FI LED U. S . COURT OF AP PE ALS E L E V E N T H C IR C U IT June 20, 2008 T HOM AS K. KAHN CL E RK [ 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. 07- 15379 N on -A rgum entC al endar

________________________ D . C . D ocketN o. 06 -014 08 -C V -R W S -1 W E S T E RN U N I O N H O L D I N G S , I N C ., W E S T E RN U N I O N F I N A N C I A L S E R V I C E S , I N C ., I N T E R G R A T E D P A Y M E N T S Y S T E M S , I N C ., P l ai nt i ff s- C ou nt er D e f e n d a n ts - A p p e lle e s , v ersu s E A S T E RN U N I O N , I N C ., E U F I N A N C I A L S E R V I C E S , I N C ., Y O U N G C H O E , in d iv id u a lly a n d d /b /aC h e c k C a s h P lu s , E V I A N G R O U P , I N C ., E R I C Y O U N G , D ef endant s- C ou nt er C la im a n ts - A p p e lla n ts .

________________________ A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e N o r th e rn D is tr ic t o f G e o r g ia

_________________________ ( Ju n e 20, 2008)2

B efo re C A RN E S , B A R K E T T an d P R Y O R , C i rcu i tJu d g es. P E R C U R I A M: E a s te rn U n io n , E U F in a n c ia l S e rv ic e s , Y o u n g C h o e , E v ia n G r o u p , a n d E r ic Y ou ng appeal the sum m ary j ud gm enti n favor of W es t ern U ni on . T he di stri ct c o u r t c o n c lu d e d th a t E a s te rn U n io n in f r in g e d th e tr a d e m a rk s o f W e s te rn U n io n . W e a f f i r m. I . B AC KG RO UN D W e s t e rn U ni on ow ne d a num be rof r e gi s t e r e d tr a de m a rks f orthe

“ W E S T E RN U N I O N ” m a r k de pi c t e d i n a y e l l ow bl oc k f onton a bl a c k ba c kgr ound a s s oc i a t e d w i th m one y tr a ns f e ra nd m one y or de rs e rvi c e s . Y oung C hoe w a s the ow ner of C heck C as h P l us, a G eorgi a c orpo ra t i on thatoffe re d m on eytra nsfe r se rvi ce s a nd sol d m on eyorders and tra vel er s c hecks. C ho e e nt er ed an agency contra ctw i th W es t ern U ni on thatal l ow ed C ho e t o sel l W es t ern U ni on m on ey tr a ns f e ra nd m one y or de rs e r vi c e s a nd t o us e the m a rks ow ne d by W e s t e rn U ni on atfour st ores of C heck C as h P l us. C ho e a gree d n ott o sel l any other m on eyorder p ro d u ct s o r serv i ces. C hoe w a s r e gi s t e r e d w i th the S e c r e t a ry of S t a t e of G e or gi a a s the pr e s i de nt and chi ef exec ut i ve offi ce r of E as t ern U ni on , a G eorgi a c orpo ra t i on thatoffe re d mo n e y tr a n s f

e rs e r v i c e s , a n d a s h o l d i n g a l l c o rp o r a t e o f f i c e rp o s i t i o n s o f

EU3

F i nanci al S ervi ce s, a G eorgi a c orpo ra t i on thatoffe re d t ax prepara t i on and l oan se rvi ce s. C ho e w as the re gi st er ed agentfor both corpo ra t i on s a nd ac ce pt ed se rvi ce f o rth e c o rp o r a t i o n s a tth e a d d r e s s o f o n e o f h e rCh e c k Ca s h Pl u s s t o r e s . Th e s a me a d d r e s s wa s a l s o l i s t e d wi th th e Se c r e t a ry o f St a t e a s th e p r i n c i p a l o f f i c e o f EU F i n an ci al S erv i ces. F i ve m onths a f

t e rC hoe c ontr a c t e d w i th W e s t e rn U ni on, E r i c Y oung f i l e d a tr a de m a r k appl i c a t i on f orthe m a rk E A S T E RN U N I O N a nd l i s t e d hi m s e l f a s the c hi e f e xe c ut i ve of

f i c e rof E a s t e rn U ni on. Y oung s t a t e d on the appl i c a t i on tha tthe m a r k w a s a s s o c ia te d w ith th e is s u a n c e o f tr a v e le r s c h e c k s a n d s e rv ic e s f o rp a y r o ll acco u n t i n g an d t ax p rep arat i o n . C h eck C ash P l u s l at er ad v ert i sed m o n ey o rd ers, mo n e y tr a n s f

