Petition for Writ of Certiorari — Relish Labs LLC, et al., Petitioners v. Grubhub Inc., et al.
Supreme Court briefJan 9, 2024
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No. 23In the
Supreme Court of the United States
RELISH LABS LLC AND THE KROGER CO.,
Petitioners,
v.
GRUBHUB, INC. AND TAKEAWAY.COM
CENTRAL CORE B.V.,
Respondents.
On Petition for a Writ of Certiorari to the United
States Court of A ppeals for the Seventh Circuit
PETITION FOR A WRIT OF CERTIORARI
William P. Atkins
Counsel of Record
Pillsbury Winthrop Shaw
Pittman LLP
1650 Tysons Boulevard,
14th Floor
McLean, VA 22102
(703) 770-7900
william.atkins@
pillsburylaw.com
Attorneys for Petitioners
326184
i
QUESTIONS PRESENTED
In trademark infringement, multiple factors are
weighed and balanced against the entire record to
determine whether there is a likelihood of confusion. In
B & B Hardware, Inc. v. Hargis Industries, Inc., 575
U.S. 138, 154 (2015), this Court held that the application
of those factors must apply the same statutory legal
standard for a likelihood of confusion across all circuits.
Some circuit courts review each factor’s analysis for clear
error, as well as the final balancing. Other circuits review
the final determination de novo. In this case, the district
court analyzed only three of the Seventh Circuit’s seven
factors. The circuit court found errors in that analysis,
added a de novo analysis of a fourth factor, and conducted
a de novo balancing, all while finding no clear error in the
district court’s determination.
The questions presented are:
1)
Whether the determination of a likelihood of confusion
for trademark infringement is a factual finding,
reviewable for clear error, or a legal conclusion,
reviewable de novo, or a combination?
2)
Whether a court should disclose its analysis of all
the factors in a multifactor likelihood of confusion
balancing determination for trademark infringement?
ii
CORPORATE DISCLOSURE STATEMENT
Petitioner The Kroger Co. has no parent corporation
and The Vanguard Group, Inc. is the only publicly held
company owning ten percent or more of this Petitioner’s
stock. Petitioner Relish Labs LLC is wholly owned by
The Kroger Co.
iii
STATEMENT OF RELATED PROCEEDINGS
• Grubhub Inc. and Takeaway.com Central Core B.V. v.
Relish Labs LLC and The Kroger Co., No. 1:21-cv05312, U.S. District Court for the Northern District of
Illinois. Report and Recommendation entered April 8,
2022. Order denying motion for preliminary injunction
entered May 25, 2022.
• Grubhub Inc. and Takeaway.com Central Core B.V. v.
Relish Labs LLC and The Kroger Co., No. 22-1950, U.S.
Court of Appeals for the Seventh Circuit. Judgment
entered Sept. 12, 2023. Denial of request for rehearing
and rehearing en banc entered Oct. 11, 2023.
iv
TABLE OF CONTENTS
Page
QUESTIONS PRESENTED . . . . . . . . . . . . . . . . . . . . . . . i
CORPORATE DISCLOSURE STATEMENT . . . . . . . ii
STATEMENT OF RELATED PROCEEDINGS . . . . iii
TABLE OF CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . iv
TABLE OF APPENDICES . . . . . . . . . . . . . . . . . . . . . . . vi
TABLE OF AUTHORITIES . . . . . . . . . . . . . . . . . . . . . vii
OPINIONS BELOW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
STATEMENT OF JURISDICTION . . . . . . . . . . . . . . . 1
STATUTORY PROVISIONS INVOLVED . . . . . . . . . . 1
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
STATEMENT OF THE CASE . . . . . . . . . . . . . . . . . . . . 3
I.
The Statutory Language . . . . . . . . . . . . . . . . . . . 4
II. Factual Background . . . . . . . . . . . . . . . . . . . . . . . 4
III. Procedural Background . . . . . . . . . . . . . . . . . . . . 6
REASONS TO GRANT THE PETITION . . . . . . . . . . . 9
v
Table of Contents
Page
I.
The Multifactor “Likelihood of Confusion”
Balancing Test . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
A. Multifactor Tests Apply the Same Legal
Standard . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
B. The Factors and Their Analyses Are
Interrelated . . . . . . . . . . . . . . . . . . . . . . . . 11
C. Courts Have Been Selecting Subsets of
Factors to Analyze . . . . . . . . . . . . . . . . . . . . 15
II. Not Consider i ng Releva nt Fa c t or s
and Ig nor ing Ev idence Is Legal
Error . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
III. The Circuit Split of Likelihood of Confusion
Findings: Clear Error or De Novo . . . . . . . . . . 22
CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
vi
TABLE OF APPENDICES
Page
APPENDIX A — OPINION OF THE
UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT, FILED
SEPTEMBER 12, 2023 . . . . . . . . . . . . . . . . . . . . . . . 1a
APPENDIX B — ORDER AND
MEMORANDUM OPINION OF
THE UNITED STATES DISTRICT
COURT FOR THE NORTHERN
DISTRICT OF ILLINOIS, EASTERN
DIVISION, FILED MAY 25, 2022 . . . . . . . . . . . . . 39a
APPENDIX C — REPORT AND
RECOMMENDATION OF THE
UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT
OF ILLINOIS, EASTERN DIVISION,
FILED APRIL 8, 2022 . . . . . . . . . . . . . . . . . . . . . . . 60a
APPENDIX D — ORDER OF THE UNITED
STATES COURT OF APPEALS FOR
THE SEVENTH CIRCUIT, FILED
OCTOBER 11, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . 135a
APPENDIX E — 15 U.S.C. § 1114 . . . . . . . . . . . . . . 137a
vii
TABLE OF CITED AUTHORITIES
Page
Cases
A & H Sportswear, Inc. v.
Victoria’s Secret Stores, Inc.,
237 F.3d 198 (3d Cir. 2000) . . . . . . . . . . . . . . . 20, 22, 24
Arrow Fastener Co., Inc. v. Stanley Works,
59 F.3d 384 (2d Cir. 1995) . . . . . . . . . . . . . . . . . . . . . . 15
Astra Pharmaceutical Products, Inc. v.
Beckman Instruments, Inc.,
718 F.2d 1201 (1st Cir. 1983) . . . . . . . . . . . . . . . . . . . 12
B & B Hardware, Inc. v. Hargis Industries, Inc.,
575 U.S. 138 (2015) . . . . . . . . . . . . . . . . . . . . . . 2, 11, 16
Barbeque Marx, Inc. v. 551 Ogden, Inc.
235 F.3d (7th Cir. 2000) . . . . . . . . . . . . . . . . . . . . . . . . 6
Beer Nuts, Inc. v. Clover Club Foods Co.,
805 F.2d 920 (10th Cir. 1986) . . . . . . . . . . . . . . . . . . . 13
Boston Athletic Ass’n v. Sullivan,
867 F.2d 22 (1st Cir. 1989) . . . . . . . . . . . . . . . . . . . . . 12
Boston Duck Tours, LP v.
Super Duck Tours, LLC,
531 F.3d 1 (1st Cir. 2008) . . . . . . . . . . . . . . . . . . . . . . 24
viii
Cited Authorities
Page
Brookfield Commc’ns, Inc. v.
W. Coast Entm’t Corp.,
174 F.3d 1036 (9th Cir. 1999) . . . . . . . . . . . . . . . . . . . 17
CAE, Inc. v. Clean Air Engineering, Inc.,
267 F.3d 660 (7th Cir. 2001) . . . . . . . . . . . . . . . . . . . . 19
Car-Freshner Corporation v.
American Covers, LLC,
980 F.3d 314 (2d Cir. 2020) . . . . . . . . . . . . . . . . . . . . . 23
Carl Zeiss Stiftung v. VEB Carl Zeiss Jena,
433 F.2d 686 (2d Cir. 1970), cert. denied,
403 U.S. 905 (1971) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Champions Golf Club, Inc. v.
The Champions Golf Club, Inc.,
78 F.3d 1111 (6th Cir. 1996) . . . . . . . . . . . . . . . . . . . . 23
Checkpoint Sys. v. Check Point Software Tech,
269 F.3d 270 (3d Cir. 2001) . . . . . . . . . . . . . . . . . . . . . 25
Dieter v. B & H Industries of Southwest Florida,
880 F.2d 322 (11th Cir. 1989) . . . . . . . . . . . . . . . . . . . 12
Elby’s Big Boy v. Frisch’s Restaurants,
459 U.S. 916 (1982) . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Eli Lilly & Co. v. Nat. Answers, Inc.,
233 F.3d 456 (7th Cir. 2000) . . . . . . . . . . . . . . . . . . . . 19
ix
Cited Authorities
Page
Enco Mfg. Co. v. Clamp Mfg. Co.,
493 U.S. 872 (1989) . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Euroquilt, Inc. v. Scandia Down Corp.,
475 U.S. 1147 (1986) . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Fisons Horticulture, Inc. v. Vigro Indus., Inc.,
30 F.3d 466 (3d Cir. 1994) . . . . . . . . . . . . . . . . . . . . . . 13
Fortune Dynamic, Inc. v. Victoria’s Secret
Stores Brand Mgmt., Inc.,
618 F.3d 1025 (9th Cir. 2010) . . . . . . . . . . . . . . . . . . . 17
Frehling Enterprises v. Int’l Select Group,
192 F.3d 1330 (11th Cir. 1995) . . . . . . . . . . . . . . . . . . 20
G. Heileman Brewing Co. v.
Anheuser-Busch, Inc.,
873 F.2d 985 (7th Cir. 1989) . . . . . . . . . . . . . . . . . 18, 19
General Motors Corp. v. Lanard Toys, Inc.,
468 F.3d 405 (6th Cir. 2006) . . . . . . . . . . . . . . . . . . . . 17
General Motors Corp. v. Urban Gorilla, LLC,
500 F.3d 1222 (10th Cir. 2007) . . . . . . . . . . . . . . . . . . 24
GoTo.com, Inc. v. Walt Disney Co.,
202 F.3d 1199 (9th Cir. 2000) . . . . . . . . . . . . . . . . . . . 19
Gray v. Meijer, Inc.,
295 F.3d 641 (6th Cir. 2002) . . . . . . . . . . . . . . . . . . . . 19
x
Cited Authorities
Page
Hamling v. United States,
418 U.S. 87 (1974) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
Hana Financial, Inc. v. Hana Bank,
574 U.S. 418 (2015) . . . . . . . . . . . . . . . . . . . . . . . . 23, 25
Harold F. Ritchie v. Chesebrough-Pond’s, Inc.,
281 F.2d 755 (2d Cir. 1960) . . . . . . . . . . . . . . . . . . . . . 24
Helene Curtis Industries v.
Church & Dwight Co.,
560 F.2d 1325 (7th Cir. 1977) . . . . . . . . . . . . 6, 7, 17, 18
Henri’s Food Products Co., Inc. v. Kraft, Inc.,
717 F.2d 352 (7th Cir. 1983) . . . . . . . . . . . . . . . . . . . . 18
Int’l Kennel Club of Chicago, Inc. v.
Mighty Star, Inc.,
846 F.2d 1079 (7th Cir. 1988) . . . . . . . . . . . . . . . . . . . 18
Inwood Laboratories v. Ives Laboratories,
456 U.S. 844 (1982) . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
J. B. Williams Company, Inc. v.
LeConte Cosmetics, Inc.,
523 F.2d 187 (9th Cir. 1975) . . . . . . . . . . . . . . . . . . . . 24
Jordache Enters. v. Hogg Wyld, Ltd.,
828 F.2d 1482 (10th Cir. 1987) . . . . . . . . . . . . . . . . . . 12
xi
Cited Authorities
Page
King of the Mountain Sports v. Chrysler Corp.,
185 F.3d 1084 (10th Cir. 1999) . . . . . . . . . . . . . . . . . . 20
Kos Pharmaceuticals v. Andrx Corp.,
369 F.3d 700 (3d Cir. 2004) . . . . . . . . . . . . . . . . . . . . . 21
L.A. Gear, Inc. v. Thom McAn Shoe Co.,
988 F.2d 1117 (Fed. Cir. 1993), cert. denied, 510
U.S. 908 (1993) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Levi Strauss Co. v. Blue Bell, Inc.,
778 F.2d 1352 (9th Cir. 1985) . . . . . . . . . . . . . . . . . . . 23
Lone Star Steakhouse & Saloon v.
Alpha of Virginia,
43 F.3d 922 (4th Cir. 1995) . . . . . . . . . . . . . . . . . . . . . 12
Maker’s Mark Distillery v.
Diageo North America,
679 F.3d 410 (6th Cir. 2012) . . . . . . . . . . . . . . . . . . . . 19
Mathews v. Weber,
423 U.S. 261, 96 S.Ct. 549, 46 L.Ed.2d 483 (1976) . 15
Mobil Oil Corp. v. Pegasus Petroleum Corp.,
818 F.2d 254 (2d Cir. 1987) . . . . . . . . . . . . . . . . . . . . . 13
National Business Forms & Printing, Inc. v.
Ford Motor Co.,
671 F.3d 526 (5th Cir. 2012) . . . . . . . . . . . . . . . . . . . . 24
xii
Cited Authorities
Page
Network Automation, Inc. v. Advanced Systems
Concepts, Inc.,
638 F.3d 1137 (9th Cir. 2011) . . . . . . . . . . . . . . . . . . . 17
Pignons S.A. de Mecanique de Precision v.
Polaroid Corp.,
657 F.2d 482 (1st Cir. 1981) . . . . . . . . . . . . . . . . . . . . 12
Piper Aircraft Corp. v. Wag-Aero, Inc.,
741 F.2d 925 (7th Cir. 1984) . . . . . . . . . . . . . . . . . . . . 13
PlayNation Play Systems, Inc. v. Velex Corp.,
924 F.3d 1159 (11th Cir. 2019) . . . . . . . . . . . . . . . . . . 16
Plus Products v. Plus Discount Foods, Inc.,
722 F.2d 999 (2d Cir. 1983) . . . . . . . . . . . . . . . . . . . . . 12
Polaroid Corp. v. Polarad Elecs. Corp.,
287 F.2d 492 (2d Cir. 1961) . . . . . . . . . . . . . . . . . . 10, 11
Railroad Co. v. Stout,
17 Wall. 657 (1873) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Reinsurance Co. v. Administratia Asigurarilor,
902 F.2d 1275 (7th Cir. 1990) . . . . . . . . . . . . . . . . . . . . 9
Sabinsa Corp. v. Creative Compounds, LLC,
609 F.3d 175 (3rd Cir. 2010), cert. denied, 131
S. Ct. 960 (2011) . . . . . . . . . . . . . . . . . . . . . . . . 21, 22, 24
xiii
Cited Authorities
Page
Scandia Down Corp. v. Euroquilt, Inc.,
772 F.2d 1423 (7th Cir. 1985) . . . . . . . . . . . . . . . . . . . 23
Schwinn Bicycle Co. v. Ross Bicycles, Inc.,
870 F.2d 1176 (7th Cir. 1989) . . . . . . . . . . . . . . . . . . . 14
Select Comfort Corp. v. Baxter,
996 F.3d 925 (8th Cir. 2021) . . . . . . . . . . . . . . . . . . . . 24
Smith v. Bayer Corp,
564 U.S. 299 (2011) . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Smith Fiberglass Prod., Inc. v. Ameron, Inc.,
7 F.3d 1327 (7th Cir. 1993) . . . . . . . . . . . . . . . . . . . . . . 7
SquirtCo v. Seven-Up Co.,
628 F.2d 1086 (8th Cir. 1980) . . . . . . . . . . . . . . . . 12, 13
Stratus Networks, Inc. v. UBTA-UBET
Communications Inc.,
955 F.3d 994 (Fed. Cir. 2020) . . . . . . . . . . . . . . . . . . . 23
Sun Banks of Fla., Inc. v.
Sun Fed. Sav. & Loan Ass’n,
651 F.2d 311 (5th Cir. 1981) . . . . . . . . . . . . . . . . . 13, 24
Swatch AG v. Beehive Wholesale, LLC,
739 F.3d 150 (4th Cir. 2014) . . . . . . . . . . . . . . . . . . . . 23
xiv
Cited Authorities
Page
Teva Pharma. USA, Inc. v. Sandoz, Inc.,
574 U.S. 318 (2015) . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Thane Int’l, Inc. v. Trek Bicycle Corp.,
305 F.3d 894 (9th Cir. 2002) . . . . . . . . . . . . . . . . . . . . 17
United States v. Gaudin,
515 U.S. 506 (1995) . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Top Tobacco, L.P. v.
North Atlantic Operating Co., Inc.,
509 F.3d 380 (7th Cir. 2007) . . . . . . . . . . . . . . . . . . . . 17
TSC Industries, Inc. v. Northway, Inc.,
426 U.S. 438 (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Ty, Inc. v. Jones Group, Inc.,
237 F.3d 891 (7th Cir. 2001) . . . . . . . . . . . . . . . . . 18, 19
Uncommon, LLC v. Spigen, Inc.,
926 F.3d 409 (7th Cir. 2019) . . . . . . . . . . . . . . . . . . . . 18
Union Carbide Corp. v. Ever-Ready Inc.,
531 F.2d 366 (7th Cir. 1976) . . . . . . . . . . . . . . . . . . . . 24
United States v. Raddatz,
447 U.S. 667, 681-82, 100 S.Ct. 2406, 2415, 65
L.Ed.2d 424, rehearing denied, 448 U.S. 916,
101 S.Ct. 36, 65 L.Ed.2d 1179 (1980) . . . . . . . . . . . . . 14
xv
Cited Authorities
Page
Watkins Products, Inc. v.
Sunway Fruits Products, Inc.,
311 F.2d 496 (7th. Cir. 1963) . . . . . . . . . . . . . . . . . . . . 23
Zheng Cai v. Diamond Hong, Inc.,
901 F.3d 1367 (Fed. Cir. 2018) . . . . . . . . . . . . . . . . . . 13
Ziebart Int’l Corp. v.
