comcast also moves for partial summary judgment on Fancasterâs claim for resulting damages. Likelihood of confusion and damages will each be taken in turn.
i. Likelihood of Confusion Between FANCAST and fancaster
Likelihood of confusion exists âwhen the consumers viewing the defendantâs mark would probably assume that the product or service it represents is associated with the source of a different product or service identified by a similar mark.â Commerce Natâl Ins., 214 F.3d at 438-39 (quotations and citations omitted). Indeed, â[t]he relevant inquiry is not whether consumer confusion is a possibility, but whether confusion is likely.â Freedom Card, Inc. v. JPMorgan Chase & Co., 432 F.3d 463, 470 (3d Cir.2005). In ascertaining whether there is a likelihood of confusion among two marks, this Circuit has âadopted a non-exhaustive test using [the following] 10 factors that have been come to be known as the âLapp factors.â â
(1) the degree of similarity between the ownerâs mark and the alleged infringing mark;
(2) the strength of the ownerâs mark;
(3) the price of the goods and other factors indicative of the care and attention expected of consumers when making a purchase;
(4) the length of time the defendant has used the mark without evidence of actual confusion arising;
(5) the intent of the defendant in adopting the mark;
(6) the evidence of actual confusion;
(7) whether the goods, though not competing, are marketed through the same channels of trade and advertised through the same media;
(8) the extent to which the targets of the partiesâ sales efforts are the same;
(9) the relationship of the goods in the minds of consumers because of the similarity of function;
(10) other factors suggesting that the consuming public might expect the prior owner to manufacture a product in the defendantâs market, or that he is likely to expand into that market.
As previously discussed, this Circuit recognizes two distinct theories of trademark confusion: direct confusion and reverse confusion.
This Circuit applies the Lapp factors notwithstanding whether a plaintiff pursues a theory of direct or reverse confusion. Freedom Card, 432 F.3d at 472. âHowever, economic reality and common sense require that some of the Lapp factors be analyzed differently when reverse discrimination is at issue.â Id. âThus, the strength of the partiesâ marks (Lapp factor (2)), the intent in adopting the marks (factor (5)), and the evidence of actual confusion (factor (6)), are analyzed differently from the method employed in a typical direct confusion case.â Id. Here, it is undisputed that Fancaster is pursuing a theory of reverse confusion. Therefore, the Court will apply the Lapp factors according to that theory.
As discussed fully below, the record shows that each Lapp factor weighs in Comcastâs favor. Consequently, there is no likelihood of confusion and Fancasterâs claims for trademark infringement are dismissed.
1. Similarity (Lapp Factor (1))
The âdegree of similarity of the marks may be the most important of the ten factors in Lapp.â Fisons Horticulture, Inc. v. Vigoro Indus. Inc., 30 F.3d 466, 476 (3d Cir.1994). However, it is by no means dispositive. Checkpoint Sys., Inc. v. Check Point Software Techs., Inc., 104 F.Supp.2d 427, 458 (D.N.J.2000). The marks in this case âare confusingly similar if ordinary consumers would likely conclude that [FANCAST] and [fancaster] share a common source, affiliation, connection or sponsorship.â Id. at 477. Indeed, â[t]he marks need not be identical, only confusingly similar.â Id. (quotation and citation omitted).
Here, the appearance, sound, and meaning of the FANCAST and fancaster marks are sufficiently distinct and therefore present minimal risk of confusion. As presented on fancast.com, the FANCAST mark appears in all black capital letters next to a pastel âexpanding universe design.â In contrast, fancaster mark, as presented on fancaster.com, appears in lowercase light-blue lettering and incorporates a pair of headphones turned on their side to take the place of the letter âcâ. Indeed, â[t]he use of a design as part of a mark minimizes [ ] likelihood of confusion.â Harlem Wizards Entmât Basketball, Inc. v. NBA Properties, Inc., 952 F.Supp. 1084, 1096 (D.N.J.1997) (citation omitted); see also Richards v. Cable News Network, 15 F.Supp.2d 683, 690-91 (E.D.Pa.1998) (marks found dissimilar despite use of identical WORLD BEAT tradename, in part, because plaintiffâs logo incorporated a âpicture of a globe wearing headphonesâ, while defendantâs did not). Moreover, the fancaster mark includes the phrase âwelcome to planet fancaster!â in gold lettering. Finally, the marks appear in two distinct fonts. Thus, the appearance of the marks weighs heavily in Comcastâs favor.
The sound of the marks weighs less heavily in favor of Comcast, although it is somewhat distinct. While both use the word âfancastâ, the fancaster mark maintains an extra syllable that, in turn, creates a different ending sound to the marks. See A & H, 237 F.3d at 217 (although marks âshare the term MIRACLE, there are different numbers of syllables, and the last syllable of each is different.â). Moreover, to the extent that confusion is likely among the sound of the marks, such confusion is minimized by the appearance of the Comcast housemark in conjunction with the FANCAST mark on fancast.com. See Id. at 218-19 (â[0]therwise similar marks are not likely to be confused where used in conjunction with the clearly displayed name and/or logo of the manufacturer.â (quotation and citation omitted)). Specifically, in a 2009 screenshot of fancast.com, the Comcast mark and logo appear toward the top of the homepage to the right of the FANCAST mark and at the bottom of the homepage, see (Poret Decl. [ECF No. 132], Appx. E); in a 2011 screenshot of the site, in the top right hand corner, the consumer is asked if they are a Comcast customer. See (Boudett. Decl. [ECF No. 160], Ex. 17.) This helps clarify for consumers that only the FANCAST mark is related to Comcast.
In addition, the marks evoke distinct meanings. As discussed below with respect to its strength, the word âfancasterâ is a term used to describe a fan acting as a broadcaster. The fancaster markâs use of headphones in place of the letter âcâ emphasizes this meaning. The FANCAST mark, on the other hand, does not evoke any such meaning.
Citing to CBS Inc. v. Morrow, 708 F.2d 1579 (Fed.Cir.1983), Fancaster contends that the verbal portion of the FANCAST and fancaster marks should be given greater weight than their design because âin a composite mark comprising a design and words, the verbal portion of the mark
Here, there is no evidence that consumers put more emphasis on the FANCAST and fancaster marksâ verbal components than their design or meaning and therefore the Court sees no reason to do so.
Finally, Fancaster contends that the fancast.com domain name and other variants registered by Comcast are similar to the fancaster.com domain name and therefore provide âindependent bases for Com-castâs liability.â (PL Br. [ECF No. 159] 14.) Specifically, according to Fancaster, âInternet users who see the domains on Internet search engines, sponsored advertisements, or elsewhere, -will be confused about the relationship between Fan-cast.com and Fancaster.â {Id. at 16.)
This contention sounds in the theory of initial interest confusion, which is recognized in this Circuit. See Checkpoint Sys., Inc. v. Check Point Software Techs., Inc., 269 F.3d 270, 292 (3d Cir.2001) (â[I]nitial interest confusion is actionable under the Lanham Act.â). Initial interest confusion âoccurs when a consumer is lured to a product by its similarity to a known mark, even though the consumer [may ultimately] realize! ] the true identity and origin of the product.â Id. at 294 (quotation and citation omitted). Thus, it is intended to prevent an infringer from âus[ing] an established mark to create confusion as to a productâs source thereby receiving a free ride on the goodwill of the established mark.â Id. at 295 (quotation and citation omitted). Infringement claims under a theory of initial interest confusion are subject to the Lapp factors. See id. at 297 (âAs with all cases involving the likelihood of confusion under the Lanham Act, courts should employ all the relevant Lapp factors and weigh each factor to determine whether in the totality of the circumstances marketplace confusion is likely.â).
The Court of Appeals has held that of particular importance in assessing initial interest confusion are the relatedness of the underlying products and the level of care exercised by consumers in seeking out those products:
When products are similar, a firm is more likely to benefit from the goodwill of a firm with an established mark. And when consumers do not exercise a high level of care in making their decisions, it*414 is more likely that their initial confusion will result in a benefit to the alleged infringer from the use of the goodwill of the other firm. Conversely, in the absence of these factors, some initial confusion will not likely facilitate free riding on the goodwill of another mark, or otherwise harm the user claiming infringement. Where confusion has little or no meaningful effect in the marketplace, it is of little or no consequence in our analysis.
