Fortres Grand Corporation v. Warner Brothers Entertainment , 763 F.3d 696 ( 2014 )


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  •                                In the
    United States Court of Appeals
    For the Seventh Circuit
    No. 13-2337
    FORTRES GRAND CORPORATION,
    Plaintiff-Appellant,
    v.
    WARNER BROS. ENTERTAINMENT INC.,
    Defendant-Appellee.
    Appeal from the United States District Court for the
    Northern District of Indiana, South Bend Division.
    No. 12-cv-00535 — Philip P. Simon, Chief Judge.
    ARGUED DECEMBER 10, 2013 — DECIDED AUGUST 14, 2014
    Before MANION, ROVNER, and HAMILTON, Circuit Judges.
    MANION, Circuit Judge. Fortres Grand Corporation develops
    and sells a desktop management program called “Clean Slate.”
    When Warner Bros. Entertainment used the words “the clean
    slate” to describe a hacking program in the movie, The Dark
    Knight Rises, Fortres Grand noticed a precipitous drop in sales
    of its software. Believing Warner Bros.’ use of the words “clean
    slate” infringed its trademark and caused the decrease in sales,
    Fortres Grand brought this suit. Fortres Grand alleged that
    2                                                   No. 13-2337
    Warner Bros.’ use of the words “clean slate” could cause
    consumers to be confused about the source of Warner Bros.’
    movie (“traditional confusion”) and to be confused about the
    source of Fortres Grand’s software (“reverse confusion”). The
    district court held that Fortres Grand failed to state a claim
    under either theory, and that Warner Bros.’ use of the words
    “clean slate” was protected by the First Amendment. Fortres
    Grand appeals, arguing only its reverse confusion theory, and
    we affirm without reaching the constitutional question.
    I. Factual Background
    Fortres Grand develops and sells a security software
    program known as “Clean Slate.” It also holds a federally
    registered trademark for use of that name to identify the source
    of “[c]omputer software used to protect public access comput-
    ers by scouring the computer drive back to its original configu-
    ration upon reboot.” Trademark Reg. No. 2,514,853. As the
    description in the trademark registrations suggests, the
    program wipes away any user changes to a shared computer
    (wiping the slate clean, so to speak). It is the kind of program
    that might be used at schools, libraries, hotels, etc., to keep
    public computers functioning properly and free of private
    data. Because a desktop management program is security
    software, its single most important characteristic is its trust-
    worthiness. Fortres Grand had been able to establish its Clean
    Slate software in the marketplace as a trustworthy program.
    In July 2012, Warner Bros. released The Dark Knight Rises,
    the third and final installment in a film depiction of the comic-
    book hero Batman. The film was an immense commercial
    success. In the film, Batman and his allies battle a shadowy
    No. 13-2337                                                                    3
    organization hell-bent on the destruction of Gotham City,
    Batman’s home town. One of Batman’s allies, the antihero
    Selina Kyle (Catwoman), begins the story as an unwitting
    pawn of the shadowy organization. In exchange for her unique
    services as a cat burglar, the organization agrees to give her a
    software program known as “the clean slate,” which was
    developed by “Rykin Data Corporation” and enables an
    individual to erase all traces of her criminal past from every
    database on earth so that she may lead a normal life (that is, to
    wipe her slate clean).1 But after Kyle completes her task, she is
    betrayed and told that the program, “the clean slate,” does not
    exist. When she becomes aware of the extent of the shadowy
    organization’s plans—to detonate a nuclear device in Gotham
    City—she aids Batman in neutralizing the threat. Near the
    climax of the movie, the destruction of the city appears
    imminent. But Batman assembles a team, including Selina Kyle,
    to try to save the city. Batman’s alter ego—the billionaire,
    industrialist, and philanthropist Bruce Wayne—had secretly
    acquired and hid the clean slate program. Batman gives “the
    clean slate” program to Selina Kyle in exchange for her aid.