After Market Associates, Inc.,
802 F.2d 220 (7th Cir. 1986) . . . . . . . . . . . . . . . . . . . . 18
Statutes and Codes
United States Code,
Title 15, Section 1114 . . . . . . . . . . . . . . . . . . . . . . . . 1, 4
Title 28, Section 1254(1) . . . . . . . . . . . . . . . . . . . . . . . . 1
Rules and Regulations
Federal Rules of Civil Procedure,
Rule 52 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14, 21, 22, 26
Other Authorities
4 McCarthy on Trademarks and Unfair Competition
§ 23:19 (5th ed.) . . . . . . . . . . . . . . . . . . . . . . . . . . . 11, 13
4 McCarthy on Trademarks and Unfair Competition
§ 24:30 (5th ed.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 11
xvi
Cited Authorities
Page
4 McCarthy on Trademarks and Unfair Competition
§ 24:57 (5th ed.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
American Law Institute, Restatement of Torts,
§ 729 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
American Law Institute, Restatement of Torts,
§ 730 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
American Law Institute, Restatement of Torts,
§ 731 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Jerre B. Swann, Confusion Factor Analysis-A
Cognitive Update, 101 Trademark Rep.
1223 (2011) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Prof. Barton Beebe, An Empirical Study of the
Multifactor Tests for Trademark Infringement,
94 Cal. Law Rev. 1581 (2006) . . . . . . . . . . . . . . . . . . . 16
Restatement (First) of Torts § 729 (1938) . . . . . . . . . . . . 9
9 Wright Miller, Federal Practice & Procedure
§ 2574 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
1
Petitioners Relish Labs LLC and The Kroger Co.
respectfully petition for a writ of certiorari to review the
judgment of the United States Court of Appeals for the
Seventh Circuit in this case.
OPINIONS BELOW
The Report and Recommendation is not reported. 2022
WL 1644233. Petitioner’s Appendix (App.) at 60a-134a.
The Order of the district court is not reported. 2022 WL
2774986. App. 39a-59a. The opinion of the United States
Court of Appeals for the Seventh Circuit is reported at
80 F.4th 835 (App. 1a-38a) and the denial of rehearing is
not reported. 2023 WL 6626148. App. 135a-136a.
STATEMENT OF JURISDICTION
The Court of Appeals denied Petitioners’ motion
for preliminary injunction for trademark infringement.
App. 1a. A request for rehearing and rehearing en banc
was denied on Oct. 11, 2023. App. 135a. This Court has
jurisdiction under 28 U.S.C. § 1254(1).
STATUTORY PROVISIONS INVOLVED
Section 32 of the Lanham Act, 15 U.S.C. § 1114,
provides in pertinent part:
Any person who shall … use in commerce any
reproduction, counterfeit, copy, or colorable
imitation of a registered mark in connection
with the sale, offering for sale, distribution, or
advertising of any goods or services on or in
connection with which such use is likely to cause
2
confusion, or to cause mistake, or to deceive …
shall be liable… .
The entire statue can be found at App. 137a-141a.
INTRODUCTION
Trademark infringement requires determining
a “likelihood of confusion” by analyzing interrelated
factors with relevant evidence and then balancing them.
The circuit courts use similar factors to meet the same
statutory legal standard, as required by this Court’s
decision in B & B Hardware, Inc. v. Hargis Industries,
Inc., 575 U.S. 138, 154 (2015). There is a circuit split,
however, as to how this is accomplished and whether such
a determination is a legal conclusion, subject to de novo
review, or a factual finding, reviewed for clear error, or a
combination of both.
This case presents an important, recurring, and
outcome determinative question of federal statutory
trademark law that this Court is uniquely and solely suited
to address and resolve because courts are determining
the likelihood of consumer confusion in starkly different,
subjective ways. The analysis must analyze all relevant
factors against the entire record and then weigh and
balance them to determine if the statutory legal standard
is met. Some circuit courts review each factor’s analysis for
clear error, as well as the ultimate determination. Other
circuits review the ultimate determination of likelihood
of confusion de novo. Even when required to give great
deference, courts provide incomplete, unbalanced, and
unpredictable trademark infringement decisions. Such
analyses and ensuing decisions avoid disclosure and,
3
therefore, render a subjective opinion for review. They
also prevent courts and trademark owners from having
a predictable body of case law - one which must meet
the statutory legal standard. Certiorari is respectfully
requested to resolve this long-standing problem, as
evidenced by this case.
STATEMENT OF THE CASE
Petitioners moved for preliminary injunction based
on trademark infringement. A magistrate judge analyzed
all seven of the Seventh Circuit’s likelihood of confusion
factors, concluding that there was a likelihood of reverse
confusion, and recommended granting Petitioners’
preliminary injunction motion. The district court adopted
all of the factual findings but denied the motion, choosing
instead to analyze only three of the seven factors. The
circuit court applied a clearly erroneous standard of
review, forgiving both legal and factual errors in that
which the district court had chosen to consider. The
Seventh Circuit then, however, conducted a de novo
analysis of one of the four factors which the district court
had ignored, and therefore the parties had not briefed.
With the sua sponte inclusion of a de novo analysis
of an additional factor, the circuit court conducted an
incomplete de novo balancing of four factors to determine
the likelihood of confusion. These analyses, in a circuit
with precedent requiring a clearly erroneous standard
of review, evidence the timeworn challenges faced by
trademark owners and, more importantly for this Court,
an ongoing need to ensure a consistent process while
reconciling a split between the circuits. A court cannot
balance that which it does not weigh.
4
I.
The Statutory Language
The Lanham Act statutorily protects trademark
owners from a mark which is “likely to cause confusion, or
to cause mistake, or to deceive ….” 15 U.S.C. § 1114 (Pub.
L. No. 79-489, § 43, 60 Stat. 427, 437 (1946)) (generally
referred to as the “likelihood of confusion”).
II. Factual Background
The following is taken from the R&R’s “Findings of
Fact”. App. 63a-82a. The District Court’s Order “adopts
and incorporates the factual findings of the R&R”. App.
40a-41a.
Petitioner Relish Labs LLC (“Home
Chef”) has been using the “HC Home
Mark” (pictured right) since 2014 and
owns three U.S. trademark registrations
for this mark by itself. App. 66a-67a. As
the R&R found:
Currently, Home Chef offers hundreds of
products, including meal kits, heat-and-eat
meals, and ready-to-eat options. …Home
Chef’s products can be purchased through
Home Chef’s website and mobile application,
Kroger’s website and mobile application, and
in 2,000 Kroger family stores, either for pick
up or delivery. (Id. at ¶16). Since 2021, Home
Chef has also partnered with meal delivery
service DoorDash – a Grubhub competitor – to
“promote and sell Home Chef’s meal kits and
prepared meals for pickup and home delivery
5
throughout select Kroger family stores.” …
Customers can also order Home Chef’s meal
kits, heat-and-eat, and ready-to-eat meals for
pick up and home delivery from Kroger through
Instacart, another grocery and meal delivery
service. … In addition, select customers can
order Home Chef vouchers directly through
the Grubhub mobile app for redemption on the
Home Chef website.
App. 65a-66a.
“In 2020, Grubhub provided nearly $9 billion in gross
food sales to local restaurants, and it processed more
than 745,000 restaurant orders per day.” App. 69a. “In
addition to working with restaurants, Grubhub provides
meal delivery services through other channels, including
grocery stores.” Id.
Respondent Takeaway.com Central
Core B.V. (“JET”) is a “leading global
online food ordering and delivery
marketplace” which used its “JET
House Mark” (pictured left) with its
various subsidiaries. App. 72a-73a.
On June 10, 2020, JET “reached a deal to acquire
Grubhub and ‘create the world’s largest online food
delivery company outside of China.” App. 74a. “Just a
few weeks later, on July 1, 2020, JET filed a trademark
application with the USPTO for the JET House Logo
alone, with no accompanying word mark.” App. 74a. The
USPTO refused JET’s trademark application “because of
a likelihood of confusion with [Home Chef’s] marks.” Id.
6
(square brackets in original). On Aug. 9, 2021, JET filed
a renunciation of its trademark application; the USPTO
would declare it abandoned. App. 76a. Fifteen days
later, on Aug. 24, 2021, Grubhub issued a press release
advertising its new branding and logo (shown below) and
explaining how the Grubhub and Seamless phone apps
were updated overnight. App. 78a.
Petitioners Home Chef and Kroger sent a cease-anddesist letter. App. 78a. JET and Grubhub responded by
filing a declaratory judgment action, to which Petitioners
responded, including with a motion for preliminary
injunction. App. 79a.
III. Procedural Background
The Seventh Circuit uses the following seven Helene
Curtis factors to analyze the likelihood of confusion
between marks:
1.
Similarity of the marks in appearance and
suggestion;
2.
Similarity of the products for which the mark is
used;
3.
The area and manner of concurrent use;
7
4.
The degree of care likely to be exercised by
consumers;
5.
The strength of the complainant’s mark;
6.
Existence of actual confusion; and
7.
The intent of the defendant to palm off its product
as that of another.
Helene Curtis Industries v. Church & Dwight Co., 560
F.2d 1325, 1330 (7th Cir. 1977) (citing Carl Zeiss Stiftung
v. VEB Carl Zeiss Jena, 433 F.2d 686, 705 (2d Cir. 1970),
cert. denied, 403 U.S. 905 (1971)).
The R&R (App. 60a-134a) recognized that a court
must:
“[W]eigh the evidence pertaining to each
likelihood of confusion factor and balance the
seven factors against each other.” Barbeque
Marx, Inc. v. 551 Ogden, Inc. 235 F.3d at 1044
[7th Cir. 2000]. No single factor is dispositive,
“and the weight accorded to each factor will
vary from case to case.” Smith Fiberglass
Prod., Inc. v. Ameron, Inc., 7 F.3d 1327, 1329–
30 (7th Cir. 1993).
App. 86a. The R&R recommended granting Petitioners’
preliminary injunction motion for reverse confusion,
concluding, “[t]o recap, all seven factors … weigh in favor
of [Petitioners] with respect to its reverse confusion
theory.” App. 120a.
8
The district court’s Order (App. 39a-59a) adopted the
R&R’s factual findings, but rejected its recommendation
and denied Petitioners’ preliminary injunction motion,
based solely on three factors, similarity of the marks,
intent, and actual confusion, while relegating its failure
to analyze the Seventh Circuit’s four other important
factors to a footnote:
The Court does not presently consider the
remaining factors because Grubhub did not
specifically object to the R&R’s analysis of
those factors, and it does not appear that the
R&R’s analysis of those factors is clear error.
Moreover, that analysis would not change the
Court’s conclusion that [Petitioner] has not met
its burden of showing a strong likelihood of
success on the merits.
App. 54a n. 2 (emphasis added).
With the district court not completing its analysis,
Petitioners appealed. The Seventh Circuit Decision (App.
1a-38a) found that the district court erred in its analysis
and then took it upon itself to de novo analyze the strength
of mark because “the strength-of-the-mark factor is so
intricately connected to the similarity-of-marks factor.”
App. 22a. As to the remaining three factors, with no
analysis or findings from either of the lower courts, the
decision inaccurately states that all of the factors had
been considered, but cites to only the single footnote in
the district court’s Order. App. 37a.
The R&R provides a thorough, reasoned analysis,
dutifully weighing and balancing the evidence using
9
each of the factors. The district court applied a different
legal standard by choosing to analyze only three of the
seven factors, one of which the circuit court recognized as
erroneous. To bolster its incomplete conclusion, the circuit
court applies and analyzes the strength of mark factor – a
factor which the district court did not consider and “[t]he
parties do not separately brief” at the Seventh Circuit.
App. 21a. The circuit court applied yet another legal
standard. As Judge Easterbrook once wrote about another
multifactor test – three different recipes for the same meal.
Reinsurance Co. v. Administratia Asigurarilor, 902 F.2d
1275, 1283 (7th Cir. 1990) (Easterbrook, J. concurring, “I
would be most reluctant to accept an approach that calls on
the district judge to throw a heap of factors on a table and
then slice and dice to taste. Although it is easy to identify
many relevant considerations, as the ALI’s Restatement
does, a court’s job is to reach judgments on the basis of
rules of law rather than to use a different recipe for each
meal.”).
This petition followed.
REASONS TO GRANT THE PETITION
I.
The Multifactor “Likelihood of Confusion”
Balancing Test
Since the Lanham Act was enacted, each of the
thirteen circuits adopted a multifactor balancing test
to determine a likelihood of confusion for trademark
infringement. 4 McCarthy on Trademarks and Unfair
Competition § 24:30 (5th ed.). The factors originated
from the Restatement (First) of Torts § 729 (1938) and
were first used in a 1961 Second Circuit case applying
10
“eight foundational factors to be considered and weighed
before the decision-maker comes to a conclusion about the
presence or absence of a likelihood of confusion.” Jerre B.
Swann, Confusion Factor Analysis--A Cognitive Update,
101 Trademark Rep. 1223 (2011) (referring to the seminal
factors of Polaroid Corp. v. Polarad Elecs. Corp., 287 F.2d
492, 495 (2d Cir. 1961)). As Polaroid articulated:
Where the products are different, the prior
owner’s chance of success is a function of
many variables: the strength of his mark, the
degree of similarity between the two marks,
the proximity of the products, the likelihood
that the prior owner will bridge the gap, actual
confusion, and the reciprocal of defendant’s
good faith in adopting its own mark, the quality
of defendant’s product, and the sophistication of
the buyers. Even this extensive catalogue does
not exhaust the possibilities—the court may
have to take still other variables into account.
American Law Institute, Restatement of Torts,
§§ 729, 730, 731.
287 F.2d at 495.
A.
Multifactor Tests Apply the Same Legal
Standard
Following Polaroid, all other circuits adopted similar
multifactor balancing tests to analyze a likelihood of
confusion under the same statutory legal standard. See 4
McCarthy on Trademarks and Unfair Competition § 24:57
(5th ed.) (“Eventually all of the 13 federal circuit courts
adopted a similar multi-factor analysis strongly influenced
11
by the Second Circuit’s Polaroid test.”). As this Court
found in B & B Hardware, Inc. v. Hargis Industries, Inc.,
575 U.S. 138, 154 (2015), the multifactor tests adopted by
each circuit and the Trademark Trial and Appeal Board
(“TTAB”) at the U.S. Patent and Trademark Office apply
the same legal standard for determining a likelihood of
confusion:
Neither does it matter that the TTAB and the
Eighth Circuit use different factors to assess
likelihood of confusion. For one thing, the
factors are not fundamentally different, and
“[m]inor variations in the application of what is
in essence the same legal standard do not defeat
preclusion.” [quoting Smith v. Bayer Corp, 564
U.S. 299, 312 n. 9 (2011)].
The multifactor likelihood of confusion tests used
nationwide must apply the same legal and statutory
standard.
B. T he Fa c t or s a nd T hei r A n a ly s e s A r e
Interrelated
The likelihood of confusion factors are interrelated
because the analysis of one can affect another factor’s
analysis and weight, which is why a multifactored
balancing test was originally deployed. Polaroid Corp.,
287 F.2d at 495 (“a function of many variables”); see also
4 McCarthy on Trademarks and Unfair Competition
§ 23:19 (5th ed.) (“All of these factors are to be considered
in reaching a decision on the issue of likelihood of
confusion.”); id. at § 24:30 (“Each of the circuits has
emphasized in one way or another that no one of the
12
foundational factors is determinative, but rather that all
are to be weighed and balanced one against the other.
The strength of plaintiff’s case on each of these criteria
is ‘rated’ and then the total rating is considered in total
to make at least a ‘rough judgment’ as to liability.”). Due
to the factors being interrelated and each bearing on
the ultimate question, courts have admonished that each
factor should be considered, that all of the factors should
be balanced in totality, and that no one factor is dispositive.
Jordache Enters. v. Hogg Wyld, Ltd., 828 F.2d 1482, 1484
(10th Cir. 1987) (“All of the factors are interrelated, and
no one factor is dispositive.”); Boston Athletic Ass’n v.
Sullivan, 867 F.2d 22, 29 (1st Cir. 1989) (“No one factor is
necessarily determinative, but each must be considered.”)
(citing Astra Pharmaceutical Products, Inc. v. Beckman
Instruments, Inc., 718 F.2d 1201, 1205 (1st Cir. 1983) (same
quote) and Pignons S.A. de Mecanique de Precision v.
Polaroid Corp., 657 F.2d 482, 487-492 (1st Cir. 1981));
Plus Products v. Plus Discount Foods, Inc., 722 F.2d
999, 1004 (2d Cir. 1983) (“[E]ach must be considered in
the context of all of the other factors, and from a balance
of these determinations, one is able to reach the ultimate
conclusion, whether there is likelihood of confusion …”);
SquirtCo v. Seven-Up Co., 628 F.2d 1086, 1091 (8th Cir.
1980) (“[R]esolution of this issue does not hinge on a single
factor but requires a consideration of numerous factors
to determine whether under all the circumstances there
is a likelihood of confusion.”); Lone Star Steakhouse &
Saloon v. Alpha of Virginia, 43 F.3d 922, 933 (4th Cir.
1995) (“In order to guide courts in determining whether
a likelihood of confusion exists, this Court has delineated
seven factors a court must consider …”); Dieter v. B &
H Industries of Southwest Florida, 880 F.2d 322, 326
(11th Cir. 1989) (“Determination of likelihood of confusion
13
requires analysis of the following seven factors …”);
Fisons Horticulture, Inc. v. Vigro Indus., Inc., 30 F.3d
466, 473 (3d Cir. 1994) (“Where the goods or services are
not competing, the similarity of the marks is only one of
a number of factors the court must examine to determine
likelihood of confusion.”); Piper Aircraft Corp. v. WagAero, Inc., 741 F.2d 925, (7th Cir. 1984) (Cautioning that:
“None of these factors is determinative. In fact, we have
reversed lower court decisions that have placed excessive
reliance on certain factors.”).
For example, the analysis of the factor regarding
similarity of the marks impacts the factor regarding
similarity of the goods or services at issue. The more
similar the marks at issue are, the less similarity of
goods is required to support finding a likelihood of
confusion, and vice versa. SquirtCo, 628 F.2d at 1091
(“Where the products are closely related, less similarity
in the trademarks is necessary to support a finding of
infringement.”); Mobil Oil Corp. v. Pegasus Petroleum
Corp., 818 F.2d 254 (2d Cir. 1987) (citing SquirtCo, 628
F.2d at 1091); Sun Banks of Fla., Inc. v. Sun Fed. Sav. &
Loan Ass’n, 651 F.2d 311, 318, (5th Cir. 1981) (“With this
similarity of service …, the less similarity in the marks
is needed for a finding of likelihood of confusion.”); Beer
Nuts, Inc. v. Clover Club Foods Co., 805 F.2d 920, 925
(10th Cir. 1986) (“[A] small degree of similarity between
two marks may lead to a finding that confusion is likely
when the products are identical, inexpensive items…”);
Zheng Cai v. Diamond Hong, Inc., 901 F.3d 1367, 1372
(Fed. Cir. 2018); 4 McCarthy at § 23:20.50 (“The degree of
similarity of the marks needed to prove likely confusion
will vary with the difference in the goods and services of
the parties.”) (collecting cases).