e r s , a n d tr a v e l e r s c h e c k s u n d e rth e n a me a n d ma rk EA STERN U N I O N . A tone C he c k C a s h P l us s t or e a nd i n a C he c k C a s h P l us br oc hur e , the E A S T E RN U N IO N m ark w as depi ct ed i n a ye l l ow bl ock fon ton a bl ac k backgrou nd . W hen i tl ea rned thatC heck C as h P l us w as se l l i ng prod uct s of E as t ern U ni on, W e s t e rn U ni on not i f i e d C hoe tha tthe s a l e s vi ol a t e d the a ge nc y c ontr a c ta nd de m a nde d tha tC hoe c e a s e us e of the E A S T E RN U N I O N m a rks a nd bl a c k a nd yel l o w trad e d ress. W he n C hoe di d notr e s pond t o i t s de m a nd, W e s t e rn U ni on t e rm i na t e d the agency agre em entand fi l ed a c om pl ai ntthatC ho e, E as t ern U ni on , and Y ou ng had4

c o m m itte d u n f

a irtr a d e p r a c tic e s in v io la tio n o f th e L a n h a m A c t a n d G e o r g iala w . 15 U . S . C . §§ 1114, 1125( a ) , 1125( c ) ; G a . C ode A nn. §§ 10- 1- 371–73, 10- 1- 45 1(b), 23 -2-55. W es t ern U ni on al l eged thatthe defendant s had com m i tt ed tr a d e m a r k a n d tr a d e d r e s s in f r in g e m e n t b yu s in g th e E A S T E RN U N I O N m a rk in com bi nat i on w i th a ye l l ow and b l ac k tra de dres s s i m i l art o thatused by W es t ern U ni on . W es t ern U ni on soug htt o enj oi n the defendant s f rom usi ng “ any nam e, de s i gna t i on orm a r k c ont a i ni ng the phr a s e E A S T E RN U N I O N ora ny othe rm a r k, w o rd , d esi g n at i o n , trad e d ress o r n am e si m i l ar t o th e W E S T E RN U N IO N ” m ark s. A f t e ra he a r i ng, the di s tr i c tc our te nt e r e d a pr e l i m i na ry i nj unc t i on tha tthe d e f e n d a n ts c e a s e u s in g th e E A S T E RN U N I O N m a rk . T h e d is tr ic t c o u r t la te rh e ld th e d e f e n d a n ts in c o n te m p t f

o rf a ilin g to c o m p ly w ith th e in ju n c tio n b u t d e c lin e d to i m po se sa nct i on s f

or thei r use of the m arks E U and E . U . T he di stri ctcourt a me n d e d th e p r e l i mi n a ry i n j u n c t i o n t o b a rd e f

e n d a n t s f r o m u s i n g th e ma rk s EU a nd E . U . T he di s tr i c tc our tl a t e rhe l d the de f e nda nt s i n c ont e m ptf

orvi ol a t i ng the a m e nde d pr e l i m i na ry i nj unc t i on. W es t ern U ni on fi l ed a m ot i on for s um m ary j ud gm ent . T he di stri ctcourt deni ed the sum m ary j ud gm entfor tra de dres s i nfri ng em ent , bu tgrant ed sum m ary j ud gm entfor tra dem ark i nfri ng em ent . T he di stri ctcourtconcl ud ed thatE as t ern U ni on us e d a m a r k “ de c i de dl y s i m i l a r ” t o the m a rk ow ne d by W e s t e rn U ni on a nd5

there w as a s ub st ant i al l i kel i ho od of consum erconfusi on . T he di stri ctcourt e n t e r e d a p e r m a n e n ti n

j u n c t i o n p r o h i b i t i n g th e u s e o f th e E AS T E RN U NI ON , E U, a n d E .U . m a r k s . I I . STA N D A R D S O F R EVI EW W e r e vi e w s um m a ry j udgm e ntde novo a nd vi e w the e vi de nc e i n the l i ght m o stfav o rab l e t o th e n o n m o v i n g p arty. A l l i an ce M et al s, In c. v . H i n el y In d u stri es, Inc. , 22 2 F . 3d 89 5, 89 7 (11 th C i r. 20 00 ). S um m ary j ud gm entshou l d b e e nt er ed w h e n th e r e is n o g e n u in e is s u e o f m a te r ia l f