    After rendering the agreed aid and obtaining the means to a
    clean slate and escape, she nonetheless stays to continue
    1
    Unlike other depictions of Batman, such as his appearance in the Justice
    League comics, there are no alien races from other planets, so wiping all
    traces of oneself from earth’s databases is sufficient. See, e.g., WIKIPEDIA.ORG,
    List of locations of the DC Universe, Planetary Systems, http://en.wikipedia.org/
    wiki/List_of_locations_of_the_DC_Universe#Planetary_systems (listing the
    various planets in the DC Comics universe, in which the Justice League
    stories take place). All websites cited in this opinion were last visited July
    31, 2014, and copies are saved with the court.
    4                                                             No. 13-2337
    combating the nuclear threat. (*Spoiler Alert*) Batman and his
    allies are able to save Gotham City and, in the closing scene of
    the movie, we see that Selina Kyle has apparently used the
    program to erase her criminal past and that she is leading a
    “normal” life with Bruce Wayne (to the extent dining at a
    Florentine café with the billionaire alter ego of the Caped
    Crusader is normal).
    Additionally, as part of the marketing of the movie, two
    websites were created purporting to be affiliated with the
    fictional Rykin Data Corporation.2 The websites contained
    descriptions of the clean slate hacking tool and its operation
    and an image of a fictional patent. Nothing was available for
    purchase or download from the websites—they were purely an
    informational extension of the fictional Gotham City universe.3
    2
    Warner Bros. informs us in its response brief that it did not create these
    sites, but rather, that they were created by fans of the movie. We have no
    reason to doubt that assertion (nor does Fortres Grand dispute it in its reply
    brief), but because we are reviewing this issue on the appeal of an order
    dismissing the complaint for failure to state a claim, we assume that Fortres
    Grand’s allegation that the websites were created by Warner Bros. is true.
    3
    Fortres Grand initially argued that it was error to consider Warner Bros.’
    printouts of the websites which Fortres Grand had referenced in its
    complaint. But Warner Bros. responded that Fortres Grand had not
    disputed the printouts’ authenticity (i.e., that they are “concededly
    authentic”). Instead of doing so in its reply, Fortres Grand made arguments
    from the websites’ content consistent with what Warner Bros.’ printouts
    depicted. Accordingly, though we are skeptical of considering the content
    of websites allegedly within the defendant’s control, Fortres Grand has
    waived this issue. Long-Gang Lin v. Holder, 
    630 F.3d 536
    , 543 (7th Cir. 2010)
    (“The failure to adequately develop and support [an argument] results in
    (continued...)
    No. 13-2337                                                        5
    After the film was released, Fortres Grand noticed a
    significant decline in sales of its Clean Slate software. It
    believes that this decline in sales was due to potential custom-
    ers mistakenly believing that its Clean Slate software is illicit or
    phony on account of Warner Bros.’ use of the name “the clean
    slate” in The Dark Knight Rises. Accordingly, Fortres Grand
    filed suit alleging that Warner Bros.’ use of the words “clean
    slate” in reference to the software in its movie infringed Fortres
    Grand’s trademark in violation of Lanham Act §§ 32, 43
    (codified at 15 U.S.C. §§ 1114, 1125 respectively), and Indiana
    unfair competition law. But, on Warner Bros.’ motion, the
    district court dismissed Fortres Grand’s complaint under Rule
    12(b)(6) for failing to state a claim. The district court concluded
    that Fortres Grand had not alleged a plausible theory of
    consumer confusion, upon which all of its claims depend, and
    that Warner Bros.’ use of the words “the clean slate” was
    protected by the First Amendment. Fortres Grand appeals.
    II. Discussion
    “We review the granting of a motion to dismiss de novo
    and affirm if the complaint does not include facts that state a
    plausible claim for relief.” Active Disposal, Inc. v. City of Darien,
    
