CollegeNET, Inc. v. Google Inc.
Filing
40
Reply Memorandum in Support of to Motion to Dismiss Pursuant to Fed. R. Civ. P. 12(b)(1), (6) 19 Oral Argument requested. Filed by Google Inc.. (Caruso, Margret)
CollegeNET, Inc. v. Google Inc.
Doc. 40
Kenneth R. Davis II, OSB No. 971132 davisk@lanepowell.com
Parna A. Mehrbani, OSB No. 053235
mehrbanip@lanepowell.com
LANE POWELL PC
601 SW Second Avenue, Suite 2100
Portland, Oregon 97204-3158
Telephone: 503.778.2100
Facsimile: 503.778.2200
Margret M. Caruso (admitted pro hac vice) margretcaruso@quinnemanuel.com QUINN EMANUEL URQUHART & SULLIVAN, LLP 555 Twin Dolphin Drive, 5th Floor Redwood Shores, CA 94062
Telephone: 650.801.5101
Facsimile: 650.801.5100
Attorneys for Defendant Google Inc.
UNITED STATES DISTRICT COURT
DISTRICT OF OREGON
PORTLAND DIVISION
COLLEGENET, INC.,
Plaintiff,
v.
No.3:10-cv-01211-HU
Defendant, Google Inc.' s
REPLY MEMORANDUM IN SUPPORT OF ITS MOTION TO DISMISS
PURSUANT TO FED. R. CIV. P.12(b)(1), (6)
GOOGLE INC.,
Defendant.
ORAL ARGUMENT REQUESTED
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100
PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.7782200
Dockets.Justia.com
TABLE OF CONTENTS
Page
INTRODUCTION ................................................................................................ ...........................1
RELEVANT BACKGROUND FACTS .........................................................................................2
ARGUMENT...................................................................................................................................3
i. THERE IS NO CASE OR CONTROVERSY.....................................................................
3
A. Post-Medlmmune Authority Supports That Google's Actions Do Not
Justify Finding A Case Or Controversy. .................................................................4
B. The Authority CollegeNET Relies Upon Supports The Inadequacy Of An
Intent-To-Use Application To Establish A Case Or Controversy...........................6
C. An Intent-To-Use Application Does Not Justify Finding A Case Or
Controversy. ................................................................................. ...... .....................8
D. CollegeNET Fails to Distinguish Precedent Holding An Intent- To-Use
Application Insufficient To Establish Jurisdiction. ...................... ........................... 9
II. COLLEGENET'S VARIOUS PROCEDURAL ARGUMENTS DO NOT
SALVAGE ITS PREMATURE LAWSUIT ............................................ .........................11
III. THE COMPLAINT MUST BE DISMISSED FOR FAILURE TO STATE A CLAIM BECAUSE IT FAILS TO ALLEGE ANY ACTIONABLE USE IN COMMERCE ....................................................................................................................12
CONCLUSION ......... ............. .............................................................. .... ...... ..... .............. ............16
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TABLE OF AUTHORITIES
Page
Cases
AARP v. 200 Kelsey Assocs., 2009 WL 47499 (S.D.N.Y. Jan. 8,2009) ..........................................................................6, 7, 9
Americopters, LLC v. F.A.A.,
441 F.3d 726 (9th Cir. 2006) .....................................................................................................5 Bertolli USA, Inc. v. Filippo Bertolli Fine Foods, Ltd., 662 F. Supp. 203 (S.D.N.Y. 1987) ..........................................................................................14
Commodore Electronics. Ltd. v, CBM Kabushiki Kaisha, 26 U.S.P.Q. 2d 1503 (T.T.A.B. 1993).......................................................................................8
Essie Cosmetics, Ltd. v. Dae Do International, Ltd., 808 F. Supp. 952 (E.D.N.Y. 1992)..........................................................................................14
Geisha, LLC v. Tuccillo 525 F. Supp. 2d 1002.............................................................................................4,5,9, 10, 12
Kassab Jewelers, Inc. v. C. Kassab Designs, LLC, No. Civ. 05-265-MO,
2005 WL 12789382 (D. Or. May 25, 2005) ............................................................................13
L.H v, Schwarzenegger, 645 F. Supp. 2d 888 (E.D. CaL. 2009) .......................................................................................5
Macia v, Microsoft Corp. , 152 F. Supp. 2d 535 (D. Vt. 2001) ............................................................................ 8,9, 10, 12
Maritz, Inc. v. Cybergold, Inc., 947 F. Supp. 1328 (E.D. Mo. 1996) ........................................................................................14 McCarthy v. United States, 850 F .2d 558 (9th Cir. 1988) .....................................................................................................5