14
A party’s evidentiary support for one or more factors
can certainly be determined to be weak to non-existent,
rightfully leading a court to minimize or eliminate the
weight and impact of the applicable factor in the overall
analysis and balancing. That is not the issue here. In the
present case, the lower courts did not consider, much
less analyze, and therefore did not weigh or balance four
(and then three) of the seven interrelated factors, all of
which had relevant evidence in the record and influence
consumer perception. This lack of analysis prevents a
reviewing court from determining if legal and/or factual
errors were committed.
One may argue that the district court weighed and
balanced all of the seven relevant factors, having adopted
the magistrate judge’s factual findings, analyzed three of
the factors, and noted that the magistrate judge’s analysis
of the other four was not clear error, despite admittedly
not considering or providing any analysis of the other
four. As the Seventh Circuit advised in Schwinn Bicycle
Co. v. Ross Bicycles, Inc., 870 F.2d 1176, 1180 at n.9 (7th
Cir. 1989), however:
It is the district court’s memorandum opinion,
not the magistrate’s proposed findings and
recommendation, that serves as the findings of
fact and conclusions of law in this case pursuant
to Rule 52(a), Fed.R.Civ.P. In United States v.
Raddatz, 447 U.S. 667, 681-82, 100 S.Ct. 2406,
2415, 65 L.Ed.2d 424, rehearing denied, 448
U.S. 916, 101 S.Ct. 36, 65 L.Ed.2d 1179 (1980),
the Supreme Court explained § 636 stating:
“[t]he authority — and the responsibility —
to make an informed final determination ...
15
remains with the judge.” Id. (editing in original)
(quoting Mathews v. Weber, 423 U.S. 261, 271,
96 S.Ct. 549, 554, 46 L.Ed.2d 483 (1976)).
A reviewing court is unable to adequately, reliably,
or fairly give deferential review to a district court’s
incomplete likelihood of confusion analysis that does
not explain its factual findings and legal analysis of all
relevant factors. It is a subjective, unpredictable, and
untenable process. Each factor must be considered and
weighed against its corresponding evidence, all of the
factors must be balanced in totality on the entire record,
and the court must explain how the factors were weighed
and balanced against each other, allowing all to see, use,
dispute, support, or opine on a complete and disclosed
analysis. Rule 52(a) expects and requires this.
C.
Courts Have Been Selecting Subsets of Factors
to Analyze
In Arrow Fastener Co., Inc. v. Stanley Works, 59 F.3d
384, 400 (2d Cir. 1995), the Second Circuit opined:
[I]t is incumbent upon the district judge to
engage in a deliberate review of each factor, and,
if a factor is inapplicable to a case, to explain
why.... The steady application of Polaroid is
critical to the proper development of trademark
law, for it is only when the Polaroid factors are
applied consistently and clearly over time that
the relevant distinctions between different
factual configurations can emerge. Litigants
are entitled to the illumination and guidance
this common-law process affords, and appellate
16
courts depend on it for the performance of their
assigned task of review .... The efficacy of the
multi-factor approach that Judge Friendly
wisely set out to address this difficult situation
depends on thorough, careful, and consistent
application of the doctrine by district courts.
Over time, the analyzing, weighing, and balancing of
each factor has diminished despite the single standard
recognized by this Court in B & B Hardware, Inc. 575
U.S. at 154. An empirical analysis of 331 trademark
decisions (287 dispositive) in 2006 concluded “that
judges employ fast and frugal heuristics to short circuit
the multifactor test. Perhaps as an expression of their
cognitive limitations, but more likely as an expression of
their cognitive ingenuity, judges rely upon a few factors
or combinations of factors to make their decisions.” Prof.
Barton Beebe, An Empirical Study of the Multifactor
Tests for Trademark Infringement, 94 Cal. Law Rev. 1581
(2006). The lack of analysis of all of the factors was so
prevalent that the author measured and named it – “judges
tended to stampede the factor outcomes to favor the test
outcome.” Id. at 1614. That was 18 years ago. To meet the
statutory legal standard, underlying analyses should be
consistent. Judges assessing consumer confusion from
the bench should not stampede over factors which are not
even considered.
Circuit courts generally state that all of their
respective factors should be considered and balanced,
but decisions increasingly state that not all factors must
be considered. See, e.g., PlayNation Play Systems,
Inc. v. Velex Corp., 924 F.3d 1159, 1169 (11th Cir. 2019)
(“These factors are not exclusive. Courts do not have to
17
consider every factor in every case.”); Top Tobacco, L.P.
v. North Atlantic Operating Co., Inc., 509 F.3d 380, 383
(7th Cir. 2007) (“If we know for sure that consumers are
not confused about a product’s origin, there is no need to
consult even a single proxy.”); General Motors Corp. v.
Lanard Toys, Inc., 468 F.3d 405 (6th Cir. 2006) (affirming
finding of likelihood of confusion on summary judgment
despite the lower court failing to adequately discuss the
Frisch factors); Thane Int’l, Inc. v. Trek Bicycle Corp.,
305 F.3d 894, 901 (9th Cir. 2002) (defending the analysis
of only a “subset” of factors in the non-internet context);
Brookfield Commc’ns, Inc. v. W. Coast Entm’t Corp., 174
F.3d 1036, 1054 (9th Cir. 1999) (endorsing a ”subset“ of the
three “most important” factors in the internet context).
In Network Automation, Inc. v. Advanced Systems
Concepts, Inc., 638 F.3d 1137, 1145 (9th Cir. 2011), the
Ninth Circuit stated:
[F]actors are intended as an adaptable proxy
for consumer confusion, not a rote checklist.
See, e.g., Fortune Dynamic, Inc. v. Victoria’s
Secret Stores Brand Mgmt., Inc., 618 F.3d 1025,
1030 (9th Cir. 2010) (“This eight-factor analysis
is ‘pliant,’ illustrative rather than exhaustive,
and best understood as simply providing helpful
guideposts.”) … .
The gradual derogation of the equitable, interrelated,
multifactor balancing test is acutely demonstrated by the
Seventh Circuit. The Seventh Circuit originally adopted
its multifactor balancing test in Helene Curtis Industries
v. Church & Dwight Co., stating “[i]n determining
‘likelihood of confusion’ several factors are important…”
560 F.2d 1325, 1330 (7th Cir. 1977) (listing the seven
18
factors of what would become referred to as the Seventh
Circuit’s “Helene Curtis” test, adopted from the Second
Circuit). The Seventh Circuit has also repeatedly said that
no single factor is dispositive and that “different factors
will weigh more heavily from case to case depending on the
particular facts and circumstances involved.” Int’l Kennel
Club of Chicago, Inc. v. Mighty Star, Inc., 846 F.2d 1079,
1087 (7th Cir. 1988).
Following Helene Curtis, in Henri’s Food Products
Co., Inc. v. Kraft, Inc., the court, without any statutory,
case law, or other support, referred to “more important
factors” as the “similarity of the marks, evidence of
confusion, and intent of the alleged infringer…” 717 F.2d
352, 354-55 (7th Cir. 1983) (finding the parties differed
on those three factors, while the other four were not in
dispute). Three years later, however, in Ziebart Int’l Corp.
v. After Market Associates, Inc., the court, relying on
Henri’s Food Products, analyzed only those same “three
‘more important’ factors in determining likelihood of
confusion …” 802 F.2d 220, 228 (7th Cir. 1986) (noting
“[i]t is not necessary for us to review the findings of
the district court as to the other factors affecting the
issue of likelihood of confusion.”). Three years later, the
Seventh Circuit made the blanket assertion that “the most
important factors include the similarity of the marks, the
intent of the claimed infringers and the evidence of actual
confusion.” G. Heileman Brewing Co. v. Anheuser-Busch,
Inc., 873 F.2d 985, 999 (7th Cir. 1989) (citing Ziebart Int’l
Corp., 802 F.2d at 226). Since then, courts in the Seventh
Circuit reiterate and often note those three factors as
being the “most important.” See, e.g., Uncommon, LLC
v. Spigen, Inc., 926 F.3d 409, 425 (7th Cir. 2019) (“most
important”); Ty, Inc. v. Jones Group, Inc., 237 F.3d 891,
19
898 (7th Cir. 2001) (“most important factors”) (citing G.
Heileman Brewing, 873 F.2d at 999); Eli Lilly & Co. v.
Nat. Answers, Inc., 233 F.3d 456, 462 (7th Cir. 2000) (“the
most important considerations”) (citing G. Heileman
Brewing, 873 F.2d at 999).
That gradual progression from all seven factors being
important, to three factors being “more important” in a
particular case, to those three factors being construed
as the “most important” in every case, led the district
court in this case to choose to analyze only those three
factors and footnote that it did not consider the Seventh
Circuit’s other four factors. In doing so, however, the
district court ignored other Seventh Circuit precedent
holding that “there is ‘no hard and fast requirement” that
all three of these factors must weigh in the plaintiff’s favor
in order to find that a likelihood of confusion exists,” and
that “the district court must give appropriate weight to
the factors that are particularly important based on the
facts of each case.” CAE, Inc. v. Clean Air Engineering,
Inc., 267 F.3d 660, 686-87 (7th Cir. 2001) (citing Ty, Inc.,
237 F.3d at 901-02).
Further questioning a court’s reliability on considering
only a subset of factors is the fact that other circuits have
stated that different sets of factors are most important,
despite all circuits supposedly applying the same legal
standard. See, e.g., Maker’s Mark Distillery v. Diageo
North America, 679 F.3d 410, 424 (6th Cir. 2012) (declaring
“the ‘most important Frisch factors’ are similarity and
strength of the mark”) (citing Gray v. Meijer, Inc., 295
F.3d 641, 646 (6th Cir. 2002); GoTo.com, Inc. v. Walt
Disney Co., 202 F.3d 1199, 1205 (9th Cir. 2000) (declaring
the “three most important” factors in the Internet context
20
as the similarity of the mark, the relatedness of the goods
and services, and the marketing channel used); Frehling
Enterprises v. Int’l Select Group, 192 F.3d 1330, 1335
(11th Cir. 1995) (declaring “the type of mark and the
evidence of actual confusion are the most important”);
A & H Sportswear, Inc. v. Victoria’s Secret Stores, Inc.,
237 F.3d 198, 216 (3d Cir. 2000) (declaring “[t]he single
most important factor” as mark similarity); King of the
Mountain Sports v. Chrysler Corp., 185 F.3d 1084, 1091
(10th Cir. 1999) (declaring “the first and most important
factor” as similarity of the marks). As a result, despite
having to apply the same federal legal standard, courts
have increasingly and mechanically placed more weight
on different subsets of factors in each circuit, to the point
that some courts, like the lower courts here, consider only
that subset of factors and ignore the remainder.
By choosing not to consider four factors, the district
court also chose to ignore their corresponding evidence,
weighing, and ensuing balancing. Even if a court
considered those factors internally, without having any
explanation of its factual findings or application of the
law to those factors, there is no way to determine if legal
and/or factual errors were committed in choosing not to
analyze them.
These decisions permitting consideration of only a
subset of factors are simply wrong, as were the lower
courts in this case. Considering and analyzing all of the
relevant factors provides for a more consistent adherence
to the statutory standard, ensures more objective findings,
and avoids arbitrary and capricious conclusions. Allowing
a court to ignore relevant factors and related evidence
encourages incomplete legal analyses, enables subjective
21
decision-making, ensures differing and unpredictable
results, strips appellate courts of their ability to review,
and wastes judicial and party resources. It also weakens
trademarks and the benefits afforded by the registration
system.
II. Not Considering Relevant Factors and Ignoring
Evidence Is Legal Error
Rule 52 requires a trial court to make clear factual
findings to support its conclusions. Fed.R.Civ.P. 52; see
also 9 Wright Miller, Federal Practice & Procedure
§ 2574, at 690. While some circuits hold that the likelihood
of confusion finding is a factual question, regardless of
whether it is a question of fact or law, “legal principles
govern what evidence may, or must, be considered by the
District Court in reaching that conclusion, and also what
standards apply to its determination.” Sabinsa Corp. v.
Creative Compounds, LLC, 609 F.3d 175, 182 (3rd Cir.
2010) (quoting A & H Sportswear, Inc., 237 F.3d at 210).
Rule 52 cannot be satisfied by a statement of the ultimate
fact without the underlying factual foundations and legal
conclusions. And if they were not part of the process by
which the likelihood of confusion determination was made,
then the determination lacks foundation and violates Rule
52.
The Third Circuit reviewed a district court’s likelihood
of confusion determination de novo, and reversed,
because the court failed to explain how it weighed and
balanced all of the circuit’s relevant factors, as was said
to be required by Rule 52. Sabinsa Corp., 609 F.3d at
183 (citing Kos Pharmaceuticals v. Andrx Corp., 369
F.3d 700, 711-12 (3d Cir. 2004) (reversing district court’s
22
likelihood of confusion finding where it “had erred in its
analysis of mark similarity, overemphasized customer
sophistication, applied the wrong standards regarding
intent, and ignored several other relevant Lapp factors.”).
In Sabinsa, the Third Circuit noted that “while it is true
that a district court may find that ‘certain of the Lapp
factors are inapplicable or unhelpful in a particular case,’
the court must still ‘explain its choice not to employ those
factors.’” 609 F.3d at 183 (“[T]he District Court engaged in
detailed analysis of only three of the relevant Lapp factors
and failed to discuss much of the evidence presented by
Sabinsa… [T]he District Court failed to explain whether
it viewed these remaining factors as neutral or irrelevant
or how it weighed and balanced the combined factors.
Further, its reasoning concerning the three factors it
chose to analyze is flawed.”) (quoting A & H Sportswear,
Inc., 237 F.3d at 210). Where there is relevant evidence in
the record for a factor, failing to state any factual findings
or provide any explanation of how the law was applied to
that factor, even if given little weight, is an error of law
in breach of Rule 52.
III. The Circuit Split of Likelihood of Confusion
Findings: Clear Error or De Novo
There is a split among the circuit courts as to whether
a likelihood of confusion analysis is reviewed under the
“clearly erroneous” standard, as a question of fact, or de
novo, as a legal conclusion, or a combination. Trademark
owners need a predictable process to provide consistent
results, one which meets the single legal standard already
recognized by this Court.
On the one hand, the Second and Federal Circuits
review each factor’s analysis and the ultimate finding of a
23
likelihood of confusion de novo. Car-Freshner Corporation
v. American Covers, LLC, 980 F.3d 314, 327-328 (2d Cir.
2020) (knowingly applying de novo review after this
Court’s decision of Hana Financial); Stratus Networks,
Inc. v. UBTA-UBET Communications Inc., 955 F.3d 994,
998 (Fed. Cir. 2020) (reviewing de novo).
The Sixth Circuit reviews each factor’s analysis under
the clearly erroneous standard, but the ultimate finding of
a likelihood of confusion de novo. Champions Golf Club,
Inc. v. The Champions Golf Club, Inc., 78 F.3d 1111, 1116
(6th Cir. 1996) (reviewing de novo).
Conversely, the Fourth, Seventh, and Ninth Circuits
hold that the analysis of each factor and the ultimate
finding are questions of fact applying a clearly erroneous
standard of review. Swatch AG v. Beehive Wholesale, LLC,
739 F.3d 150, 154 (4th Cir. 2014); Scandia Down Corp. v.
Euroquilt, Inc., 772 F.2d 1423 (7th Cir. 1985) (applying
clearly erroneous rule “across the board” due to Rule
52(a) amendment in 1985); Levi Strauss Co. v. Blue Bell,
Inc., 778 F.2d 1352 (9th Cir. 1985) (en banc).
In the past, the Seventh Circuit has taken liberties
with the level of review as have others:
This court has held that likelihood of confusion
is a question of fact subject to the clearly
erroneous rule. Watkins Products, Inc. v.
Sunway Fruits Products, Inc., supra, 311
F.2d at 499. Nevertheless, to the extent the
determination is predicated upon the similarity
of the marks themselves, it is a mixed question
of law and fact with this court being in as good
a position as the trial judge to determine the
24
probability of confusion. Harold F. Ritchie v.
Chesebrough-Pond’s, Inc., 281 F.2d 755 (2d
Cir. 1960). See J. B. Williams Company, Inc.
v. LeConte Cosmetics, Inc., 523 F.2d 187 (9th
Cir. 1975).
Union Carbide Corp. v. Ever-Ready Inc., 531 F.2d 366,
383 (7th Cir. 1976).
Meanwhile, the First, Third, Fifth, Eighth, Tenth,
and Eleventh Circuits follow the clearly erroneous
standard, but analyze the underlying legal principles
de novo. Boston Duck Tours, LP v. Super Duck Tours,
LLC, 531 F.3d 1, 15 (1st Cir. 2008) (findings on each factor
and ultimate conclusion are factual but underlying legal
error is reviewed de novo); Sabinsa Corp. v. Creative
Compounds, LLC, 609 F.3d 175 (3d Cir. 2010), cert.
denied, 131 S. Ct. 960 (2011); National Business Forms
& Printing, Inc. v. Ford Motor Co., 671 F.3d 526, 532
(5th Cir. 2012) (same); Sun Banks of Florida, Inc. v. Sun
Federal Savings & Loan Ass’n, 651 F.2d 311, 314-315 (5th
Cir. 1981) (applying “clearly erroneous” standard); Select
Comfort Corp. v. Baxter, 996 F.3d 925, 934 (8th Cir. 2021)
(same); General Motors Corp. v. Urban Gorilla, LLC, 500
F.3d 1222 (10th Cir. 2007) (affirmed denial of preliminary
injunction under the clearly erroneous standard).
