United States Court of Appeals
For the First Circuit
No. 05-2098
No. 05-2181
ATTREZZI, LLC,
Plaintiff, Appellee/Cross-Appellant,
v.
MAYTAG CORPORATION,
Defendant, Appellant/Cross-Appellee.
APPEALS FROM THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEW HAMPSHIRE
[Hon. Paul J. Barbadoro, U.S. District Judge]
Before
Boudin, Chief Judge,
Selya, Circuit Judge,
and Stahl, Senior Circuit Judge.
Edward A. Haffer with whom Sheehan Phinney Bass & Green,
P.A. was on brief for plaintiff.
James G. Goggin with whom Peter S. Black and Verrill Dana,
LLP were on brief for defendant.
January 27, 2006
BOUDIN, Chief Judge. Attrezzi, LLC, ("Attrezzi LLC") a
New Hampshire limited liability company, operates a single retail
store of the same name in Portsmouth, New Hampshire, specializing
in fine kitchen products and services. The proprietor, Jennifer
Slade, opened her shop's doors in June 2002, and at the same time
launched a website (www.attrezzinh.com) to support an anticipated
mail-order business. Slade obtained a New Hampshire trademark
registration for "Attrezzi" in November 2003.
Maytag, a well-known appliance maker, selected the same
word, "Attrezzi," in the spring of 2003 as the name for a new line
of small electric kitchen appliances that Maytag was preparing to
launch. Attrezzi LLC's line of products includes such appliances
although it does not carry Maytag's products. Before launching its
line, Maytag learned through the customary trademark investigation
that Attrezzi LLC was using the term for its business, and Maytag's
in-house trademark counsel warned that this created "a problem."
After higher management asked its in-house counsel to
"take another look," counsel reversed his position, and in March
2003 Maytag filed an "intent-to-use" application with the Patent
and Trademark Office ("PTO") to register Attrezzi as its trademark
for small electric appliances. The next month Maytag began to
promote the name as a sub-brand of "Jenn-Air," its "high-end house
mark"; it announced that its "Jenn-Air Attrezzi" line would include
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small electric kitchen appliances and might extend to "our own
coffee," "[b]ar ware, cups, glasses, [and] cutlery."
The PTO eventually approved Maytag's application (subject
to opposition) and gave public notice of this action. Attrezzi LLC
wrote to Maytag complaining of Maytag's use of the term Attrezzi
and filed a "use" service mark application of its own, with the
PTO, to register the term for retail store and online use for the
sale of kitchen and dining goods. Maytag responded to Attrezzi LLC
that there was no likelihood of customers confusing the source of
Jenn-Air Attrezzi branded products with the Attrezzi store.
In turn, Attrezzi LLC filed suit, in October 2003, in
federal district court in New Hampshire, charging Maytag with
violating the unfair competition provision of the Lanham Act, 15
U.S.C. § 1125(a) (2000),1 and New Hampshire's trademark
infringement, unfair competition, and trademark dilution statutes,
N.H. Rev. Stat. Ann. §§ 350-A:11-14, 358-A:2, 350-A:12 (1995 &
Supp. 2005). Attrezzi LLC requested a jury trial and sought
declaratory relief, a permanent injunction against the use of the
term Attrezzi, and enhanced damages, attorneys' fees and costs.
1
Section 1125(a) provides a cause of action for the use in
commerce of "any word, term, [or] name" which is "likely to cause
confusion, or to cause mistake, or to deceive as to the
affiliation, connection, or association of such person with another
person, or as to the origin, sponsorship, or approval of his or her
goods, services, or commercial activities by another person."
-3-
Prior to trial, the district court denied Attrezzi LLC's
motion for a preliminary injunction and Maytag's motion for summary
judgment. It also denied Maytag's motion to strike Attrezzi LLC's
jury demand, reserving the question until "after the case has been
completed," at which point, "[i]f [the court] determine[s] that
plaintiff does not have a right to a jury trial, [it] w[ould] treat
the jury's verdict as advisory pursuant to Fed. R. Civ. P. 39(c)."
