Golden Eye Media USA, Inc. v. Evo Lifestyle Products Limited ( 2022 )


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  • Case: 21-2096    Document: 51     Page: 1   Filed: 06/22/2022
    NOTE: This disposition is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    GOLDEN EYE MEDIA USA, INC.,
    Plaintiff-Counterdefendant-Appellee
    FARZAN DEHMOUBED, JENNIFER DUVALL,
    Counterdefendants-Appellees
    v.
    EVO LIFESTYLE PRODUCTS LIMITED, FKA
    TROLLEY BAGS UK LTD,
    Defendant-Counterclaimant-Appellant
    ______________________
    2021-2096
    ______________________
    Appeal from the United States District Court for the
    Southern District of California in No. 3:18-cv-02109-BEN-
    LL, Senior Judge Roger T. Benitez.
    ______________________
    Decided: June 22, 2022
    ______________________
    CODY R. LEJEUNE, LeJeune Law, PC, San Diego, CA,
    for appellees.
    MATTHEW L. CUTLER, Harness, Dickey & Pierce, PLC,
    St. Louis, MO, for appellant. Also represented by Glenn E.
    Forbis, Troy MI.
    Case: 21-2096            Document: 51       Page: 2   Filed: 06/22/2022
    2                                  GOLDEN EYE MEDIA USA, INC. v.
    EVO LIFESTYLE PRODUCTS LIMITED
    ______________________
    Before LOURIE, SCHALL, and REYNA, Circuit Judges.
    LOURIE, Circuit Judge.
    Evo Lifestyle Products Limited, formerly known as
    Trolley Bags UK Ltd (“TB UK”), appeals from a decision of
    the United States District Court for the Southern District
    of California granting summary judgment in favor of
    Golden Eye Media USA, Inc. (“GEM”). The court held that
    TB UK’s U.S. Patent D779,828 (the “’828 patent”) is invalid
    for reasons of functionality and obviousness, and that, even
    if it were valid, GEM did not infringe the patent or TB UK’s
    trademark. See Golden Eye Media USA, Inc. v. Trolley
    Bags UK Ltd., 
    525 F. Supp. 3d 1145
     (S.D. Cal. 2021) (“De-
    cision”). We affirm.
    BACKGROUND
    TB UK owns the ’828 patent. This patent is directed to
    a reusable and foldable shopping bag that fits within a
    shopping cart. Figures 1–6 illustrate the claimed design.
    1'1
    !~
    FIG. 1              FIG.2             FIG. 3
    FIG. 4                FIG.5             FIG.6
    Case: 21-2096    Document: 51     Page: 3    Filed: 06/22/2022
    GOLDEN EYE MEDIA USA, INC. v.                             3
    EVO LIFESTYLE PRODUCTS LIMITED
    ’828 patent at Figs. 1–6. TB UK also claims a common law
    trademark for “TROLLEY BAGS.” TB UK sells reusable
    shopping cart bags that use the mark “TROLLEY BAGS.”
    GEM sells reusable shopping cart bags that use the mark
    “LOTUS TROLLEY BAGS.”
    In July 2017, TB UK sent a cease-and-desist letter to
    GEM, asserting that GEM’s sale of Lotus Bags infringed
    the ’828 patent and what it asserts is a “TROLLEY BAGS”
    common law trademark. 1 In September 2018, GEM then
    brought a declaratory judgment action against TB UK in
    the district court. GEM requested that the court find that
    (1) GEM did not infringe the ’828 patent, (2) that the ’828
    patent was invalid for (a) obviousness over Doyle 2 and
    Brennan, 3 and (b) functionality, and (3) that GEM did not
    infringe TB UK’s common law trademark. Both parties
    then moved for summary judgment.
    The district court granted GEM’s motion for summary
    judgment and held the ’828 patent invalid for functionality
    and obviousness, alternatively found that GEM did not in-
    fringe the ’828 patent, and found that GEM did not infringe
    TB UK’s common law trademark.
    TB UK appealed the district court’s grant of summary
    judgment. We have jurisdiction pursuant to 
    28 U.S.C. §1295
    (a)(1).
    1    As common law trademarks are created by use, see
    In re Int’l Flavors & Fragrances Inc., 
    183 F.3d 1361
    , 1366
    (Fed. Cir. 1999), this suit against products containing such
    a mark effectively concedes the mark’s existence.