The Third Circuit is similar to the foregoing, but
remands if the relevant factors are not “weighed and
balanced one against the other.” Compare A & H
Sportswear, Inc., 237 F.3d at 210 (“We review the District
Court’s factual determinations for clear error, but we give
plenary review to its legal conclusions.”) with Sabinsa
Corp. v. Creative Compounds, LLC, 609 F.3d 175, 182-83
(3d Cir. 2010) (“None of these factors is determinative in
25
the likelihood of confusion analysis and each factor must
be weighed and balanced one against the other.”) (quoting
and citing Checkpoint Sys. v. Check Point Software Tech,
269 F.3d 270, 280 (3d Cir. 2001)).
This Court has stated that a “Court of Appeals was
bound by the ‘clearly erroneous standard of Rule 52(a)”
in a trademark analysis, but noted that “a mistaken
impression of applicable legal principals” does not bind
a reviewing court to the clearly erroneous standard.
Inwood Laboratories v. Ives Laboratories, 456 U.S. 844,
855 (1982).
However, this Court has previously declined to resolve
the split of authority as to whether the likelihood of
confusion finding is a question of fact or a legal conclusion.
See, e.g., Elby’s Big Boy v. Frisch’s Restaurants, 459 U.S.
916, 916-17 (1982) (White, J., dissenting, citing examples
of conflicting circuit court decisions and noting he wanted
the conflict resolved); Euroquilt, Inc. v. Scandia Down
Corp., 475 U.S. 1147 (1986) (same); Enco Mfg. Co. v. Clamp
Mfg. Co., 493 U.S. 872 (1989) (same); L.A. Gear, Inc. v.
Thom McAn Shoe Co., 988 F.2d 1117 (Fed. Cir. 1993), cert.
denied, 510 U.S. 908 (1993).
In Hana Financial, Inc. v. Hana Bank, this Court did
not confront the issue directly, but indicated that consumer
perception is a factual issue.
Application of a test that relies upon an ordinary
consumer’s understanding of the impression
that a mark conveys falls comfortably within
the ken of a jury… See, e.g., United States v.
Gaudin, 515 U.S. 506, 512 [] (1995) (recognizing
that “‘delicate assessments of the inferences
26
a “reasonable [decisionmaker]” would draw
... [are] peculiarly one[s] for the trier of fact’”
(quoting TSC Industries, Inc. v. Northway,
Inc., 426 U.S. 438, 450 [] (1976); first alteration
in original)); id., at 450, n. 12 [] (observing that
the jury has a “unique competence in applying
the ‘reasonable man’ standard”); Hamling v.
United States, 418 U.S. 87, 104–105 [] (1974)
(emphasizing “the ability of the juror to
ascertain the sense of the ‘average person’ ”
by drawing upon “his own knowledge of the
views of the average person in the community
or vicinage from which he comes” and his
“knowledge of the propensities of a ‘reasonable’
person”); Railroad Co. v. Stout, 17 Wall. 657,
664 [] (1874) (“It is assumed that twelve men
know more of the common affairs of life than
does one man, [and] that they can draw wiser
and safer conclusions from admitted facts thus
occurring than can a single judge”).
574 U.S. 418, 422-23 (2015).
Separating factual from legal questions is difficult but
required by Rule 52(a). There is a split as to whether the
factor analyses and the ultimate finding of a likelihood of
confusion is a factual finding or legal conclusion. See also,
cf. Teva Pharma. USA, Inc. v. Sandoz, Inc., 574 U.S. 318,
326 (2015) (“A conclusion that an issue is for the judge
does not indicate that Rule 52(a) is inapplicable.”). This
Court is uniquely and solely able to address and resolve
this, and thereby provide courts, practitioners, and, most
importantly, trademark owners a predictable process to
provide consistent results, one which meets the single
federal legal standard.
27
CONCLUSION
In this trademark case, three sequential decisions
analyzed differing combinations of factors and evidence,
applying different legal standards. Three different
applications of the law to the facts resulted in three
different likelihood of confusion analyses. Courts cannot
meet the same statutory legal standard if they can choose
which factors support their opinion, many knowing that
their factor analyses and ultimate finding of a likelihood
of confusion will be given great deference and reviewed
only for clear error – errors which can include no analysis.
As evidenced by the inconsistent analyses in this case,
the problem has worsened since this Court was asked
to reconcile this long ago. Trademark decisions should
explain each factor’s analysis (or why a factor requires
no analysis) and the balancing of those factors. That
way, reviewing courts and practitioners can understand
the reasoning. This is the only court which can correct
these timeworn inconsistencies. For these reasons, it is
respectfully requested that certiorari be granted.
Respectfully submitted,
William P. Atkins
Counsel of Record
Pillsbury Winthrop Shaw
Pittman LLP
1650 Tysons Boulevard, 14th Floor
McLean, VA 22102
(703) 770-7900
william.atkins@pillsburylaw.com
Attorneys for Petitioners
APPENDIX
i
TABLE OF APPENDICES
Page
APPENDIX A — OPINION OF THE
UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT, FILED
SEPTEMBER 12, 2023 . . . . . . . . . . . . . . . . . . . . . . . 1a
APPENDIX B — ORDER AND
MEMORANDUM OPINION OF
THE UNITED STATES DISTRICT
COURT FOR THE NORTHERN
DISTRICT OF ILLINOIS, EASTERN
DIVISION, FILED MAY 25, 2022 . . . . . . . . . . . . . 39a
APPENDIX C — REPORT AND
RECOMMENDATION OF THE
UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT
OF ILLINOIS, EASTERN DIVISION,
FILED APRIL 8, 2022 . . . . . . . . . . . . . . . . . . . . . . . 60a
APPENDIX D — ORDER OF THE UNITED
STATES COURT OF APPEALS FOR
THE SEVENTH CIRCUIT, FILED
OCTOBER 11, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . 135a
APPENDIX E — 15 U.S.C. § 1114 . . . . . . . . . . . . . . 137a
1a
A
APPENDIX Appendix
A — OPINION
OF THE
UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT,
FILED SEPTEMBER 12, 2023
IN THE
UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT
No. 22-1950
GRUBHUB INC. and TAKEAWAY.COM
CENTRAL CORE B.V.,
Plaintiffs-Appellees,
v.
RELISH LABS LLC and THE KROGER CO.,
Defendants-Appellants.
Appeal from the United States District Court for the
Northern District of Illinois, Eastern Division.
No. 1:21-cv-5312 — Charles R. Norgle, Judge.
Argued November 30, 2022 – Decided September 12, 2023
Before Wood, Jackson-A kiwumi, and Lee, Circuit
Judges.
Lee, Circuit Judge. Grubhub Inc. and Takeaway.com
Central Core B.V. (collectively, “Grubhub”) brought this
suit seeking a declaratory judgment that their logo does
not infringe the trademarks of Relish Labs LLC and The
2a
Appendix A
Kroger Company (collectively, “Home Chef”). Roughly one
month later, Home Chef sought a preliminary injunction to
enjoin Grubhub from using the logo. A magistrate judge
recommended granting the injunction, but, upon review
of Grubhub’s objections, the district court rejected that
recommendation and denied the injunction. Because we
cannot say on this record that the district court clearly
erred in concluding that Home Chef failed to show that
consumers are likely to confuse its marks with Grubhub’s
logo when purchasing Home Chef’s products, we affirm.
I. BACKGROUND
A. Home Chef
Since its inception in the basement of a Chicago
apartment in 2013, Home Chef has curated meals and
food products for its customers. According to its owner,
Home Chef’s business has been “creating and delivering
meal kits for customers, including fresh, pre-portioned
ingredients and easy-to-follow recipes, to help customers
prepare and enjoy meals anyone can cook.” In 2018,
Home Chef merged with The Kroger Co. (“Kroger”).
Kroger operates over 2,700 supermarkets under at least
two dozen store names throughout the United States.
The merger with Kroger allowed Home Chef to expand
the availability of its meal kits and products nationwide.
It delivers them directly to customers and offers them
for sale in Kroger stores, through Kroger’s website and
mobile app, as well as through food delivery services such
as DoorDash and Instacart. Today, Home Chef offers more
than 500 products across a variety of categories including
3a
Appendix A
meal kits, heat-and-eat meals, ready-to-eat products, and
seasonal meals.
In 2014, Home Chef began using its “HC Home Mark,”
which is protected by five federal trademark registrations:
three for the HC Home Mark, alone, and two for the HC
Home Mark accompanied with the “HOME CHEF” trade
name (the “Home Chef Home Logo”). None of Home Chef’s
marks are limited as to color.
Home Chef has spent more than $450 million on
marketing and advertising using its marks to promote its
products as convenient, low-cost alternatives to restaurant
takeout. In October 2021, Home Chef reached $1 billion
in annual sales.
B. Grubhub
Grubhub is a leading online food-ordering and delivery
marketplace. Founded in 2004, Grubhub has connected
more than 32 million diners with food from over 300,000
restaurants across the United States. In 2020 alone,
Grubhub provided nearly $9 billion in gross food sales to
these restaurants, processing more than 745,000 daily
4a
Appendix A
orders through its website and mobile app. Its services
include, for example, on-demand order management and
dispatching, procurement and development of restaurantdedicated products, and onboarding delivery couriers.
Grubhub owns numerous trademark registrations
covering the GRUBHUB name and stylized variations.
On June 15, 2 021, Gr ubhub was acqui red by
Netherlands-based Just Eat Takeaway.com (“JET”).
JET owns many food-delivery brands worldwide and
combines its “JET House Mark” with local brand names
when conducting business in various countries. JET has
used the JET House Mark in connection with its business
since 2014.
In July 2020, roughly one year prior to finalizing
its acquisition of Grubhub, JET filed an international
trademark application for the JET House Mark,
designating the United States as a country where it
sought protection. In early 2021, the USPTO trademark
examiner preliminarily rejected JET’s application in a
non-final office action, finding, among other things, that
the JET House Mark is “highly similar” and “confusingly
similar” to the HC Home Mark and Home Chef Home
Logo. JET did not respond to the merits of the non-final
office action, and in August 2021, affirmatively withdrew
5a
Appendix A
its U.S. trademark application. The application was
deemed abandoned.
As part of its acquisition of Grubhub, JET adopted
the “Grubhub House Logo,” which combines the wellknown GRUBHUB word mark with the JET House
Mark. Grubhub also began using the “Seamless House
Logo,” which combines the JET House Mark with the
SEAMLESS and GRUBHUB word marks.1
Like Home Chef, Grubhub has made significant
investments in its branding. Grubhub first introduced
the Grubhub House Logo at Chicago’s Lollapalooza music
festival in July 2021, with a broader rollout one month later.
Grubhub has invested millions of dollars in rebranding its
print and electronic materials across its entire business
platform, and tens of thousands of its restaurant partners
use the Grubhub House Logo. In the time between the
July 2021 launch of the logo and Home Chef’s motion for
preliminary injunction, Grubhub processed over 72 million
orders under its new logo.
1. Seamless is a subsidiary of Grubhub. According to Grubhub,
the Seamless brand is being phased out, but as of today, it still exists.
6a
Appendix A
C. District Court Proceedings
After receiving a cease-and-desist letter from Home
Chef demanding that Grubhub stop using any form of the
JET House Mark, Grubhub brought suit for a declaratory
judgment that the Grubhub House Logo did not infringe
any of Home Chef’s marks. Roughly one month later, in
early November 2021, Home Chef responded with a motion
for a preliminary injunction. The case was referred to a
magistrate judge who held a telephonic hearing on Home
Chef’s motion. Although no live testimony was taken, the
judge questioned the parties and heard arguments for
nearly three hours. The magistrate judge subsequently
issued his Report and Recommendation (the “R&R”),
recommending that the district court grant Home Chef
preliminary injunctive relief.
Grubhub timely filed its objections to the R&R. After
reviewing the contested portions of the R&R de novo, see
28 U.S.C. § 636(b)(1), the district court sustained each
of Grubhub’s objections, rejected the magistrate judge’s
recommendation, and denied Home Chef’s preliminary
injunction motion. Home Chef appeals.
II. LEGAL STANDARD
A preliminary injunction may be granted where a
movant shows that it is likely to succeed on the merits
of its claims and that traditional legal remedies would
be inadequate, such that it would suffer irreparable
harm without injunctive relief. Life Spine, Inc. v. Aegis
Spine, Inc., 8 F.4th 531, 539 (7th Cir. 2021). A likelihood
7a
Appendix A
of success on the merits must exceed “a mere possibility
of success.” Id. at 540 (quoting Ill. Republican Party v.
Pritzker, 973 F.3d 760, 762 (7th Cir. 2020)). As we made
clear in Pritzker, “an applicant for preliminary relief bears
a significant burden, even though the Court recognizes
that, at such a preliminary stage, the applicant need not
show that it definitely will win the case.” 973 F.3d at 763.
Thus, while a movant need not prove its claims at this stage
by a preponderance of the evidence, it must demonstrate
at a minimum how it proposes to prove the key elements
of its case. Id. In the context of trademark law, once the
movant establishes a likelihood of success on the merits,
it is statutorily entitled to a rebuttable presumption of
irreparable harm. 15 U.S.C. § 1116(a).
Upon a showing of these threshold issues, the court
weighs the harm of denying an injunction to the movant
against the harm of granting an injunction to the
nonmovant. This is done using a sliding scale—the greater
the movant’s likelihood of success on the merits, the less
the harms need be in its favor. Life Spine, 8 F.4th at 539.
The court also considers the public interest. Id.
On appeal, we review a district court’s decision
to grant or deny a preliminary injunction for abuse of
discretion. Id. Its legal conclusions are reviewed de novo,
and its factual findings for clear error. Id. Absent any
such errors, the district court’s decision is afforded “great
deference.” Id. (quoting Speech First, Inc. v. Killeen, 968
F.3d 628, 638 (7th Cir. 2020)).
8a
Appendix A
III. DISCUSSION
A. Trademark Infringement Generally
The purpose of trademark law is twofold. Most
fundamentally, it protects consumers, ensuring they can
be confident in making purchasing decisions based on
marks they know and trust. See Two Pesos, Inc. v. Taco
Cabana, Inc., 505 U.S. 763, 782 n.15, 112 S. Ct. 2753, 120 L.
Ed. 2d 615 (1992) (Stevens, J., concurring). But trademark
law also protects trademark owners who have spent the
time, energy, and resources in presenting a product or
service, ensuring that those investments are protected
from misappropriation by “pirates and cheats.” Id.; see
Ameritech, Inc. v. Am. Info. Techs. Corp., 811 F.2d 960,
964 (6th Cir. 1987).
The ultimate question underly ing trademark
infringement is whether consumers are likely to be
confused about the origin of products or services based
on the promotion of those products or services using a
particular mark. See Hesmer Foods, Inc. v. Campbell
Soup Co., 346 F.2d 356, 359 (7th Cir. 1965); see also
New W. Corp. v. NYM Co. of Cal., 595 F.2d 1194, 1201
(9th Cir. 1979). Accordingly, to succeed on a trademark
infringement claim, the claimant must show that it owns a
valid, protectable trademark and that there is a likelihood
of confusion caused by the alleged infringer’s use of the
disputed mark. SportFuel, Inc. v. PepsiCo, Inc., 932 F.3d
589, 595 (7th Cir. 2019); see 15 U.S.C. § 1114(1).
We recognize two theories of confusion: forward
confusion and reverse confusion. Forward confusion—
9a
Appendix A
long recog nized in trademark law— occurs when
consumers mistakenly believe that a junior (or newer)
user’s products or services are from the same source or
somehow connected to a senior (or prior) user’s products
or services. Sands, Taylor & Wood Co. v. Quaker Oats
Co., 978 F.2d 947, 957 (7th Cir. 1992) (“Quaker Oats”).
A classic example of forward confusion lies where a
consumer mistakenly believes that a counterfeit purse she
buys is from her favorite Parisian fashion house because
the fabric or buckle of the purse features the well-known
mark of that fashion house. In such a scenario, the senior
user (the Parisian fashion house) is injured because the
junior user (the counterfeiter) capitalizes on the good will
and established reputation of the fashion house to palm
off a cheap and inauthentic product.
Reverse confusion is a newer theory that we first
recognized in Quaker Oats. 978 F.2d at 957-58; contra
Westward Coach Mfg. Co. v. Ford Motor Co., 388 F.2d
627, 634-35 (7th Cir. 1968) (holding reverse confusion
not actionable under Indiana law). Under this theory,
confusion occurs when “a large junior user saturates the
market with a trademark similar or identical to that of
a smaller, senior user,” thereby overwhelming the senior
user. Quaker Oats, 978 F.2d at 957. As a result, consumers
mistakenly believe that the products or services of the
senior user are actually those of the junior user. Id. Going
back to our earlier hypothetical, consider the following: a
local fashion boutique sells purses and other accessories,
featuring the initials of the store owner, Lewis Vaughn.
The boutique sells the bags for many years, and the local
clientele understands the mark to be associated with
the boutique. But then, a dominant, well-known Parisian
10a
Appendix A
fashion house adopts a confusingly similar logo using the
same initials and begins advertising and selling bags
under this mark, inundating the local market. Even though
the Parisian fashion house is not intentionally capitalizing
on the good will and established reputation of the local
boutique, the boutique is nevertheless harmed because
its customers now mistakenly believe it has somehow
become connected to or affiliated with the fashion house.
As a result, the boutique (the senior user) “loses the value
of its trademark—its product identity, corporate identity,
control over its goodwill and reputation, and ability to
move into new markets.” Id. (quoting Ameritech, Inc.,
811 F.2d at 964).
Home Chef argues that there is a likelihood of
confusion between its marks and Grubhub’s logo under
both theories. The magistrate judge recommended
granting the injunction based on reverse confusion,
acknowledging that the results were mixed with respect
to Home Chef’s forward confusion theory. But the district
court determined that there was an insufficient showing
of a likelihood of confusion under both theories and denied
the injunction.
Whether consumers are likely to be confused about
the origin of an alleged infringer’s products or services
is a question of fact. Rust Env’t & Infrastructure, Inc. v.