In the meantime, in September 2004, Attrezzi LLC filed an
opposition before the PTO to Maytag's application to register
Attrezzi.
After a five-day trial in February 2005, the jury found
Maytag to have willfully infringed Attrezzi LLC's trademark and to
have caused damages of $5,400 (the cost of Attrezzi LLC's
opposition to Maytag's application before the PTO). After post-
trial proceedings, the district court granted a permanent
injunction against Maytag's use of the mark Attrezzi (but allowed
it a 12-month period to sell off stock so marked) and awarded
double damages ($10,800) and attorneys' fees.
Maytag now appeals from the judgment against it.
Attrezzi LLC cross-appeals, opposing the 12-month sell-off period
and the denial of certain litigation expenses. This court granted
unopposed motions for a stay of the injunction pending appeal and
for expedited consideration of the appeals. We begin with Maytag's
claims of error--that there was no right to a jury trial; that even
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if there were, the evidence did not permit findings necessary to
liability; and that the provision of the New Hampshire statute
providing for the award of attorneys' fees and enhanced damages is
preempted by the Lanham Act.
The jury trial issue deserves attention first because, in
its post-trial proceedings, the district judge said that in a bench
trial, he would have decided the case in Maytag's favor. His
reason was that, if he were the trier of fact, he would have found
the evidence insufficient in the present circumstances to establish
a likelihood of customer confusion as between Attrezzi and Jenn-Air
Attrezzi. Had the jury trial been disallowed, we would be
reviewing the evidence from the opposite perspective.
Maytag made a timely objection to a jury trial, which it
renewed in its motions for judgment as a matter of law. Its main
argument was that the injunctive action was equitable and that no
evidence supported a claim for damages. An infringement claim for
damages is a common-law rather than an equitable claim and such a
claim would be triable to a jury even if joined, as here, with a
request for equitable relief. Beacon Theatres, Inc. v. Westover,
359 U.S. 500, 508-11 (1959).
Here, Maytag's attack is solely on the sufficiency of the
evidence presented at trial to show monetary damages. We are thus
spared any consideration of how matters stood at the pleading and
summary judgment stages. Compare Laskaris v. Thornburgh, 733 F.2d
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260, 264 (3d Cir.), cert. denied, 469 U.S. 886 (1984), with
Hildebrand v. Bd. of Trs. of Mich. State Univ., 607 F.2d 705, 709-
10 (6th Cir. 1979).
Since the jury in this case found damages, Maytag's
attack must fail unless "reasonable persons could not have reached
the conclusion that the jury embraced." Sanchez v. P.R. Oil Co.,
37 F.3d 712, 716 (1st Cir. 1994). As we have said elsewhere, the
test "is a stringent one":
"[W]e must examine the evidence in the light
most favorable to the plaintiff and determine
whether there are facts and inferences
reasonably drawn from those facts which lead
to but one conclusion--that there is a total
failure of evidence to prove plaintiff's
case." Mayo v. Schooner Capital Corp., 825
F.2d 566, 568 (1st Cir. 1987) (quotation and
citation omitted). In reviewing the record,
we will evaluate neither the credibility of
the witnesses nor the weight of the evidence.
Santiago-Negron v. Castro-Davila, 865 F.2d
431, 445 (1st Cir. 1989).
Vázquez-Valentín v. Santiago-Díaz, 385 F.3d 23, 29 (1st Cir. 2004),
petition for cert. filed, 73 U.S.L.W. 3604 (U.S. Feb. 11, 2005)
(No. 04-1322).