    635 F.3d 883
    , 886 (7th Cir. 2011) (citing Justice v. Town of Cicero,
    
    577 F.3d 768
    , 771 (7th Cir. 2009)). “Our analysis rests on the
    complaint, and we construe it in the light most favorable to the
    plaintiffs, accepting as true all well-pleaded facts alleged and
    drawing all permissible inferences in their favor.” 
    Id. Allega- (...continued)
    waiver.”).
    6                                                             No. 13-2337
    tions of consumer confusion in a trademark suit, just like any
    other allegations in any other suit, cannot save a claim if they
    are implausible. See Eastland Music Grp., LLC v. Lionsgate
    Entm't, Inc., 
    707 F.3d 869
    , 871 (7th Cir. 2013) (citing Ashcroft v.
    Iqbal, 
    556 U.S. 662
    (2009) and Bell Atlantic Corp. v. Twombly, 
    550 U.S. 544
    (2007)), cert. denied, 
    134 S. Ct. 204
    (2013)).
    All three of Fortres Grand’s claims depend on plausibly
    alleging that Warner Bros.’ use of the words “clean slate” is
    “likely to cause confusion.” Lanham Act § 32, 15 U.S.C.
    § 1114(1)(a) (infringement of registered trademarks); Lanham
    Act § 43, 15 U.S.C. § 1125(a)(1) (infringement of unregistered
    trademarks and other unfair competition); see Dwyer Instru-
    ments, Inc. v. Sensocon, Inc., 
    873 F. Supp. 2d 1015
    , 1040 (N.D.
    Ind. 2012) (“The analysis under the Lanham Act for unfair
    competition also applies to claims for unfair competition under
    Indiana common law.”).4 But general confusion “in the air” is
    not actionable. Rather, only confusion about “origin, sponsor-
    ship, or approval of … goods” supports a trademark claim. 15
    4
    Fortres Grand argues generally that Indiana unfair competition law is
    “broader” and is a “general category into which a number of new torts may
    be placed,” but fails to explain how that breadth would change the analysis
    in this case, or what new tort it wants us to adopt for Indiana. Accordingly,
    the argument that there is any difference is waived. Long-Gang Lin v. Holder,
    
    630 F.3d 536
    , 543 (7th Cir. 2010) (“The failure to adequately develop and
    support [an argument] results in waiver.”). Indeed, all relevant authority
    we have found analyzes Indiana unfair competition claims based on
    trademarks the same as Lanham Act trademark claims, so we analyze all the
    claims together. See Dwyer 
    Instruments, 873 F. Supp. 2d at 1040
    ; see also
    Vision Ctr. Nw., Inc. v. Vision Value, LLC, 
    673 F. Supp. 2d 679
    , 683 and n.2
    (N.D. Ind. 2009) (laying out additional authority for this proposition).
    No. 13-2337                                                        7
    U.S.C. § 1125; see also 4 McCarthy on Trademarks and Unfair
    Competition § 24:6 (4th ed.) (describing the various semantic
    formulations of the actionable objects of confusion, which are
    the same under §§ 1114 and 1125); Custom Vehicles, Inc. v. Forest
    River, Inc., 
    476 F.3d 481
    , 484 (7th Cir. 2007) (using the phrase
    “emanates from, is connected to, or is sponsored by” partially
    drawn from “affiliation, connection, or association” in § 1125
    to communicate the same concept). Further, “goods” means
    “the tangible product sold in the marketplace.’” Eastland Music,
    
