FILED U.S. COURT OF AP P EALS E LEVEN T HC IRC U IT OCTOB ER 2, 2006 THOMAS K. KAH

N CLERK [ DO NO T P UB L I S H] I N THE UN I TE D STATE S C OU RT OF APPE ALS F O R T H E E L E V E N T H C IR C U IT

________________________ N o. 05- 14824

________________________ D. C. Do c k e tNo . 0 4 - 2 0 4 2 2 - CV- J LK B A V A R O P A L A C E , S .A ., af o r e ig n c o rp o r a tio n , P l ai nt i ff -C ou nt er D e f e n d a n t- A p p e lla n t, B A V A R O B E A C H , S .A ., af o r e ig n c o rp o r a tio n , e t a l., P l ai nt i ffsC o u n te r - D e f

e n d a n ts , v ersu s V A C A T I O N T O U R S , I N C ., a .k .a . V a c a tio n S to r e o f M ia m i, I n c ., V A C A T I O N T O U R S O F S O U T H B E A C H , I N C ., ad is s o lv e d F lo r id ac o rp o r a tio n , R O S A N N A M E T Z - M E N D E Z , a n in d iv id u a l, A L E X A N D R A A L V A R E Z , a n in d iv id u a l, D ef endant s- C ou nt er C la im a n ts - A p p e lle e s .Th eHo no ra bleWilli am T erre ll H odg e s, Unite d State s D ist ri c t Judg efo r t

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( O c t ob e r 2, 2006) B ef ore T JO F L A T and C A RN E S , C i rc ui tJudg es and H O D G E S , D i stri ctJudg e. * C A RN E S , C i rc ui tJudg e: T he pl ai nt i ff

, B avar o P al ac e, appeal s the di stri ctcourt ’ s e ntryof fi nal j udgm e nton a l l c l a i m s i n f a vorof the de f e nda nt s , V a c a t i on T our s a nd R os a nna M e t z - M e nde z . T he e ntry of j udgm e ntf

ol l ow e d abe nc h tr i a l . W e a f f i rm the di stri ctcourton the L anham A ctand A nt i cybers qu att i ng C on sum erP rot ec t i on A ct c l a i m s , butw e va c a t e the di s tr i c tc ourt ’ s de c i s i on on the F l or i daD e c e pt i ve a nd U nf a i rT r a de P r a c t i c e s A c tc l a i m a nd r e m a nd f ore ntry of

f a c tf i ndi ngs a nd c o n c lu s io n s o f

la w in c o m p lia n c e w ith R u le 5 2 ( a ) o f th e F e d e r a l R u le s o f

C iv il P roce du re . I. T he B a r c e l ó B a va r o P a l a c e i s one of f i ve hot e l s i n ac om pl e x know n a s the B a r c e l ó B a va r o B e a c h R e s ortl oc a t e d on B a va r o B e a c h i n the P unt aC a nar e gi on of3

th e D o m in ic a n R e p u b lic . O pened i n 1 99 2, the ho t el i s partof an i nt ernat i on al c h a in o w n e d a n d o p e r a te d b y th e p la in tif f , B a v a r o P a la c e , S .A . T h e B a r c e ló Ba v a r o Pa l a c e i s ma rk e t e d u n d e ratw o - t i e ra d v e rt i s i n g s y s t e m. T he fi rs tt i er t a r ge t s c orpor a t e c l i e nt s a nd i nvol ve s the di s tr i but i on of pa m phl e t s , br oc hur e s a nd pr om ot i ona l vi de os . T he s e c ond t i e rof pr om ot i on i s thr ough “ c o- op m a rke t i ng” w here autho ri ze d d i stri bu t ors w ork t og ether t o m arketce rt ai n h ot el s usi ng pri nt ed a d s , b r o c h u r e s , te le v is io n a n d r a d io . In the j oi ntpretri al st i pu l at i on s, the part i es agre ed thatthe prop ernam e of the ho t el i s “ B ar ce l ó B avar o P al ac e. ” V ac at i on T ou rs i s aw ho l es al e and re t ai l tra vel agencyoffe ri ng tra vel p a c k a g e s to th e D o m in ic a n R e p u b lic a n d o th e rlo c a tio n s . I t h a s o f f ic e s in b o th M i am i B ea ch and C oral G abl es , F l ori da. In pastye ar s, V ac at i on T ou rs contra ct ed w i th the pl a i nt i f