In this instance, Maytag argues that there was never any
basis for Attrezzi LLC's claim of monetary damages because Attrezzi
LLC introduced no evidence of lost profits or damage to its
goodwill. And, although Attrezzi LLC did claim and obtained
damages reflecting the expense of opposing Maytag's PTO
application, Maytag says that this expense was unrecoverable
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because full relief including an injunction could have been granted
by the district court, making it unnecessary for Attrezzi LLC to
oppose Maytag's PTO application.2
It is true as a general matter that a patently
unnecessary expense would be avoidable damage and so not
collectible. See Restatement (Second) of Torts § 918 (1979).
Maytag argues that the opposition was unnecessary because the
district court could have granted injunctive relief. However,
fearing the repercussions of a PTO grant for the infringement claim
in district court, a competent lawyer could sensibly oppose
Maytag's PTO application. It is a matter of reasonable judgment
whether the precaution was legitimate; nothing indicates that
Attrezzi LLC's choice was unreasonable.
This brings us to the central issue on the appeal,
namely, Maytag's claim that at trial there was insufficient
evidence of a protectable mark and of likely customer confusion to
permit a verdict for Attrezzi LLC. Although our review of the
district court's rejection of the Rule 50(b) motions is de novo,
the question is whether any rational jury could have found for
Attrezzi LLC on the evidence presented. Sanchez, 37 F.3d at 716.
2
Conceivably, Maytag could have argued against the PTO
expenses on other grounds (e.g., that if the PTO expenses were
recoverable it was as equitable relief and not as "legal" damages,
cf. 5 McCarthy, McCarthy on Trademarks and Unfair Competition §
32:124, at 32-206 to 32-207 & nn.5-6 (4th ed. 2005)). We mention
the possibility only to make clear that we are not deciding
possible objections not presented.
-7-
Under governing case law, a trade name is safeguarded by
the Lanham Act only if the mark is "distinctive," a term of art
meaning that the mark must be arbitrary or "suggestive" or, if
merely "descriptive," must have acquired "secondary meaning."3 An
arbitrary or suggestive term, being "inherently distinctive," can
be appropriated by a first user, while a descriptive term is
subject to such appropriation "only if it has acquired 'secondary
meaning' by which consumers associate it with a particular producer
or source." Boston Beer Co. Ltd. P'ship v. Slesar Bros. Brewing
Co., 9 F.3d 175, 180 (1st Cir. 1993).
The jury found specially that Attrezzi LLC's use of the
name Attrezzi for its goods was a suggestive, rather than a
descriptive use, and that in any event the name had acquired
secondary meaning. Both findings are treated as determinations of
fact, Boston Beer, 9 F.3d at 180, and it is enough to qualify the
name for protection if either one is established. Here, a rational
jury could find the Attrezzi mark, as used to identify a service
selling kitchen appliances, utensils, and dinnerware, to be
suggestive.
3
"'A term is suggestive if it requires imagination, thought
and perception to reach a conclusion as to the nature of goods. A
term is descriptive if it forthwith conveys an immediate idea of
the ingredients, qualities or characteristics of the goods.'"
Equine Techs., Inc. v. Equitechnology, Inc., 68 F.3d 542, 544 (1st
Cir. 1995) (quoting Blinded Veterans Ass'n v. Blinded Am. Veterans
Found., 872 F.2d 1035, 1040 (D.C. Cir. 1989)).
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Under the "doctrine of foreign equivalents," a foreign
word is ordinarily translated into English to determine whether it
is suggestive or descriptive. See, e.g., Pizzeria Uno Corp. v.
Temple, 747 F.2d 1522, 1531-32 (4th Cir. 1984); see also 2
McCarthy, McCarthy on Trademarks and Unfair Competition § 11:34, at
11-66 (4th ed. 2005). The district court so charged the jury and
neither side contests the instruction. Attrezzi is an Italian word
meaning "tools." Maytag argues that the term is merely descriptive
as it relates to Attrezzi LLC's business, which consists of
selling, among other things, "chef's tools."
