Cybergun S.A. v. Jag Precision, Inc. , 533 F. App'x 791 ( 2013 )


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  •                                                                             FILED
    NOT FOR PUBLICATION                              JUL 19 2013
    MOLLY C. DWYER, CLERK
    UNITED STATES COURT OF APPEALS                       U.S. COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    CYBERGUN S.A., a French corporation               No. 12-17640
    and FN HERSTAL S.A., a Belgian
    corporation,                                      D.C. No. 2:12-cv-00074-KJD-
    GWF
    Plaintiffs-counter-claim-
    defendants - Appellees,
    MEMORANDUM*
    v.
    JAG PRECISION, INC., a California
    corporation,
    Defendant-counter-claimant -
    Appellant.
    Appeal from the United States District Court
    for the District of Nevada
    Kent J. Dawson, District Judge, Presiding
    Argued and Submitted July 9, 2013
    San Francisco, California
    Before: FERNANDEZ, PAEZ, and BERZON, Circuit Judges.
    Defendant Jag Precision appeals the district court’s order granting plaintiffs’
    motion for a preliminary injunction barring Jag from “making, using, selling, and
    *
    This disposition is not appropriate for publication and is not precedent
    except as provided by 9th Cir. R. 36-3.
    offering to sell” airsoft guns that replicate the designs of firearms made and
    designed by plaintiff FN Herstal (FNH). The plaintiffs, Cybergun and FNH,
    brought this action claiming that the designs of the firearms in question—the
    M249, M249 PARA, and P90—are protected trade dress under the Lanham Act,
    15 U.S.C. § 1125.
    “A plaintiff seeking a preliminary injunction must establish that he is likely
    to succeed on the merits, that he is likely to suffer irreparable harm in the absence
    of preliminary relief, that the balance of equities tips in his favor, and that an
    injunction is in the public interest.” Winter v. Natural Res. Def. Council, Inc., 
    555 U.S. 7
    , 20 (2008).
    “We review the grant or denial of a preliminary injunction for abuse of
    discretion. Our review is limited and deferential, and [w]e do not review the
    underlying merits of the case.” Am. Trucking Ass’ns v. City of Los Angeles, 
    559 F.3d 1046
    , 1052 (9th Cir. 2009) (internal quotation marks and citation omitted)
    (alteration in original). The district court’s factual findings are reviewed for
    clear error. Leigh v. Salazar, 
    677 F.3d 892
    , 896 (9th Cir. 2012).
    Here, we conclude that the district court did not abuse its discretion by
    finding that the plaintiffs are likely to succeed on the merits. The district court
    properly identified the three elements a plaintiff must establish to succeed on a
    Page 2 of 4
    trade dress claim: (1) nonfunctionality, (2) inherent distinctiveness or acquired
    distinctiveness through secondary meaning, and (3) a likelihood of confusion
    between the plaintiff’s and defendant’s products. Disc Golf Ass’n v. Champion
    Discs, Inc., 
    158 F.3d 1002
    , 1005 (9th Cir. 1998). With respect to nonfunctionality,
    the district court identified the proper legal test, which is whether the product
    features are de jure functional. See Leatherman Tool Group v. Cooper Indus., 
    199 F.3d 1009
    , 1014 (9th Cir. 1999). If the features are de jure functional, they cannot
    be accorded trade dress protection. Id.
    The district court found that the designs for which the plaintiffs seek trade
    dress protection are not de jure functional. Although there are competing
    declarations in the record on this question, this finding is supported by the
    evidence and therefore is not clearly erroneous. The district court also applied the
    proper legal standards to the secondary meaning and likelihood of confusion
    inquiries. The court’s findings that the designs have acquired secondary meaning
    and that consumers are likely to confuse plaintiffs’ and defendant’s products are
    also supported by the record and therefore are not clearly erroneous.
    The district court found that the plaintiffs are likely to suffer irreparable
    harm. This finding is supported by evidence in the record including a detailed
    declaration from Cybergun’s chief administrative officer. The declaration
    Page 3 of 4
    describes Cybergun’s investment in FNH’s designs and consequent competitive
    disadvantage to Jag, the likelihood that Jag’s products will dilute and tarnish
    Cybergun’s goodwill in the airsoft gun market, and the probability that Jag will
    unfairly obtain market share, which Cybergun may not be able to regain. We also
    conclude that the district court did not abuse its discretion in determining that the
    balance of equities tips in favor of the plaintiffs and granting the injunction is in
    the public interest.
    AFFIRMED.
    Page 4 of 4