f’ s pa r e ntc om pa ny t o be c om e a n author i z e d di s tr i but orf or a c c o m m o d a tio n s a t th e B a r c e ló B a v a r o P a la c e . Th o s e c o n tr a c t s e n d e d s o me t i me betw ee n 2 00 2 and 20 03 . W hi l e V ac at i on T ou rs i s no l on ger a n autho ri ze d d ea l er f o rth e p la in tif

f , it is f o rs e v e r a l h o te ls in th e a r e ath a t c o m p e te w ith th e p la in tif f . E v e n a f te rth e d is tr ib u to r s h ip a g r e e m e n t d is s o lv e d , V a c a tio n T o u r s c o n tin u e d to b o o kro o m s atth e B arcel ó B av aro P al ace fo r i t s cu st o m ers th ro u g h o th er ag en ci es, su ch as H o t el B ed s an d G o G o T o u rs. T he pl a i nt i f

f c l a i m s tha tV a c a t i on T our s e nga ge d i n a“ ba i ta nd s w i t c h”4

s c h e m e w h e r e b yit w o u ld c o n v in c e c u s to m e r s w h o s p e c if ic a lly r e q u e s te d aB a r c e ló br a nd hot e l t o r e s e rve r oom s w i th ac om pe t i ng pr ope rty i ns t e a d. T h e tr ia l c o u rt, h o w e v e r , f

o u n d th a t V a c a tio n T o u r s h o n o r e d s p e c if ic c u s to m e rr e q u e s ts , e v e n if it m e a n t b o o k in g ah o te l th a t it d id n o t p r o m o te . I n 2 0 0 1 ac o n s u l t a n tf

o rV a c a t i o n To u r s r e g i s t e r e d th e d o ma i n n a me ba va r opa l a c e . c om t o a dve rt i s e the B a r c e l ó B a va r o P a l a c e a nd c om pe t i ng hot e l s on B a v a r o B e a c h . T h e w e b s ite lis ts th e p h o n e n u m b e r s f o rV a c a tio n T o u r s . C l i c ki ng o n th e in d iv id u a l h o te ls a ls o d ir e c ts b r o w s e r s to V a c a tio n T o u r s ’ p h o n e n u m b e r s . V a c a tio n T o u r s d o e s n o t u s e th e te rm “b a v a r o p a la c e .c o m ” a s a n y p a rt o f its b u s in e s s n a m e . O n F e brua ry 1, 2004, V a c a t i on T our s r a n as e r i e s of a dve rt i s e m e nt s i n T he M i am i H er al d and E l N uevo H er al d for t ou r pac kages thati ncl ud ed ac com m od at i on s a tthe B ar ce l ó B avar o P al ac e. T he advert i se m ent s i ncl ud ed V a c a tio n T o u r s ’ p h o n e n u m b e r s a n d th e w e b a d d r e s s , b a v a r o p a la c e .c o m . T wo days l at er , a prom ot i on s and m arket i ng re pres ent at i ve for the pl ai nt i ff tra vel ed f r om the D om i ni c a n R e publ i c t o M i a m i t o m e e tw i th R os a nnaM e t z - M e nde z , the p r e s id e n t, c h ie f

o f f ic e r , a n d s o le d ir e c to ro f V a c a tio n T o u r s . T he r e pr e s e nt a t i ve as ked M et z- M endez t o st op runn i ng the pri ntads, and she agree d. T he part i es di s put e w he the rthe r e pr e s e nt a t i ve a l s o a s ke d M e t z - M e nde z t o di s c ont i nue us e of5