But Attrezzi translates as "tools," not "chef's tools";
as applied to kitchen implements and appliances, the term can
easily be viewed as suggesting a similarity, not an identity,
between ordinary workman's tools and electrical appliances or the
like used by a chef. It does not help Maytag that the PTO had
originally balked at Maytag's own application and then given way
when Maytag urged the PTO that Attrezzi was suggestive rather than
descriptive as applied to Maytag's kitchen appliances.
Alternatively, Maytag argues that the evidence did not
permit a rational jury to find "likelihood of confusion," as
required for trademark infringement and unfair competition actions.
The precise showing is proof "that the allegedly infringing
conduct"--here, Maytag's use of the mark Attrezzi--"carries with it
a likelihood of confounding an appreciable number of reasonably
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prudent purchasers exercising ordinary care." Int'l Ass'n of
Machinists & Aerospace Workers, AFL-CIO v. Winship Green Nursing
Ctr., 103 F.3d 196, 201 (1st Cir. 1996). The question of confusion
of non-customers, Beacon Mut. Ins. Co. v. OneBeacon Ins. Group, 376
F.3d 8, 16 (1st Cir. 2004), is not at issue here.
Attrezzi LLC did not advance an ordinary confusion claim,
i.e., one in which the claimant asserts that the infringer is
diverting the claimant's customers and free-riding on the
claimant's reputation and goodwill. Rather, its claim was one of
"reverse" confusion, by which Attrezzi LLC might be harmed by
purchasers misperceiving that Maytag--because of its use of the
term Attrezzi in its own advertising--was the source or sponsor of
Attrezzi LLC's goods and services. See DeCosta v. Viacom Int'l,
Inc., 981 F.2d 602, 608 (1st Cir. 1992) (endorsing the reverse
confusion concept), cert. denied, 509 U.S. 923 (1993).
In such a case, damage can result either because current
or prospective customers of the claimant associate the claimant's
product with an inferior product offered by the infringer, or
because the latter's use of the mark "saturates the market and
'overwhelms the senior user,'" such that "'the senior user loses
the value of the trademark, its product identity, corporate
identity, control over its goodwill and reputation, and ability to
move into new markets.'" 3 McCarthy, supra, § 23:10, at 23-36
(quoting Ameritech, Inc. v. Am. Info. Techs. Corp., 811 F.2d 960,
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964 (6th Cir. 1987)). Attrezzi LLC in fact argued at trial that
difficulties with Maytag's Attrezzi-branded products--whether the
complaints were atypical goes only to degree--were acknowledged
internally within Maytag and reinforced the danger that Attrezzi
LLC might be tarred with the same brush to the extent that
confusion existed.
Whatever the source or extent of such damage, the
requirement of likely confusion is common both to the ordinary
"forward" confusion claim and the "reverse" confusion variant urged
in this case. In assessing confusion, this circuit has resorted to
the consultation of a series of factors rather than any mechanical
formula. A representative list includes:
(1) the similarity of the marks; (2) the
similarity of the goods (or, in a service mark
case, the services); (3) the relationship
between the parties' channels of trade; (4)
the juxtaposition of their advertising; (5)
the classes of prospective purchasers; (6) the
evidence of actual confusion; (7) the
defendant's intent in adopting its allegedly
infringing mark; and (8) the strength of the
plaintiff's mark.
Winship Green, 103 F.3d at 201; see also Pignons S.A. de Mecanique
de Precision v. Polaroid Corp., 657 F.2d 482, 487 (1st Cir. 1981).
Here, both sides have points in their favor. Both use
the word Attrezzi and to this extent the marks are identical rather
than merely similar. On the other hand, Maytag uses the word only
in conjunction with the term Jenn-Air (i.e., Jenn-Air Attrezzi),
which could help diminish the chance of confusion. See Pignons,
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657 F.2d at 487. Yet since the alleged harm is reverse confusion,
to the extent Jenn-Air is itself the more recognized label the
linkage could actually aggravate the threat to Attrezzi LLC. A &
H Sportswear, Inc. v. Victoria's Secret Stores, Inc., 237 F.3d 198,
230 (3d Cir. 2000).