    707 F.3d 869
    , 872 (quoting Dastar Corp. v. Twentieth Century Fox
    Film Corp., 
    539 U.S. 23
    , 31 (2003)). For convenience, we gener-
    ally use the word “origin” as shorthand for “origin, sponsor-
    ship, or approval.”
    In a traditional trademark action, the confusion of origin is
    mistaking a junior user’s product as originating from a senior
    user. (“Senior user” meaning the first, and protected, user of
    the mark and “junior” user meaning a later, and potentially
    infringing, user of the mark.) Initially, Fortres Grand argued
    that consumers could be confused into thinking that the movie
    was sponsored by Fortres Grand by virtue of the appearance
    of “clean slate” software. It has since abandoned those argu-
    ments on appeal.
    Instead, Fortres Grand argues that it has stated a claim via
    “reverse confusion,” a theory that we have recognized. See
    Peaceable Planet, Inc. v. Ty, Inc., 
    362 F.3d 986
    , 987 (7th Cir. 2004)
    (citing Sands, Taylor & Wood Co. v. Quaker Oats Co., 
    978 F.2d 947
    , 957–58 (7th Cir. 1992)); see also 4 McCarthy §§ 23:10, 25:6
    n.1 (distinguishing between “reverse passing off” and “reverse
    confusion”). In reverse confusion, the senior user’s products are
    8                                                             No. 13-2337
    mistaken as originating from (or being affiliated with or
    sponsored by) the junior user. This situation often occurs when
    the junior user is a well-known brand which can quickly
    swamp the marketplace and overwhelm a small senior user.
    Quaker Oats 
    Co., 978 F.2d at 950
    (junior user was the manufac-
    turer of Gatorade); see also 4 McCarthy § 23:10 (discussing
    examples of reverse confusion cases against junior users like
    Goodyear, Maytag, and Mattel). The harm from this kind of
    confusion is that “the senior user loses the value of the
    trademark—its product identity, corporate identity, control
    over its goodwill and reputation, and ability to move into new
    markets.” Quaker Oats, 
    978 F.2d 947
    , 957. To state a claim for
    infringement based on reverse confusion, Fortres Grand must
    plausibly allege that Warner Bros.’ use of the words “clean
    slate” in its movie to describe an elusive hacking program that
    can eliminate information from any and every database on
    earth has caused a likelihood that consumers will be confused
    into thinking that Fortres Grand’s Clean Slate software
    “emanates from, is connected to, or is sponsored by [Warner
    Bros.].”5 Custom 
    Vehicles, 476 F.3d at 484
    (citing Lucent Info.
    5
    Fortres Grand is correct that the district court erroneously inverted this
    test while applying it (essentially applying the traditional test), requiring
    that Fortres Grand plausibly allege that consumers have been confused into
    thinking that the fictional software or the movie “‘emanates from, is
    connected to, or is sponsored by’ Fortres Grand.” Fortres Grand Corp. v.
    Warner Bros. Entm't Inc., 
    947 F. Supp. 2d 922
    , 929–30 (N.D. Ind. 2013)
    (incorrectly inserting Fortres Grand into the test as the junior user where
    Warner Bros. ought to have been inserted).
    No. 13-2337                                                                9
    Mgmt., Inc. v. Lucent Techs., Inc., 
    186 F.3d 311
    , 316 (3d Cir.
    1999).6
    In considering the plausibility of such an allegation of
    confusion we look to the applicable test for likelihood of
    confusion. In this circuit, we employ a seven-factor test:
    [1] the degree of similarity between the marks in
    appearance and suggestion; [2] the similarity of the
    products for which the name is used; [3] the area
    and manner of concurrent use; [4] the degree of care
    likely to be exercised by consumers; [5] the strength
    [or “distinctiveness”] of the complainant’s mark; [6]
    actual confusion; and [7] an intent on the part of the
    alleged infringer to palm off his products as those of
    another.
    McGraw-Edison Co. v. Walt Disney Prods., 
    787 F.2d 1163
    , 1167–68
    (7th Cir. 1986) (quoting Helene Curtis Indus., Inc. v. Church &
    Dwight Co., Inc., 
    560 F.2d 1325
    , 1330 (7th Cir. 1977)).7 The