Id. at 296-97; see also 4 McCarthy § 25:76 (4th ed. 2011) (âEven if the accused domain name is identical to the senior userâs mark, if the goods or services advertised at the Web site are sufficiently distinct from those identified by the mark, there will be no likelihood of confusion.â).
As discussed below, there is minimal overlap in the content of the FANCAST and fancaster websites, which weighs against a theory premised on initial interest confusion. In addition, while there is no evidence in the record regarding the level of care exercised by consumers on the Internet searching for video content, âthe default degree of consumer care is becoming more heightened as the novelty of the Internet evaporates and online commerce becomes commonplace.â Network Automation, Inc. v. Advanced Sys. Concepts, Inc., 638 F.3d 1137, 1152 (9th Cir.2011).
Moreover, the search engine results offered by Fancaster are not probative of initial interest confusion, as â[a]ny internet user is familiar with the confusion one confronts with such a welter of search results, but that confusion is the uncertainty about where to go next, not necessarily the confusion that is relevant for purposes of trademark law.â Simon Property Grp. L.P. v. mySimon, Inc., 104 F.Supp.2d 1033, 1044 (S.D.Ind.2000); see also J.G. Wentworth, S.S.C. L.P. v. Settlement Funding LLC, 06-cv-597, 2007 WL 30115, *7-8 (E.D.Pa. Jan. 4, 2007) (search engine results merely present âthe many choices for the potential consumer to investigate.â). Indeed, the confusion one encounters on an Internet search engine is a twenty-first century version of that experienced when searching the phone book. Therefore, the similarity factor weighs in favor of Comcast.
2. Strength (Lapp Factor (2))
A markâs strength is evaluated by assessing â(1) the [plaintiffs] markâs distinctiveness or conceptual strength (the inherent features of the mark) and (2) its commercial strength (factual evidence of marketplace recognition).â Freedom Card, 432 F.3d at 472. The Court will address each.
a. Distinctiveness/Conceptual Strength
âThe inquiry into distinctiveness or conceptual strength is the same whether plaintiff is alleging direct or reverse confusion.â Id. Accordingly, the conceptual strength of the fancaster mark in this case âis measured by classifying the mark in one of [the following] four categories ranging from the strongest to the weakest: (1) arbitrary or fanciful (such as KODAK); (2) suggestive (such as COPPERTONE); (3) descriptive (such as SECURITY CENTER); and (4) generic (such as DIET CHOCOLATE FUDGE SODA).â Id. (quotation and citation omitted).
âArbitrary or fanciful marks use terms that neither describe nor suggest anything about the product; they bear no logical or suggestive relation to the actual characteristics of the goods.â A & H, 237 F.3d at 221 (quotation and citation omitted). âSuggestive marks require consumer imagination, thought, or perception to determine what the product is.â Id. at 221-22. âDescriptive terms forth
âIn order to qualify for Lanham Act protection, a mark must either be suggestive, arbitrary, or fanciful, or must be descriptive with a demonstration of secondary meaning.â
Comcast argues that the fancaster mark is entitled to narrow protection because it is descriptive. That is, the word fancaster merely describes the markâs services that allow fans to become broadcasters. Fan-caster counters that the fancaster mark is entitled to broad protection because it (1) has been incontestable for fifteen years and therefore presumed to be a strong mark; and (2) is a term coined by Mr. Krueger over twenty years ago and therefore should be categorized as a fanciful mark.
Comcast likens the fancaster mark in this case to the MIRACLESUIT mark at issue in A & H. In that case, a swimwear manufacturer that used the mark MIRACLESUIT sued Victoriaâs Secret for its use of the mark THE MIRACLE BRA in connection with swimwear. See A & H, 237 F.3d at 198. The Court of Appeals found that the MIRACLESUIT mark was, âat best, merely suggestive.â In doing so, it noted that â[t]he word âsuitâ has many meanings, but âbathing suitâ is a frequent and familiar oneâ while â[t]he word âmiracleâ... indicates the effect that the product is supposed to have on the user or wearer ... [i.e.] a âmiraclesuitâ is a suit that works miracles.â Id. at 223.
Fancaster, on the other hand, contends that the fancaster mark is like the TELECHRON mark in Telechron, Inc. v. Telicon Corp., 198 F.2d 903 (3d Cir.1952). In that case, the plaintiff registered the name âTelechrohâ as a trademark for clocks. Telechron, 198 F.2d at 905. The Telechron name âwas formed by prefixing the Greek root âchronâ with âteleâ, itself a combining form of Greek origin. âKronosâ was the mythological âGod of Timeâ. Adverbially, âteleâ signified âfrom afarâ. Thus the etymology of the coined word yielded a connotation of âtime from a distance.â â Id. The Court of Appeals found Telechron to be âa coined word with a penumbra of suggestion.â Id. In doing so, it explained that the notion of âtime from a distanceâ was âtoo imprecise for meaningful description of any article or object of commerce.â Id.
Here, the fancaster mark is even more descriptive than the MIRACLE-SUIT mark. The word fancaster is merely combination of the words âfanâ and âbroadcasterâ. While the word âfanâ has several definitions, two common ones are (1) âan enthusiastic devotee (as of a sport or a performing art) usually as a spectator,â and (2) âan ardent admirer or enthusiast (as of a celebrity or a pursuit).â
The mere fact that Mr. Krueger used a truncated version of the word broadcaster does not render it arbitrary or fanciful. See Remington Prods., Inc. v. North Am. Philips Corp., 892 F.2d 1576, 1580 (Fed.Cir.1990) (âshortening [a term] to [a] more concise, more easily usedâ form âis still descriptiveâ); Application of Abcor Development Corp., 588 F.2d 811, 815 (C.C.P.A.1978) (shortened versions of terms may be descriptive because âusers of language have a universal habit of shortening full names from haste or laziness or just economy of words.â). Indeed, it does not require any stretch of the imagination to see that fancaster.com is a website that offers content related to sports and other fans as broadcasters.
Nor need a term describe each and every aspect of a product in order to be descriptive. See Am. Infrastructure v. Zachry Const. Corp., No. 08-2701, 2010 WL 5464765, *6 (E.D.Pa. Dec. 28, 2010) (requiring that a mark describe a productâs services âas a wholeâ, not necessarily all of its services); 2 McCarthy § 11:19 (4th Ed. 2011) (âTo be characterized as âdescriptive,â a term must directly give some reasonably accurate or tolerably distinct knowledge of the characteristics of a product.â). Thus, while the name âfancasterâ may not perfectly describe the nature of each and every video on fancaster.com, it fairly describes certain distinct characteristics of the overwhelming majority of them â namely, a sports or other type of fan broadcasting via a microphone.
Finally, whether the fancaster mark is incontestable has no bearing on the likelihood of confusion analysis. See Lone Star Steakhouse & Saloon, Inc. v. Alpha of Virginia, Inc., 43 F.3d 922, 935 (4th Cir.1995) (â[I]nconstability affects the validity of the trademark but does not establish the likelihood of confusion necessary to warrant protection from infringement.â); First Keystone Federal Sav. Bank v. First Keystone Mortg., Inc., 896 F.Supp. 456, 461 (E.D.Pa.1995) (âIncontestability only addresses the first three aspects of an infringement analysis, namely, whether a mark is valid, entitled to protection and owned by a plaintiff.â).