Turning to the overlap of products, Maytag fairly points
out that its Jenn-Air Attrezzi products are appliances while
Attrezzi LLC uses the Attrezzi term to represent its entire retail
business. But Attrezzi LLC itself sells small electric appliances
alongside its gourmet foods and dinnerware. This is not a case in
which two products are so dissimilar as to make confusion highly
unlikely; and the more similar the marks are, the less necessary it
is that the products themselves be very similar to create
confusion. 3 McCarthy, supra, § 23:20.1, at 23-73 to 23-74 & nn.1-
2 (collecting cases).
Channels of trade, advertising modes, and prospective
customers--a set of factors often considered together, see Winship
Green, 103 F.3d at 204--also cut both ways. Maytag is a national
manufacturer selling through stores and catalogues while Attrezzi
LLC operates a single retail store engaged in local sales. But
both use websites--Attrezzi LLC has customers in many states--and
searches using the terms Attrezzi or Jenn-Air Attrezzi turn up both
companies' websites. Both parties aim at basically the same high-
end customers, a point in favor of Attrezzi LLC, but conceivably
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customer sophistication could also ameliorate confusion, Pignons,
657 F.2d at 489.
Attrezzi LLC's evidence of actual confusion, often deemed
the best evidence of possible future confusion, Beacon Mut., 376
F.3d at 18, is limited but real: eight e-mails mistakenly sent to
it rather than Maytag through Attrezzi LLC's website (complaining
of problems with Jenn-Air Attrezzi products); testimony that the
New Hampshire store had received a dozen or so calls intended for
Maytag; and written declarations from two Attrezzi LLC customers
that they had been confused--for example:
I thought that Maytag operated Attrezzi as one
of a chain of retail shops. Part of the
reason for this belief is the distinctiveness
of the Attrezzi name. I figured that because
both companies were using the same name in the
kitchen products market, they must be related.
The "good faith" of the alleged infringer is yet another
factor. Here, although Maytag offered an innocent explanation for
disregarding the initial advice of its in-house counsel, the jury
seemingly concluded in its willfulness finding that Maytag was well
aware of a substantial risk of confusion and nonetheless decided to
gamble. On the other hand, there is some distance in a case like
this one between a company's knowing decision to risk a law suit
and a factual inference that customer confusion is likely.
Finally, the respective strengths of the junior and
senior marks--in a nutshell, their respective renown--are regarded
as relevant. Attrezzi LLC offered some evidence of regional
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success, showing that its retail business "has been mentioned or
featured" in publications such as the Boston Globe and Accent
Magazine, and that it received an award from Business NH magazine
in 2003 for its Attrezzi branding campaign. Maytag showed large
national expenditures to promote Jenn-Air Attrezzi; yet in a
reverse confusion case, the relatively greater strength of a junior
user like Maytag may hurt, rather than help, its defense. See A &
H Sportswear, 237 F.3d at 230-31.
Maytag appears to argue on appeal that because the
Attrezzi mark was suggestive rather than arbitrary, it was
therefore inherently weak. This is not a proposition supported by
any First Circuit case law and its logic is not apparent to us.
The factors commonly considered as to strength--e.g., wide
recognition, efforts to promote, see Beacon Mut., 376 F.3d at 19--
are concerned with practical matters and not the legal
classification of the mark.
In sum, this is not a clear-cut case as to confusion.
Perhaps, like the district judge, we might as factfinders have come
out the other way, but we see no way to describe the jury's
liability verdict as irrational. Civil juries have their benefits
and their risks. Nor is there any hint of a strongly partisan jury
in this case: in the end, no vast damages were awarded; Maytag
will simply have to find another word than Attrezzi to couple to
its Jenn-Air brand.