th e w e b a d d r e s s . T he pl a i nt i f f a s s e rt s tha the di d but M e tz - M e n d e z d e n ie s th a t. O n F e b ru a ry 5 , 2 0 0 4 , th e a d a g a in r a n in T h e M ia m i H e r a ld . T he pl ai nt i ff sen ta cease an d d esi stl ett er o n F eb ru ary 1 1 , 2 0 0 4 , d em an d i n g th atw i th i n tw o d ays of r e c e i ptV a c a t i on T our s s e nd w r i tt e n c onf i rm a t i on tha ti tha d s t oppe d us i ng the b a v a r o p a la c e .c o m w e b a d d r e s s . V a c a t i on T our s di d notr e s pond t o the l e tt e ra nd c o n tin u e d to u s e th e d o m a in n a m e . O n F ebruary20 , 20 04 , the pl ai nt i ff fi l ed a c om pl ai ntagai nstV ac at i on T ou rs a nd M e t z - M e nde z , a l l e gi ng, a m ong othe rthi ngs , vi ol a t i ons of the L a nha m A c t , the A nt i c ybe r s qua tt i ng C ons um e rP r ot e c t i on A c t , a nd the F l or i daD e c e pt i ve a nd U n f a irT r a d e P r a c tic e s A c t ( “F D U T P A ” ) . V a c a t i on T our s f i l e d ac ount e r c l a i m , but it w a s v o lu n ta r ily d is m is s e d d u r in g tr ia l. A ft era three day bench tri al , the court e n te r e d ju d g m e n t in f

a v o ro f th e d e f e n d a n ts o n a ll c la im s . T he di s tr i c tc ourtf ound thatthe pl ai nt i ff

fa i l ed t o i ntrodu ce evi dence attri al i nd i ca t i ng thatthe ho t el w as a d v e rtis e d o rp r o m o te da s “B a v a r o P a la c e ” w ith o u t th e “B a r c e ló ” m o d if ie r . A ll m a rk e tin g m a te r ia ls o f

f e r e d b y th e p la in tif

f r e f e rr e d to th e h o te l a s th e “B a r c e ló B av aro P al ace, ” an d th ati s h o w th e h o t el i s k n o w n i n th e i n d u stry. T he di stri ct c o u rtf o u n d n o e v i d e n c e th a tth e h o t e l h a d e v e rb e e n ma rk e t e d u n d e rth e n a me

“ B avar o P al ac e. ” T h e d i stri ctco u rtco n cl u d ed fro m th e ev i d en ce th at“ B av aro P al ace” w as a6

de s c r i pt i ve m a rk, c om pos e d of the ge ogr aphi c t e rm “ B a va r o, ” w hi c h r e f e r s t o a s p e c if ic s e g m e n t o f

b e a c h , c o m b in e d w ith th e g e n e r ic in d u s try te rm “p a la c e ,” w h ic h m e a n s a n u p s c a le h o te l. T he c ourtr e a s one d tha tthe pl a i nt i f f c oul d not pr e va i l on i t s L a nha m A c tc l a i m be c aus e i tc oul d s how ne i the rs e c onda ry m e a ni ng n o rlik e lih o o d o f

c o n f u s io n . T he courtal so det erm i ned thatthe pl ai nt i ff had fai l ed t o p rove any of the el em ent s nec es saryfor i t s A nt i cybers qu att i ng C on sum er P r o te c tio n A c t c la im . A l th o u g h th e d i s tr i c tc o u rtf a i l e d t o d i s c u s s th e FD U TPA cl ai m i n i t s o p i n i o n , i td i d en t er j u d g m en tfo r V acat i o n T o u rs o n al l co u n t s. II. W e r evi ew a di stri ctcourt ’ s c on cl usi on s of l aw de no vo , and w e r evi ew f i ndi ngs of

f a c tf orc l e a re rr or . M i T e k H ol di ngs , I nc . v. A r c e E ng’ g C o. , I nc . , 89 F . 3d 1548, 1554 ( 11th C i r . 1996) . R ul e 52( a ) r e qui r e s tha tthe f a c t s be f ound s pe c i f i c a l l y a nd tha tthe c onc l us i ons of l a w be s t a t e d s e pa r a t e l y ; the purpos e of tho se re qu i re m ent s i s t o “ prov i de a s uffi ci ent l y def i ni t e pre di ca t e f

or prop er appe l l a t e r e vi e w . ” H y dr os pa c e - C ha l l e nge r , I nc . v. T r a c or/ M A S , I nc . , 520 F . 2d 10 30 , 10 33 –3 4 (5th C i r. 19 75 ). III. A. T h e L a n h a m A c t u n f

a irc o m p e titio n c la im a r is e s u n d e r1 5 U .S .C . § 1 1 2 5 ( a ) .7