    2   Doyle, Irish Patent Pub. S2009/0718. Doyle is di-
    rected to a reusable bag system and is owned by TB UK.
    3   Brennan et al., U.S. Patent 5,046,860. Brennan is
    directed to reusable shopping bag assemblies.
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    4                               GOLDEN EYE MEDIA USA, INC. v.
    EVO LIFESTYLE PRODUCTS LIMITED
    DISCUSSION
    We review the grant of summary judgment under the
    law of the regional circuit from which the case originates.
    See e.g., Grober v. Mako Prods., Inc., 
    686 F.3d 1335
    , 1344
    (Fed. Cir. 2012). The Ninth Circuit reviews a district
    court’s grant of summary judgment de novo. See e.g.,
    Branch Banking & Tr. Co. v. D.M.S.I., LLC, 
    871 F.3d 751
    ,
    759 (9th Cir. 2017). Summary judgment is appropriate if,
    viewing the evidence in the light most favorable to the non-
    moving party, the movant shows that there is no genuine
    dispute as to any material fact and the movant is entitled
    to judgment as a matter of law. See Whitman v. Mineta,
    
    541 F.3d 929
    , 931 (9th Cir. 2008); see also Celotex Corp. v.
    Catrett, 
    477 U.S. 317
    , 322 (1986).
    I. Functionality
    The district court held that the ’828 patent was invalid
    because its design was dictated by function. TB UK argues
    that the district court errs in that conclusion by asserting
    that it misapplied the Sport Dimension five-factor test re-
    lating to functionality. TB UK alleges that in the process
    of misapplying the test, the court failed to resolve disputed
    facts in favor of TB UK, the non-moving party, and applied
    the wrong legal standard, finding the patented design “dic-
    tated by function” instead of it being “dictated solely by
    function.” Appellant’s Br. at 13. GEM responds that the
    court properly applied the Sport Dimension test and cor-
    rectly found the design of the ’828 patent to be dictated by
    function.
    A district court’s finding that a patented design is dic-
    tated by function is reviewed for clear error. See Ethicon
    Endo-Surgery, Inc. v. Covidien, Inc., 
    796 F.3d 1312
    , 1328
    (Fed. Cir. 2015). For a design to be protectable by a design
    patent, “the design must not be governed solely by function,
    i.e., that this is not the only possible form of the article that
    could perform its function.” Rosco, Inc. v. Mirror Lite Co.,
    
    304 F.3d 1373
    , 1378 (Fed. Cir. 2002). A design patent is
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    GOLDEN EYE MEDIA USA, INC. v.                              5
    EVO LIFESTYLE PRODUCTS LIMITED
    invalid if the design is “dictated by the utilitarian purpose
    of the article.” High Point Design LLC v. Buyer’s Direct,
    Inc., 
    730 F.3d 1301
    , 1315 (Fed. Cir. 2013) (internal quota-
    tion marks omitted). In determining whether a design is
    dictated by function, courts consider whether (1) “the pro-
    tected design represents the best design,” (2) “alternative
    designs would adversely affect the utility of the specified
    article,” (3) “there are any concomitant utility patents,”
    (4) “the advertising touts particular features of the design
    as having specific utility,” and (5) “there are any elements
    in the design or an overall appearance clearly not dictated
    by function.” Sport Dimension, Inc. v. Coleman Co., 
    820 F.3d 1316
    , 1322 (Fed. Cir. 2016).
    We agree with GEM that the district court did not com-
    mit clear error when it found the design of the ’828 patent
    to be functional. The “availability of alternative designs
    [is] an important—if not dispositive—factor in evaluating
    the legal functionality of a claimed design.” Ethicon, 796
    F.3d at 1329–30. After a thorough analysis, the court
    found that the horizontal poles of the claimed design were
    necessary for the purpose of the bag to fit in a cart while
    standing upright. See Decision at 1188. The court then
    found that an alternative design, for the poles or other fea-
    tures, would directly and adversely impact the functional-
    ity of the bag system and therefore that the first, second,
    and fifth Sport Dimension factors weighed in favor of inva-
    lidity. As for the third factor, whether there are any con-
    comitant utility patents that shed light on the functionality
    of the U.S. design patent, the court found that Doyle, while
    owned by TB UK, was not classified as a utility patent in
    Ireland and that Brennan was not owned by TB UK. Based
    on these findings, the court found that this factor did not
    weigh in favor or against invalidity.
