Opinion ID: 2752247
Heading Depth: 2
Heading Rank: 1

Heading: History of the Prior Litigation

Text: In order to address the parties’ issue-preclusion dispute, it is first necessary to review the circumstances that gave rise to and were considered during the prior litigation involving the trademark-ownership issue. Axiom, Inc., is a Florida corporation that develops, manufactures, and sells medical products around the world. Axiom, Inc.’s “flagship” product is the DRX9000, a device that treats back pain. Axiom, Inc., also developed and marketed a similar device for treating neck pain called the DRX9000C or DRX9500. Between 2003 and 2005, Axiom, Inc., 2 See also Walter Int’l Prods., Inc. v. Salinas, 650 F.3d 1402, 1420 & n.14 (11th Cir. 2011). 3 Case: 13-13900 Date Filed: 11/17/2014 Page: 4 of 25 registered five trademarks related to these devices with the U.S. Patent and Trademark Office (“USPTO”). In December 2005, Axiom, LLC, was established in connection with a proposed sale of assets to a group of investors. Axiom, Inc., executed a Warranty Bill of Sale on February 19, 2007, transferring to Axiom, LLC, its “right, title and interest in and to all of [Axiom, Inc.’s] raw materials inventory, finished goods inventory, computer equipment, leasehold improvements, machinery, equipment, furniture, fixtures and goodwill.” The Bill of Sale was made retroactive to January 3, 2006. Following the creation of Axiom, LLC, both that company and Axiom, Inc., “became embroiled in a myriad of litigation fronts from competitors and regulatory bodies alike.” In one suit, styled North American Medical Corp. v. Axiom Worldwide, Inc., No. 1:06-cv-01678-CCH (N.D. Ga. July 14, 2006) (the “Atlanta Case”), North American Medical Corporation (“North American”), a competing manufacturer of spinal-pain medical devices, sued Axiom, Inc., for, among other things, trademark infringement. North American’s suit was filed on July 14, 2006—prior to the execution of the bill of sale, but after its effective date. Eventually, North American amended its complaint to add Axiom, LLC, as a party, and on January 27, 2009, Axiom, LLC, answered, asserting a variety of counterclaims—including a claim for infringement of its trademarks—against 4 Case: 13-13900 Date Filed: 11/17/2014 Page: 5 of 25 North American. While Axiom, Inc., was a co-defendant in North American’s original claims, it was not a party to Axiom, LLC’s counterclaim against North American. North American moved for partial summary judgment, arguing on the trademark issue that Axiom, LLC, lacked standing because Axiom, Inc., never transferred the trademarks to the LLC. Axiom, LLC, responded by arguing, among other things, that the bill of sale was intended to convey all of Axiom, Inc.’s assets to the LLC, including the trademarks. On June 25, 2010, the district court in Atlanta ruled in favor of North American, noting both that the USPTO records current at the time indicated Axiom, Inc., was the owner of the trademarks, and that “the 2007 Warranty Bill of Sale did not, by its terms, transfer Axiom Inc.’s trademarks, or any intellectual property rights, to Axiom LLC.” N. Am. Med. Corp. v. Axiom Worldwide, Inc., No. 1:06-cv-01678-CCH, slip op. at 8-9 (N.D. Ga. June 25, 2010) (ECF No. 846). Eventually, the parties voluntarily dismissed the Atlanta Case, but in doing so, the parties explicitly stipulated (and the court adopted) that the summary judgment order against Axiom, LLC, would remain binding. Id., slip op. at 2 (N.D. Ga. Apr. 13, 2012) (ECF No. 974). In sum, at the conclusion of the Atlanta Case, Axiom, Inc., was the recognized owner of the trademarks at issue here.