Fancaster cites to CSC Holdings, LLC v. Optimum Networks, Inc., 731 F.Supp.2d 400, 408 n. 3 (D.N.J.2010) for the proposition that an incontestable mark is âpresumed to be a strong one under Lapp factor 2 [strength].â (PI. Br. [ECF No. 159] 9) (italics omitted). However, that case addressed the sufficiency of trademark infringement allegations to survive a motion to dismiss. CSC Holdings, 731 F.Supp.2d at 407. In doing so, the Court noted that it must âaccept[ ] plaintiffs allegation that the [subject] mark is registered and incontestable â an allegation that refutes defendantsâ argument that the mark is not entitled to legal protection, as incontestable marks are, by def
Even if the Court were to find that the fancaster mark suggestive or fanciful, the mark would be weakened by evidence of its use in connection with a number of different products in the same market. See A & H, 237 F.3d at 222 (âSuggestive or arbitrary marks may, in fact be âweakâ marks, particularly if they are used in connection with a number of different products.â); Noasha LLC v. Nordic Grp. of Co.âs, Ltd., 630 F.Supp.2d 544, 555 (E.D.Pa.2009) (âWarblesâ game mark found arbitrary or suggest but nonetheless weak because of evidence that marks for other games targeted at the same markets begin with the word âWarâ, including âWarmaster,â âWarhammer,â âWarlordâ and âWorld of Warcraft.â). Like Noasha, Comcast offers several websites beginning with the word âfanâ that are offer -video and other content relating to sports and other fans.
b. Commercial Strength
In a reverse confusion case, âthe lack of commercial strength of the smaller senior userâs mark is to be given less weight in the analysis because it is the strength of the larger, junior userâs mark which results in reverse confusion.â Commerce Natâl Ins., 214 F.3d at 444. Nonetheless, âanalysis of the strength of the senior userâs mark is relevantâ in a reverse confusion case. Checkpoint Sys., 269 F.3d at 303. Thus, courts should look to â(1) the commercial strength of the junior user as compared to the senior user; and (2) any advertising or marketing campaign by the junior user that has resulted in a saturation in the public awareness of the junior userâs mark.â Freedom Card, 432 F.3d at 472.
Here, it is clear that Comcast has significantly greater commercial strength than Fancaster and engaged in a substantial marketing campaign on behalf of the FANCAST mark. However, the partiesâ and marksâ relative commercial strength is not sufficient to overcome the conceptual weakness of the fancaster mark, particularly with evidence of other websites geared toward the same market that begin with the word âfanâ, making it unlikely that consumers would associate websites featuring video content related to sports and other fans with a particular source, regardless of Comcastâs commercial strength. Thus, the strength factor weighs in favor of Comcast.
3. Intent of Comcast in Adopting the FANCAST Mark (Lapp Factor (5))
In cases dealing with reverse confusion, the junior userâs intent in adopting the subject mark is assessed by looking to whether it âdeliberate[ly] inten[ded] to push the senior user out of the market.â
Fancaster contends that âintentionally causing confusion is not required, good faith is no defense, and evidence of âintentional, willful and admitted adoption of a mark closely similar to the existing mark[ ] weighs strongly in favor of finding the likelihood of confusion.ââ (PI. Br. [ECF No. 159] 18) (quoting Checkpoint, 269 F.3d at 286). However, the Court of Appeals subsequently clarified that although it âperhaps implied that mere carelessness, as opposed to deliberate intent to confuse, would weigh in a plaintiffs favor in a reverse confusion case, we are reluctant to adopt such an interpretation, as it would be manifestly out of step with our prior holdings regarding the relevance of âintentâ in trademark infringement claims.â Freedom, Card, 432 F.3d at 480; see also A & H, 237 F.3d at 225-26 (â[M]ere intent to copy, without more, is not sufficiently probative of the defendantâs success in causing confusion to weigh such a finding in the plaintiffs favor; rather, defendantâs intent will indicate a likelihood of confusion only if an intent to confuse consumers is demonstrated via purposeful manipulation of the junior mark to resemble the seniorâs.â) (emphasis in original). In addition, the Court had held that a âgood faith explanation of the origin of the accused mark contrasts with the situation sometimes suggested in other cases adoption of a mark in order to take advantage of the ownerâs goodwill.â Scott Paper Co. v. Scottâs Liquid Gold, Inc., 589 F.2d 1225, 1230 (3d Cir.1978).
Here, it is undisputed that Com-cast knew of the fancaster mark before it developed TheFan or FANCAST. However, there is no evidence from which a jury could infer that, in developing the FAN-CAST mark, Comcast deliberately intended to push Fancaster out of the market. Comcast hired a branding agency, which, on June 23, 2006, proposed the name âFanCast.com.â (Young Decl. [ECF No. 131], Ex. 4.) The agency then conducted consumer research, which indicated that âFancast.comâ performed the best overall. In addition, two members of the team at Comcast that helped develop the FAN-CAST name said it was a logical joinder of âThe Fanâ and the Comcast name. See (Dickstein Decl. [ECF No. 130], Exs. 3, 4.)
Finally, Fancaster contends that Com-cast had prior notice of its infringement on the fancaster mark because it received several cease and desist letters from Mr. Krueger regarding its Fancaster segment on CSNNE. This contention is a red herring. The Fancaster segment on CSNNE is an entirely different product and mark than FANCAST; it is not probative as to whether Comcast had prior notice that its FANCAST mark was infringing on the fancaster mark. Moreover, Fancaster withdrew its cease and desist letters and chose not to pursue litigation. Thus, any objections Mr. Krueger had regarding CSNNEâs Fancaster segment are irrelevant. Comcast has offered a good faith explanation for how it came to use the
4. The Relationship of the Services in the Minds of Consumers (Lapp Factor (9))
This factor requires the Court to assess whether the products offered under the FANCAST and fancaster marks are âsimilar enough that a consumer could assume they were offered by the same source.â Kos, 369 F.3d at 723 (quotation and citation omitted). Indeed, â[t]his factor focuses on the nature of the products themselves, asking whether it would be reasonable for consumers to associate them or see them as related.â Id. The products âneed not be identical for this factor to support finding a likelihood of confusion.â Id. âThe question is not whether it is possible to distinguish between the products but whether, and to what extent, the products seem related.â Id. Relatedness involves assessing âthe near-identity of the products or their similarity of function.â Id. (quotation and citation omitted). âThe closer the relationship of the products, ... the greater the likelihood of confusion.â Id. at 722.
There is little relationship between the videos offered on the FAN-CAST and fancaster websites that would reasonably lead a consumer to believe that they are related. Fancaster.com focuses on short video clips emphasizing sports-related content, most of which feature a sports fan or athlete speaking into a microphone displaying the fancaster mark to discuss a particular sporting event, sports team, or sports fans in general. Mr. Krueger testified that a unifying theme of the video clips on fancaster.com, no matter what category it falls under, is that they all involve broadcasting: â[e]veryone is speaking into a microphone and being recorded.â (Dickstein Deck, [ECF No. 130] Ex. 6 at 64.) Fancast.com, in contrast, focuses on full-length premium mainstream media content over the Internet, including major television network programming, as well as full-length studio movies offered by premium cable channels.
While both sites offer sports-related video content, that fact alone is not a basis on which to conclude that a consumer would reasonably see that content as related. Indeed, â[g]oods may fall under the same general product category but operate in distinct niches. When two products are part of distinct sectors of a broad product category, they can be sufficiently unrelated that consumers are not likely to assume the products originate from the same mark.â Checkpoint Sys., 269 F.3d at 287-88; see also Harlem Wizards, 952 F.Supp. at 1095 (finding no product similarity between professional competitive basketball team and âshow basketballâ team); Machine Head v. Dewey Global Holdings, Inc., 61 U.S.P.Q.2d 1313, 1318-19 (N.D.Cal.2001) (âThe fact that both products could broadly be described as relating to music is not sufficient to find that the products have a similar use or function.â). Thus, the Court must look to the specific nature of the sitesâ content and determine if it overlaps in a manner that would cause confusion among an ordinary consumer.
Fancaster presents evidence of overlapping content in the form of (1) short video clips on both sites related to college and professional basketball, some of which are player interviews and press conferences and expert reactions,
In light of the enormous number of videos offered on both sites, and the fact that they maintain very different emphases, this level of overlap is not significant enough to suggest a likelihood of confusion. See Primedia Intertec Corp. v. Tech. Marketing Corp., 35 F.Supp.2d 809, 820 (D.Kan.1998) (âsome overlapâ in subject matter among products does indicate a likelihood of confusion unless overlap is âsubstantialâ); Genovese Drug Stores, Inc. v. TGC Stores, Inc., 939 F.Supp. 340, 348 (D.N.J.1996) (products from drug store and medical device store not related where medical device store âdoes not sell the majority of items usually sold in a drug store ... [and] at most there is only a 20% overlap between the products sold by both stores.â). Accordingly, this factor weighs in favor of Comcast.