    district court relied heavily on the “similarity of the products”
    factor in its conclusion that Fortres Grand failed to state a
    claim, concluding that Fortres Grand’s software and Warner
    6
    The list “emanates from, is connected to, or is sponsored by” is merely
    a rephrasing of “origin, sponsorship, or approval” and “affiliation,
    connection, or association” in § 1125, which we also apply in the § 1114
    context. See, e.g., McGraw-Edison Co. v. Walt Disney Prods., 
    787 F.2d 1163
    ,
    1166 (7th Cir. 1986) (“a likelihood of confusion as to the origin of its
    products [is] required to prove a violation of 15 U.S.C. §§ 1114, 1125”).
    7
    However, the seventh factor is irrelevant in a reverse confusion analysis
    because the junior user is not trying to profit from the senior user’s brand.
    Quaker 
    Oats, 978 F.2d at 961
    .
    10                                                   No. 13-2337
    Bros.’ movie were so dissimilar that confusion was implausible.
    See Fortres 
    Grand, 947 F. Supp. 2d at 928
    –29. Fortres Grand
    argues on appeal that it was error for the district court to rely
    so heavily on one factor, and that the proper product to
    compare to its software is the fictional software in the movie
    made by the fictional Rykin Data Corporation. There is little
    authority on how to treat the “similarity of the products” factor
    when one of them is fictional, see Fortres 
    Grand, 947 F. Supp. 2d at 924
    (citing 6 McCarthy § 31:149), but what few cases have
    confronted the issue have considered the likelihood of confu-
    sion between the senior user’s product and the junior user’s
    creative work—not any fictional product therein. See Davis v.
    Walt Disney Co., 
    430 F.3d 901
    , 904 (8th Cir. 2005) (comparing
    senior user’s products and services with Disney’s movie—not
    the fictional product in the movie bearing a mark similar to the
    senior user’s); Ocean Bio-Chem, Inc. v. Turner Network Television,
    Inc., 
    741 F. Supp. 1546
    , 1557 (S.D. Fla. 1990) (similarly compar-
    ing the senior user’s product to Turner’s movie rather than the
    fictional product contained therein). This approach makes
    sense in light of the Supreme Court’s emphasis on confusion
    about the origin, sponsorship, or approval of “the tangible
    product sold in the marketplace.” 
    Dastar, 539 U.S. at 31
    . In fact,
    in forward confusion cases where the allegedly infringing use
    is in a junior user’s movie, the Supreme Court’s interpretation
    of “goods” in § 1125 likely compels lower courts to look to the
    movie, since it is the junior user’s only tangible product in the
    marketplace about which consumers could be confused. In
    reverse confusion based on a junior user’s movie, however, it
    is not so cut-and-dried. Because the confusion is about the
    origin, sponsorship, or approval of the senior user’s product,
    No. 13-2337                                                                  11
    which is tangible, there is no clear command that we compare
    that product (the software) to Warner Bros.’ tangible product
    (its movie) when considering the factor.8 Regardless, because
    the infringing act is the junior user’s use of the mark “in
    connection with any goods,” 15 U.S.C. § 1125, we think the
    word “goods” must mean the same thing there (tangible
    goods) that it means in the later clause, and so we conclude
    that Warner Bros.’ movie—its tangible good—is the correct
    comparator product, even while using the product-similarity
    factor to analyze reverse confusion.9 For the purposes of Rule
    12(b)(6), we also consider the Rykin Data websites as advertise-
    ments for its tangible good, the movie.
    But that does not end the product comparison question.
    While movies and desktop management software are dissimi-
    lar products, “[t]he fact that the products at issue may be ‘very
    different’ is not dispositive of the issue of the similarity of the
    products in determining the existence of a likelihood of
    confusion between products. The question is ‘whether the
    products are the kind the public attributes to a single source.’”
    