I n o r d e rto e s tab lis h ap r o te c t ab le m a rk , ap la in tif f m u s t s h o w th a t th e m a rkis e i the ri nhe r e nt l y di s t i nc t i ve orha s a c qui r e d s e c onda ry m e a ni ng. M ont gom e ry v. N og a, 16 8 F . 3d 12 82 , 13 00 (11th C i r. 19 99 ). B ec ause the m ark i n thi s c as e w as noti nhe r e nt l y di s t i nc t i ve , the pl a i nt i f f’ s c a s e de pe nde d on s how i ng tha ti tha d se cond ary m eani ng , defi ned as “ the conn ec t i on i n the consum er ’ s m i nd betw ee n th e m a rka n d th e p r o d u c t’s p r o d u c e r .” G if t o f L e a rn in g F o u n d ., I n c . v . T G C , I n c ., 3 2 9 F .3 d 7 9 2 , 8 0 0 ( 1 1 th C ir . 2 0 0 3 ) . W e have hel d thatthe “ [p] l ai nt i ff has the bu rden of sust ai ni ng a hi gh degree of pr oof i n e s t abl i s hi ng as e c onda ry m e a ni ng f orade s c r i pt i ve t e rm . ” I nve s t a c orp, I n c . v . A r ab ia n I n v . B a n k in g C o rp . ( I n v e s tc o rp ) E .C ., 9 3 1 F .2 d 1 5 1 9 , 1 5 2 5 ( 1 1 th C i r. 19 91 ). T here ar e f

ou r f ac t ors t o con si der i n d et erm i ni ng w hether am ark h as ac qu i re d sec on darym eani ng : “ (1) the l ength and m anner of i t s use ; (2) the nature a n d e x te n t o f

a d v e rtis in g a n d p r o m o tio n ; ( 3 ) th e e f f o rts m a d e b y th e p la in tif f to pr om ot e ac ons c i ous c onne c t i on i n the publ i c ’ s m i nd be tw e e n the na m e a nd the p la in tif f’s p r o du c t o rb u s in e s s ; a n d ( 4 ) th e e x te n t to w h ic h th e p u b lic a c tu a lly i de nt i f i e s the na m e w i th the pl a i nt i f f’ s pr oduc torve ntur e . ” C ona gr aI nc . v. S in g le to n , 7 4 3 F .2 d 1 5 0 8 , 1 5 1 3 ( 1 1 th C ir . 1 9 8 4 ) . T h e d is tr ic t c o u rt p r o p e r ly d e te rm in e d th a t th e a c tu a l p r o te c t ab le n a m e is “B a r c e ló B a v a r o P a la c e ,” w h ile th e a s s e rte d m a rk , “B a v a r o P a la c e ,” is m e r e ly8

desc ri pt i ve. “ B avar o” re fe rs t o a spec i fi c s ec t i on of beach i n the P un t a C ana a re a of the D om i ni c a n R e publ i c , a nd “ P a l a c e ” i s ac om m on i ndus try t e rm f orahi gh- e nd hot e l . T he di s tr i c tc ourtc onc l ude d tha tthe pl a i nt i f f ha d f a i l e d t o e s t abl i s h the ne c e s s a ry c ons um e rc onne c t i on be tw e e n the m a rk a nd the hot e l , a s a l l m a rke t i ng m a t e r i a l s a nd e ve n the s i gn on the hot e l i t s e l f r e a d “ B a r c e l ó B a va r o P a l a c e ” not