MedImmune, Inc. v, Genentech, Inc., 549 U.S. 118 (2007) ................................................................................................3, 4, 6, 9, 10
National Federation of
the Blind, Inc. v. Loompanics Enterprises, Inc.,
936 F. Supp. 1232 (D. Md. 1996)............................................................................................14
Playboy Enters., Inc, v. Netscape Commc'ns Corp., 354 F.3d 1020 (9th Cir. 2004) .................................................................................................10
Rescuecom Corp. v. Google Inc., 562 F .3d 123 (2d Cir. 2009) .............................. ........................................................... ...........10
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Rexel, Inc, v. RexelInt'1 Trading Corp.,
540 F. Supp. 2d 1154 (C.D. CaL. 2008) ..................................................................... 8,9, 10, 12
Robinson v. United States, 586 F.3d 683 (9th Cir. 2009) .................................................................................................3, 5
Safe Air for Everyone v. Meyer, 373 F.3d 1035 (9th Cir. 2004) .................................................................................................1 1
Sierra Applied Sciences, Inc. v, Advanced Energy Industries, Inc.,
363 F.3d 1361 (Fed. Cir. 2004) .................................................................................................4
Sprewell v. Golden State Warriors, 266 F .3d 979 (9th Cir. 2001) ............... ....... ................. ................... ........ ........ ........................... 5
Standard Oil Co, v, Standard Oil Co.,
56 F.2d 973 (10th Cir. 1932)...................................................................................................13
Sun Valley Gasoline, Inc. v, Ernst Enterprises, Inc"
711 F.2d 138 (9thCir. 1983)...................................................................................................11
United Am, Indus., Inc, v. Cumberland Packing Corp" No. CV-06-1833-PHX-FJM, 2007 WL 38279 (D. Ariz. Jan. 5,2007).....................8,9, 10, 12
Vantage Trailer Corp. v. Beall Corp,
567 F.3d 745 (5th Cir. 2009) ..............................................................................................4,5, 9
Wells Fargo & Co. v. Wells Fargo Exp. Co.,
556 F.2d 406 (9th Cir. 1977) ...................................................................................................12
Western Bank v. Western Bancoporation, 617 P.2d 258 (Or. App. 1980) .................................................................................................13
Wham-O Inc. v. Manley Toys, Ltd., 92 U.S.P.Q. 2d 1750,2009 WL 6361387 (C.D. CaL. 2009)..........................................9,10,12
Young v. Vannerson,
612 F. Supp. 2d 829 (S.D. Tex. 2009)...............................................................................6, 7, 9
Statutes
15 U.S.C.
§ 1 051 (d).....................................................................................................................................8
Federal Rules of Civil Procedure Rule 12(b)(1) ...........................................................................................................................5 Rule 12(b)(6) .........................................................................................................................11
Miscellaneous
Charles Alan Wright & Arthur R. Miller,
5B Federal Practice and Procedure § 1350 (3d ed. 2004) .........................................................5
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Senate Judiciary Comm. Rep. on S. 1883, S. Rep. No. 515, 100th Cong., 2d Sess. 24-25 (1988), reprinted in United States Trademark Association, The Trademark Law Revision Act of
1988 176-77 (1989)...................................................................................................................5
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Introduction
As is evident from CollegeNET's Complaint, there is no definite and concrete dispute
between the parties. CollegeNET's action for trademark infringement is predicated on a product
that CollegeNET does not even allege exists, does not allege was offered for sale, and does not
allege was advertised. Aside from alleging the Google has filed an intent-to-use application for
the SPEEDBOOK mark, CollegeNET's Complaint fails to identify any other activity Google has
undertaken regarding the SPEEDBOOK mark. Thus, the Complaint presents only a hypothetical
question based on Google's assumed use of the SPEEDBOOK mark in an undefined way in
connection with the sale of undefined computer hardware, at an undefined price point, marketed
through undefined channels, using undefined marketing materials. Because these "facts" are too
conditional to permit meaningful evaluation and a definitive declaration of rights, no actual case
or controversy exists and subject matter jurisdiction is lacking.