5. Sales Efforts and Marketing Channels (Lapp Factor (7))
â[W]hen parties target their sales efforts to the same consumers, there is a stronger likelihood of confusion.â Checkpoint, 269 F.3d at 289. Here, there is virtually no overlap in the partiesâ marketing efforts for their respective sites. Comcast marketed FANCAST toward a national audience that consumes mainstream media. (Young Decl. [ECF No. 131] ¶ 4.) Indeed, Comcastâs primary target for fancast.com was a mainstream audience of 29-54 year-olds, the majority of which are female.
The parties also used vastly different marketing channels to promote their sites. To promote FANCAST, Comcast bought advertisements in a variety of national mainstream print publications and on television channels distributed on Comcastsâs cable television system. Fancaster, on the other hand, marketed fancaster on local television channels in Sioux Falls, South
To be sure, both Comcast and Fancaster marketed their services over the Internet. However, âsome use of the Internet for marketing does not, in itself, constitute overlapping marketing channels.â Rearden LLC v. Rearden Commerce, Inc., 597 F.Supp.2d 1006, 1024 (C.D.Cal.2009) (citing Entrepreneur Media, Inc. v. Smith, 279 F.3d 1135, 1151 (9th Cir.2002)) (emphasis in original). â[T]he proper inquiry relates to whether both parties use the Web as a substantial marketing and advertising channel ... and whether the partiesâ marketing channels overlap in any other way.â Id. (emphasis in original) (quotations omitted). Indeed, â[t]he vast majority of companies today utilize some form of an Internet site and, therefore, this factor alone cannot be determinative.â Id.
As previously discussed, the record shows that the parties did not use overlapping marketing channels outside of the Internet. In addition, while Comcast made substantial use of the Internet in marketing FANCAST, Mr. Krueger testified that most of Fancasterâs marketing efforts have not been geared toward the Internet. See (Dickstein Decl. [ECF No. 130], Ex. 6 at 194-195.) Moreover, to the extent that Mr. Krueger has marketed Fancaster on the Internet, he has done so on certain sports-oriented websites and those of certain local pubs. (Id. at 195.) Comcast, on the other hand, bought banner ads on Comcast.net and other websites focused on popular TV and movies, such as TVGuide.com, as well as ads on Internet search engines that would appear when users searched for keywords related to the names of specific television shows available on Fancast.com, or terms such as âwatch TV shows online.â
6. Actual Confusion and Length of Time without Actual Confusion (Lapp Factors (If) and (6))
A partyâs failure to come forward with âany competent evidence of actual confusion ... weighs significantly against a finding of likelihood of confusion.â Chase Manhattan Bank, USA N.A. v. Freedom Card, Inc., 333 F.Supp.2d 239, 249-50 (D.Del.2004). On the other hand, â[e]vidence of actual confusion is frequently difficult to find.â Sabinsa Corp. v. Creative Compounds, LLC, 609 F.3d 175, 187 (3d Cir.2010). Thus, âactual confusion is not necessaryâ to prevail on an infringement claim under the Lanham Act. Id.
The âmost relevant evidence of actual confusion is the testimony of a reasonably prudent purchaser who was in fact confused by defendantâs trademark.â Checkpoint Sys., Inc. v. Check Point Software Techs., Inc., 104 F.Supp.2d 427, 464 (D.N.J.2000) (internal quotations omitted). Here, there is no evidence of actual confusion in the three years and two months of the FANCAST websiteâs existence. Fan-caster maintains that one instance of confusion occurred when Tom Matthews, a former business partner of Mr. Kruegerâs
Nor are several videos that Fan-caster offers as evidence of actual confusion, which are even less probative than Mr. Kruegerâs conversation with Mr. Matthews. Those videos show people holding a microphone featuring the fancaster mark, many of whom are being prompted to say, âYouâre watching fancaster dot comâ; however, they instead say things like âYouâre watching fancast dot com,â âItâs Comcastic tonight,â âThanks for watching Fancast?â, and âIâm here with fancast dot com.â (Boudett Decl. [ECF No. 160], Ex. 7 at Fancaster006334006338, 006591.) There is no indication in the record of (1) the source of these videos; (2) who the subjects in the video are and under what circumstances they were being videotaped; and (3) whether they had ever visited fancaster.com or fan-cast.com.
Finally, the results of Mr. Poretâs March 2011 survey weigh against finding a likelihood of confusion, with just two of two hundred and nine respondents âindicating possible confusion with Comcast or Fan-cast in response to any survey question.â (Poret Decl. [ECF No. 132] ¶ 67); see also McNeil Nutritionals, 511 F.3d at 366 (âEvidence of only a small number of instances of actual confusion can be dismissed as inconsequential or de minim-is.â). Consequently, this factor weighs heavily in favor of Comcast.
Fancaster seeks damages in the form of corrective advertising expenditures to remedy Comcastâs alleged infringement on the fancaster mark. Corrective advertising is a recognized theory of damages in trademark infringement cases. See, e.g., Zazu Designs v. LâOreal, S.A., 979 F.2d 499, 506 (7th Cir.1992); Big O Tire Dealers, Inc. v. Goodyear Tire & Rubber Co., 561 F.2d 1365, 1374-76 (10th Cir.1977). âCorrective advertising is a method of repair. Defendant diminishes the value of plaintiffs trademark, and advertising restores that mark to its original value.â Zazu, 979 F.2d at 506.
To prevail on a theory of corrective advertising, a Fancaster must show that (1) âthe confusion caused by the defendantâs mark injured the plaintiffâ and (2) âthat ârepairâ of the old trademark, rather than adoption of a new one, is the least expensive way to proceed.â Id.; see also A & H Sportswear Co. v. Victoriaâs Secret Stores, Inc., 167 F.Supp.2d 770, 801-02 (E.D.Pa.2001) (failure to show âany sizable damagesâ or âreckless disregard for plaintiffs rightsâ precludes an award of corrective advertising damages); Juicy Couture, Inc. v. LâOreal USA, Inc., No. 04-7203, 2006 WL 1359955, *2 (S.D.N.Y. May 18, 2006) (failure to show lost profits, lost sales, or damage to reputation precludes award of corrective advertising).
There is not a shred of evidence of any damage to the fancaster mark caused by Comcast. The only loss to Fancaster that Mr. Krueger could testify to was that resulting from pursuing the instant litigation against Comcast. See (Sarowitz Decl. [ECF No. 137], Ex. 1.) Mr. Anson was also unable to testify to any pecuniary loss, as he was retained by Fancaster only to calculate an appropriate corrective advertising award based on Comcastâs advertising expenditures. See (Id., Ex. 5.) While Mr. Anson stated that Comcastâs actions resulted in a loss of âgoodwillâ to the fan-caster mark, he admits that his proposed corrective advertising award has no relation to any damages to the mark. See (Id.)
Fancaster argues that it need show none of this to be entitled to corrective advertising damages. In doing so, it relies heavily on the Tenth Circuitâs decision in Big O Tire. In that case, the plaintiff âpresented more than a dozen witnesses who testified to actual confusionâ and two of the defendantâs executives âtestified confusion was likely or even inevitable.â Big O, 561 F.2d at 1372. There is no such evidence of actual confusion or blatant infringement in this case. Accordingly, Fancasterâs claim for corrective advertising damages is dismissed.
D. Fancasterâs Cyber Piracy Claim
Comcastâs notice of motion petitions the Court for summary judgment on all counts of Fancasterâs complaint. However, Com-cast did not address Fancasterâs cyber piracy count in its opening brief.