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Maytag's final argument--attacking the award of
attorneys' fees and double damages--rests on the fact that the
federal statute provides for attorneys' fees only "in exceptional
cases," and permits the court in its discretion to award enhanced
damages "subject to principles of equity." 15 U.S.C. § 1117(a).
New Hampshire, by contrast, provides attorneys' fees as a matter of
course and only to plaintiffs, and offers enhanced damages
automatically upon a showing that the violation was willful or
knowing. N.H. Rev. Stat. Ann. § 358-A:10.
Maytag's argument is that the federal statute ought to be
treated as preempting the deviating state rule as to attorneys'
fees and enhanced damages. Attrezzi LLC says that Maytag forfeited
this argument by waiting until after trial to make it; but both
attorneys' fees and enhancement of damages are decided by the judge
rather than the jury, see Carter v. Lachance, 766 A.2d 717, 719
(N.H. 2001), and Maytag made the preemption-of-remedy argument at
the appropriate time, namely, when the district court was asked to
make the awards.
The Lanham Act does not say expressly that it preempts
state unfair competition law as to attorneys' fees or enhanced
damages, but Maytag argues that two theories of implied preemption
govern in this case: preemption of the "field" and so-called
"conflict" preemption:
When Congress intends federal law to "occupy
the field," state law in that area is
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preempted. . . . [Preemption also occurs]
where it is impossible for a private party to
comply with both state and federal law, and
where "under the circumstances of [a]
particular case, [the challenged state law]
stands as an obstacle to the accomplishment
and execution of the full purposes and
objectives of Congress."
Crosby v. Nat'l Foreign Trade Council, 530 U.S. 363, 372-73 (2000)
(citations omitted). Our review is de novo. Hotz v. Blue Cross &
Blue Shield of Mass., Inc., 292 F.3d 57, 59 (1st Cir. 2002).
It is settled that the Lanham Act does not in general
preclude state unfair competition statutes from operating, see
Keebler Co. v. Rovira Biscuit Corp., 624 F.2d 366, 372 & n.3 (1st
Cir. 1980), so "field" preemption is a dubious argument. Indeed,
it is common practice for federal and state statutes to operate in
the same field--anti-discrimination laws are a classic example--
even though their terms may be somewhat different and state law may
be more favorable to the plaintiff. See, e.g., Dichner v. Liberty
Travel, 141 F.3d 24, 30-31 (1st Cir. 1998).
Thus, conflict preemption is the more apt rubric.
Because there is no issue here of inconsistent commands to a party,
the question is whether New Hampshire's laxer standard for an award
of attorneys' fees or its mandatory award of enhanced damages
undermines the policy of the federal statute. New Hampshire, of
course, has adopted a remedial policy different from Congress' own,
but it has done so with respect to its own statutory cause of
action and not that provided by the Lanham Act.
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The New Hampshire statute does create a stronger
incentive for plaintiffs to bring unfair competition suits against
trademark infringers by making attorneys' fees for the plaintiffs
automatic on success and by enhancing damages more readily than
under the federal statute. Congress' use of a less favorable
incentive structure for federal suits was deliberate: enhanced
damages were from the outset left to the judge's discretion, and
when Congress amended the Lanham Act in 1975 to permit attorneys'
fees, Pub. L. No. 93-600, 88 Stat. 1955 (1975), it deliberately
made them discretionary and evenhandedly available to both sides.4
But it is accepted that Congress did not prohibit state
unfair competition statutes that might have substantive terms
somewhat more favorable to plaintiffs than the Lanham Act. See
Keebler, 624 F.2d at 372 n.3. That is apparently not true of New
Hampshire's statute in this case--at least, neither party has
argued as much--but it is not unusual in other types of protective
statutes. See, e.g., Coady Corp. v. Toyota Motor Distribs., Inc.,
361 F.3d 50 (1st Cir. 2004). In this sense, to complain in this
4
Not only are Congress' fee-shifting statutes often more
favorable to law suits than is section 1117(a), compare, e.g., 42
U.S.C. § 1988 (2000), but there is even a trace of legislative
history in the 1975 amendment explaining that the availability of
the fee-shifting provision to prevailing defendants will "provide
protection against unfounded suits brought by trademark owners for
harassment and the like," S. Rep. 93-1400, 1974 U.S.C.C.A.N. 7132,
7136 (Department of Commerce statement).