In addition, CollegeNET's speculation about Google's use of the SPEEDBOOK mark is
wrong-both as to the imminence of any use of the mark and as to the hardware that it might be
used with. The Chrome OS tablet computer that is the centerpiece of CollegeNET's speculation,
and the subject of the media reports it cites, is not why Google filed its intent-to-use application;
Google is not even considering using the SPEEDBOOK mark with the Chrome OS tablet and
has never considered using the mark for that purpose. Internet rumors to the contrary based on
two isolated and unrelated pieces of information do not change this fact. Nor do they provide
any justification for finding a case or controversy or valid cause of action.
Irrespective of whether a case or controversy exists sufficient to establish subject matter
jurisdiction, CollegeNET's trademark infringement claims must be dismissed for failure to state
a claim because the Complaint does not allege a critical element-that Google has used the
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SPEEDBOOK mark in commerce. CollegeNET concedes there is no such allegation, and it fails
to cite any precedent holding that use in commerce is not an element of a trademark infringement
action.
Relevant Background Facts
CollegeNET has not alleged that Google:
. advertised a product called "Speedbook,"
. solicited any customers for a product called "Speedbook,"
. shipped, or is ready to ship, units of a product called "Speedbook,"
. has a prototype of a computer hardware product called "Speedbook,"
. printed packaging or labels using the SPEEDBOOK mark, or
. solicited licensees to distribute a product called "Speedbook."
Instead, CollegeNET conclusorily alleged: "On information and belief, Google intends to launch
sales of a computing device under the SPEEDBOOK mark on November 26, 2010" and "On
information and belief, Google has already taken concrete steps in furtherance of its intention to
launch sales of a personal computing device under the SPEEDBOOK mark." Compl. ~~ 26,27.
CollegeNET does not identify what alleged "concrete steps" Google has allegedly taken.
Based on media reports about the launch of such a tablet computer running a Chrome
Operating System, CollegeNET argues that Google will use the SPEEDBOOK mark on the
Chrome OS tablet. (See Opp. Br. at 3.) Judging from the timing of the media reports relating to
the Chrome OS computer and the intent-to-use application, CollegeNET assumes that the two
pieces of information must be related. They are not. See Perry Decl. ~ 4, Ex. C. Google's
intent-to-use application was not filed for the purpose of using SPEEDBOOK in connection with
a Chrome Operating System tablet. Id. And Google has not-with regard to a Chrome OS tablet
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to any other computer hardware contemplated by Google--offered to sell, advertised,
distributed, or sold any products or services in connection with the SPEED
BOOK mark, nor has
it entered into any agreements to manufacture, provide, advertise, distribute, offer, or sell any
product or service, in whole or in part, in connection with the SPEEDBOOK mark. Rubin Decl.
(Dkt. No. 24) ,~ 5, 7, 8.
Argument
I. THERE IS NO CASE OR CONTROVERSY
CollegeNET cannot bear its burden of proving that subject matter jurisdiction exists in
these facts. Robinson v. United States, 586 F.3d 683,685 (9th Cir. 2009) ("Once challenged, the
party asserting subject matter jurisdiction has the burden of proving its existence.") (citation
omitted). For a court to have jurisdiction, the parties' dispute must be "definite and concrete,"
"real and substantial" and "of sufficient immediacy and reality to warrant the issuance of a
declaratory judgment." MedImmune, Inc. v. Genentech, Inc., 549 U.S. 118, 127 (2007) (citations
and quotations omitted). Consistent with Article III of the U.S. Constitution, the court may not
issue "an opinion advising what the law would be upon a hypothetical state of facts." Id.
CollegeNET concedes that the MedImmune standard controls, but seeks exactly what
MedImmune prohibits: an opinion advising what the law would be upon a hypothetical set of
facts-i.e., if Google makes plans to proceed in a certain way regarding the SPEEDBOOK mark,
sets those plans in motion, and is prepared to carry them out, would successful implementation
of those hypothetical plans be likely to cause confusion among CollegeNET's elite set of
customers and potential customers? This is too abstract a question to qualify as anything but one
seeking an advisory opinion.
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A. Post-Medlmmune Authority Supports That Google's Actions Do Not Justify
Finding A Case Or Controversy.
Judicial decisions following MedImmune confirm that more is required to establish a case
or controversy than filing an intent-to-use application and undefined "concrete steps" toward use.