Under Federal Rule of Civil Procedure 56(c) it is Comcastâs obligation to support its assertions that no disputed fact issues
E. Comcastâs Counterclaims
Fancaster seeks summary judgment on Counts One, Two, and Four of Comcastâs Counterclaims against Fancaster and Craig Krueger alleging: (1) fraud on the Patent and Trademark Office in violation of 15 U.S.C. § 1120; (2) declaratory judgment of cancellation; and (4) cyber piracy in violation of 15 U.S.C. § 1125(d), respectively. The Court will address each claim in turn.
i.Fraud on the Patent and Trademark Office (15 Ă.S.C. § 1120)
15 U.S.C. § 1120 provides a cause of action against â[a]ny person who shall procure registration in the Patent and Trademark Office of a mark by a false or fraudulent declaration or representationâ by âany person injured thereby....â To prevail on a claim arising under this section, a plaintiff must show by clear and convincing evidence:
1. A false representation regarding a material fact.
2. The person making the representation knew or should have known that the representation was false (âscienterâ).
3. An intention to induce the listener to act or refrain from acting in reliance on the misrepresentation.
4. Reasonable reliance on the misrepresentation.
5. Damage proximately resulting from such reliance.
Patsyâs Italian Restaurant, Inc. v. Banas, 658 F.3d 254, 270-71 (2d Cir.2011) citing In re Bose, 580 F.3d 1240, 1243 (Fed.Cir.2009); Quiksilver, Inc. v. Kymsta Corp., 466 F.3d 749, 755 (9th Cir.2006); United Phosphorus, Ltd. v. Midland Fumigant, Inc., 205 F.3d 1219, 1226 (10th Cir.2000).
Comcast alleges that it has suffered from two intentionally false statements made by Mr. Krueger to the PTO. The purported false statements are as follows. First, Comcast claims that Mr. Krueger âsubmitted a declaration dated July 19, 1988, in which he swore under oath that he âhas adopted and is using the trademark shown in the accompanying drawing for the following goods: communicationsâ and/or âbroadcasting services,â and that â[t]he trademark was first used on the goods in Interstate commerce on July 15, 1988; and is now in use in such commerce.â â (Perry Cert. [ECF No. 138] ¶ 2.) Second, Comcast states that on September 8, 1994, Mr. Krueger submitted an affidavit with the PTO, in which he swore that âhe was using the mark in commerce in connection with the broadcasting services that were stated in the registration, and had been doing so for five consecutive years.â (Id. at ¶ 14.)
Comcast claims that neither statement is correct because contemporaneous evidence demonstrates that the âusesâ to which Mr.
Mr. Kruegerâs proffered preregistration uses include, inter alia, a February 1987 play-by-play broadcast using the Fancaster mark to observers of a motorcycle race (Perry Cert. [ECF No. 138], Ex. 4, 524:20-526:8); broadcasts in 1987 to observers equipped with Fancaster branded receivers at football games in Sioux City, IA, Worthington, MN, and the University of Kansas (id. at 526:15-25); a weather broadcast from a hot air balloon in the spring of 1988 (id. at 261:22-264:12); the sale of Fancaster branded radios in July of 1988 (id. at 240:9-23); and the transmission of a prerecorded program to individuals using Fancaster branded radios at Lake Okoboji, IA (id. at 527:18-528:21). After submitting the July 19, 1988 affidavit, Mr. Krueger continued to conduct activities involving the mark, including: selling Fancaster branded radios (Id., Exs., 14, 21, 22); conducting live demonstrations of the Fancaster broadcast services (Id., Exs., 13, 16, 19); and producing karaoke shows under the Fancaster mark (id., Ex. 4, 694:21-296:23).
Comcast has advanced various arguments concerning each of Mr. Kruegerâs uses of the Fancaster mark, some legal and some involving factual disputes.
Indeed, Comcast points to only one exhibit as evidence of Mr. Kreugerâs intent to deceive. Comcast submits that the blank letterhead and envelopes that Mr. Kreuger provided in connection with Fan-casterâs September 8, 1994 Combined Affidavit of Use and Incontestability were âknowingly ... insufficientâ evidence of continuous use since the original 1989 registration. (Def. Br. [ECF No. 149] 28). Comcast notes that Mr. Krueger had been told that letterhead was insufficient in previous communications with the PTO, and argues that any subsequent submission of blank letterhead is sufficient for a jury to âpermissibly inferâ that âPlaintiffs intent was fraudulent.â Id.
This evidence proves nothing. First, even if the submission was âknowingly ... insufficientâ evidence of use, that alone does not demonstrate knowledge that the underlying statements concerning use were false. A person may know that he or she submitted insufficient proof of a proposition without knowing that the proposition is actually false. Second, Comcastâs claim is belied by the fact that the blank letterhead and envelopes were accepted by the PTO as proof of continuous use. Com-castâs real complaint is not -with Mr. Kruegerâs submission to the PTO, but with the PTOâs decision to accept the â undeniably flimsy â evidence in approving the incontestability application. There is no suggestion that the letterhead was deliberately misleading or that Mr. Krueger was not genuinely engaged in efforts to market services using the Fancaster mark, albeit with limited success.
Comcast has not provided âa sufficient evidentiary basis on which a reasonable jury could find for [it]â with respect to fraudulent intent. Kaucher v. County of Bucks, 455 F.3d 418, 423 (3d Cir.2006).
ii. Declaratory Judgment of Cancellation
Comcastâs second counterclaim is styled as a declaratory judgment of invalidity, but is essentially a restatement of its first and third counterclaims, alleging that the Fan-caster mark is invalid due to fraud on the PTO and/or abandonment. For the reasons stated above, to the extent that this claim is based upon allegations of fraud on the PTO, there is insufficient evidehtiary basis to permit it to proceed to trial. To the extent that it is based upon allegations of abandonment, it is duplicative of Com-castâs third counterclaim and impermissible. Accordingly, Comcastâs Second Counterclaim is dismissed.
iii. Cyber Piracy (15 U,S.C. § 1125(d))
Cyber piracy, frequently known as âcybersquatting,â is âa relatively new addition to the Lanham Actâ that âprohibits registering a domain name that is confusingly similar to a distinctive mark or dilutive of a famous mark with âa bad faith intent to profitâ from it.â Green v. Fornario, 486 F.3d 100, 105 (3d Cir. 2007).
As described above, the inherent distinctiveness of a mark is a function of the category into which it falls, and â in the case of descriptive terms â whether the mark has acquired secondary significance in the marketplace. E.T. Browne Drug Co. v. Cococare Products, Inc., 538 F.3d 185, 192 (3d Cir.2008). A designationâs level of inherent distinctiveness is a question usually left for the fact-finder. Id. at 192 (âWhether [a mark] is generic or descriptive, and whether that term has acquired secondary meaning, are questions of fact.â); see also A.J. Canfield Co. v. Honickman, 808 F.2d 291, 308 (3d Cir.1986) (âCourts of Appeals have generally held that a designationâs level of inherent distinctiveness is a question of fact.â). As such, Fancasterâs motion must be denied unless it can show the absence of âa sufficient evidentiary basis on which a reasonable jury could find for [Comcast]â on the factual questions. Kaucher, 455 F.3d at 423.
Additionally, a mark is âfamous if it is widely recognized by the general consuming public of the United States as a designation of source of the goods or services of the markâs owner.â 15 U.S.C. § 1125(c)(1). In determining whether a mark possesses the requisite degree of recognition, the Lanham Act directs the court to consider all relevant factors, including:
(i) The duration, extent, and geographic reach of advertising and publicity of the mark, whether advertised or publicized by the owner or third parties.
(ii) The amount, volume, and geographic extent of sales of goods or services offered under the mark.
*428 (iii) The extent of actual recognition of the mark.
Id.
Fancaster and Mr. Krueger have advanced no argument that the FAN-CAST mark is âgenericâ or lacks intrinsic distinctiveness. Indeed, Mr. Krueger has outright admitted at deposition that the FANCAST mark âmay be distinctive.â (Sarowitz Decl. [ECF No. 151], Ex. 7 at 390:6-23). In addition, the significant monies spent by Comcast in advertising the FANCAST service are not disputed; indeed, they form the basis for much of Fancasterâs previously discussed theory of reverse confusion. Whether FANCAST is a pure neologism or a descriptive portmanteau, there is ample evidence of âdistinctivenessâ and âfameâ to send the issue to a jury.