Teunissen, 131 F.3d 1210, 1216 (7th Cir. 1997). Accordingly,
our review is deferential, evaluating the district court’s
conclusions for clear error. Id.; see Ty, Inc. v. Jones Grp.,
Inc., 237 F.3d 891, 898 (7th Cir. 2001). A finding of fact
is clearly erroneous only if, based on the evidence as a
11a
Appendix A
whole, we are “left with the definite and firm conviction
that a mistake has been committed.” Rust, 131 F.3d at
1216 (quotation marks and citation omitted). If the district
court’s “account of the evidence is plausible in light of the
record viewed in its entirety, the court of appeals may not
reverse it even though convinced that had it been sitting
as the trier of fact, it would have weighed the evidence
differently.” Id. (quotation marks and citation omitted).
With this framework in mind, we move to the merits.
B. Accused Mark
There is no dispute that Home Chef owns valid,
protectable trademarks in the HC Home Mark and
Home Chef Home Logo—the first element of a claim for
trademark infringement. Accordingly, the likelihood of
success of Home Chef’s infringement claims depends
entirely on whether there is a likelihood of confusion
between its marks and the accused mark.
But before we can reach the likelihood of confusion
analysis, we must resolve a fundamental dispute between
the parties: which of Grubhub’s marks is the accused mark.
Home Chef purports to accuse the JET House Mark. But
Grubhub submits that, because its use of the JET House
Mark is always in combination with the GRUBHUB brand
name, the accused mark is the Grubhub House Logo.
The district court agreed with Grubhub, and it did
not commit clear error in doing so. Although Home Chef
focuses its analysis on the JET House Mark, Grubhub has
12a
Appendix A
not used this mark absent the GRUBHUB brand name
within the United States. 2 Home Chef’s arguments to
the contrary are unconvincing. For example, Home Chef
points to tailored screenshots of Grubhub’s website and
mobile app where the JET House Mark appears to be
used alone. But Home Chef fails to acknowledge that, even
if the mark does not appear with the GRUBHUB brand
name in these instances, GRUBHUB is nevertheless
prominently displayed elsewhere on the website and
mobile app’s landing page. Trademark law does not protect
“those buyers who do not buy on the basis of marks and
who choose to buy the goods or services at issue on the
basis of some other criteria.” 4 J. Thomas McCarthy,
McCarthy on Trademarks and Unfair Competition §
23:94 (5th ed. 2023) (“McCarthy”). 3 Accordingly, in the
instances Home Chef cites, where a consumer has sought
out Grubhub’s services by visiting www.grubhub.com or
2. We acknowledge a single instance in the record where
Grubhub used the JET House Mark without connection to the
GRUBHUB brand name: a November 1, 2021, screenshot of the
Seamless mobile app icon, which combined the JET House Mark
with only the SEAMLESS brand name (i.e., it did not include the
“Powered by GRUBHUB” tag as used in the Seamless House
Logo). But there is insufficient evidence in the record to support
a likelihood of confusion finding for this use. And Home Chef does
not meaningfully engage with this use other than bringing it to the
Court’s attention. Accordingly, as the party charging infringement,
Home Chef did not meet its burden as to this mark. See KP
Permanent Make-Up, Inc. v. Lasting Impression I, Inc., 543 U.S.
111, 117-18, 125 S. Ct. 542, 160 L. Ed. 2d 440 (2004).
3. Because McCarthy uses consecutive section numbering
across volumes, subsequent citations to McCarthy herein are
designated by section number only.
13a
Appendix A
by tapping the mobile app icon marked as “GRUBHUB,”
it is difficult to see how, in this context, she could be
confused into thinking that she was purchasing Home
Chef-affiliated products solely based on the appearance of
the JET House Mark on the platform. That consumer is
not choosing Grubhub’s services based on its mark, rather
her decision to use Grubhub was already made before
visiting the website or app. Thus, we are not convinced
that this evidence supports a finding that the accused
mark is the JET House Mark and agree with the district
court’s determination that the accused mark at issue is
the Grubhub House Logo.4 And so, we are left with:
C. Likelihood of Confusion
Proceeding to the likelihood of confusion analysis, “we
ask whether consumers who might use either product [or
service] would likely attribute them to a single source.”
4. The Seamless House Logo is subject to the same likelihood of
confu-sion analysis because that mark also includes the GRUBHUB
brand name.
14a
Appendix A
Uncommon, LLC v. Spigen, Inc., 926 F.3d 409, 425 (7th
Cir. 2019). To answer this question, we consider seven
factors, none of which is dispositive:
(1) similarity of the marks in appearance and
suggestion;
(2) similarity of the products;
(3) the area and manner of concurrent use;
(4) the degree of care likely to be exercised by
consumers;
(5) the strength of the senior user’s mark;
(6) existence of actual confusion; and
(7) the intent of the defendant to “palm off” its
product as that of another.
See id. “Courts may assign varying weight to each of the
factors depending on the facts presented, though usually
the similarity of the marks, the defendant’s intent, and
actual confusion are particularly important.” AutoZone,
Inc. v. Strick, 543 F.3d 923, 929 (7th Cir. 2008). Home Chef
disputes the district court’s determination as to these
three “particularly important” factors, each of which
the district court found to weigh against a finding of a
likelihood of confusion. See id.
Although Home Chef has advanced both forward and
reverse theories of confusion, we focus our attention on
15a
Appendix A
the latter. Not only is reverse confusion the dominant
theory the parties present to us, but we agree with the
district court that Home Chef did not make a particularly
strong showing that its forward confusion theory would
prevail. Based on the current record, we do not see how a
consumer interacting with the Grubhub House Logo could
reasonably believe that she was engaging with Home Chef,
particularly where the accused mark prominently features
Grubhub’s own brand name. 5 Sullivan v. CBS Corp., 385
F.3d 772, 778 (7th Cir. 2004) (“Although the marks are
similar, the prominent display of different names on the
marks reduces any likelihood of confusion.”); Packman
v. Chi. Trib. Co., 267 F.3d 628, 645 (7th Cir. 2001) (“All
of [accused infringer’s] products ... prominently display
the well-known [mark], providing a strong indication
that there is no likelihood of confusion.”); Ziebart
International Corp. v. After Market Associates, Inc. Inc.,
802 F.2d 220, 227 (7th Cir. 1986) (collecting cases holding
that the “[p]rominent display of different names on the
marks ... reduce[s] the likelihood of confusion”); Pignons
S.A. de Mecanique de Precision v. Polaroid Corp., 657
F.2d 482, 487 (1st Cir. 1981) (same).
1.
Similarity of the Marks
Focusing then on Home Chef’s claim of reverse
confusion, the first factor in the likelihood of confusion
5. We emphasize that this conclusion is based on the record
before us at this preliminary stage. We do not intend to suggest
that Home Chef’s forward confusion theory is necessarily futile to
the extent that it can be supported with sufficient evidence if and
when the case proceeds.
16a
Appendix A
analysis looks at the similarity between the marks. When
evaluating a mark, we must keep in mind that “[t]he
commercial impression of a trade-mark is derived from it
as a whole, not from its elements separated and considered
in detail.” Estate of P.D. Beckwith, Inc. v. Comm’r of
Patents, 252 U.S. 538, 545-46, 40 S. Ct. 414, 64 L. Ed.
705, 1920 Dec. Comm’r Pat. 471 (1920). Accordingly, to
determine whether two marks are similar in appearance
and suggestion, we “compare the marks in light of what
happens in the marketplace and not merely by looking at
the two marks side-by-side.” AutoZone, 543 F.3d at 930
(quotation marks and citations omitted); see Meridian
Mut. Ins. Co. v. Meridian Ins. Grp., Inc., 128 F.3d 1111,
1115 (7th Cir. 1997) (“it is inappropriate to focus on minor
stylistic differences to determine if confusion is likely”
when the marks are not usually encountered together). To
that end, “the test is not whether the public would confuse
the marks, but whether the viewer of [a] mark would be
likely to associate the product or service with which it is
connected with the source of products or services with
which [another] mark is connected.” James Burrough Ltd.
v. Sign of the Beefeater, Inc., 540 F.2d 266, 275 (7th Cir.
1976) (emphasis added).
The district court gave little weight to the USPTO’s
determination and found that the marks were not
sufficiently similar, concluding that this factor did not
support a likelihood of confusion finding. Home Chef
argues that the district court only reached this conclusion
after “painstakingly dissect[ing] the marks” in a side-byside comparison, which is contrary to the applicable law.
This argument, however, suffers from several flaws.
17a
Appendix A
First, Home Chef is correct that a court must do more
than merely compare the competing marks side-by-side;
rather, it must consider how a potential consumer would
view them in the marketplace. See Ty, 237 F.3d at 898.
But the district court did this. In addition to comparing
the various attributes of the two marks, the court also
examined how consumers would consider them as a whole,
finding that because the Grubhub House Logo combined
the house design with the strong GRUBHUB word mark,
the word mark became the more salient portion of the
logo, thereby differentiating the accused mark from Home
Chef’s marks. See Ty, Inc., 237 F.3d at 898 (“[I]f one word
or feature of a composite trademark is the salient portion
of the mark, it may be given greater weight than the
surrounding elements.”) (citation omitted). In other words,
it found Grubhub’s use of its brand name in the Grubhub
House Logo more likely to mitigate reverse confusion
than to aggravate it, particularly where both parties have
well-established, highly recognizable brands.
Nevertheless, Home Chef contends that the district
court, when assessing its reverse confusion theory, placed
too much weight on the presence of the GRUBHUB word
mark in the Grubhub House Logo. Generally, the analysis
of the similarity factor is no different under reverse or
forward confusion; under either theory a court may assess
the similarity of the sound, sight, or meaning of the marks.
See Henri’s Food Prods. Co., Inc. v. Kraft, Inc., 717 F.2d
352, 356 (7th Cir. 1983); see generally McCarthy § 23:10.
But, as the Third Circuit has recognized, “in the reverse
confusion context, the presence of [brand names] must
obviously be treated differently than in the [forward]
18a
Appendix A
confusion context.” A & H Sportswear, 237 F.3d at 229-30.
This makes sense. Home Chef’s reverse confusion theory
is that, when consumers come across products or services
bearing its HC Home Mark (which, as you may recall,
does not include the Home Chef brand name), they will
mistakenly believe that the products or services belong
to Grubhub due to the strength of the GRUBHUB word
mark. Thus, while the presence of the Grubhub name
might alleviate forward confusion (that is, believing a
Grubhub product is one made by Home Chef), it plays a
lesser role in reverse confusion when the consumer would
not see Grubhub’s name when encountering a Home Chef
product.
This is not the first time that we have encountered an
argument by a trademark claimant that the appearance
of an accused infringer’s well-known brand name does
not allay the confusion caused by otherwise similar
marks. But, in those cases, the junior user’s accused
marks and products were “virtually identical” to those
of the senior user. Quaker Oats, 978 F.2d at 959. For
example, in Quaker Oats, the large, junior user began
selling an isotonic beverage with the tagline “Gatorade
is Thirst Aid.” Id. at 949-51. The senior user—a small,
Vermont-based company—had three federal trademark
registrations for “THIRST-AID,” which it had also
used to market an isotonic beverage. Id. Under those
circumstances, we concluded that it was “precisely the
strong association between Gatorade and ‘Thirst Aid’
created by Quaker’s [Gatorade] ads that [was] likely to
create confusion.” Id. at 960.
19a
Appendix A
Similarly, in International Kennel Club of Chicago
v. Mighty Star, Inc., 846 F.2d 1079 (7th Cir. 1988), we
held that the accused infringer’s use of its brand name,
“24K Polar Puff,” along with the phrase “International
Kennel Club” was a “smoke screen” because the phrase
was indistinguishable from the senior user’s name,
“International Kennel Club of Chicago.” Id. at 1088. And,
in A.J. Canfield Co. v. Vess Beverages, Inc., we affirmed the
district court’s entry of a preliminary injunction against
an accused infringer that used its brand name “VESS”
in conjunction with “Chocolate Fudge” to sell carbonated
diet chocolate sodas. 612 F. Supp. 1081, 1091 (N.D. Ill.
1985), aff’d, 796 F.2d 903 (7th Cir. 1986). There, the senior
user had trademark protection for the use of “Chocolate
Fudge,” which it too used to market chocolate-flavored soft
drinks. Id. at 1083. The district court determined that the
infringer’s use of its brand name was not a defense because
“the use of another’s trademark constitutes infringement
with or without the use of the infringer’s housemark.” Id.
at 1091.
On the other end of the spectrum sits Ziebart, where
we determined that there was no likelihood of confusion
between the marks of two competitors who both sold
vehicular rustproofing compounds under marks each
featuring a depiction of a knight’s helmet. 802 F.2d at
224. In reaching this conclusion, we observed that the
marks used different colors, but focused principally on
the “[p]rominent display” of each party’s brand name on
its respective mark. Id., 802 F.2d at 226-27.
20a
Appendix A
This case falls somewhere in the middle. On the one
hand, unlike Quaker Oats, Mighty Star, and A.J. Canfield,
this case involves more than mere word marks, and the
house design in the Grubhub House Logo is neither
“virtually identical” to the Home Chef house design
nor used to promote “virtually identical” products and
services. That is, Grubhub did not take the exact HC Home
Mark and simply add “GRUBHUB” underneath it, and it
does not use its mark to sell meal kits, heat-and-eat meals,
ready-to-eat products, and seasonal meals, like Home
Chef. But this case is not directly analogous to Ziebart
either, because the two marks—though not identical—are
conceptually similar, and Home Chef does not always use
the Home Chef brand name with its mark. The magistrate
judge found this case to be closer to Quaker Oats, while
the district court found it to be closer to Ziebart. Short of
attorney argument, evidence in the record that Grubhub
has or will so overwhelm the market such that consumers
will begin associating the HC Home Mark with Grubhub
is sparse, at best. Because the available facts are in rough
equipoise, we cannot say that the district court clearly
erred in determining that Home Chef failed to show that
the similarity of the marks favored a finding of a likelihood
of confusion.
Second, Home Chef also faults the district court for not
giving substantial weight to the USPTO’s determination.
But the district court did not clearly err in according it little
weight. The non-final office action was only a preliminary
determination as to the registrability of the JET House
Mark. It says little about the similarity of the Grubhub
House Logo and Home Chef’s marks. Moreover, there
was no conclusive determination as to the registrability
21a
Appendix A
of the mark. JET chose to abandon its application shortly
after the USPTO issued its office action. Home Chef
points to no case law, and we are aware of none, that
imposes an adverse inference or presumption of similarity
where a party voluntarily abandons its trademark
application following an unfavorable preliminary USPTO
determination. And, as several of our sister circuits have
noted, USPTO determinations are often of limited value
in the infringement analysis when they lack the benefit
of the fuller record developed before the district court,
such as evidence about the way marks are actually used in
the marketplace. See Progressive Distrib. Servs., Inc. v.
United Parcel Serv., Inc., 856 F.3d 416, 427 (6th Cir. 2017);
A & H Sportswear, Inc. v. Victoria’s Secret Stores, Inc.,
237 F.3d 198, 220-21 (3d Cir. 2000); Carter-Wallace, Inc.
v. Procter & Gamble Co., 434 F.2d 794, 802 (9th Cir. 1970).
This is not to say that USPTO preliminary determinations
are never useful, but the district court’s decision to accord
it little weight in this case was not clearly erroneous.
2.
Strength of Grubhub’s Mark
The parties do not separately brief the strength of
Grubhub’s mark on appeal because Grubhub did not object
to the magistrate judge’s conclusion that the strengthof-the-mark factor supported a likelihood of reverse
confusion. As a general rule, in such a case, we typically
would not review that conclusion on appeal. See Johnson
v. Zema Sys. Corp., 170 F.3d 734, 739 (7th Cir. 1999) (“If
a party objects [to an R&R] in the district court on some
issues and not others, he waives appellate review of the
issues to which he has not objected.”). But because Home
Chef has discussed the strength of the GRUBHUB word
22a
Appendix A
mark at all levels of review—albeit not expressly in
connection with this particular factor—we conclude that
addressing the issue “cause[s] no one ... any harm of which
the law ought to take note.” Allen v. City of Chicago, 865
F.3d 936, 944 (7th Cir. 2017) (citation omitted). This is
especially true given that the strength-of-the-mark factor
is so intricately connected to the similarity-of-marks
factor, as noted above.
This factor requires consideration of both the
commercial and conceptual strength of the mark. See
McCarthy § 11:80. 6 In Quaker Oats, we stated that,
in a reverse confusion case, “it may make more sense
to consider the strength of the mark in terms of its
association with the junior user’s goods.” 978 F.2d at
959. Put another way, we do not consider the strength
of the junior user’s mark in isolation, but in its ability
to overpower the senior user’s mark. See McCarthy §
23:10. Indeed, implicit in Home Chef’s arguments is that
the Grubhub House Logo—which uses the GRUBHUB
word mark—is stronger than its marks; that Grubhub’s
saturation of (or ability to saturate) the market with its
logo is likely to lead consumers to believe the HC Home
Mark connotes a Grubhub service.
Because a consumer who first encounters a particular
mark used in connection with a set of goods is likely to
continue associating that mark with those goods, see A &
6. Because the parties focused on the economic and marketing
strength of the marks—i.e., the commercial strength—when briefing
this factor in the district court, so will we. See AutoZone, 543 F.3d
at 933 (7th Cir. 2008) (“The strength of a mark usually corresponds
to its economic and marketing strength.”) (citation omitted).
23a
Appendix A
H Sportswear, 237 F.3d at 230, the relative prevalence of
those marks in the marketplace typically will determine
whether the confusion a consumer experiences is forward
or reverse. Id. As the Third Circuit aptly explained:
[I]f one manufacturer—junior or senior—
expends tremendous sums in advertising while
the other does not, consumers will be more
likely to encounter the heavily advertised mark
first. Where the greater advertising originates
from the senior user, we are more likely to
see a case of direct confusion; if the greater
advertising originates from the junior user,
reverse confusion is more likely.
Id. In a prototypical reverse confusion case, a senior user
with a commercially weaker mark is pitted against a junior
user with a far stronger mark. Accordingly, instead of
considering the commercial strength of the junior’s mark
in isolation, we look to its relative strength as compared to
that of the senior, “because it is the strength of the larger,
junior user’s mark which results in reverse confusion.” Id.
at 231 (quoting Com. Nat’l Ins. Servs., Inc. v. Com. Ins.
Agency, Inc., 214 F.3d 432, 444 (3d Cir. 2000)).