    The court noted that, regarding the fourth factor, TB
    UK’s advertisements touted the utility of the bags. The
    court cited numerous examples demonstrating this fact, in-
    cluding a statement from TB UK’s website boasting that
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    6                             GOLDEN EYE MEDIA USA, INC. v.
    EVO LIFESTYLE PRODUCTS LIMITED
    the bags “halve the time at the checkout as packing is
    quicker and easier without the hassle of holding bags
    open.” Decision at 1192. The court therefore found that
    this factor weighed in favor of invalidity. We consider that
    these findings are not clearly erroneous, and thus we af-
    firm its holding that the design of the ’828 patent is dic-
    tated by function. We also find that there are no genuine
    issues of material fact precluding summary judgment.
    TB UK argues that the district court did not consider
    all the alternative designs presented, but that was not nec-
    essary. TB UK discussed two alternative designs: (1) using
    two, larger bags to fill a shopping cart, and (2) a bag system
    in which the designer chooses not to fill the entire capacity
    of a shopping cart with the bags. The court properly dis-
    posed of those alternatives when it mentioned that “the
    only evidence of alternative designs [TB UK has] presented
    is that their bags could be smaller or bigger such that they
    would or would not fill the entire cart” and that these al-
    ternatives “directly impact[] the utility of the [’]828
    [p]atent.” Decision at 1186.
    II. Obviousness
    TB UK also appeals the district court’s invalidation of
    the patent on the ground of obviousness. Having affirmed
    the patent’s invalidity for functionality we need not go fur-
    ther and review the obviousness determination. But, in the
    interest of thoroughness and because we are not the court
    of last resort, see Cardinal Chemical Co. v. Morton Int’l,
    Inc., 
    508 U.S. 83
     (1993), we will address that ground as
    well.
    TB UK argues that the district court should have found
    that factual issues preclude a finding of summary judg-
    ment. In addition, it argues that the court erred in decid-
    ing that Doyle was a primary reference and that secondary
    references could be combined with Doyle to invalidate the
    ’828 patent. TB UK notes that the United States Patent
    and Trademark Office (“USPTO”) determined in its
    Case: 21-2096      Document: 51      Page: 7     Filed: 06/22/2022
    GOLDEN EYE MEDIA USA, INC. v.                                   7
    EVO LIFESTYLE PRODUCTS LIMITED
    reexamination that Doyle was not invalidating prior art
    and that it was too different from the design of the ’828 pa-
    tent to be considered a primary reference. TB UK asserts
    that the USPTO’s determination underscores the incorrect-
    ness of the court’s conclusion that no genuine issues of ma-
    terial fact existed.
    GEM responds that the district court correctly deter-
    mined that Doyle was a primary reference that exhibited
    design characteristics that were basically the same as in
    the ’828 patent. GEM adds that the court properly found
    that Brennan was a secondary reference that could have
    been combined with Doyle to create a design with the same
    overall visual appearance as the claimed design of the ’828
    patent.
    Obviousness is a question of law that is reviewed de
    novo, based on underlying factual questions that are re-
    viewed for clear error. Honeywell Int’l, Inc. v. United
    States, 
    609 F.3d 1292
    , 1297 (Fed. Cir. 2010). The underly-
    ing factual inquiries include: (1) the scope and content of
    the prior art; (2) the level of ordinary skill in the art; (3) the
    differences between the claimed invention and the prior
    art; and (4) objective evidence of non-obviousness. Graham
    v. John Deere Co. of Kan. City, 
    383 U.S. 1
    , 17 (1966). Sum-
    mary judgment of obviousness is appropriate if “the con-
    tent of the prior art, the scope of the patent claim, and the
    level of ordinary skill in the art are not in material dispute,
    and the obviousness of the claim is apparent in light of
    these factors.” TriMed, Inc. v. Stryker Corp., 
    608 F.3d 1333
    , 1341 (Fed. Cir. 2010) (citing KSR Int’l Co. v. Teleflex
    Inc., 
    550 U.S. 398
    , 427 (2007)).
    A determination of obviousness in design patents re-
    quires a two-step inquiry designed to determine whether a
    designer of ordinary skill in the art would have combined
    prior art references to create a design with the same overall
    visual appearance as the claimed design. See Durling v.