On the second element, there can be no real dispute. Mr. Krueger has registered dozens of websites bearing containing the word âfancast.â
15 U.S.C. § 1125(d) provides nine nonexclusive factors to guide the court in determining whether the third element â bad faith intent â has been satisfied. These factors include:
(I) the trademark or other intellectual property rights of the person, if any, in the domain name;
(II) the extent to which the domain name consists of the legal name of the person or a name that is otherwise commonly used to identify that person;
(III) the personâs prior use, if any, of the domain name in connection with the bona fide offering of any goods or services;
(IV) the personâs bona fide noncommercial or fair use of the mark in a site accessible under the domain name;
(V) the personâs intent to divert consumers from the mark ownerâs online location to a site accessible under the domain name that could harm the goodwill represented by the mark, either for commercial gain or with the intent to tarnish or disparage the mark, by creating a likelihood of confusion as to the*429 source, sponsorship, affiliation, or endorsement of the site;
(VI) the personâs offer to transfer, sell, or otherwise assign the domain name to the mark owner or any third party for financial gain without having used, or having an intent to use, the domain name in the bona fide offering of any goods or services, or the personâs prior conduct indicating a pattern of such conduct;
(VII) the personâs provision of material and misleading false contact information when applying for the registration of the domain name, the personâs intentional failure to maintain accurate contact information, or the personâs prior conduct indicating a pattern of such conduct;
(VIII) the personâs registration or acquisition of multiple domain names which the person knows are identical or confusingly similar to marks of others that are distinctive at the time of registration of such domain names, or dilutive of famous marks of others that are famous at the time of registration of such domain names, without regard to the goods or services of the parties; and
(IX) the extent to which the mark incorporated in the personâs domain name registration is or is not distinctive and famous within the meaning of subsection (c) of this section.
15 U.S.C.A. § 1125(d)(l)(B)(i)
As a threshold matter, it would appear that several of these factors weigh in favor of bad faith. The domains in question bear unambiguously identical names to that of a heavily promoted commercial website that belongs to Comcast. Mr. Krueger and Fancaster had no prior registration of the FANCAST trademark and has never offered products bearing that mark. (Sarowitz Deck [ECF No. 151], Ex. 7, 211:22-213-22). Nor have Mr. Krueger or Fancaster actually conducted any business on the suspect domains. (Id., Ex. 19). Instead they have used them to divert traffic to fancaster.com or displayed âparked websiteâ advertising pages. (Id.) This is a common tactic associated with cybersquatting. See Shields, 254 F.3d at 484 (âA reasonable interpretation of conduct covered by the phrase âconfusingly similarâ is the intentional registration of domain names that are misspellings of distinctive or famous names, causing an Internet user who makes a slight spelling or typing error to reach an unintended siteâ and âis a classic example of a specific practice the ACPA was designed to prohibit.â).
Fancaster and Mr. Krueger advance two related arguments as to why, in spite of this evidence, Comcast cannot demonstrate âbad faith intent.â First, they argues that it is subject to the âsafe harborâ under 15 U.S.C. § 1125(d)(l)(B)(ii). (Def. Br. [ECF No. 138] 27-28). That provision provides:
Bad faith intent described under subparagraph (A) shall not be found in any case in which the court determines that the person believed and had reasonable grounds to believe that the use of the domain name was a fair use or otherwise lawful.
Fancaster and Mr. Krueger contend that their valid trademark registration for the Fancaster mark is proof that they had an objectively reasonable belief that its registration of the various Fancast domain names was a âfair useâ or âotherwise lawfulâ action. (Def. Br. [ECF No. 138] 27-28). Second, they claim that their registration of various âfancastâ websites before
These contentions are highly disingenuous. Comcast purchased the fancast.com domain name and filed an application with the PTO to conduct business using the FANCAST mark in August of 2006. (Perry Cert. [ECF No. 138], Ex. 68); (Sarowitz Deck [ECF No. 151], Ex. 9). Mr. Krueger began registering large numbers of âfan-castâ domains almost immediately thereafter, in September of 2006. (Perry Cert. [ECF No. 138], Ex. 70). While the FAN-CAST website was not officially launched for public use until later, Mr. Krueger does not actually claim that he was unaware of Comcastâs purchase, registration, or plans to use the fancast.com domain name to heavily promote services sold under the FANCAST mark. Indeed, he explicitly withdrew prior statements to that effect. ([ECF No. 138-10] ¶¶ 72, 81); ( [ECF No. 143] ¶¶ 72, 81).
Mr. Kruegerâs timing and unwillingness to categorically deny knowledge of Com-castâs plans heavily influenced its decision to purchase the âfancastâ domains is itself highly suggestive of intent. In combination with the evidence that Mr. Krueger has engaged in conduct generally associated with bad faith cybersquatting, there is ample support to send this question to a jury. Consequently, Comcastâs Fourth Counterclaim remains.
F. Comcastâs Affirmative Defenses
Fancaster seeks to strike two
Since only Fancasterâs 15 U.S.C. § 1125(d) claim remains viable, the remaining defenses will be analyzed with respect to that cause of action. Laches is an equitable doctrine that âbars an action only when the delay in bringing the action both caused prejudice and was inexcusable.â Cyberworld Enterprise Technologies, Inc. v. Napolitano, 602 F.3d 189, 200 (3d Cir.2010). In contrast, acquiescence âapplies when the trademark owner, by affirmative word or deed, conveys its implied consent to another.â Pappan Enterprises, Inc. v. Hardeeâs Food Systems, Inc., 143 F.3d 800, 804 (3d Cir.1998). Both doctrines require a showing that Comcast acted in reliance upon its belief that Fan-caster would not enforce its rights and would be prejudiced if Fancaster were permitted to advance a claim. University of Pittsburgh v. Champion Products Inc., 686 F.2d 1040, 1045 (3d Cir.1982) (âThe distinction between ... mere delay and the laches which give rise to affirmative rights in the defendant as a result of detrimental
Fancaster argues that Comcast cannot demonstrate: (1) that it unreasonably delayed commencement of this lawsuit; (2) that it acquiesced in Comcastâs infringement; or (3) that Comcast relied upon its actions and would be prejudiced by permitting suit. (PI. Br. [ECF No. 138] 33-34.) Comcast contends that: (1) Fancaster waited fourteen months before filing suit; (2) a jury may âinferâ that Fancaster acquiesced in Comcastâs use of FANCAST based on its November 22, 2006 letter approving use of CSNNEâs Fancaster segment; and (3) that Comcast suffered âbusiness uncertainty arising from the pendency of this lawsuit.â (Def. Br. [ECF No. 149] 30.) Comcast further argues that Fancaster âcannot seriously claim that the threat of this lawsuit, in which it seeks a substantial damages award, is not, as a matter of law, prejudicial.â (Id.)
The Court need not address whether Fancaster unreasonably delayed bringing suit or implicitly acquiesced in Comcastâs alleged infringement. Comcast has offered no evidence of reliance upon Fancasterâs conduct â either its November 22, 2006 letter, or its lengthy delay in bringing suit. Whether a hypothetical business entity might rely upon a letter or suffer economic harm as the result of a pending lawsuit is irrelevant. Comcast must produce evidence demonstrating that it reasonably relied upon Fancasterâs conduct in taking actions that give rise to its infringement claims. Absent that reliance, there can be no prejudice to permitting Fancaster to enforce its claims and no basis for a defense of laches or acquiescence. The defenses of laches and acquiescence are therefore stricken.
III. CONCLUSION
For the foregoing reasons, Comcastâs Motion for Summary Judgment is GRANTED with respect to Fancasterâs claims for Federal Trademark Infringement, Corrective Advertising, Federal False Designation of Origin/Unfair Competition, Federal Trade name Infringement, Misappropriation of Trademark & Trade-name, Unfair Competition and Deceptive Trade Practices, Trade Name Infringement, and Unjust Enrichment, and DENIED with respect to Fancasterâs claim for Cyber Piracy. Counts One, Two, Three, Five, Six, Seven, and Eight of Fan-casterâs Amended and Supplemental Complaints are dismissed with prejudice.