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case about the modest deviation in remedial benefits favorable to
plaintiffs is to swallow the camel but strain at the gnat.
Admittedly, trademark protection has great potential to
affect interstate commerce, as this case illustrates (e.g., both
parties' use of the internet, and Maytag's national advertising).
Excessive protection--even if not biased in favor of local
residents--can compromise interstate commerce just as easily as
inadequate protection. The concerns here are perhaps greater than
in cases where state law provides more protection than federal law
against local employment discrimination or supposed abuse of local
dealers by national car makers.
Nevertheless, Congress has not instituted a full-scale
federal regulatory scheme, like the Clean Water Act's discharge
permitting regulations in Int'l Paper Co. v. Ouellette, 479 U.S.
481, 494-97 (1987); or created an intricate and targeted sanctions
regime against a foreign government in "a deliberate effort to
steer a middle path," as in Crosby, 530 U.S. at 377-80; or
instituted "uniform national standards," as for automobile safety
in Wood v. General Motors Corp., 865 F.2d 395, 412 (1st Cir. 1988),
cert. denied, 494 U.S. 1065 (1990). In all these cases, state
deviations, including attempts to provide greater protection for
putative plaintiffs, were deemed to upset a carefully constructed
regulatory compromise.
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By contrast, the Lanham Act primarily provides a federal
forum for what is in substance a traditional common-law claim. If
state substantive regimes are (ordinarily) not preempted by the
Lanham Act, neither is New Hampshire's tinkering with the remedial
components. The only other circuit case cited to us on this issue
agrees with this view. Tonka Corp. v. Tonk-A-Phone, Inc., 805 F.2d
793, 794-95 (8th Cir. 1986); cf. Brunswick Corp. v. Spinit Reel
Co., 832 F.2d 513, 527-29 (10th Cir. 1987) (assuming validity of
separate attorneys' fee rules under state deceptive trade practices
statute).
We turn now to Attrezzi LLC's cross-appeal. The company
first urges that the district judge erred in allowing Maytag a 12-
month sell-off period for any existing stock bearing the Jenn-Air
Attrezzi mark. Review is for abuse of discretion, Anderson ex rel.
Dowd v. City of Boston, 375 F.3d 71, 91 (1st Cir. 2004), and there
is obviously a rationale for avoiding the wastefulness of renaming
or junking existing stock--especially where diversion of sales from
the plaintiff is unlikely.
Attrezzi LLC urges that it was unreasonable for the
district judge to give any latitude to an infringer who had been
found by the jury to have acted willfully, and it cites a couple of
decisions that have denied sell-off periods to willful infringers.
E.g., Berkshire Fashions, Inc. v. Sara Lee Corp., 729 F. Supp. 21,
21-22 (S.D.N.Y. 1990). We assume, as he did himself, that the
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district judge was obliged to accept the jury's finding of
willfulness in deciding what equitable relief to grant.5
The jury instructions permitted the jury to base its
willfulness finding on "deliberate indifference"; so the jury
finding, in light of the evidence, is certainly compatible with a
decision by Maytag to take a deliberate risk in what it thought was
a debatable case. Maytag is paying a stiff price in wasted
advertising expenses; there is no indication that the risk of harm
to Attrezzi LLC's service mark is likely to increase appreciably
because of the additional 12 months of Maytag's competing use; and
we think that the district judge acted within his discretion.
