Opinion ID: 3039136
Heading Depth: 4
Heading Rank: 1

Heading: The beginning of the laches period

Text: [5] Our precedents do not define the standard of review for determining the starting date of a laches period. In an analogous circumstance, the question of when the statute of limitations begins to run for an action at law is reviewed de novo. See, e.g., Orr v. Bank of America, NT & SA, 285 F.3d 764, 780 (9th Cir. 2002). De novo review is thus appropriate here. [6] The undisputed record demonstrates that Creamery knew or should have known of possible customer confusion shortly after Smoker’s origination in 1976. Smoker has always displayed the words “Tillamook Country Smoker” on its products. Those products were complementary to Creamery’s products and sold through Creamery’s catalog, factory store, and website, even after the new “circle T” label was adopted in 1997. “A plaintiff is certainly put on notice [for laches] where for many years the parties had plants in the same city and plaintiff had many business contacts with TILLAMOOK COUNTRY v. TILLAMOOK COUNTY 17537 defendant.” 5 McCarthy on Trademarks and Unfair Competition § 31:38; see also Borg-Warner Corp. v. York-Shipley, Inc., 293 F.2d 88, 94 (7th Cir. 1961). Creamery argues that the laches clock should be delayed because Creamery’s and Smoker’s products did not share the same primary channel of distribution — supermarkets — until 1998. We rejected a similar argument in Grupo Gigante SA De CV v. Dallo & Co., 391 F.3d 1088 (9th Cir. 2004). In Grupo Gigante, a large Mexican grocery chain named “Grupo Gigante” filed a trademark infringement action against the owner of two small San Diego grocery stores named “Gigante Market.” Grupo Gigante had superior rights to the “Gigante” mark when the small stores opened in 1991, but waited until 1999 to bring suit, when the first Grupo Gigante stores opened in Southern California. Only at this point, Grupo Gigante argued, did the laches clock start to run because the “likelihood of confusion loom[ed] large.” Id. at 1103. We disagreed: That argument rings hollow in the light of Grupo Gigante’s argument that its mark already was well known in San Diego Country in 1991. Grupo Gigante cannot logically argue that it had established a protectable interest in the Gigante mark in the [defendant’s] trading area in 1991, but was not obliged to protect that interest until 1999. Id. [7] Similarly, Creamery had a protectable interest in 1976 when Smoker first adopted the “Tillamook Country Smoker” mark. Even though Creamery and Smoker may not have operated in the identical commercial channels at the time, the two companies were using similar marks on complementary products in the same geographical area, creating the prospect of confusion. Creamery had actual notice of Smoker’s allegedly 17538 TILLAMOOK COUNTRY v. TILLAMOOK COUNTY infringing mark soon after Smoker’s inception, thereby starting the laches period. Because the analogous state limitations period had long expired prior to Creamery’s filing in 2002, there is a presumption favoring Smoker’s laches defense. Diligence on Creamery’s part would have required it to speak up in 1976 or shortly thereafter.