Fancasterâs and Mr. Kruegerâs Motion for Summary Judgment is GRANTED with respect to Comcastâs claims for Fraud on the PTO and Declaratory Judgment of Non-Use, and DENIED with respect to Comcastâs claim for Cyber Piracy. Counts One and Two of Comcastâs First Amended and Supplemental Counterclaim against Fancaster, Inc. and . First Amended and Supplemental Third Party Complaint against Craig Krueger are dismissed with prejudice.
Fancasterâs Motion in Limine to Exclude the Surveys and Testimony of Hal Poret is GRANTED with respect to the March 2009 survey and testimony related thereto, and DENIED with respect to the March 2011 Survey and testimony related thereto.
Fancasterâs Motion to Strike Comcastâs affirmative defenses of fraud, unclean hands, laches, and acquiescence is GRANTED. Those defenses are STRICKEN.
The Court will enter an order implementing this opinion.
. As indicated below, in Note 44, this moots Comcastâs Motion in Limine to exclude the testimony and report of Fancasterâs damages expert.
. The Court will therefore refer to the FAN-CASTER mark in lowercase letters when discussing it in connection with fancaster.com.
. Comcast ultimately appealed the PTOâs decision to the Trademark Trial and Appeal Board, which affirmed on July 5, 2006. On October 5, 2006, Comcast abandoned its application to register "The Fanâ.
. The Court will refer to the FANCAST mark in uppercase letters because that is how it appears on fancast.com.
.Fancaster opposed the application, which remains in stasis pending resolution of this litigation. There had been three prior applications to register the word âFancast,â all of which were rejected. The 2003 applicationâ which intended to use the mark in connection with âentertainment services providing promotional marketing tool for collegiate athletic departmentsâ â was denied by the PTO due to
. These websites include: fancast.co.uk, fan-cast.org, fancast.us, fancast.eu, fancast.bz, fancast.cc, fancast.com, fancast.gs, fan-cast.ms, fancast.name, fancast.tc, fancast.tw, fancastvg, fancastws, fancast.au, fan-cast.com.au, fancast.mobi, fancast.net.au, fan-cast.nz, fancast.jp, fancast.la, fancast.br.com, fancast.kr.com, fancast.qc.com, fan-cast.za.com, fancast.es, fancast.eu.com, fancst.gb.com, fancast.uk.com, fan-cast.us.com, fancast.am, fancastfm, fan-cast.pro, fancast.tel, fancast.cm, fancast.me, and fancast.co.nz.
. Fox SportsNet New England was later rebranded as Comcast SportsNet New England ("CSNNEâ).
. Comcast further sought (1) declaratory judgment that the Faneaster mark was also renewed by fraud and (2) to expand the scope of the proposed injunction to include a number of other domain names registered to Mr. Krueger.
. The screenshots of fancast.com indicate a date of December 22, but they do not indicate the year. See (Boudett Deck, [ECF No. 160] Ex. 44.) The screenshot of fancaster.com is wholly undated. See (id.)
. These celebrities include the underground hip hop group-turned-pop sensation the Black Eyed Peas, Poison lead singer Bret Michaels, martial arts champion Chuck Liddell, actors Corey Feldman and GilĂes Marini, boxer Laila Ali, and baseball legend Jackie Robinson. See (Boudett Decl. [ECF No. 160], Ex. 33, 34, 40, 41, 42, 43, and 45.) Fancaster offers screen-shots of actual content from fancast.com regarding Bret Michaels and Jackie Robinson. See (Boudett Deck, Ex. 34, 43.)
. Mr. Poret used the same malls for both the March 2009 and March 2011 surveys, except the mall in Cleveland. At the time of the March 2011 survey, that mall's interviewing facilities were no longer operational. Mr. Poret used a mall in Detroit as a substitute.
. 52 respondents (24.9%) indicated that the Fancaster website was from the same company as Fancast, and 13 (6.2%) indicated that Fancaster was affiliated with or received authorization from Fancast.
. 45 respondents (21.4%) indicated that the Fancaster website was from the same company as the Fanwatch website, and 16 (7.6%) indicated that Fancaster was affiliated with or received authorization from Fanwatch.
. In addition, "numerous other websites or organizations with names that have no similarity to [Lancaster were mentioned at greater or equivalent rates as Fancast, including You-tube (22 respondents), Twitter (9), ESPN (8), NFL (7), Yahoo (5), Facebook (5), Google (3) and TMZ (2).â (Poret Decl. [ECF No. 132] ¶ 69.)
. Comcast also moves for summary judgment on Fancaster's cyber piracy claim. However, as discussed below, the motion will be denied because Comcast does not adequately address that claim in its motion papers.
. Moreover, Fancasterâs November 1, 2010 pleadings state that "the content provided on the [fancaster] web site relates to sports, sports fans, broadcasting, and related content and information.â (Supp. Compl. [ECF No. 93] ¶ 12.)
. As of May 2, 2011, just nineteen of the approximately four hundred videos on fan-
. Furthermore, in its brief opposing Com-cast's Motion for Summary Judgment, Fan-caster contends that its "target audience includes sports fans (of all ages and both genders).â (PL Br. [ECF No. 159] 28.)
. However, as discussed below, Comcastâs footprint is relevant to whether it was proper to use an Eveready survey in March 2011.
. Fancaster also argues that the March 2009 survey should be excluded because Mr. Poret used improper controls. The Court need not address this argument because, as discussed below, the March 2009 survey is excluded for failure to adequately replicate marketplace conditions.
. Additionally, the use of two different media to present the FANCAST and fancaster websites could improperly enhance the distinction between them.
. In its brief, Fancaster alleges that "much of Comcastâs most intensive and expensive marketing efforts have been focused on its cable television subscribers,â particularly with respect to "the massive advertising campaign that Comcast launched in early 2010 that was designed to promote the ability of Comcast cable television subscribers to access their cable subscription services over the internet at Fancast.com.â (Pi. Br. [ECF No. 145] 11.) However, Fancaster fails to cite to any evidence in the record to support this allegation.
. Lastowkaâs generosity gives the Court at least a modest role.
. The factors are named for the case in which they were first set forth: Interpace Corp. v. Lapp, Inc., 721 F.2d 460 (3d Cir.1983).
. This Circuit also recognizes a third theory of trademark confusion known as initial interest confusion, see Checkpoint Sys., at 292, which Fancaster pursues in its motion papers. However, as discussed below, it cannot prevail under that theory.
. Fancaster's state-law claims fall on the same analysis. See Pharmacia Corp. v. Alcon Labs., Inc., 201 F.Supp.2d 335, 386 (D.N.J.2002) ("[T]he test for [New Jersey] common law infringement and unfair competition is identical to the test for federal infringement and unfair competition.â) (citation omitted); Harlem Wizards Entm't Basketball, Inc. v. NBA Props., Inc., 952 F.Supp. 1084, 1091 (D.N.J.1997) ("N.J.S.A. 56:4-1 is the statutory equivalent of Section 43(a)(1) of the Lanham Act [15 U.S.C. 1125]â) (citation omitted). Fancasterâs unjust enrichment claim must also be dismissed because Fancaster alleges no facts and cites to no evidence to support it.
. To be sure, the meaning of the FANCAST mark remains unclear.
. In CBS, the court gave greater weight to the verbal portion of the subject mark because the evidence showed that "approximately 15% [of the product's] total sales are by mail order, and [the productâs] 17-page catalog (of record) displaysâ the mark a number of times without its design elements.
. The Court need not address the issue of secondary meaning in this case because, as discussed below, the fancaster markâs incontestable status renders it valid and protectable as a matter of law.
. http://www.merriam-webster.com/ dictionary/fan (entry 3).
. Moreover, Comcast offers evidence of a variety of other websites using the term "casterâ as a truncated version of "broadcasterâ. See (Dickstein Decl. [ECF No. 130], Ex. 21.)