Attrezzi LLC's other main claim on its cross-appeal is
that the district court failed to award it the proper amount of
"the costs of the suit and reasonable attorney's fees, as
determined by the court" to which a prevailing party is entitled
under the New Hampshire statute. N.H. Rev. Stat. Ann. § 358-A:10.
In particular, Attrezzi LLC claims that it incurred litigation
expenses, including for attorney travel (e.g., for depositions) and
computer-assisted research, which it identified in its post-
judgment submission but which were not awarded to it.
5
Cf. Perdoni Bros., Inc. v. Concrete Sys., Inc., 35 F.3d 1, 5
(1st Cir. 1994) ("'[W]hen a party has a right to a jury trial on an
issue involved in a legal claim, the judge is of course bound by
the jury's determination of that issue as it affects his
disposition of an accompanying equitable claim.'" (quoting Lincoln
v. Bd. of Regents of Univ. Sys. of Ga., 697 F.2d 928, 934 (11th
Cir.), cert. denied, 464 U.S. 826 (1983))).
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Attrezzi LLC did receive an award of the full amount of
its time-based attorneys' fees ($239,675.00), albeit without an
upward adjustment it sought. It is unclear whether the district
court intended to disallow the separate items now in issue, or
overlooked them (Attrezzi LLC did not ask the court to reconsider
on this ground), or thought they would be considered by the court
clerk as part of an award of costs. Maytag suggests the latter,
urging that an appeal on this issue is premature, but then says
that these items are not recoverable costs anyway--citing federal
practice.
True enough, expenses for items such as attorney travel
and computer research are not deemed "costs" within the meaning of
the federal statute that provides for recovery of costs by a
prevailing party. 28 U.S.C. § 1920 (2000). But such items may be
recovered where appropriate as part of attorneys' fees under the
typical federal fee-shifting statute. See, e.g., InvesSys, Inc. v.
McGraw-Hill Cos., 369 F.3d 16, 22-23 (1st Cir. 2004) (interpreting
the federal Copyright Act, 17 U.S.C. § 505 (2000)); Palmigiano v.
Garrahy, 707 F.2d 636, 637 (1st Cir. 1983) (interpreting 42 U.S.C.
§ 1988 (2000)). No such federal statute applies here, but whether
the New Hampshire statute covers such items, either as "costs" or
as part of attorneys' fees, is a matter that neither party has
troubled to brief.
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We think that the cleanest way to resolve the uncertainty
is to affirm the district court's judgment without prejudice to a
prompt renewed request by Attrezzi LLC to the district court as to
the omitted expense items. That court can say in the first
instance whether it intends to award such costs and in what amount
or whether it proposes to deny them and if so why. In addition, it
can if it chooses obtain from the parties briefing on how New
Hampshire's statute may apply to such items, either as costs or as
part of attorneys' fees.
In closing, Attrezzi LLC also makes two other requests.
One is for a "remand to award Attrezzi the amount of profits on the
infringing sales that occurred since the trial." The request,
presented in a single sentence at the end of the section of its
brief attacking the sell-off period and reprised in a single
sentence in the "Conclusion" paragraph, is not seriously presented
and we do not consider it. Mass. Sch. of Law v. Am. Bar Ass'n, 142
F.3d 26, 43 (1st Cir. 1998).
The other request is for "new attorneys' fees and costs
incurred in prosecuting this appeal." A request for attorneys'
fees in this court should be presented by separate motion to us
following our decision, stating the basis for the claim, the amount
sought, supporting it through conventional records, and providing
the legal basis for the award--to all of which the opponent may
respond. Cf. Fed. R. App. P. 38; 1st Cir. R. 38.
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The judgment of the district court is affirmed but
without prejudice to a prompt renewed request by Attrezzi LLC to
the district court for the previously sought items of litigation
expense and a new appeal by either side from that disposition if
either side is dissatisfied with the resolution. We need not
reserve jurisdiction; if such a new "clean-up" appeal is filed, our
clerk should direct it to the present panel.
It is so ordered.
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