    McGraw-Edison, 787 F.2d at 1169
    (quoting E. Remy Martin & Co.,
    S.A. v. Shaw-Ross Int’l Imports, Inc., 
    756 F.2d 1525
    , 1530 (11th
    8
    We assume the Supreme Court would view a downloaded file from a
    website as the tangible product sold by Fortres Grand in this context, even
    though it is not literally tangible. We think, in general, the relevant question
    of source in the context of a download is which entity is responsible for the
    file hosted on the server which is downloaded by the consumer.
    9
    The language is similarly tied to goods in 15 U.S.C. § 1114 (making
    actionable the confusing use of a mark “in connection with the sale, offering
    for sale, distribution, or advertising of any goods”).
    12                                                 No. 13-2337
    Cir. 1985)). Infringement can occur if the trademarks are used
    on “goods related in the minds of consumers in the sense that
    a single producer is likely to put out both goods.” 
    Id. In McGraw-Edison,
    we held there was sufficient evidence to
    raise a question of fact about “whether the products are the
    kind the public attributes to a single source” where the
    evidence showed that McGraw-Edison (the senior user) made
    electrical fuses bearing the “TRON” mark and that Disney (the
    allegedly infringing junior user) had made videogames, toys,
    and had licensed telephones bearing the “TRON” mark (styled
    after its TRON movie). 
    Id. In McGraw-Edison,
    the infringing
    mark was used on Disney’s merchandise for the TRON movie.
    We held that “utilitarian electrical products” could be confused
    as originating from the same source as “entertainment-based”
    products powered by electricity when both are labeled
    “TRON.” 
    Id. It is
    also plausible that entertainment-based
    products could be confused as being affiliated with (by means
    of licensing) the same source as a movie.
    The problem here is that Fortres Grand wants to allege
    confusion regarding the source of a utilitarian desktop man-
    agement software based solely on the use of a mark in a movie
    and two advertising websites. Warner Bros., unlike Disney,
    does not sell any movie merchandise similar to Fortres Grand’s
    software which also bears the allegedly infringing mark.
    Fortres Grand mentions that Warner Bros. sells video games.
    Desktop management software and video game software may
    be similar enough to make confusion plausible, but Fortres
    Grand does not allege that the video games bear the “clean
    slate” mark. Nor does Fortres Grand allege that desktop
    management software is a commonly merchandised movie tie-
    No. 13-2337                                                    13
    in (as a video game might be). Accordingly, the only products
    available to compare—Fortres Grand’s software and Warner
    Bros.’ movie—are quite dissimilar, even considering common
    merchandising practice. Fortres Grand has alleged no facts that
    would make it plausible that a super-hero movie and desktop
    management software are “goods related in the minds of
    consumers in the sense that a single producer is likely to put
    out both goods.”
    Fortres Grand emphasizes that we have clearly stated that
    courts should not rely on the weakness of a single factor to
    dispose of a trademark infringement claim. AHP Subsidiary
    Holding Co. v. Stuart Hale Co., 
    1 F.3d 611
    , 616 (7th Cir. 1993)
    (“None of the seven confusion factors alone is dispositive in a
    likelihood of confusion analysis.”). But its allegation of reverse
    confusion is just as implausible in light of the other factors.
    Both the movie and Fortres Grand’s software are available on
    the internet, but the movie was shown first and primarily in
    theaters and Fortres Grand’s software is only available at its
    website, not at other places on the internet. And anyone who
    arrives at Fortres Grand’s website is very unlikely to imagine
    it is sponsored by Warner Bros. (assuming, safely, that Fortres
    Grand is not using Catwoman as a spokesperson for its
    program’s efficacy). See FORTRESGRAND.COM, Clean Slate 7,
    http://www.fortresgrand.com/products/cls/cls.htm. And the
    movie websites, while on the internet, sell no products and are
    clearly tied to the fictional universe of Batman. Further,
    Warner Bros.’ use of the mark is not a traditional use in the
    marketplace, but in the dialogue of its movie and in extensions
    of its fictional universe, so the “the area and manner of
    concurrent use” also makes confusion unlikely. Fortres Grand
    14                                                        No. 13-2337
    also asserts that consumers of “security software,” similar to
    what it sells, are discerning and “skeptical,” which is indicative
    of a “degree of care likely to be exercised by consumers”
    making confusion unlikely. Additionally, the mark “clean
    slate” is just one variation of a phrase (pinakis agraphos in
    Greek (often translated “unwritten tablet”) or tabula rasa in
    Latin (often translated “blank slate” or “scraped tablet”)) that
    traces its origins at least as far back as Aristotle and is often
    used to describe fresh starts or beginnings.10 While the use of
    the term may be suggestive for security software, its use
    descriptively (and suggestively) is quite broad, including in
    reference to giving convicted criminals fresh starts, to re-
    designing the internet, or, indeed, to a movie about an investi-
    gator with amnesia.11 Accordingly, Warner Bros.’ descriptive
    use of the words “clean slate” in the movie’s dialogue to
    describe a program that cleans a criminal’s slate is unlikely to
    cause confusion. See Quaker Oats 
    Co., 978 F.2d at 959
    (7th Cir.
    1992) (“In a reverse confusion case, then, it may make more