    Spectrum Furniture Co., 
    101 F.3d 100
    , 103 (Fed. Cir. 1996).
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    8                              GOLDEN EYE MEDIA USA, INC. v.
    EVO LIFESTYLE PRODUCTS LIMITED
    The first step is to identify “a single reference, ‘. . . some-
    thing in existence, the design characteristics of which are
    basically the same as the claimed design.’” 
    Id.
     (quoting In
    re Rosen, 
    673 F.2d 388
    , 391 (C.C.P.A. 1982)). To determine
    if a design is “basically the same,” the court looks to the
    “visual impression created by the patented design as a
    whole.” 
    Id.
     This court has noted that “the trial court judge
    may determine almost instinctively whether the two de-
    signs create basically the same visual impression,” but
    “must communicate the reasoning behind th[at] decision.”
    
    Id.
    In the second step, other references “may be used to
    modify [the primary reference] to create a design that has
    the same overall visual appearance as the claimed design.”
    
    Id.
     These secondary references must be “so related [to the
    primary reference] that the appearance of certain orna-
    mental features in one would suggest the application of
    those features to the other.” 
    Id.
    We agree with GEM that the design of the ’828 patent
    was properly determined to have been obvious at the time
    it was created. In step one, the district court properly con-
    sidered Doyle to be a primary reference. Despite Doyle
    having a different handle design and location, horizontal
    rods that differ in length and design, and a less rectangular
    shape compared to the ’828 patent’s design, the court con-
    cluded that the two designs created “basically the same”
    visual impression:
    Doyle Patent:           '828 Patent:
    ,.,,
    Case: 21-2096    Document: 51       Page: 9         Filed: 06/22/2022
    GOLDEN EYE MEDIA USA, INC. v.                                    9
    EVO LIFESTYLE PRODUCTS LIMITED
    Decision at 1198.
    The district court’s conclusion is consistent with our
    precedent where we have found that primary references
    may contain slight differences relative to a patented de-
    sign. See Spigen Korea Co. v. Ultraproof, Inc., 
    955 F.3d 1379
    , 1383 (Fed. Cir. 2020) (explaining that “slight differ-
    ences” do not preclude a “basically the same” finding). Re-
    garding the difference in the handles, the court noted that
    “the Doyle Patent merely illustrates the flexibility of the
    handles while the [’]828 patent shows the handles in an
    upright position.” Decision at 1206. The court next con-
    cluded that any perceived difference in the length of the
    bag’s horizontal rod is slight and does not preclude a find-
    ing that the bags are “basically the same.” Lastly, the court
    also found the difference in the shape of the bags to be only
    slight. These findings regarding the differences between
    Doyle and the ’828 patent are not clearly erroneous, and
    thus we find that the court properly considered Doyle to be
    a primary reference.
    In step two, the district court properly analyzed multi-
    ple secondary references and concluded that the combina-
    tion of Doyle as a primary reference and Brennan as a
    secondary reference rendered the ’828 patent obvious.
    Brennan contains similar handle stitching to the ’828 pa-
    tent, and these handles combined with the bag shape and
    handles of Doyle would create a shopping cart bag that
    highly resembles the one claimed by the ’828 patent:
    +        Brennan
    ,,. ,
    • I
    Decision at 1204.
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    10                             GOLDEN EYE MEDIA USA, INC. v.
    EVO LIFESTYLE PRODUCTS LIMITED
    The district court therefore did not commit clear error
    by combining Doyle and Brennan and determining that the
    combination of these two references would have rendered
    the ’828 patent obvious. Thus, we affirm the court’s hold-
    ing that the combination of Doyle and Brennan invalidated
    the ’828 patented design for being obvious.
    In light of our affirmance of the district court’s separate
    holdings of invalidity on both functionality and obvious-
    ness, the court’s decision addressing infringement is moot.
    We thus do not address TB UK’s appeal from that portion
    of the court’s decision.
    III. Trademark Infringement
    TB UK argues that the district court improperly
    weighed and critiqued underlying evidence when conduct-
    ing its likelihood of confusion analysis relating to the trade-
    mark claim. GEM responds that TB UK failed to present
    any evidence showing a likelihood of confusion, and the
    court properly found that there was no genuine dispute of
    material fact concerning likelihood of confusion.