“ B avar o P al ac e. ” T here i s s i m pl y no sec on darym eani ng i n the m ark “ B avar o P al ac e. ” W e s e e no c l e a re rr ori n the di s tr i c tc ourt ’ s de t e rm i na t i on tha tboth the i ndus try a nd the publ i c a tl a r ge know the hot e l a s the “ B a r c e l ó B a va r o P a l a c e , ” nor in its c o n c lu s io n th a t th e r e is n o p r o te c t ab le in te r e s t in th e a s s e rte d m a rk“B a r c e ló P a l a c e . B e c aus e the r e w a s no pr ot e c tabl e i nt e r e s ti n the a s s e rt e d m a rk, the consum erconfusi on anal ys i s i s i m m at er i al . G i ftof L earni ng F ou nd . , 32 9 F . 3d at 8 0 1 ( “T h e c o n f

u s io n th a t p la in tif

f c la im s e x is ts is irr e le v a n t u n le s s th e m a rkis p r o te c t ab le in th e f

ir s t in s ta n c e .” ) . B. T he di s tr i c tc ourtdi d note rri n r e j e c t i ng the pl a i nt i f

f’ s A nt i c ybe r s qua tt i ng C on sum erP rot ec t i on A ct(“ A C P A ”) , 15 U . S . C . § 1 12 5(d), cl ai m . T o p re vai l un der the A C P A , apl a i nt i f

f m us tpr ove tha t( 1) i t s m a rk i s di s t i nc t i ve orf a m ous a nd e n title d to p r o te c tio n ; ( 2 ) th e d e f e n d a n t’s d o m a in n a m e is id e n tic a l o rc o n f u s in g ly9

s im ila rto th e p la in tif

f’s m a rk ; a n d ( 3 ) th e d e f e n d a n t r e g is te r e d o ru s e d th e d o m a in na m e w i th aba d f

a i th i nt e ntt o pr of

i t . S hi e l ds v. Z uc c a r i ni , 254 F . 3d. 476, 482 ( 3d C ir . 2 0 0 1 ) . T h e d is tr ic t c o u rt d id n o t c le a r ly e rrin th e f a c t f in d in g s u n d e r ly in g its c o n c lu s io n s th a t th e p la in tif f h a d n o t p r o v e n a n y o f

th e th r e e e le m e n ts n e c e s s a ry to m a k e o u t av iab le A C P A c la im . A n y e rr o rin th e d is tr ic t c o u rt’s th in k in g th a t a m a rk m us tbe both di s t i nc t i ve a nd f a m ous f orthe s e purpos e s i s ha rm l e s s . T he pl a i nt i f f f a i l e d t o pr ove tha tthe m a rk “ B a va r o P a l a c e ” w a s e i the rdi s t i nc t i ve or f a m o u s , a n d a s w e h a v e n o te d , it is n o t e n title d to p r o te c tio n a s ad e s c r ip tiv e m a rk . N o rd id th e p la in tif

f e s tab lis h th a t “b a v a r o p a la c e .c o m ” w a s c o n f u s in g ly s im ila rto

“ B ar ce l ó B avar o P al ac e” or thatV ac at i on T ou rs ac t ed w i th b ad fa i th. T he di stri ct c o u rtp r o p e r l y d i s mi s s e d th i s c l a i m. C. Th e d i s tr i c tc o u rta l s o e n t e r e d j u d g me n ta g a i n s tth e p l a i n t i f f o n th e FD U TPA c l a i m . B e c aus e the c ourtdi d note xpl a i n i t s r e a s oni ng, how e ve r , w e do notknow th e b a s is f

o rits ru lin g . T he F l or i das t a tut e pr ot e c t s a ga i ns ta ny “ [ u] nf a i rm e thods of

c om pe t i t i on, unc ons c i onabl e a c t s orpr a c t i c e s , a nd unf a i rorde c e pt i ve a c t s orpr a c t i c e s i n the c o n d u c t o f

a n y tr a d e o rc o m m e r c e . . . .” F la . S ta t. A n n . § 5 0 1 .2 0 4 ( 1 ) ( W e s t 2 0 0 6 ) .1 0

W e s a i d i n G i f

tof L e a rni ng, 329 F . 3d a t802, tha taF D U T P A c l a i m f a i l s w he r e the pl ai nt i ff i s unabl e t o sho w a prot ec tabl e m ark, bu tthatca se focuse d o n tra dem ark in f r in g e m e n t a n d d id n o t in v o lv e a n y a lle g a tio n s o f a“b a it a n d s w itc h ” s c h e m e . I d . a t 7 9 7 . A F lo r id ac o u rt h a s y e t to ap p ly th is s ta tu te to f a c ts lik e th e s e . S t i l l , thi s C ourtnot e d pa r e nthe t i c a l l y i n G i f tof L e a rni ng “ tha tthe a na l y s i s of th e F lo r id as ta tu to ry a n d c o m m o n la w c la im s o f tr a d e m a rkin f