    10
    See, e.g., WIKIPEDIA.ORG, Tabula Rasa, http://en.wikipedia.org/wiki/
    Tabula_rasa.
    11
    See, e.g., CLEANSLATE CHICAGO, About, http://www.cleanslatechicago.
    org/cs/about (community revitalization program that serves the additional
    purpose of providing job training to individuals, including those with
    criminal convictions); THE CARA PROGRAM, Service Delivery Model, http://
    www.thecaraprogram.org/sites/default/files/uploads/FY13%20Service%20
    Delivery%20Model.pdf (describing the staffing of the Cleanslate Chicago
    program); STANFORD UNIVERSITY, Clean Slate Program, http://cleanslate.
    stanford.edu/; INTERNATIONAL MOVIE DATABASE, Clean Slate (1994), http://
    www.imdb.com/title/tt0109443/.
    No. 13-2337                                                                 15
    sense to consider the strength of the mark in terms of its
    association with the junior user's goods.” (emphasis added)).
    Finally, Fortres Grand speculates that there must have been
    actual confusion because of “internet chatter” and “web pages,
    tweets, and blog posts in which potential consumers question
    whether the CLEAN SLATE program, as it exists in The Dark
    Knight Rises, is real and could potentially work.”12 Am. Compl.
    at 5, ¶ 24. But this is not an allegation of actual confusion. This
    is an assertion that consumers are speculating that there really
    could be a hacking tool that allows a user to erase information
    about herself from every database on earth. 
    Id. At best
    Fortres
    Grand’s argument is that consumers are mistakenly thinking
    that its software may be such a hacking tool (or an attempt at
    such a hacking tool), and not buying it. But this is not reverse
    confusion about origin. Whoever these unusually gullible
    hypothetical consumers are, Fortres Grand has not and could
    not plausibly allege that consumers are confused into thinking
    12
    Fortres Grand also argues that its drop in sales means there must have
    been confusion. But that is a thin reed to lean on. Fortres Grand alleges that,
    as a result of the movie, “[o]nline searches for CLEAN SLATE now return
    hundreds of results relating to the CLEAN SLATE program from The Dark
    Knight Rises,” Compl. at 5, ¶ 24, and that it has had to expend money on
    “corrective advertising.” Far from implying confusion, these allegations
    merely logically connect Fortres Grand’s loss of sales with its website
    showing up lower in search results. See, e.g., CHITIKA.COM , The Value of
    Google Result Positioning, http://chitika.com/google-positioning-value
    (showing that the ten results on the first page of Google’s search results for
    a particular term get 91.5% of the traffic). And proof that internet searchers
    are more interested in exploring the feasability of a fictional hacking tool
    than in Fortres Grand’s desktop management software is not proof that they
    are confused about the source of Fortres Grand’s software.
    16                                                    No. 13-2337
    Fortres Grand is selling such a diabolical hacking tool licensed
    by Warner Bros. Fortres Grand’s real complaint is that Warner
    Bros.’ use of the words “clean slate” has tarnished Fortres
    Grand’s “clean slate” mark by associating it with illicit soft-
    ware. But this type of harm may only be remedied with a
    dilution claim. See 15 U.S.C. § 1125(c). And it would not be
    appropriate to use a contorted and broadened combination of
    the “reverse confusion” and “related products” doctrines to
    extend dilution protection to non-famous marks which are
    explicitly excluded from such protection by statute. 
    Id. (“the owner
    of a famous mark … shall be entitled to an injunction
    against another person who … commences use of a mark …
    that is likely to cause … dilution by tarnishment of the famous
    mark” (emphasis added)).
    In fact, the only factor to which Fortres Grand’s allegations
    lend any strength is the similarity of the marks—both marks
    are merely “clean slate” or “the clean slate.” But juxtaposed
    against the weakness of all the other factors, this similarity is
    not enough. Trademark law protects the source-denoting
    function of words used in conjunction with goods and services
    in the marketplace, not the words themselves. Anti-Monopoly,
    Inc. v. Gen. Mills Fun Grp., 
    611 F.2d 296
    , 301 (9th Cir. 1979) (“It
    is the source-denoting function which trademark laws protect,
    and nothing more.”). Assuming all Fortres Grand’s other
    allegations are true, its reverse confusion allegation—that
    consumers may mistakenly think Warner Bros. is the source of
    Fortres Grand’s software—is still “too implausible to support
    costly litigation.” Eastland 
    Music, 707 F.3d at 871
    . Accordingly,
    we need not—and do not—reach Warner Bros.’ argument that
    its descriptive use of the words “clean slate” in the dialogue of
    No. 13-2337                                                    17
    its movie is shielded by the First Amendment. Eastland 
    Music, 707 F.3d at 871
    (“It is unnecessary to consider possible constitu-
    tional defenses to trademark enforcement, … [when the]
    complaint fails at the threshold.”).
    III. Conclusion
    Because Fortres Grand has failed to plausibly allege
    confusion, it has failed to state a claim for trademark infringe-
    ment under 15 U.S.C. §§ 1114, 1125 and Indiana unfair compe-
    tition law. Accordingly, the district court did not err by
    granting Warner Bros.’ motion to dismiss the complaint.
    AFFIRMED.
    

Document Info

Docket Number: 13-2337

Citation Numbers: 763 F.3d 696

Judges: Manion

Filed Date: 8/14/2014

Precedential Status: Precedential

Modified Date: 1/12/2023

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