Opinion ID: 201119
Heading Depth: 2
Heading Rank: 2

Heading: Application of the Remaining Seven Factors

Text: 54 Nonetheless, we also consider the other factors commonly used in the eight-part test. The first factor, similarity of marks, weighs in Beacon Mutual's favor. This factor is evaluated based on the the designation's total effect. Int'l Ass'n of Machinists, 103 F.3d at 203. Here, the marks use different fonts and colors, but a factfinder could reasonably find the total effect to be similar. In both sets of marks, the most salient word is Beacon and the only pictorial element is a lighthouse image. See 3 McCarthy § 23:44 (If the `dominant' portion of both marks is the same, then confusion may be likely, notwithstanding peripheral differences.). Moreover, OneBeacon's arguments that the marks are not confusingly similar are belied by the evidence of actual confusion. 55 The second factor, similarity of goods and services, also favors Beacon Mutual. OneBeacon conceded this point in its summary judgment papers before the district court and thus has abandoned any argument to the contrary. Both parties sell the same basic workers' compensation coverage in Rhode Island. Although OneBeacon's business extends to other states and other forms of insurance, a factfinder could reasonably conclude that those other lines of business do not dispel the potential for confusion in the Rhode Island market for workers' compensation insurance. See Volkswagenwerk Aktiengesellschaft v. Wheeler, 814 F.2d 812, 818 (1st Cir.1987) (finding similarity of goods and services between a shop specializing in Volkswagen repair and distributors that both sold and repaired Volkswagens). 56 Factors three (channels of trade), four (advertising), and five (classes of prospective purchasers) are often considered together because they tend to be interrelated. See Int'l Ass'n of Machinists, 103 F.3d at 204. It is not clear whether these factors favor either party. OneBeacon does not advertise its workers' compensation insurance in Rhode Island. And although Beacon Mutual and OneBeacon are selling to the same group of customers, i.e., employers in Rhode Island, it is uncontroverted, on summary judgment, that OneBeacon's customers are guided in their decisions by independent insurance agents who understand the difference between the two companies. 57 But the lack of confusion among OneBeacon agents does not establish conclusively that employers purchasing the insurance are not confused. Nor does it establish lack of confusion among the users of the insurance, i.e., employees, who may influence future purchases by employers. See 3 McCarthy § 23:7 (confusion of end-users who may influence buying decisions is relevant). Indeed, the record demonstrates that confusion does exist among employees. We further note that the record does not compel the inference that the customers — the majority of whom Attorney Lynch described in his affidavit as being small businesses with less than ten employees and premiums under $5,000 per year — are particularly sophisticated. 58 The seventh factor, intent in adopting the mark, is neutral. So far, there is no dispute that OneBeacon adopted its mark in good faith: the name was chosen based, in part, on the address of the company's corporate headquarters at One Beacon Street in Boston, and although OneBeacon was aware of Beacon Mutual's existence, it had a good-faith belief that the marks would not be confused. Under this circuit's precedents, however, this factor usually matters only where an alleged infringer copied a mark in bad faith; a converse finding of good faith carries little weight. I.P. Lund, 163 F.3d at 44; see Chrysler Corp. v. Silva, 118 F.3d 56, 59 n. 3 (1st Cir.1997). 59 The last factor, the strength of the marks, weighs in Beacon Mutual's favor. We look to the length of time the mark has been used, its renown in the plaintiff's field of business, and the plaintiff's actions to promote the mark. Star Fin. Servs. v. Aastar Mortg. Corp., 89 F.3d 5, 11 (1st Cir.1996). Here, Beacon Mutual's marks were in use for nine years before OneBeacon adopted its current name. Beacon Mutual's marks could reasonably be viewed as having state-wide recognition based on the company's 65% market share and the survey indicating that many Rhode Island consumers associate the mark The Beacon with Beacon Mutual. Moreover, Beacon Mutual invested over $1.3 million in promoting its marks in both 2000 and 2001. 5 60 The reasonable inferences, on summary judgment, work in favor of Beacon Mutual on the most critical factors in this case: evidence of actual confusion, similarity of marks, similarity of goods and services, and strength of marks. A factfinder could supportably conclude that there is a sufficient likelihood of confusion between the marks. The Lanham Act claim (Count I) and state common law claims (Counts II and III) survive summary judgment.