This is not such a prototypical case. Home Chef has
spent over $450 million on advertising and has sold billions
of dollars of products under its marks, which it has used
to market products to millions of customers nationwide
since 2014. It has received significant press coverage and
accolades for its top customer service, and in 2021, Home
Chef reached $1 billion in annual sales. It is hard to see
how the HC Home Mark (let alone the HC Home Logo
24a
Appendix A
which prominently features the HOME CHEF brand
name) is at risk of being so overwhelmed by Grubhub’s
use of the Grubhub House Logo that consumers are likely
to begin associating Home Chef’s products with Grubhub.
Home Chef’s own arguments as to the notable strength
of its marks to support its forward confusion theory only
underscore this point.
To be sure, Grubhub is not a weak junior user.
Grubhub too has invested millions of dollars in its Grubhub
House Logo and reached $1.8 billion in sales revenue in
2020. As such, Grubhub is in a position where it could
overwhelm a senior user’s mark. But it is not our role
to weigh the evidence anew. Based on this record, we
are not convinced that the district court clearly erred
when finding that Home Chef failed to present sufficient
evidence that consumers do or will believe that products
sold using a mark in which Home Chef has invested
hundreds of millions of advertising dollars are associated
with Grubhub. See, e.g., Procter & Gamble Co. v. ColgatePalmolive Co., No. 96 Civ. 9123 (RPP), 1998 U.S. Dist.
LEXIS 17773, 1998 WL 788802, at *65 (S.D.N.Y. Nov. 9,
1998), aff’d, 199 F.3d 74 (2d Cir. 1999) (“Given the size,
financial strength and presence of P & G in the region,
the relative spending levels for CREST and COLGATE
advertising in China, the high consumer awareness
of the CREST brand and of P & G generally, and the
minimal evidence of direct confusion between CREST
and COLGATE, reverse confusion also is not found.”).7
7. Home Chef argues that this conclusion will encourage
large junior users to expropriate small senior users’ lesser known
trademarks. While this is a reasonable point, evaluation of such an
25a
Appendix A
3.
Actual Confusion
Evidence of actual confusion, which can be presented
as either direct or survey evidence, is not essential to a
finding of a likelihood of confusion, but where present it
“is entitled to substantial weight.” CAE, Inc. v. Clean Air
Eng’g, Inc., 267 F.3d 660, 685 (7th Cir. 2001). That said,
depending on the factual circumstances, isolated incidents
of actual confusion may be disregarded as de minimis.
Packman, 267 F.3d at 645 (7th Cir. 2001) (collecting cases).
As the factfinder at the preliminary injunction stage, it is
within the district court’s purview to weigh the evidence
submitted by the parties on this issue. We may not reverse
so long as “the district court’s account of the evidence
is plausible in light of the record viewed in its entirety.”
Rust, 131 F.3d at 1216.
Home Chef relies on two instances of actual confusion.
First, it points to an anonymous tweet featuring a sideby-side screenshot of the parties’ mobile app icons that
reads: “So uh why did grubhub make their app icon look
like a stylized orange version of home chef..? Even the
utensils are almost exactly the same..” We agree with
the district court that this evidence carries little, if any,
weight. As an initial matter, Home Chef does not allege
that the author was a Home Chef or Grubhub customer.
argument is more appropriately addressed when considering the
intent factor in the likelihood of confusion analysis. And, as we will
see below, there is little evidence that Grubhub sought to divert any
business from Home Chef or otherwise overwhelm Home Chef’s
position in the marketplace through its adoption of the Grubhub
House Logo.
26a
Appendix A
See Packman, 267 F.3d at 645 (instances of confusion that
are not attributable to the applicable consumer group are
entitled to less weight); CAE, Inc., 267 F.3d at 686 (same).
But more fundamentally, as the district court observed,
the author of the tweet was not actually confused by the
marks. Recognizing that the corporations were distinct,
the author merely noted the bare similarities between
the two marks. This does little to demonstrate actual
confusion.
Home Chef also cites to a Facebook message it
received from one of its customers. The customer asked:
“Did you and Grub Hub merge or come to some sort of
mutual deal, because I had to take a double take today
when my Grub Hub app updated,” sharing a screenshot
of the Grubhub and Home Chef mobile apps:
This message certainly warrants more scrutiny than
the previous tweet. But the district court’s decision not to
give it significant weight was not unreasonable.
First, as the district court noted, the Facebook
message represented just one of millions of customers
who would have been exposed to Grubhub’s new logo
27a
Appendix A
following its expansive rebranding in 2021. Second, a
customer inquiry is markedly different from evidence that
a customer had ordered a meal from Home Chef thinking
it was Grubhub and, on its own, falls short of proving
actual confusion. See McCarthy § 23:16 (“[W]hile enquiry
evidence is admissible and relevant, standing alone with no
other evidence it is insufficient proof of actual confusion.”);
see also Restatement (Third) of Unfair Competition § 23
(1995) (“Evidence of inquiries by customers as to whether
the plaintiff and the defendant are associated ... may not
establish the existence of actual confusion if the nature
of the inquiries indicates that consumers perceive a
difference between the designations and are skeptical of
the existence of a connection between the users.”).
On the other side of the ledger, the district court
had Grubhub’s two consumer surveys. Employing the
Eveready format, 8 one survey evaluated the risk of
forward confusion, and the other of reverse confusion.
Relevant for our purposes, the reverse confusion survey
exposed 300 actual or prospective consumers of homedelivered meal kits or ready-to-eat meals to Home Chef’s
marks as they appeared on its mobile app or its website
8. Named after the survey used in Union Carbide Corp. v.
Ever-Ready Inc., 531 F.2d 366 (7th Cir. 1976), the survey format
tests the association consumers have with the trademarks in question
without showing them the trademarks side-by-side. “In cases
involving strong marks, the Eveready test should be considered the
gold standard for fundamental cognitive and marketing reasons.”
McCarthy § 32:174 (quoting J.B. Swann, Likelihood of Confusion
Studies and the Straightened Scope of Squirt, 98 Trademark Rep.
739, 746 (2008)).
28a
Appendix A
for a minimum of ten and thirty seconds, respectively.
Respondents viewing either platform were exposed to
both the Home Chef Home Logo and the HC Home Mark,
although the latter was in close proximity to the “Home
Chef” word mark, as shown in the example images below.
29a
Appendix A
None of the images used in the survey exhibited the
Home Chef Home Logo or the HC Home Mark in isolation
without the context of the other content on the platform.
See McCarthy § 32:163 (“The closer the survey methods
mirror the situation in which the ordinary person would
encounter the trademark, the greater the evidentiary
weight of the survey results.”).
Following exposure to the images, the respondents
were asked an open-ended question: “What company do
you think offers the app/service we just showed you, if you
have an opinion?” Of the 300 respondents, 204 (or 68%)
responded, “Home Chef.” Zero respondents answered
with “Grubhub.” 9 Respondents then were asked the
open-ended question: “Do you think the app/service we
showed you is affiliated with, or sponsored or approved
by, any other company?” Of the 300 respondents, 53 (or
18%) answered in the affirmative, but zero identified
Grubhub as the affiliated company.10 Based on these
data, Grubhub’s expert concluded that “[t]he fact that no
respondents out of 300 identified Grubhub in response to
any question powerfully demonstrates that Grubhub’s use
of the allegedly infringing logo does not create a likelihood
of reverse confusion.” The district court agreed, finding
9. The remaining 96 respondents answered with variations
of the term “Home Chef” (e.g., “Green Chef,” “Home Fresh,” other
“Chef,” etc.), with other meal delivery companies (e.g., Hello Fresh,
Blue Apron, etc.), or stated that they did not know.
10. The companies the respondents identified included, for
example, Amazon, Blue Apron, “Green Chef,” Hello Fresh, Apple,
Google, Kroger, Meijer, etc. Of those 53 respondents, 27 stated that
they did not know.
30a
Appendix A
that Home Chef had failed to meet its burden to show
actual confusion.
Home Chef argues that this finding was clearly
erroneous for three reasons. First, according to Home
Chef, the district court mistook the time period during
which the two marks coexisted in the marketplace, which
tainted the weight the court assigned to its evidence.
Second, Home Chef challenges the substance of the
survey, characterizing it as a memory test, nothing more.
And third, Home Chef believes that the district court
improperly applied an adverse inference against Home
Chef because it did not produce its own survey evidence.11
None are sufficient to show clear error.
First, we acknowledge that the district court
misunderstood the amount of time both marks were in
the marketplace by the time Home Chef had filed its
preliminary injunction motion. The district court believed
it was a year, when in actuality it was only a few months.
But the period of mutual market presence in an actual
confusion analysis generally serves as a proxy for the
relative number of consumers who were exposed to the
marks; the assumption is that the longer two marks coexist
in the market, the more consumers encounter them. Such
11. Home Chef also argues that the surveys (1) did not use the
proper universe of consumers; (2) failed to accurately reflect the
marketplace conditions; and (3) failed to use a control group. Despite
raising these purported methodological flaws, Home Chef does not
meaningfully engage with them and asks us merely to adopt the
findings of the magistrate judge. Given the sparsity of its argument,
we decline to do so.
31a
Appendix A
an inference, however, has limited utility here, where both
parties are national, billion-dollar corporations that have
each expended millions (if not hundreds of millions) of
dollars advertising under their respective marks to the
public. Under these circumstances, we cannot conclude
that the district court’s decision to attribute little weight
to Home Chef’s isolated examples of actual confusion was
clearly erroneous.
Next, Home Chef complains that the survey amounted
to nothing more than a memory test that failed to account
for the potential risk of confusion between the HC Home
Mark and the Grubhub House Logo. For example, Home
Chef points out that it is difficult to see how a respondent,
who looks at Home Chef’s website or mobile app, could
answer the first question (i.e., what company offers the app/
service shown in the photos?) with an answer other than
“Home Chef.” But remember that the relevant audience
for the survey is Home Chef’s current or prospective
customers—not just any person selected at random. See
McCarthy § 32:174; see also Sterling Drug, Inc. v. Bayer
AG, 14 F.3d 733, 741 (2d Cir. 1994) (“Where, as here, the
relevant issue is whether consumers mistakenly believe
that the senior user’s products actually originate with the
junior user, it is appropriate to survey the senior user’s
customers.”). And Grubhub’s reverse confusion survey
was properly limited to that audience.
Moreover, contrary to Home Chef’s contention, the
district court did acknowledge the survey’s failure to
assess whether consumers would be confused based on use
of the HC Home Mark alone, noting that the magistrate
32a
Appendix A
judge’s criticism of the survey on this basis was “not
erroneous.” Grubhub Inc. v. Kroger Co., 2022 U.S. Dist.
LEXIS 130009, 2022 WL 2774986, at *3. But the district
court was not convinced that this error warranted
discounting the survey in toto, given that a consumer
will rarely encounter the HC Home Mark without also
encountering the “Home Chef” brand name in some form,
be it on the mobile app, the website, or in a grocery store.
Id. And, while Home Chef has submitted instances of its
use of the HC Home Mark alone, it has not presented any
evidence of actual confusion based on those instances.
Thus, we cannot conclude the district court clearly erred
in its assessment of the survey results at this nascent
stage of the case.
We easily dispatch Home Chef’s final argument that
the district court drew an adverse inference against it
because it did not present its own survey evidence. Of
course, Home Chef is correct that it need not perform a
survey to prevail on its claim at this, or any other, stage
of litigation.12 See Sullivan, 385 F.3d at 779 (noting, on
appeal from summary judgment, that the senior user
“was not required to conduct his own survey”). But it
12. We note, however, that the cases on which Home Chef relies
for this proposition, e.g., Meridian, 128 F.3d at 1119; Int’l Kennel
Club, 846 F.2d at 1086; and A.J. Canfield, 796 F.2d at 908, were
decided under our since-abrogated preliminary injunction standard
wherein a party seeking the injunction need only show a “better than
negligible chance” of succeeding on the merits. It is undisputed that,
after Pritzker, an applicant for preliminary relief bears a “significant
burden” and must establish more than a mere possibility of success.
973 F.3d at 762-63.
33a
Appendix A
still must provide enough evidence from which a district
court can find that it is likely to succeed on its claim. Here,
the district court did not impose an adverse inference
against Home Chef, but only weighed what evidence it
had presented against the evidence produced by Grubhub.
While Grubhub’s survey is not without its weaknesses, the
district court’s weighing of the competing evidence was
plausible. In sum, the district court did not clearly err in
finding that the actual confusion factor does not support
a likelihood of confusion finding.
4.
Grubhub’s Intent
Turning to the final factor, intent. We have stated
previously that, in a reverse confusion case, intent is
“largely irrelevant” because the alleged infringer is not
palming off or otherwise attempting to create confusion as
to the source of its products or services. SportFuel, Inc.,
932 F.3d at 602; Quaker Oats, 978 F.2d at 961 (intent is
“essentially irrelevant in a reverse confusion case”). While
this is correct, we use this opportunity to further explain
the role of intent in reverse confusion cases.
At the outset, we note that “[a] finding of fraudulent
intent or bad faith is not essential to prove infringement
where likelihood of confusion already exists.” Henri’s
Food Prods., 717 F.2d at 359. This is true in both forward
and reverse confusion contexts. That said, a junior user’s
intent may support a finding of likelihood of confusion
where there is evidence that it adopted its mark to confuse
consumers into thinking its own products were those of the
senior user. Therefore, in a typical forward confusion case,
34a
Appendix A
we evaluate whether there is any evidence from which
a factfinder could reasonably infer that the junior user
purposefully adopted its mark to “palm off” its products
or services as those of the senior. See, e.g., AutoZone, 543
F.3d at 934. Where such evidence exists, this factor favors
the senior user because it tends to show that a consumer
would be likely to confuse the source of the goods. See
Daddy’s Junky Music Stores, Inc. v. Big Daddy’s Family
Music Ctr., 109 F.3d 275, 286 (6th Cir. 1997) (“Intent is
relevant because purposeful copying indicates that the
alleged infringer, who has at least as much knowledge
as the trier of fact regarding the likelihood of confusion,
believes that his copying may divert some business from
the senior user.”).13
But in a reverse confusion case, by definition, the
junior user is not attempting to capitalize on the senior
user’s good will and reputation; thus, it makes less sense
to inquire whether the junior user adopted its mark with
the intent to “palm off” its product as that of another.
See Quaker Oats, 978 F.2d at 961. In this regard, we
have remarked that the junior user’s intent (to palm off)
in a reverse confusion case is “essentially irrelevant.”
13. By contrast, while a junior user’s intent to infringe can
support a likelihood of confusion finding, the reverse is not true.
A junior user’s innocent adoption of a mark does little to further
its defense, because innocent infringement is still infringement.
See Thomas L. Casagrande, A Verdict for Your Thoughts? Why an
Accused Trademark Infringer’s Intent Has No Place in Likelihood
of Confusion Analysis, 101 Trademark Rep. 1447, 1460 n.58 (2011)
(collecting cases); id. at 1470 (“intent provides a one-way ratchet that
helps trademark plaintiffs only.”).
35a
Appendix A
Id. That said, where it can be shown that the junior user
culpably disregarded the known rights of the senior user
when adopting its own mark, such evidence can support
an inference of consumer confusion. See Ironhawk Techs.,
Inc. v. Dropbox, Inc., 2 F.4th 1150, 1168 (9th Cir. 2021)
(“Intent can be shown ... by evidence that, for example, the
junior knew of the mark, should have known of the mark,
intended to copy the senior, failed to conduct a reasonably
adequate trademark search, or otherwise culpably
disregarded the risk of reverse confusion.”) (cleaned up).
And of course, where there is evidence that the junior user
“deliberate[ly] inten[ded] to push the senior user out of the
market,” that too would support a finding of a likelihood
of confusion. Freedom Card, Inc. v. JPMorgan Chase &
Co., 432 F.3d 463, 479 (3d Cir. 2005) (citation omitted); see
also Humanly Possible, Inc. v. Manpower, Inc., No. 11
C 4977, 2013 U.S. Dist. LEXIS 23249, 2013 WL 633332,
at *7 (N.D. Ill. Feb. 19, 2013) (inquiring whether there
was evidence that the junior user “acted intentionally to
overwhelm [the senior user]’s mark”).
Here, we see no evidence that Grubhub adopted the
Grubhub House Logo with any culpable or deliberate
disregard for Home Chef’s marks. Grubhub created the
Grubhub House Logo—combining its long-recognized
GRUBHUB word mark with the JET House Mark—as
part of its acquisition by JET. And JET had been using
its JET House Mark internationally since approximately
June 2014. Admittedly, the USPTO non-final office action
put Grubhub on notice of Home Chef’s rights in the HC
Home Mark and the Home Chef Home Logo. But Grubhub
did not disregard those rights. Instead, it agreed to
36a
Appendix A
only use the JET House Mark in connection with the
GRUBHUB brand name in an attempt to strike a balance
between the two parties’ commercial interests.
Because this factor can only bolster a likelihood of
confusion finding or be neutral, we agree with Home Chef
that the district court erred in determining that this factor
weighed against a likelihood of confusion. However, even
so, this factor is at best neutral and, therefore, of minimal
value in the likelihood of confusion analysis.
5.
Weighing the Likelihood of Confusion Factors
Taking stock, we conclude that the district court did
not clearly err in determining that neither the similarityof-the-mark factor nor the actual-confusion factor
supports a likelihood of confusion. Furthermore, based
on this preliminary record, the strength of Grubhub’s
mark does not pose a significant threat of overwhelming
the undisputed strength of Home Chef’s marks. Finally,
the intent factor is, at best, neutral and provides little
value in the analysis. As for the remaining three factors—
the similarity of the products, the area and manner
of concurrent use, and the degree of care likely to be
exercised by consumers—the parties do not dispute that
they weigh in favor of a finding of a likelihood of confusion.
Given this, we turn to the district court’s determination
that Home Chef failed to make a strong showing of a
likelihood of success on the merits.
Home Chef argues that, because all seven factors
are “interconnected,” the district court clearly erred by
focusing only on the factors in dispute without addressing
37a
Appendix A
the undisputed factors. To the contrary, the district court
did address the undisputed factors, concluding that the
magistrate judge’s determinations as to these factors
were not clearly erroneous. Grubhub, 2022 U.S. Dist.