For example, in Geisha, LLC v. Tuccillo, the defendant had filed an intent-to-use application for
a stylized "JAPONAIS" mark, had "played around with" ideas for the menu, and had attempted
to find a location for the restaurant. 525 F.Supp.2d 1002, 1007 (N.D. IlL. 2007). The court
concluded that notwithstanding the defendant's undisputed intent to use the mark, his intent was
too lacking in specificity or immediacy to justify a declaratory judgment. Id. at 1015-16. Similarly, in Vantage Trailer Corp, v. Beall Corp, the Fifth Circuit affirmed the dismissal
of a declaratory judgment action even though the potential infringer had "worked with an
engineer on product development, beg(u)n construction of a new manufacturing facility,
purchased specialized equipment, built a sub-frame, and offered to sell its new model trailers."
567 F.3d 745, 749 (5th Cir. 2009). Although the potential infringer unequivocally intended to
complete and sell its trailers, the court confirmed that the allegedly infringing use needed to be
sufficiently definite at the time the complaint was filed to permit a meaningful evaluation of the
likelihood of confusion, and it was not. Id. at 750. The Fifth Circuit reasoned that the district
court had appropriately relied on a decision that had concluded that no immediate and real
controversy existed where "(b )ecause the design was fluid on the date the complaint was filed, it
was impossible to determine--on that date-whether any eventual design ... would infringe (the)
patents." Id. (quoting Sierra Applied Sciences, Inc. v. Advanced Energy Industries, Inc., 363
F.3d 1361 (Fed. Cir. 2004)).
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As in Geisha, Vantage Trailer, and Sierra Applied Sciences, at the time CollegeNET filed
its complaint-and today-any use Google may make of SPEEDBOOK in the future is
insufficiently defined to present a real and immediate threat or permit a meaningful evaluation of
likelihood of confusion. This is true even from the face of the Complaint. Paragraph 26 of the
Complaint, alleging upon information and belief that Google would launch a SPEEDBOOK
product on Nov. 26, 2010, need not be credited. See Court's October 15, 2010 Order (Dkt. No.
27); L.H v. Schwarzenegger, 645 F.Supp.2d 888, 891 n.1 (E.D. CaL. 2009) (noting it is
unnecessary for a court to take judicial notice of its own orders). Nor does Paragraph 27's
conclusory allegation that on "information and belief, Google has already taken concrete steps in
furtherance of its intention to launch sales of a personal computing device under the
SPEEDBOOK mark," because it fails to identify what specific concrete steps Google has
allegedly taken. E.g., Sprewell v. Golden State Warriors, 266 F.3d 979, 988 (9th Cir. 2001)
(holding the court is not required to accept as true "allegations that are merely conclusory,
unwarranted deductions of fact").
Because Google's motion to dismiss for lack of sufficient case or controversy is a motion
brought under Rule 12(b)(1) of the Federal Rules of Civil Procedure, the Court's analysis of the
sufficiency of the case or controversy allegations "is not confined by the facts contained in the
four corners of the complaint-it may consider facts and need not assume the truthfulness of the
complaint." Americopters, LLC v. F.A.A., 441 F.3d 726, 732 n.4 (9th Cir. 2006); see also
Robinson v. United States, 586 F.3d at 685 (holding "(n)o presumptive truthfulness attaches to
plaintiffs allegations" in a Rule 12(b)(1) motion) (citations omitted); McCarthy v. United States,
850 F.2d 558, 560 (9th Cir. 1988), Charles Alan Wright & Arthur R. Miller, 5B Federal Practice
and Procedure § 1350 (3d ed. 2004). As further demonstrated in the Declarations of Google
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Vice President Andy Rubin (Dkt. No. 24), Google has no SPEEDBOOK computer, will not
release one this year, and has not engaged in the sort of pre-sale commercial uses of a mark that
can
justify subject matter jurisdiction. Id. at~' 5,7,8.
B. The Authority CollegeNET Relies Upon Supports The Inadequacy Of An
Intent-To-Use Application To Establish A Case Or Controversy.
In its Opposition Brief, CollegeNET discusses two opinions that found "sufficient
immediacy" to warrant finding jurisdiction in support of its argument that an actual immediate
controversy exists between the parties. (See Opp. Br. at 16-17.) Both aligned themselves with
pre-MedImmune precedent, which one opinion characterized as providing "a useful framework
for determining when a dispute is of sufficient 'immediacy and reality' to constitute a
controversy." AARP v. 200 Kelsey Assocs., 2009 WL 47499 *8 (S.D.N.Y. Jan. 8,2009); accord
Young v. Vannerson, 612 F. Supp. 2d 829, 843 (S.D. Tex. 2009). As this precedent
demonstrates, on one side of the line-the unripe controversies-are cases in which "a party has
not yet identified a name or location of a business, has not conducted any sales activity, or has
not secured the necessary components for production." 612 F. Supp. 2d at 843-44; accord 2009
WL 47499 *8. On the other side of the line-where the case or controversy requirement is
satisfied-are cases in which the junior user "has taken steps such as producing prototypes or
samples of the allegedly infringing products, soliciting business from and sending advertising to
potential customers, or otherwise investing significant funds in preparation to produce the
products." 612 F. Supp. 2d at 844; accord 2009 WL 47499 *9.