a c t a n d th e m o v in g p a r ty is e n title d to j ud gm entas a m att erof l aw . F ed. R . C i v. P . 56 (c ). W e r evi ew the excl usi on of an a f f id a v it o f a n u n d is c lo s e d e x p e r t f o rab u s e o f

d is c r e tio n . C o o p e rv . S o u th e rn C o ., 39 0 F . 3d 69 5, 72 8 (11 th C i r. 20 04 ). I I I . DI S CUS S I ON T he de f e nda nt s , t o w hom w e w i l l r e f e rc ol l e c t i ve l y a s E a s t e rn U ni on, a r gue thatW es t ern U ni on w as no tent i t l ed t o sum m ary j ud gm entfor tra dem ark i nf r i nge m e nt . E a s t e rn U ni on a r gue s tha tthe di s tr i c tc our te rr one ous l y appl i e d the s a m e le g a l s ta n d a r d a s it u s e d to e v a lu a te th e r e q u e s t f o rth e p r e lim in a ry in

ju n c tio n , o v e r lo o k e d g e n u in e is s u e s o f m a te r ia l f

a c t, a n d e rr o n e o u s ly e x c lu d e d a n a f f id a v it of an un di sc l osed expert . W e di sa gree . W es t ern U ni on had t o est abl i sh thati t s m ark h ad pri ori ty a nd the m ark u se d6

b y E ast ern U n i o n w as co n fu si n g l y si m i l ar t o th e m ark o w n ed b y W est ern U n i o n so tha ti t“ c r e a t e d a l i ke l i hood of c onf us i on a m ong c ons um e r s a s t o the or i gi n of goods s ol d. ” A l l i a nc e , 222 F . 3d a t906. E a s t e rn U ni on doe s notdi s put e the pri ori ty of W es t ern U ni on t o the tra dem ark, bu tE as t ern U ni on deni es thatthere w a s a l i ke l i hood tha tc ons um e r s w oul d c onf us e the W E S T E RN U N I O N a nd E A S T E RN U N I O N m a r ks . W e a gr e e w i th the di s tr i c tc our ttha tthe r e w a s no ge nui ne i s s ue of

m a t e r i a l f

a c tr e ga r di ng the l i ke l i hood of c onf us i on be tw e e n the W E S T E RN U N IO N an dE A S T E RN U N IO N m ark s. T o r e s ol ve thi s c ontr ove r s y , the di s tr i c tc our ta s s e s s e d s e ve n f a c t or s : the s tr e ngth of

the m a r k; the s i m i l a r i ty of the s a l e s m e thods of

the pa r t i e s ; the s i m i l a r i ty o f

th e a d v e r t i s i n g m e th o d s u s e d b y th e p a r t i e s ; th e s i m i l a r i ty o f th e two m a r ks ; the s i m i l a r i ty of

the pr oduc t s a nd s e rvi c e s of f e r e d by the pa r t i e s ; the d e f e n d a n ts ’ in te n t w h e n u s in g th e m a rk ; a n d a c tu a l c o n f u s io n b e tw e e n th e m a rk s . S ee A l l i ance , 22 2 F . 3d at90 7. E as t ern U ni on offe re d n o evi dence t o cre at e a n i ss ue of fa ctas t o the fi rs tthree fa ct ors. T he evi dence es t abl i shed thatthe W es t ern U ni on m ark w as arbi tra ryand d es erved strong prot ec t i on ; bo th p art i es m arket ed the i rpr oduc t s thr ough s m a l l r e t a i l out l e t s t a r ge t e d t o r e a c h the s a m e gr oup of consum er s; and the part i es em pl oyed the sa m e a dv ert i si ng m edi um s. T he di stri ct c our ta l s o c onc l ude d tha tthe r e w a s no ge nui ne i s s ue of m a t e r i a l f