LEXIS 130009, 2022 WL 2774986, at *6 n.2. This was a
correct application of law. Johnson, 170 F.3d at 739 (“If no
objection or only partial objection [to an R&R] is made, the
district court judge reviews those unobjected portions for
clear error.”). Furthermore, the district court held that,
even if there had been any error, the weight assigned to
those factors would not have affected its conclusion that
Home Chef failed to meet its burden of showing a strong
likelihood of success on the merits.
Home Chef ’s a rg u ment boi ls dow n t o mere
disagreement with the district court’s weighing of the
factors. As Home Chef correctly recognized, there is “no
hard and fast requirement” that any particular factor or
factors be decisive of a likelihood of confusion analysis.
See Ty, Inc., 237 F.3d at 902. Here, the district court,
faced with competing evidence, reviewed the record and
used its discretion to give weight to the factors it found
most salient and significant. See id. at 901-02. And given
our own analysis of these factors, we cannot say on this
record that the district court’s determination that Home
Chef did not satisfy its burden to establish a likelihood of
success on the merits was clearly erroneous.14
14. None of our conclusions should be interpreted to apply to
the JET House Mark alone. Because we understand that Grubhub
only uses the JET House Mark locked up with or in close proximity
to the GRUBHUB brand name, our conclusions are limited to such
uses. Any use of the JET House Mark alone is a separate inquiry
not presently before us.
38a
Appendix A
IV. CONCLUSION
Because the district court did not clearly err in
finding that Home Chef failed to meet its burden to show
a likelihood of success on the merits of its trademark
infringement claim, it did not abuse its discretion in
denying Home Chef’s motion for a preliminary injunction.
We therefore AFFIRM the district court’s decision.
39a
Appendix
B MEMORANDUM
APPENDIX B — ORDER
AND
OPINION OF THE UNITED STATES DISTRICT
COURT FOR THE NORTHERN DISTRICT
OF ILLINOIS, EASTERN DIVISION,
FILED MAY 25, 2022
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT
OF ILLINOIS EASTERN DIVISION
CASE NO.: 1:21-cv-05312
Judge Charles R. Norgle
GRUBHUB INC., and TAKEAWAY.COM
CENTRAL CORE B.V.,
Plaintiffs,
v.
THE KROGER CO. AND RELISH LABS LLC,
Defendants.
ORDER
Plainti ffs’ objections [72] to the Repor t and
Recommendation of the Magistrate Judge are sustained;
the Report and Recommendation [57] is rejected; and
Defendants’ motion for preliminary injunction [17] is
denied. Considering these rulings Plaintiffs’ motion for
leave to file reply [74] is denied because it is moot.
40a
Appendix B
MEMORANDUM OPINION
Before this Court is Plaintiffs’, Grubhub Inc., and
Takeaway.com Central Core B.V (“JET”) (collectively,
“Grubhub”), objections to the Magistrate Judge’s Report
and Recommendation (Dkt. 57) (“the R&R”) to grant
Defendants’, Relish Labs LLC and The Kroger Co.’s
(collectively “Home Chef”), motion for preliminary
injunction. This matter was referred to the Magistrate
Judge who issued the R&R, specifically recommending
this Court grant the motion for preliminary injunction.
Dkt. 57. In response, Grubhub issued written objections.
Dkt. 72. Having reviewed the R&R, Grubhub’s objections,
and the extensive briefing on this motion, this Court
is unpersuaded that Home Chef met its burden in
establishing the need for a preliminary injunction, and
therefore rejects the Magistrate Judge’s recommendation
and denies the motion for preliminary injunction.
I.
MARKS IN QUESTION
The Court adopts and incorporates the factual
findings of the R&R; however, the Court refers to the
marks in question as follows:
41a
Appendix B
Grubhub has also combined the JET House Mark with
the Seamless brand name to create the following logo:
Dkt. 40 ¶19. Use of the Seamless House Logo will
discontinue. Dkt. 56 at 9:14-16.
II. DISCUSSION
a.
Review of Grubhub’s Objections to The Report
and Recommendation.
Pursuant to 28 U.S.C. § 636(b)(1), the Court must
conduct a de novo determination of those portions or
recommendations of the R&R to which Grubhub objects.
The Court may accept, reject, or modify, in whole or
in part, the findings or recommendations made by the
magistrate judge. Id. Thus, the Court begins with
addressing Grubhub’s objections.
Grubhub objects to the recommendation to grant
Home Chef’s motion for preliminary injunction raising
four specific objections. First, the R&R erroneously
rejects Grubhub’s consumer perception surveys. Second,
the R&R improperly relies upon a non-final USPTO
decision that considered the JET House Mark and not the
Grubhub House Logo. Third, the R&R fails to recognize
that the use of the well-known GRUBHUB name in the
Grubhub House Logo distinguishes that mark from the
42a
Appendix B
Home Chef Home Logo and makes confusion unlikely.
Fourth, the R&R erroneously credits, as evidence of actual
confusion, two anonymous social media posts inquiring
about similarities between the Grubhub House Logo and
the Home Chef Home Logo. The Court sustains each
objection.
i.
Objection 1 — Erroneous Disregard of
Consumer Perception Surveys.
Grubhub retained survey researcher Hal Poret to
conduct surveys to assess whether Grubhub’s use of
the Grubhub House Logo causes consumer confusion
between Grubhub and Home Chef under reverse and
forward theories of confusion.1 Dkt. 46-3. Both studies
were in the standard “Eveready” survey format, “in
which respondents are shown the trademarks at issue and
questioned to determine if they make a mistaken mental
connection to the other party’s mark.” Dkt. 46-3 ¶7; see
6 McCarthy on Trademarks and Unfair Competition
§ 32:173.50-174 (4th ed. 1999) (noting Eveready surveys are
the “gold standard” in cases involving strong marks and
are a “widely accepted” format to prove the likelihood or
non-likelihood of confusion.) Poret opines that his survey
results “powerfully demonstrate” that Grubhub’s use of
the Grubhub House Logo does not create a likelihood of
confusion with Home Chef or its mark under either the
reverse or forward confusion theory. Dkt. 46-3 ¶¶12, 14.
1. Trademark confusion is often discussed in terms of two
different theories of confusion: “forward confusion” and “reverse
confusion.” See Sands, Taylor & Wood Co. v. Quaker Oats Co., 978
F.2d 947 (7th Cir. 1992)
43a
Appendix B
The R&R found that Poret’s sur veys, though
admissible, were entitled to little weight for five reasons,
concluding (1) the reverse confusion survey did not use
the proper universe of consumers; (2) the surveys failed
to accurately reflect the actual marketplace conditions; (3)
the methodology used to question the survey respondents
amounted to a “memory test;” (4) the surveys failed to use
control groups; and (5) due to the limited time for which
the parties’ logos coexisted, the lack of actual confusion
is “less salient” or even “irrelevant” when determining
whether there is a likelihood of confusion. Dkt. 57 at 41-45.
Grubhub has objected to that weighing of the survey
evidence. Dkt. 72 at 2; 4-9. The Court sustains that
objection. The survey evidence produced by Grubhub (and,
to a lesser extent, the failure of Home Chef to produce
survey evidence to the contrary) is entitled to much more
weight than was afforded it. In both the forward confusion
and reverse confusion surveys, none of the hundreds of
respondents were confused, demonstrating that confusion
is unlikely. Dkt. 46 at 3 ¶¶11, 13. Survey evidence showing
confusion of less than 10% weighs strongly against a
finding of infringement. Henri’s Food Prod. Co., Inc. v.
Kraft Inc., 717 F.2d 352, 358-59 (7th Cir. 1983). The Court
does not, as some courts have, draw the negative inference
that Home Chef failed to offer survey evidence because
such evidence would have been unfavorable to its claim.
See e.g. Planet Hollywood (Region IV), Inc. v. Hollywood
Casino Corp., 80 F. Supp. 2d 815, 884 (N.D. Ill. 1999),
opinion clarified, No. 96 C 4660, 1999 U.S. Dist. LEXIS
19185, 1999 WL 1186802 (N.D. Ill. Dec. 9, 1999). However,
Home Chef’s failure to offer any significant evidence of
44a
Appendix B
actual confusion (as discussed in more detail below) —
either directly or through surveys — demonstrates a
lack of proof by Home Chef on the important element of
actual confusion. Badger Meter, Inc. v. Grinnell Corp.,
13 F.3d 1145, 1153 (7th Cir. 1994) (noting while failure to
prove any actual consumer confusion militates against a
finding of the likelihood of such confusion, it is ultimately
a question for the finder of fact.) The absence of sufficient
proof of any actual confusion when coupled with marks
that are not dead-on similar is a blow to Home Chef’s
infringement claim.
The R&R unduly criticized the universe of survey
respondents in the reverse confusion survey. Respondents
for a reverse confusion study should be drawn from a
universe consisting of the customer base of Home Chef.
See, e.g., Citizens Fin. Grp., Inc. v. Citizens Nat. Bank of
Evans City, 383 F.3d 110, 120-21 (3d Cir. 2004). Here, the
universe of respondents questioned was a subset of the
entire Home Chef customer base universe. The survey
didn’t question any respondents outside Home Chef’s
customer base universe; the set of Home Chef customers
“who used, or planned to use, an online or in-app service
for delivery of home meal preparation kits or ready-toeat meals” may also include Home Chef customers “who
make in-store purchases or who purchase heat-and-eat
meals would;” and Home Chef customers “who make
in-store purchases or who purchase heat-and-eat meals”
may not be any more (or less) susceptible to confusion.
In other words, nothing suggests the survey asked the
wrong people, that the survey did not ask the people who
the R&R said it should have, or that the results would be
45a
Appendix B
any different if it did. While the survey is not perfect,
it captured a sufficiently broad swath of Home Chef’s
customers, and therefore is a probative measure of the
effect of the Grubhub House Logo on consumer behavior.
Am. Nat’l Ins. Co. v. Am. Nat’l Inv. Advisors, LLC, No.
11-cv-4016, 2014 U.S. Dist. LEXIS 163294, 2014 WL
6613342, at *16 (N.D. Ill. Nov. 21, 2014) (survey evidence
“need not be perfect” to be admissible and considered).
The R&R’s criticism of the surveys’ simulation of
marketplace conditions is not erroneous because it is
correct that the surveys did not account for how consumers
react to: (1) Home Chef’s use of the HC Home Mark
without the Home Chef brand name; (2) Home Chef’s
sales of its products in Kroger grocery stores; and (3)
Grubhub’s use of the Seamless House Logo. However, “the
closer the survey methods mirror the situation in which
the ordinary person would encounter the trademark, the
greater the evidentiary weight of the survey results.”
Bobak Sausage Co. v. A & J Seven Bridges, Inc., No. 07
C 4718, 2010 U.S. Dist. LEXIS 40737, 2010 WL 1687883,
at *5 (N.D. Ill. Apr. 26, 2010). Marketplace realities are
such that consumers will rarely encounter the HC Home
Mark without the Home Chef trade name appearing in
some form, whether at the point of sale or otherwise. Also,
any confusion in the context of grocery stores is unlikely
because Grubhub does not sell any products, in grocery
stores or otherwise; it provides delivery services. Finally,
the Seamless brand and logo are being phased out, and so
consumers will not encounter the Seamless House Logo.
Dkt. 1 ¶20; Dkt. 56 at 9:14-16. Thus, while the surveys did
not account for these three conditions, the survey methods
46a
Appendix B
nevertheless closely mirror the situation in which the
ordinary person would encounter the trademark and are
due a proportionate evidentiary weight.
It is a mischaracterization to call the surveys a
“memory test” because the surveys tested more than the
“memory” of survey respondents; the surveys questioned
whether and why respondents associated marks with
companies not shown. R&R at 43-44. Discounting the
survey evidence for being a “memory test” is unwarranted.
Furthermore, the absence of a “control group” in the
surveys has no significant impact on the results because
the purpose of a control group is “to eliminate general
background noise from the results” and there is no such
“noise” data here. Chattanoga Mfg., Inc. v. Nike, Inc.,
140 F. Supp. 2d 917, 928-29 (N.D. Ill. 2001). The lack (or
existence) of a control group makes the survey results no
less (or more) reliable in this instance because there is no
need for a control group here.
The Court disagrees with the R&R’s conclusion that,
because the parties’ logos have only coexisted for several
months, the lack of actual confusion is “less salient” or
even “irrelevant” when determining whether there is a
likelihood of confusion. Dkt. 57 at 45. To the contrary,
while the logos themselves only coexisted for a short
period of time, the brands and their products have existed
for years — Home Chef since 2013 and Grubhub since
2004. See Borinquen Biscuit Corp. v. M.V. Trading Corp.,
443 F.3d 112, 121 (1st Cir. 2006) (attaching substantial
weight to a trademark holder’s failure to prove actual
confusion only in instances in which the relevant products
47a
Appendix B
have coexisted on the market for a long period of time)
(emphasis added); Aktiebolaget Electrolux v. Armatron
Int’l, Inc., 999 F.2d 1, 4 (1st Cir. 1993) (finding lack of
evidence of actual confusion significant because products
had coexisted in the same market for roughly six years).
Home Chef’s products and Grubhub’s services have
coexisted for going-on-nine years and the competing logos
have coexisted for nearly a year, yet there is no substantial
evidence of actual confusion. Dkt. #46-4 at ¶16. For these
reasons, the Court sustains Grubhub’s first objection and
affords the survey evidence its due weight in assessing the
likelihood of confusion.
ii.
Objection 2 — Improper Reliance on a
Non-Final USPTO Decision.
Home Chef asserts the marks in question are
“virtually identical,” both comprised of a single fork and
a single knife in the same positioning and orientation
within a house design. Dkt. 18 at 12. The R&R concludes
that the parties’ respective marks share common elements
and that the minor stylistic differences are of far less
significance and do not defeat the similarity created by the
marks’ common elements. Dkt. 57 at 22. In coming to this
conclusion, Home Chef and the R&R rely, at least in part,
on the USPTO’s findings that the marks are confusingly
similar. Dkt. 18-8, Ex. 11. For its part, Grubhub objects
to the R&R’s reliance upon a non-final USPTO decision
that considered the JET House Mark (not the Grubhub
House Logo), on an evidentiary record different from the
record before this Court. Dkt. 72 at 2, 9-11. Home Chef
and the USPTO’s “Nonfinal Office Action” both compare
48a
Appendix B
the JET House Mark absent any accompanying context
or brand name with the HC Home Mark and the Home
Chef Home Logo. But Grubhub does not use the JET
House Mark independently. Thus, any findings by the
USPTO examiner are devoid of appropriate marketplace
context and consider different evidence than what is
before this Court, including the survey evidence, and
therefore are entitled to little, if any, deference under
these circumstances. See Progressive Distribution Servs.,
Inc. v. United Parcel Serv., Inc., 856 F.3d 416, 426-27,
433 (6th Cir. 2017). That is not to say, of course, that a
district court cannot look to the USPTO opinion to inform
its conclusions on trademark analysis, but rather that it
is inappropriate here. Id. The Court sustains Grubhub’s
objection and agrees that reliance on the USPTO’s initial
refusal of Grubhub’s application to register the JET House
Mark to assess the likelihood of confusion is erroneous.
R&R at 22-24, 46-47.
iii. Objection 3 — Erroneous Disregard of
Inclusion of Brand Names.
Grubhub asserts that the JET House Logo is always
accompanied by the brand name “Grubhub.” Dkt. 72 at 1.
Home Chef claims this is untrue. Dkt. 73 at 3. There is
no evidence before the Court that Grubhub has used the
JET House Mark absent the brand names “Grubhub” or
“Seamless” within the United States. Also, the Seamless
brand and logo are being phased out, and so consumers
will not encounter the Seamless House Logo. Dkt. 1 ¶20;
Dkt. 56 at 9:14-16. Thus, the Grubhub House Logo, not the
JET House Mark, is the true “accused mark.”
49a
Appendix B
Grubhub asserts that any confusion that might be
created by the similarity between the HC Home Mark
and the JET House Mark is neutralized because only the
Grubhub House Logo is used and the use of the well-known
“Grubhub” brand name distinguishes the Grubhub House
Logo from the Home Chef Home Logo. Dkt. 72 at 12. The
R&R disagrees, concluding “Grubhub’s use of its brand
name with the JET House [Mark] does not neutralize —
and may actually aggravate — any confusion,” reasoning
that brand names help avoid confusion only in cases where
forward confusion is alleged. R&R at 24-25. Grubhub’s
objection regarding this conclusion is sustained; nothing
suggests inclusion of the distinctive “Grubhub” name
aggravates confusion. It is well established that prominent
display of different brand names with marks reduces
the likelihood of confusion, “even where . . . the marks
are otherwise similar.” Ziebart Int’l Corp. v. After Mkt.
Assocs., 802 F.2d 220, 227 (7th Cir. 1986). Use of brand
marks is “more likely to mitigate” reverse confusion
than exacerbate confusion where, as here, both parties
have well-established, highly-recognizable brand marks.
Allstate Ins. Co. v. Kia Motors Am., Inc., CV 16-6108,
2017 U.S. Dist. LEXIS 211399, 2017 WL 6550669, at
*11 (C.D. Cal. Dec. 22, 2017), aff’d, 784 Fed. Appx. 507
(9th Cir. 2019). No evidence suggests that inclusion of
the name “Grubhub” aggravates, rather than alleviates,
potential confusion. The R&R’s conclusion to the contrary
is unfounded.
50a
Appendix B
iv.
Objection 4 — Erroneous Reliance on
Evidence of Actual Confusion.
Home Chef offers two instances which it claims are
evidence of actual confusion. First, on September 8, 2021, a
Home Chef customer sent Home Chef’s Facebook account
a message which read: “Did you and Grub Hub merge or
come to some sort of mutual deal, because I had to take a
double take today when my Grub hub app updated” (sic).
Dkt. 57 at 36. Second, a Twitter user posted on August
25, 2021, “so uh why did grubhub make their app icon look
like a stylized orange version of home chef...? Even the
utensils look exactly the same” (sic). Dkt. 57 at 37.
Home Chef is not required to present proof of actual
confusion to meet its burden or to otherwise prove that
a likelihood of confusion exists. CAE, Inc. v. Clean Air
Engineering, Inc., 267 F.3d 660, 685-86 (7th Cir. 2001).
While situations where consumers raise questions about
whether a senior user and a junior user are affiliated after
viewing their respective marks are afforded some weight
in assessing actual confusion, that weight is minimal.