Consistent with these guideposts, the Young v. Vannerson court found a case or
controversy where the junior user had allegedly filed an intent-to-use application, expended
considerable sums to develop and market the marks, designed and produced decals and T-shirts
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using the marks, contracted with a manufacturing company to produce decals and T-shirts with
the marks, produced samples of other products incorporating the marks, and tested the market
with these samples. 612 F. Supp. 2d at 845-46. Significantly, the Young defendants had also
threatened to sue the plaintiffs for use of
Vince Young's developed (but unregistered) trademarks
using his initials and "invincible" slogan. Id.; see also id. at 837-38, 840. Thus, the Young
defendants were also, in essence, brick-and-mortar cybersquatters.
Similarly, the AARP court found that the disagreement between the parties had "taken on
fixed and final shape so that a court can see what legal issues it is deciding, what effect its
decision will have on the adversaries, and some useful purposes to be achieved in deciding
them." 2009 WL 47499, at *4 (citation omitted). After the American Association of Retired
Persons discontinued using the "Modern Maturity" title on its membership magazine, the
defendants filed an intent-to-use application for "Modern Maturity," a "(m)agazine published
periodically in the field of mature lifestyles." Id. at * 1. When the Trademark Trial and Appeal
Board rejected defendants' application, they petitioned to cancel plaintiffs registered mark. Id.
The defendants also actively sought licensees to publish a magazine called "Modern Maturity"
and conducted an extensive analysis of the publishing industry. Id. at *2. Assuming that the
defendants had already "made a number of concrete decisions concerning the proposed content,
design, and layout," the court concluded that the controversy warranted the issuance of
declaratory judgment. Id. at *9.
Unlike the facts in Young and AARP, CollegeNET has not alleged that Google threatened
it with an infringement suit or tried to cancel its trademark registration, and has not alleged that
Google produced any allegedly infringing prototypes or sought licensees for the SPEEDBOOK
mark. In sum, CollegeNET does not allege any specific actions Google took regarding the
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SPEEDBOOK mark in the United States other than filing an intent-to-use application.
Therefore, this action squarely fits with the long-standing precedent that an intent-to-use
application is not enough to give rise to a case or controversy. See United Am. Indus., Inc. v.
Cumberland Packing Corp., No. CV-06-1833-PHX-FJM, 2007 WL 38279, at *2 (D. Ariz. Jan.
5, 2007); Rexel, Inc, v, RexelIntl Trading Corp., 540 F.Supp.2d 1154, 1161 (C.D. CaL. 2008);
Macia v. Microsoft Corp., 152 F.Supp.2d 535,539 (D. Vt. 2001).
C. An Intent-To-Use Application Does Not Justify Finding A Case Or
Controversy.
The line of authority holding that the mere filing of an intent-to-use application is
insufficient to warrant finding a case or controversy is entirely consistent with the practical
reality of intent-to-use applications. A valid intent-to-use application requires a declaration of
intent to use; it does not require a promise to use a mark, form a contract to use a mark, or
obligate the applicant to perfect its application. If the applicant does wish to obtain a
registration, it has up to three years after a Notice of Allowance issues to file an affidavit of
actual use. See 15 U.S.C. §1051(d). Thus, filing an intent-to-use application does not inherently
portend immediacy of use. In fact, according to U.S. Patent and Trademark Office statistics,
fewer than half of all intent-to-use applications filed since 2007 were perfected and actually
registered within even one or two years of the application being filed. See Perry Dec. dated Oct.
26, 2010, ~, 2,3, Exs. A-B (attaching statistics obtained from http://www.uspto.gov/web
/offices/ac/id%eip/taf/ann_rpt_intermed.htm and summary regarding same).
As one of the decisions cited by CollegeNET confirms, a "bona fide" intent to use the
mark can be contingent on future events, such as market research or product testing.