a c tr e ga r di ng the7

re m ai ni ng fa ct ors. T he m arks W E S T E RN U N IO N and E A S T E RN U N IO N w er e p a te n tly s im ila rin “ap p e a r a n c e , s o u n d a n d m e a n in g . . . a s w e ll a s th e m a n n e rin w h ich th ey [w er e] d isp laye d .” E . R em y M ar ti n & C o ., S .A . v . S h aw -R o ss In t’ l Im po rt s, Inc. , 75 6 F . 2d 15 25 , 15 31 (11th C i r. 19 85 ); se e, e. g. , F re hl i ng E nt er s. , Inc. v . In t ’ l S el ectG ro u p , In c. , 1 9 2 F . 3 d 1 3 3 0 , 1 3 3 7 (1 1 th C i r. 1 9 9 9 ). T h e p art i es al so advert i se d v i rtual l y i dent i ca l m on eyorder a nd m on eytra nsfe r s ervi ce s that c us t om e r s c oul d e a s i l y a ttr i but e t o one s our c e . S e e F r e hl i ng, 192 F . 3d a t1338; R e m y M a r tin , 7 5 6 F .2 d a t 1 5 3 0 . T h e u n d i s p u t e d f

a m i l i a r i ty o f

E a s t e rn Un i o n wi th th e WE S T E RN U NI ON m a r k a nd i t s w e l l - know n a f f i l i a t i on w i th m one y tr a ns f e rs e rvi c e s , i m i t a t i on of the W E S T E RN U N I O N m a r k , a n d r e p e a te dr e f u s a ls to d is c o n tin u e u s e o f a m im e tic m a r k e s t abl i s he d tha tE a s t e rn U ni on i nt e nde d t o c api t a l i z e on the r e put a t i on a nd i nf r i nge on the m a r ke tc r e a t e d by W e s t e rn U ni on. S e e F r e hl i ng, 192 F . 3d a t1340 ( “ I f i tc a n be s how n tha ta de f e nda nta dopt e d a pl a i nt i f f’ s m a rk w i th the i nt e nt i on of de r i vi ng a be ne f

i tf r om the pl a i nt i f

f’ s bus i ne s s r e put a t i on, thi s f a c ta l one m a y be e nough t o j us t i f

ythe i nf e r e nc e tha tthe r e i s c onf us i ng s i m i l a r i ty . ” ) . A l though W es t ern U ni on di d n otpres entevi dence of ac tual cust om erconfusi on , the di stri ct c our tc orr e c t l y c onc l ude d tha tpr oof of a c tua l c onf

us i on w a s notr e qui r e d w he n the o v e rw h e lm in g e v id e n c e r e g a r d in g th e r e m a in in g f a c to r s s u p p o r te d a ju d g m e n t in8

f a v o ro f W e s te rn U n io n . S e e M o n tg o m e ry v . N o g a , 1 6 8 F .3 d 1 2 8 2 , 1 3 0 2 ( 1 1 th C i r. 19 99 ) ( re fusi ng t o revers e afi nd i ng of a l i kel i ho od of confusi on betw ee n m ark s “ b ased m erel y o n th e ab sen ce o f ev i d en ce o f actu al co n fu si o n ”); see al so F r e hl i ng, 192 F . 3d a t1340 ( e vi de nc e of a c tua l c onf

us i on “ i s nota pr e r e qui s i t e , a nd th u s it is u p to in d iv id u a l c o u r ts to a s s e s s th is f a c to rin lig h t o f

th e p a r tic u la rf

a c ts of ea ch ca se ”) . T he di stri ctcourtdi d n oterr. T he di s tr i c tc our ta l s o di d notabus e i t s di s c r e t i on w he n i te xc l ude d the af fi davi tof Je ff

re y S hu st erm an. E as t ern U ni on fa i l ed t o d i sc l ose S hu st erm an as an expertand fai l ed t o p rovi de an expertre po rtdu ri ng the di sc ov ery per i od as r e q u ir e d b y F e d e r a l R u le o f C iv il P r o c e d u r e 2 6 ( a ) ( 2 ) a n d L o c a l R u le 2 6 .2 C .

“ B e c a us e the e xpe r tw i tne s s di s c ove ry rul e s a r e de s i gne d t o a l l ow both s i de s i n a c a s e to p r e p a r e th e irc a s e s a d e q u a te ly a n d to p r e v e n t s u rp r is e , ... c o m p lia n c e w ith R ul e 26 i s notm er el y a spi ra t i on al . ” C oo per, 39 0 F . 3d at72 8 (ci t at i on om i tt ed). I V . CONCL US I ON T h e su m m ary j u d g m en ti n fav o r o f W est ern U n i o n i s A FFI R M ED .