r in g e m e n t a n d u n f

a ir com pet i t i on i s the sa m e a s und erthe fe dera l tra dem ark i nfri ng em entcl ai m . ” I d. at 802 ( c i t i ng I nve s t a c orp I nc . , 931 F . 2d a t1521) ; s e e a l s o P l a ne t a ry M ot i on, I nc . v. T ec hspl osi on , Inc. , 26 1 F . 3d 11 88 , 11 93 n. 4 (11 th C i r. 20 01 ) ( “ C ou rt s m ayuse an a na l y s i s of

f e de r a l i nf

r i nge m e ntc l a i m s a s a‘ m e a s ur i ng s t i c k’ i n e va l ua t i ng the m e r i t s of s t a t e l aw c l a i m s . ” ) . F D U T P A s pe c i f i c a l l y not e s tha t“ due c ons i de r a t i on a nd gr e a tw e i ghts ha l l be gi ve n t o the i nt e rpr e t a t i ons of the F e de r a l T r a de C o m m is s io n a n d th e f

e d e r a l c o u rts ,” F la . S ta t. A n n . § 5 0 1 .2 0 4 ( 2 ) ( W e s t 2 0 0 6 ) . T h e C o d e o f

F e d e r a l R e g u la tio n s d e f in e s “b a it a d v e rtis in g ” a s : an al l uri ng bu ti nsi ncer e off ert o sel l a produ ctor se rvi ce w hi ch th e a d v e rtis e rin tru th d o e s n o t in te n d o rw a n t to s e ll. I ts pu rpose i s t o sw i t ch consum er s f rom bu yi ng the advert i se d m er chandi se , i n o rdert o sel l som ethi ng el se , usual l y a ta hi gh er pr i c e oron aba s i s m or e a dva nt a ge ous t o the a dve rt i s e r . T he p r im a ry a im o f

ab a it a d v e rtis e m e n t is to o b ta in le a d s a s to p erso n s i n t erest ed i n b u yi n g m erch an d i se o f th e typ e so a dve rt i s e d. 1 6 C .F .R . § 2 3 8 .0 ( 2 0 0 6 ) . A d d itio n a lly , th e F lo r id ale g is la tu r e ’s p u rp o s e in1 1

dr a f t i ng F D U T P A m a y gui de the di s tr i c tc ourt ’ s de c i s i on aboutthi s c l a i m . T he st atu t e w as en act ed “ [t ] o p ro t ectth e co n su m i n g p u b l i c an d l eg i t i m at e b u si n ess e nt e rpr i s e s f

r om thos e w ho e nga ge i n unf a i rm e thods of

c om pe t i t i on, or unc ons c i onabl e , de c e pt i ve , orunf a i ra c t s orpr a c t i c e s i n the c onduc tof a ny tr a de or c o m m e r c e .” F la . S ta t. A n n . § 5 0 1 .2 0 2 ( 2 ) ( W e s t 2 0 0 6 ) . B e c aus e the di s tr i c tc ourtf a i l e d t o s e toutf

i ndi ngs of

f a c taboutthe al l egat i on s thatV ac at i on T ou rs ran a “ bai tand sw i t ch” s chem e and di d n otspec i fy the concl usi on s of l aw un derl yi ng i t s dec i si on abou tthatcl ai m , w e vac at e the part o f th e d e c is io n d is p o s in g o f th e F D U T P A c la im a n d r e m a n d it f o rc o m p lia n c e w ith R ul e 52(a). T h e j u d g m en to f th e d i stri ctco u rti s A FFI R M ED i ns of a ra s i tc onc e rns the L a n h a m A c t a n d A n tic yb e r s q u a ttin g C o n s u m e rP r o te c tio n A c t c la im s , b u t it is V AC AT E D i ns of

a ra s i tc onc e rns the F l or i daD e c e pt i ve a nd U nf a i rT r a de P ract i ces A ctcl ai m , an d th e case i s R EM A N D ED for f urther procee di ng s r el at ed to th a t c la im a s s p e c if

ie d in th is o p in io n .