Commodore Electronics. Ltd. v. CBM Kabushiki Kaisha, 26 U.S.P.Q.2d. 1503, 1507 n.7
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(T.T.AB. 1993) (quoting Senate Judiciary Comm. Rep. on S. 1883, S. Rep. No. 515, 100th
Cong., 2d Sess. 24-25 (1988), reprinted in United States Trademark Association, The Trademark
Law Revision Act of 1988 176-77 (1989)). This is consistent with the fact that applicants can
file multiple Intent-to-use applications for a single good: the applicant has a bona fide intent to
use all of the marks applied for, but events over time help the applicant decide which, if any, of
the marks it will create formal plans to use in connection with goods or services. Id. Thus, the
fact that Google had a bona fide intent to use the mark, but currently has no concrete plans to
affix the mark to a particular good is entirely consistent with the TT AB' s requirements
concerning intent.
D. CollegeNET Fails to Distinguish Precedent Holding An Intent-To-Use Application Insufficient To Establish Jurisdiction.
Given the non-binding and slow-moving nature of intent-to-use applications, federal
courts have uniformly recognized that filing an intent-to-use application is not enough standing
alone to support
jurisdiction. E.g., Wham-O Inc. v. Manley Toys, Ltd., 92 U.S.P.Q.2d 1750,2009
WL 6361387, at *4 (C.D. CaL. 2009); Geisha, 525 F.Supp.2d 1002; Cumberland Packing, 2007
WL 38279; Rexel, 540 F.Supp.2d 1154; Macia, 152 F.Supp.2d 535. If the law were otherwise,
more than 150,000 cases or controversies would potentially be created every year simply from
filing intent-to-use applications. See Perry Decl. " .2, Ex. A
CollegeNET argues no reason other than chronology that MedImmune would undermine
the commonsense, pre-2007 authority on intent-to-use applications. Indeed, the very decisions
CollegeNET relied on recognized the basic principles applied by these cases as still valid after
MedImmune. See AARP, 2009 WL 47499 *7 (citing standards); Young, 612 F. Supp. 2d at 843-
44 (same and specifically citing Cumberland Packing, 2007 WL 38279). And the Vantage
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Trailer Corp. v, Beall Corp, 567 F.3d 745 (5th Cir. 2009), Geisha, LLC v. Tuccillo, 525
F.Supp.2d 1002 (N.D. IlL. 2007), and Wham-O Inc. v. Manley Toys, Ltd., 92 U.S.P.Q.2d 1750,
2009 WL 6361387, at *4 (C.D. CaL. 2009), opinions with similar holdings are all postMedImmune.
CollegeNET also invites this Court to ignore established precedent based on opinions by
the Ninth Circuit in 2004 and the Second Circuit in 2009 that keyword advertising can constitute
an actionable use in commerce under the Lanham Act. (Opp. Br. at 10-11). However, nothing in
those opinions suggests that mere expression of intent to use a mark, including by virtue of filing
an intent-to-use application, can qualify as an actionable use in commerce. See Rescuecom
Corp, v. Google Inc" 562 F.3d 123 (2d Cir. 2009); Playboy Enters., Inc, v. Netscape Commc 'ns
Corp., 354 F.3d 1020 (9th Cir. 2004). Nor do any ofthe facts ofthe opinions CollegeNET strains
to distinguish involve keyword advertising or any other use that Second or Ninth Circuit
suggested might be an actionable use in commerce. See Cumberland Packing, 2007 WL 38279;
Rexel, 540 F.Supp.2d 1154; Macia, 152 F.Supp.2d 535; see also Geisha, 525 F.Supp.2d 1002.
Thus, neither Circuit opinion nullifies the requirement that the defendant use the mark in
commerce or casts doubt on the correctness of
the decisions holding that merely filing an intent-
to-use application constitutes an actionable use in commerce. See Rescuecom, 562 F.3d at 127;
Playboy, 354 F.3d at 127. Presumably recognizing that holding the filing of an intent-to-use application sufficient to
establish a case or controversy would constitute a departure from established law, CollegeNET
proposes a radical justification-that Google should be subject to a different standard.
CollegeNET argues that the situation here presents a "vastly different scenario" than those in
numerous federal decisions holding that an intent-to-use application is not enough because
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"(a)ny trademark application filed by Google is different from those of the average filer." (Opp.
Br. at 20.) Because Google is the subject of intense media attention, CollegeNET asserts, it
should be held liable not just for what it says and does, but for what unrelated third parties say
about it. (Opp. Br. at 20, 19, 4-5.) Unsurprisingly, CollegeNET cites no authority for this
theory, nor does it provide any persuasive reason to adopt it.