. To be sure, the Court of Appeals once mentioned in passing that "incontestability does bear on the strength of a mark,â but only so far as to "bear [incontestability] in mindâ in assessing the strength of a mark. U.S. Jaycees v. Philadelphia Jaycees, 639 F.2d 134, 138 n. 3 (3d Cir.1981).
. These include fanshotz.com, fanpop.com, fanster.com, fankam.com, fanadu.com, fan-spot.com, fanchat.com, and fanvsfanc.com. In addition, Fancasterâs October 2009 business plan states that fancast will compete with "[o]ther fan sites such as www.fannation. com.â (Dickstein Decl. [ECF No. 130], Ex. 13 at 18.)
. Fancaster cites to Ritz Hotel, Ltd. v. Shen Mfg. Co., No. 05-4730, 2009 WL 1838357, *8 (E.D.Pa. Jun. 25, 2009) for the proposition that evidence that a junior user knew of the senior userâs trademark rights "could convince a juryâ that the junior user "intended to cause consumer confusion.â (PL Br. [ECF No. 159] 19.) That case found however, that such evidence, âtogether with [] other allegations of [] bad faith conduct before the PTO, if substantiated â could convince a jury of such. Id. (emphasis added).
. The professional basketball clips on the FANCAST site are clearly indicated as coming from "CBS Sports NBAâ (Boudett Deck [ECF No. 160], Ex. 31), which minimizes any likelihood that a reasonable consumer would attribute those clips to the fancaster site.
. Fancaster offers other evidence to show that both sites contain overlapping content related to sports, celebrities, and niche events. See (Boudett Decl. [ECF No. 160], Exs. 31-42, 44, 45.) However, it does so by juxtaposing screenshots of video clips from fancaster.com relating to such content with screenshots of search engine results indicating that search terms related to the same content appear somewhere on fancast.com. This is not probative evidence of overlap because it would require a jury to speculate as to whether the allegedly overlapping content on fancast.com appears in video form or merely as written word. For example, while fancast.com has a video clip related to Bret Michaels, fan-cast.com merely has an article about him from the Associated Press. See (Id., Ex., 4.)
. To be sure, a 2006 strategy document indicates that Comcast intended to reach a somewhat different secondary audience of 18 to 28 year olds that use sites like YouTube.com, ifllm, myspace.com, feedroom, atomfilms, Jib Jab, MeFeedia.com, and del.icio.us. (Young Decl. [ECF No. 131], Ex. 2). However, there is no evidence that Comcast made any actual efforts to target this audience in the course of its marketing campaign.
.Fancaster contends that its "target includes male and female fans not only of sports but of music, movies, Broadway, social issues, politics, and entertainment generallyâ (PI. Br. [ECF No. 159] 21) but cites no support in the record to support that contention. Moreover, Mr. Krueger testified that Fancaster was "targeting [a] younger ... probably a little male-drivenâ audience "anywhere from 12 years old to 40 years old.â (Dickstein Decl. [ECF No. 165], Ex. 7.)
. Comcast's television ads did not air in these cities. (Young Decl. [ECF No. 131] ¶ 8.)
. The evidence offered by Fancaster that both websites were marketed on YouTube, Facebook and Twitter is unavailing. The evidence does not indicate that the FANCAST branded videos on YouTube in the record were even posted by or with the permission of Comcast. See (Boudett Decl. [ECF No. 160], Ex. 47.) In addition, The FANCAST page on Facebook advertises for "Xfinityâ and directs visitors not to www.fancast.com but to www. xfinityTV.com. See (id., Ex. 50.) Finally, the FANCAST Twitter page is merely a trivia site. See (id., Ex. 52.)
. Notably, immediately upon production of these videos, counsel for Comcast requested relevant information about them. (Dickstein Supp. Decl. [ECF No. 130], Ex. 39.) There is no indication that Fancaster provided any of the requested information.
. Fancaster also submits a declaration, dated May 5 2011, from a Bill Cote merely indicating that Mr. Cote was the videographer in one of the videos, which was shot on or around January 1, 2011. See (Boudett Decl. [ECF No. 160], Ex. 8.)
.In addition, there is insufficient evidence by which to authenticate them. See FRE 901(a).
. This renders moot Comcastâs Motion in Limine to Exclude the Testimony of Weston Anson.
. Indeed, the only reference to cyber piracy in the entire brief is a parenthetical description of a case suggesting that "many of the Lapp Factors are also appropriate indicia of confusingly similar marks in the context of domain names.â (Def. Br. [ECF No. 127] 17-18).
. See also 6 McCarthy § 31:61 (4th ed. 2008).
. This was changed by the Trademark Law Revision Act of 1988, which "revisedâ the statute "to provide that 'use in commerceâ means the bona fide use of a mark in the ordinary course of trade, and not made merely to reserve a right in a mark.â Lucent Information Management, Inc. v. Lucent Technologies, Inc., 186 F.3d 311, 314 (3d Cir.1999). This language "was intended to eliminate 'token uses,â which occurred when applicants used marks in conjunction with selling goods or offering services for the sole purpose of obtaining registration, and with no intention of legitimately using the mark in commerce until a later dateâ since "[b]efore 1989, a 'token useâ was sufficient to satisfy the use requirement and qualify a mark for registration.â Aycock Engineering, Inc. v. Airflite, Inc., 560 F.3d 1350, 1357 (Fed.Cir.2009) (internal citations omitted).
. As a general matter, Comcast argues that each and every broadcast made to Fancaster receivers or using the Fancaster mark was a "demonstration," "marketing presentation,â or "testâ that does not constitute a use for trademark registration purposes. (Def. Br. [ECF No. 149] 20). Comcast further argues that the sales of Fancaster branded radio units do not constitute "servicesâ and cannot qualify as a use in commerce. (Id. at 21-22.) Finally, Comcast argues that the numerous Fancaster karaoke shows constitute "recordingsâ rather than "broadcasting servicesâ and are not covered by the registration. (Id. at 22.)
. In addition to the sales and demonstrations previous described, the record is also replete with evidence of Mr. Kreugerâs ongoing marketing efforts concerning the Fancaster mark. Mr. Krueger has introduced letters directed: to Major League Baseball (Perry Cert. [ECF No. 138], Ex. 23); Market Square Arena of Indianapolis (id., Ex. 24), Yosemite Park (id., Ex. 25), The Borckum Company (id., Ex. 26), Hardees Restaurant (id., Ex. 27), Sandeigo Wild Animal Park (id., Ex. 28), the Miami Heat (id., Ex. 29), WNEW Radio of New York City (id., Ex. 30), the United States Tennis Association (id., Ex. 31), KRXY Radio of Denver (id., Ex. 32), the Miami Dolphins (id., Exs., 33, 34), the Minnesota Twins (id., Ex. 35), and Creighton University (id., Ex. 36) in which Mr. Kreuger sought to solicit business under the Fancaster mark. While mere solicitation may not be sufficient to constitute a use in commerce, these letters demonstrate that Mr. Kreuger was actively engaged in efforts to build the Fancaster brand and had every cause to believe that it was "usingâ the mark in commerce, even if its specific uses are subject to challenge on technical grounds.
. Prohibitions against cybersquatting were added to the Lanham Act by the Anticybersquatting Consumer Protection Act ("ACPAâ) Pub. L. No. 106-113, 113 Stat. 1501 (1999).
. These websites include: fancast.co.uk, fan-cast.org, fancast.us, fancasteu, fancast.bz, fancast.cc, fancast.com, fancast.gs, fan-cast.ms, fancast.name, fancast.tc, fancast.tw, fancast. vg, fancast. ws, fancast.au, fan-cast.com.au, fancast.mobi, fancast.net.au, fancastnz, fancast.jp, fancast.la, fancast.br.com, fancast.kr.com, fancast.qc.com, fan-cast.za.com, fancast.es, fancast.eu.com, fancst.gb.com, fancast.uk.com, fan-cast.us.com, fancast.am, fancastfin, fan-cast.pro, fancasttel, fancast.cm, fancast.me, and fancast.co.nz.
. Comcastâs briefing offers no support for its affirmative defenses of fraud and unclean hands. Consequently Fancasterâs motion is deemed unopposed and the defenses are stricken.