    We have jurisdiction over the appeal of the district
    court’s summary judgment ruling against TB UK’s trade-
    mark infringement claim because it was part of a com-
    plaint containing non-frivolous claims of patent
    infringement. See Atari, Inc. v. JS & A Grp., Inc., 
    747 F.2d 1422
    , 1427–30 (Fed. Cir. 1984) (discussing appellate juris-
    diction over copyright and other non-patent issues in the
    Federal Circuit when a complaint also includes a claim
    arising under patent law); see also Zenith Elecs. Corp. v.
    Exzec, Inc., 
    182 F.3d 1340
    , 1346 (Fed. Cir. 1999) (“Because
    the complaint contained patent infringement claims, the
    district court’s jurisdiction arose under 
    28 U.S.C. § 1338
    (a).
    This established the path of appeal, giving exclusive juris-
    diction in this court pursuant to . . . [] 1295(a)(1).”); Abbott
    Lab’ys v. Brennan, 
    952 F.2d 1346
    , 1349–50 (Fed. Cir. 1991)
    (“The path of appeal is determined by the basis of jurisdic-
    tion in the district court, and is not controlled by the
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    GOLDEN EYE MEDIA USA, INC. v.                              11
    EVO LIFESTYLE PRODUCTS LIMITED
    district court's decision or the substance of the issues that
    are appealed.").
    "In a trademark case, we apply the law of the applicable
    regional circuit, in this case, the Ninth Circuit." Nautilus
    Grp., Inc. v. ICON Health & Fitness, Inc. , 
    372 F.3d 1330
    ,
    1334 (Fed. Cir. 2004). "Likelihood of confusion is the type
    of mixed question [that is] suited to clearly erroneous re-
    view." Levi Strauss & Co. v. Blue Bell, Inc., 
    778 F.2d 1352
    ,
    1355 (9th Cir. 1985) (en bane). The Ninth Circuit examines
    eight factors when evaluating trademark infringement
    claims. AMF Inc. v. Sleekcraft Boats, 
    599 F.2d 341
    , 348-
    49 (9th Cir. 1979). These eight factors are: (1) strength of
    the mark, (2) proximity of the goods in trade channels,
    (3) similarity of the marks, (4) evidence of actual confusion,
    (5) marketing channels used, (6) type of goods and the de-
    gree of care likely to be exercised by the purchaser, (7) de-
    fendant's intent in selecting the mark, and (8) likelihood of
    expansion of the product lines. 
    Id.
    vVe agree with GEM that the district court properly an-
    alyzed the Sleekcraft factors and held that there was no
    genuine dispute of material fact as to noninfringement of
    TB UK's "TROLLEY BAGS" trademark. In analyzing the
    "trolley bag" logo of GEM's product and TB UK's product,
    the court first noted that the two logos were markedly dif-
    ferent:
    GEM's Logo                   TB UK's Logo
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    12                            GOLDEN EYE MEDIA USA, INC. v.
    EVO LIFESTYLE PRODUCTS LIMITED
    See Decision at 1220. A quick inspection, see above, shows
    the words TROLLEY BAG to be of quite different size and
    location in the overall mark, and the colors are also very
    different. Despite these differences, the court construed TB
    UK’s trademark infringement claims to pertain to the use
    of “TROLLEY BAG” in each logo. Under this construction,
    the court analyzed each of the Sleekcraft factors and found
    that, while the proximity of the goods factor weighed in TB
    UK’s favor, all other factors weighed in GEM’s favor. The
    court also noted that, despite both marks using the
    “TROLLEY BAG” term, the dominance of other logos on
    the bags, distinctive coloring, and overall appearance made
    the marks dissimilar. Lastly, the court pointed out that TB
    UK failed to provide evidence of actual confusion from use
    of the marks. For these reasons, the court found that there
    was no genuine dispute of material fact as to the likelihood
    of confusion and that TB UK’s common law trademark was
    not infringed. The court’s analysis of the Sleekcraft factors
    was not clearly erroneous, and we do not find any instance
    where the court overstepped its role by improperly weigh-
    ing and critiquing underlying evidence. Thus, we affirm
    the court’s holding that the “TROLLEY BAGS” common
    law trademark was not infringed.
    CONCLUSION
    We have considered TB UK’s remaining arguments but
    find them unpersuasive. For the foregoing reasons, the de-
    cision of the district court is affirmed.
    AFFIRMED