II. COLLEGENET'S VARIOUS PROCEDURAL ARGUMENTS DO NOT SALVAGE ITS PREMATURE LAWSUIT
CollegeNET asserts that Google's motion to dismiss its Lanham Act-based claims for
lack of subject matter jurisdiction should be "disfavored." (Opp. Br. at 13.) Yet it cites not a
single decision involving the Lanham Act in connection with that argument. Although numerous
decisions address subject matter jurisdiction challenges based on the ripeness of a Lanham Act
claim, none of the ones CollegeNET cites condemn those challenges as "disfavored." See
Section i. Instead, CollegeNET relies upon decisions addressing the applicability of federal
statutes such as the Resource Conservation and Recovery Act, Safe Air for Everyone v, Meyer,
373 F.3d 1035, 1040 (9th Cir. 2004), and the Petroleum Marketing Practices Act, Sun Valley
Gasoline, Inc. v. Ernst Enterprises, Inc., 711 F.2d 138 (9th Cir. 1983). These decisions do not
provide any grounds for refraining from deciding the case or controversy requirement necessary
under Article III.
In addition, the Court need not consider Google's motion to dismiss pursuant to Rule
12(b)(6) as a motion for summary judgment. Nowhere in Section II of its Opening
Memorandum does Google cite to the Rubin Declaration, or rely on anything other than the lack
of allegations in the Complaint sufficient to state a claim for relief. Even if the Court were to
consider matters outside the pleadings, discovery regarding Google's intent would be of
little use
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at this point. See Google's Response to CollegeNET's Motion to Expedite Discovery (Dkt. No.
23); Oct. 15,2010 Tr. (Dkt. No. 28) at 4:16-19; 18:8-17; 23:12-14. Accordingly, CollegeNET's
request for discovery should be denied. See Wells Fargo & Co. v. Wells Fargo Exp. Co., 556
F.2d 406, 430 (9th Cir. 1977) (holding denial of discovery appropriate "when it is clear that
further discovery would not demonstrate facts sufficient to constitute a basis for jurisdiction"). III. THE COMPLAINT MUST BE DISMISSED FOR FAILURE TO STATE A
CLAIM BECAUSE IT FAILS TO ALLEGE ANY ACTIONABLE USE IN COMMERCE
Filing an-intent-to use application is not sufficient to establish a use in commerce, which
is one of the required elements of a trademark infringement action. E.g., Wham-O, 92
u.S.P.Q.2d 1750,2009 WL 6361387; Rexel, 540 F.Supp.2d 1154; Geisha, 525 F.Supp.2d 1002;
Cumberland Packing, 2007 WL 38279; Macia, 152 F.Supp.2d 535. As discussed above in
Section I.D, none of CollegeNET's efforts to escape this basic principle succeed. Although
CollegeNET points to various allegations in its Complaint other than the intent-to-use
application-including the number of online references speculating about Google's use of the
SPEEDBOOK mark based on its intent-to-use application and Google's alleged knowledge
about media buzz surrounding its intent-to-use application and supposedly imminent release of a
Chrome OS tablet computer-the Complaint remains devoid of any actual use by Google of the
SPEEDBOOK mark apart from its intent-to-use application. (Opp. Br. at 6-7; Complaint.) True,
Google need not have made a public sale or even advertised its product, but to maintain a claim
for trademark infringement there must be an allegation of some actual use by Google other than
filing an intent-to-use application.
CollegeNET cites many opinions that it asserts support its position that its trademark
infringement claims can survive, but not a single one finds infringement--or an adequately pled
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cause of action--over the junior user's objection without some additional use by the junior user.
(See cases cited in Opp. Br. at 8_9).1 Nor do any of these opinions rely on allegations concerning
third parties' actions. Rather, they all involved an actual use in commerce by the potential
infringer:
. Standard Oil Co. v. Standard Oil Co., 56 F.2d 973 (10th Cir. 1932): The junior
user had selected essentially the same name as the senior user for its corporate
business name, both parties had corporate authority to "engage generally in the
business of producing, manufacturing, and marketing, petroleum, and petroleum
products," and the junior user had incorporated under the disputed name in
several states, issued capital stock, held a shareholders' meeting, and elected a
board of directors and executive officers. Although Standard Oil was decided
more than a decade before the Lanham Act was passed, such corporate activity as
incorporating a company and holding shareholder meetings and elections would
undoubtedly qualify as use in commerce.
In two of the opinions CollegeNET relies upon, the junior users apparently never
argued that the dispute was not ripe or that there had been no use in commerce. Kassab
Jewelers, Inc. v, C. Kassab Designs, LLC, No. Civ. 05-265-MO, 2005 WL 1278938*2 (D. Or. May 25, 2005) (identifying other arguments made by the defendants); Western Bank v, Western
Bancoporation, 617 P.2d 258 (Or. App. 1980) (addressing only the protectability of the interest
in the name "Western Banc" and the appropriate scope of injunctive relief, which the junior user
had stipulated to in part). In any event, the junior users in Kassab did not dispute that they
intended imminently to open a jewelry store in the same metropolitan area as the senior jewelry
store and had signed a lease for the store. Presumably, the lease was signed using the allegedly
infringing name of the store, which would have been a use in commerce. Similarly, in Western
Bank, the junior user did not contest the imminent release of its "Western Bancard" bank card, and its senior vice president conceded that it planned to introduce a bank card bearing the "West Bancard" mark through "an extensive newspaper, radio, and television promotional campaign."
617 P.2d at 263.
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. National Federation of the Blind, Inc. v. Loompanics Enterprises, Inc., 936 F.
Supp. 1232 (D. Md. 1996): The junior user had published a book using the mark
to illustrate how to scam money using the names of charitable organizations.
After dismissing the direct infringement claims, the court declined to dismiss the
contributory infringement theory because, at the pleading stage, it was plausible
that some of the book's readers had followed the defendants' instructions and
used the plaintiffs mark in an infringing way. Id. at 1244-46. It was undisputed
that the defendant had used the mark in commerce.
. Maritz, Inc. v. Cybergold, Inc., 947 F. Supp. 1328 (E.D. Mo. 1996): The junior
user had advertised its allegedly infringing service on its website and solicited
customers for it. Id. at 1335-36.
. Essie Cosmetics, Ltd. v. Dae Do International, Ltd., 808 F. Supp. 952 (E.D.N.Y.
1992): The defendants conceded that the allegedly infringing bottles had been
manufactured, were in their possession, and that they were ready to offer their
product for sale nationwide. Id. at 955.
. Bertolli USA, Inc. v. Filippo Bertolli Fine Foods, Ltd., 662 F. Supp. 203
(S.D.N.Y. 1987): The junior user purchased 2,500 cartons and 12,000 bottles to
use in his olive oil business, brought nine bottles of his product to the United
States, had printed the allegedly infringing labels and cartons, and shipped a bottle
ofthe olive oil to a potential distributor. Id. at 205.
CollegeNET alleges no remotely comparable actions to those found sufficient in these opinions.
The Complaint does not allege that Google has formed a company with the name SPEEDBOOK
that has issued stock and had a shareholders meeting, that Google has published a book using the
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SPEEDBOOK mark, that Google has advertised a SPEEDBOOK computer and solicited
customers for it using a webpage, that it has possession of SPEEDBOOK computers that it is
ready to offer sale nationwide, or that it has shipped a SPEEDBOOK computer to a potential
distributor. Accordingly, none of CollgeNET's authority can salvage its claims.
CollegeNET's also argues that the Complaint should not be dismissed in its entirety
because its state law unfair competition and trademark infringements are not limited by the
Lanham Act's "use in commerce" requirement. (Opp. Br. at 11.) Tellingly, CollegeNET points
to no authority holding that Oregon unfair competition and trademark infringement claims can be
maintained in the absence of a use in commerce-which is a logical prerequisite for finding that
a junior user's actions (as opposed to unwarranted speculation by third parties) are likely to
cause confusion.
Lacking allegations of any identified use by Google other than filing an intent-to-use
application, the Complaint, on its face, fails to allege any trademark claim on which relief can be
granted and should be dismissed.
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Conclusion
For the foregoing reasons and those set forth in Google's motion and other pleadings
submitted in support thereof, CollegeNET's Complaint for Trademark Infringement should be
dismissed.
DATED: October 26,2010
LANE POWELL PC Kenneth R. Davis II, OSB No. 971132
Telephone: 503.778.2121
Parna A. Mehrbani, OSB No. 053235
Telephone: 503.778.2127
QUINN EMANUEL URQUHART & SULLIVAN LLP
By: sf Margret M. Caruso
Margret M. Caruso, admitted pro hac vice
Telephone: 650.801.5101
Attorneys for Defendant Google Inc.
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