CAE, Inc., 267 F.3d at 686 (noting that the “one instance
of actual confusion in the record” occurred when one of the
plaintiff’s suppliers asked whether there was a connection
between the defendant and the plaintiff’s subsidiary, but
that instance was “not entitled to great weight”); Unity
Health Plans Ins. Co. v. Iowa Health Sys., 995 F. Supp.
2d 874, 894 (W.D.Wis. 2014) (finding that a call where
consumer asked “whether Unity Health and UnityPoint
are affiliated in some way” constituted “somewhat more
persuasive” evidence of actual confusion than calls which
“the court discount[ed] entirely.”)
51a
Appendix B
The instances which Home Chef cites as evidence of
actual confusion are, at best, situations where consumers
raise questions about whether a senior user and a junior
user are affiliated. On their face, however, the consumers
in these instances show they recognize a distinction
between Grubhub and Home Chef Comparison is not
confusion, and these posts only compare the marks.
That these are the only two incidents alleged of actual
confusion after nearly a year of coexistence and millions
of customers being exposed to both companies’ logos
weighs against a finding of a likelihood of confusion. This
is compounded by the fact that Home Chef offers no survey
evidence of actual confusion. Courts have recognized that,
in the absence of proof of actual instances of confusion,
it can be difficult to prove likelihood of confusion without
survey evidence. See, e.g., Hubbard Feeds, Inc. v. Animal
Feed Supplement, Inc., 182 F.3d 598, 603 (8th Cir. 1999)
(the plaintiff’s “failure to present evidence of consumer
confusion owing to [the defendant’s] allegedly infringing
conduct is telling.”) For these reasons, the Court sustains
Grubhub’s objection that the R&R erroneously credits
as evidence of actual confusion the two anonymous
social media posts. The social media posts offer minimal
evidence of actual confusion and are only “somewhat more
persuasive” than no evidence at all. The absence of any
other evidence of confusion, as well as survey evidence
to the contrary, further diminishes the posts’ probative
value.
b.
Preliminary Injunction.
Having sustained Grubhub’s objections, the Court
now considers whether a preliminary injunction is
52a
Appendix B
warranted. A preliminary injunction is a drastic remedy
which is “never to be indulged in except in a case clearly
demanding it.” Barbecue Marx, Inc. v. 551 Ogden, Inc.,
235 F.3d 1041, 1044 (7th Cir. 2000) (cleaned up). To decide
whether a preliminary injunction is warranted, courts
engage in a two-step inquiry involving a threshold phase
and a balancing phase. See, e.g. Vendavo, Inc. v. Long,
397 F. Supp. 3d 1115, 1128 (N.D. Ill. 2019). First, Home
Chef must satisfy its burden first at the “threshold phase”
by establishing: (1) it is likely to succeed on the merits;
(2) traditional legal remedies would be inadequate; and
(3) it will suffer irreparable harm absent a preliminary
injunction. Life Spine, Inc. v. Aegis Spine, Inc., 8 F.4th
531, 539 (7th Cir. 2021). Then, if Home Chef makes
this showing, the court balances the harm of denying
an injunction to the plaintiff against the harm to the
defendant of granting one. Id. The ultimate decision in
weighing and balancing these factors requires a high
degree of discretion on the part of the district judge.
Storck USA, L.P. v. Farley Candy Co., 14 F.3d 311, 314 (7th
Cir.1994). The Court has expressed that “[a] preliminary
injunction is an extraordinary remedy and should only be
granted in a case where the movant has clearly carried
his burden of persuasion as to all the prerequisites.”
Heinz v. Frank Lloyd Wright Found., 762 F. Supp. 804,
806 (N.D. Ill.1991) (Norgle, J.). Here, Home Chef has not
carried its burden of persuasion as to the prerequisite
that it is likely to succeed on the merits, and so the Court
exercises its discretion to deny the extraordinary relief
of a preliminary injunction.
Regarding the likelihood of success on the merits,
the moving party “need not show by a preponderance
53a
Appendix B
of the evidence that [it] will win [its] suit.” Protect Our
Parks, Inc. v. Buttigieg, 10 F.4th 758, 763 (7th Cir. 2021).
Nonetheless, “the mere possibility of success is not
enough” and the movant must instead make a “strong”
showing on the merits. Id. To establish trademark
infringement under the Lanham Act, Home Chef must
establish that: (1) it owns a valid, protectable trademark;
and (2) there is a likelihood of confusion as to the origin
of the defendant’s product. Ty, Inc. v. Jones Grp. Inc.,
237 F.3d 891, 897 (7th Cir. 2001). Here, there is no dispute
that Home Chef owns a valid, protectable trademark.
“The linchpin of both common law and federal statutory
trademark infringement claims is whether consumers in
the relevant market confuse the alleged infringer’s mark
with the complainant’s mark.” AHP Subsidiary Holding
Co. v. Staurt Hale Co., 1 F.3d 611, 615 (7th Cir.1993). Thus,
the inquiry is whether consumers in the relevant market
confuse the Grubhub House Logo with either the HC
Home Mark or the Home Chef Home Logo; the answer
is that it does not appear so.
The Seventh Circuit looks to seven factors when
evaluating the potential for consumer confusion:
(1) the similar ity between the marks in
appearance and suggestion;
(2) the similarity of the products;
(3) the area and manner of concurrent use;
(4) the degree and care likely to be exercised
by consumers;
54a
Appendix B
(5) the strength of the plaintiff’s mark;
(6) any actual confusion; and
(7) the intent of the defendant to “palm off” his
product as that of another.
Autozone, Inc. v. Strick, 543 F.3d 923, 929 (7th Cir.
2008). While no single factor is dispositive, the three
most important factors are “the similarity of the marks,
the intent of the defendant, and evidence of actual
confusion.” Eli Lilly & Co. v. Nat. Answers, Inc., 233
F.3d 456, 462 (7th Cir. 2000). Here, these most important
factors — similarity, intent, and actual confusion — all
favor Grubhub, and therefore, Home Chef has not met
its burden of making a strong showing of a likelihood of
success on the merits. 2
i.
The Similarity Between the Marks in
Appearance and Suggestion.
In an infringement action, a comparison of the marks
at issue should be made “in light of what happens in the
marketplace, and not merely by looking at the two marks
side-by-side.” AutoZone, 543 F.3d at 931. The test is not
whether the public would confuse the marks, but whether
2. The Court does not presently consider the remaining factors
because Grubhub did not specifically object to the R&R’s analysis of
those factors, and it does not appear that the R&R’s analysis of those
factors is clear error. Moreover, that analysis would not change the
Court’s conclusion that Home Chef has not met its burden of showing
a strong likelihood of success on the merits.
55a
Appendix B
the viewer of an accused mark would be likely to associate
the product or service with which it is connected with the
source of products or services with which an earlier mark
is connected, i.e. whether a viewer of the Grubhub House
Logo would be likely to associate Grubhub’s services with
Home Chef’s products. Id.
The Court relies not on the USPTO’s determination,
but on its own examination of the marks in question.
Similarities between the marks are limited to a single fork
and a single knife in the same positioning and orientation
within a house or home design. Differences include the
shape of the design — in the HC Home Mark, the design
is a pentagon more resemblant of a baseball home plate
than a house with eaves and a chimney, as is the case in
the JET House Mark. Also, the HC Home Mark utilizes
straight lines with pointed edges where the JET House
Mark has rounded, cartoon-like edges. Finally, the knife
and fork are recessed in the JET House Mark where they
are integrated with the edges in the HC Home Mark.
These differences are significant enough to differentiate
the JET House Mark from the HC Home Mark. The
Seventh Circuit adheres to the rule that “if one word or
feature of a composite trademark is the salient portion
of the mark, it may be given greater weight than the
surrounding elements.” Ty, Inc. v. Jones Grp., Inc., 237
F.3d 891, 898 (7th Cir. 2001). When the JET House Mark is
combined with the brand names “Grubhub” or “Seamless,”
the brand names become the more salient portion of the
logo, further differentiating the Grubhub House Logo
from the HC Home Mark and the Home Chef Home Logo.
56a
Appendix B
Grubhub maintains that its brand names always
accompany the JET House Mark. Grubhub objects to
the R&R’s discounting of the significance of this layout
of the Grubhub House Logo. As noted above, the Court
sustains that objection. The JET House Mark is but one
portion of the Grubhub House Logo, which is the true
“accused mark.” Thus, while the HC Home Mark may at
times stand alone, there is nothing to indicate that when
it does, it will be associated with Grubhub, since the JET
House Mark never stands alone. While the JET House
Mark shares similar features with the HC Home Mark,
it is the less salient and obvious portion of the Grubhub
House Logo. Thus, there is no indication that a viewer
of the Grubhub House Logo would be likely to associate
Grubhub’s services with Home Chef or its products. The
prominent display of different brand names on products
otherwise containing similar marks reduces the likelihood
of confusion. Ziebart Int’l Corp. v. After Mkt. Assocs.,
802 F.2d 220, 227 (7th Cir. 1986); See also Ye Old Tavern
Cheese Products, Inc. v. Planters Peanuts Division, 261
F.Supp. 200, 206 (N.D. Ill. 1966) (in some circumstances,
“where the brand name is prominently stressed in the
label, there is not likely to be any confusion as to the
source, which is the essence of trademark infringement”),
aff’d mem., 394 F.2d 833 (7th Cir. 1967) (per curiam). This
factor weighs in Grubhub’s favor given that Grubhub’s use
of its brand names with the JET House Mark minimizes
any similarity between, and any potential confusion of,
the competing marks.
57a
Appendix B
ii.
The Intent of Grubhub to “Palm Off” Its
Product as That of Another.
Grubhub asserts that it adopted the Grubhub House
Logo in good faith to align its branding with the branding
of its new parent company, which began using the JET
House Logo overseas in 2014, and that it had no intent to
pass off its services as originating from Home Chef. (Dkt.
46 at 23). Home Chef does not dispute this. Instead, Home
Chef asserts that Grubhub ignored its rights by using the
JET House Logo after the USPTO rejected JET’s attempt
to register the mark.
When evaluating whether a defendant acted in good
or bad faith when adopting a mark, courts consider
whether the alleged infringer is trying to steal “sales
from a competitor by making consumers think they are
dealing with that competitor, when actually they are
buying from the passer off.” Uncommon v. Spigen, Inc.,
305 F. Supp. 3d 825, 863 (N.D. Ill. 2018). Since passing off
is a type of fraud, the movant must show some evidence
of the defendant’s bad faith, as “the mere similarity of
names” or “copying” are insufficient to satisfy bad intent.
Id. (internal citations omitted). A defendant’s use of its
brand name to promote that it is the source of its services
or a “clearly stated designation of origin” weigh against a
finding of an intent to palm off. Id. In a forward confusion
case, the junior user’s intent is relevant to the issue of
likelihood of confusion if the junior user intended to palm
off its products as those of the senior user. Sands, 978 F.2d
at 961. In a reverse confusion case, where the junior user
typically has no desire to capitalize on the senior user’s
58a
Appendix B
good will, courts consider whether “the more well-known
junior user ignored the senior user’s rights” or otherwise
“culpably disregarded the risk of reverse confusion.”
Imperial Toy Corp. v. Ty, Inc., No. 97 C 8895, 1998 U.S.
Dist. LEXIS 14418, 1998 WL 601875, at *6 (N.D. Ill. Sept.
9, 1998).
There is no evidence Grubhub intended to capitalize
on Home Chef’s good will or to palm-off its products as
Home Chef’s. In fact, JET began using the JET House
Mark as early as June 2014, at or around the same time
Home Chef publicized the HC Home Mark. Dkt. #46-5 ¶6;
Dkt. #18-1 ¶19. Thus, beyond the USPTO report (which is
entitled to little, if any, weight because it only compared
the JET House Mark with the HC Home Mark), there
is little evidence Grubhub ignored Home Chef’s rights
by utilizing the Grubhub House Logo, especially where
JET began using that mark internationally at or around
the time Home Chef began its use of the HC Home Mark.
No evidence suggests Grubhub culpably disregarded the
risk of reverse confusion. As such, this factor weighs
in Grubhub’s favor whether under a forward or reverse
confusion theory.
iii. Evidence of Any Actual Confusion.
The Court has examined this factor in its discussion of
Grubhub’s objections. To reiterate, the social media posts
which Home Chef offers as evidence of actual confusion
are of little probative value in establishing whether there
is confusion between the Grubhub House Logo and the HC
Home Mark or the Home Chef Home Logo. Furthermore,
59a
Appendix B
there is sufficiently strong survey evidence which suggests
there is zero confusion between the competing marks. As
such this factor also weighs in Grubhub’s favor.
III. CONCLUSION
In light of the sustained objections, the most important
factors in the likelihood of confusion analysis — similarity,
intent, and actual confusion — all favor Grubhub. Home
Chef has not made a sufficiently strong showing of a
likelihood of success on the merits. This is not a case
clearly demanding of the extraordinary remedy of a
preliminary injunction. The Court rejects the R&R and
denies Home Chef’s motion for preliminary injunction.
IT IS SO ORDERED:
ENTER:
/s/ Charles Ronald Norgle
CHARLES RONALD NORGLE, Judge
United States District Court
DATE: May 25, 2022
60a
Appendix
C
APPENDIX
C — REPORT
AND
RECOMMENDATION OF THE UNITED STATES
DISTRICT COURT FOR THE NORTHERN
DISTRICT OF ILLINOIS, EASTERN DIVISION,
FILED APRIL 8, 2022
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
No. 21 CV 5312
GRUBHUB INC. AND TAKEAWAY.COM
CENTRAL CORE B.V.,
Plaintiffs,
v.
THE KROGER CO. AND RELISH LABS LLC,
Defendants.
April 8, 2022, Decided
April 8, 2022, Filed
Jeffrey I. Cummings, United States Magistrate Judge.
To: The Honorable Charles R. Norgle, Sr. United States
District Judge
61a
Appendix C
REPORT AND RECOMMENDATION
On July 29, 2021, plaintiff Grubhub Inc. unveiled its
new branding mark at a concert in Chicago. Grubhub’s
new mark consists of a house symbol with a fork and a
knife inside combined as follows:
. Defendant Relish
Labs LLC d/b/a Home Chef (“Home Chef”) first learned
of Grubhub’s new mark on August 25, 2021, the day after
Grubhub issued a press release announcing its changed
branding to its customers and the general public. Home
Chef concluded that Grubhub’s new mark impermissibly
infringes on its own marks, which were previously
registered with the United States Patent and Trademark
Office and appear as follows:
.
Home Chef sent Grubhub a cease-and-desist letter on
September 7, 2021. The parties thereafter attempted,
albeit unsuccessfully, to resolve their dispute regarding
the competing marks.
On October 7, 2021, Grubhub and co-plaintiff
Takeaway.com Central Core (collectively “Grubhub”
unless otherwise specified) initiated this declaratory
judgment action pursuant to 28 U.S.C. §2201 against
Home Chef and its co-defendant The K roger Co.
(collectively “Home Chef” unless otherwise specified).
Grubhub seeks a declaration that its continued use of its
new branding mark neither infringes nor dilutes any of
Home Chef’s rights under the Lanham Act, 15 U.S.C.
62a
Appendix C
§1051 et. seq., nor constitutes unfair competition and/or
a false designation of origin under the Lanham Act and
state common law. (Dckt. #40). In response, Home Chef
filed an answer and asserted counterclaims alleging that
Grubhub unlawfully infringed and diluted its trademarks
in violation of the Lanham Act and Illinois statutory and
common law, and that Grubhub’s actions constituted unfair
competition and deceptive trade practices in violation of
Illinois law. (Dckt. #16).
On November 3, 2021, Home Chef also filed a motion
for a preliminary injunction, which was subsequently
referred to this Court by the District Court. (Dckt. #17,
34). In its motion, Home Chef seeks an order enjoining
Grubhub from using the following mark:
and any
similar variation thereof, in any and all advertising,
promotions, and marketing. The parties briefed the motion
and submitted evidence in the way of affidavits and
documents, after which the Court held a hearing and
heard argument from counsel. (See Dckt. #56 - 1/6/22
Hr’g Transcript). The following represents this Court’s
recommended proposed findings of fact and conclusions
of law pursuant to Federal Rule of Civil Procedure
72(b)(1). For the reasons discussed in detail below, this
Court respectfully recommends that the District Court
grant Home Chef’s motion for preliminary injunction.
I.
FINDINGS OF FACT
The facts pertinent to the resolution of this motion
are largely undisputed. The Court relies on the parties’
63a
Appendix C
submissions, their pleadings,1 and any other source from
which it is appropriate to take judicial notice.
A.
The Parties
1.
Home Chef
a.
History, Scope of Operations, and
Current Product Offerings
Home Chef was founded in 2013 by current CEO
Patrick Vihtelic. It currently offers its customers more
than 500 products including meal kits, heat-and-eat meals,
ready-to-eat products, and seasonal meals. (Dckt. #18-1
at ¶¶1-2, 15 - Decl. of CEO Patrick Vihtelic). Vihtelic, who
started Home Chef in his Chicago apartment with his
personal savings, set out “to provide everything needed to
bring more delicious, healthy and varied meals” to families
throughout the United States, “as a convenient and lowcost alternative to grocery shopping.” (Dckt. #18-1 at ¶2).
To do so, Vihtelic partnered with a local executive chef to
design recipes for at-home meal preparation. (Id. at ¶4).
Home Chef first launched its meal kit delivery service
— which provided the delivery of “fresh, pre-portioned
ingredients and easy-to-follow recipes” – in 2014. (Id. at
¶5). It opened its first distribution center in Chicago in
October 2015 and by June 2015, Home Chef was delivering
10,000 boxes of meal kits per month. (Id. at ¶¶5-6).
1. See, e.g., Prudential Insurance, Co. v. Newman, No. 17 C
8732, 2019 U.S. Dist. LEXIS 169104, 2019 WL 4750014, at *9 n.13
(N.D.Ill. Sept. 30, 2019) (citing cases and noting that a court has
the right to take notice of pleadings within its own files).
64a
Appendix C
Home Chef’s meal kit business continued to grow
significantly over the next few years. By February 2017,
Home Chef had opened two additional distribution centers,
was delivering 2.5 million meals per month to over 97%
of the country, and employed more than 800 employees.
(Dckt. #18-1 at ¶8; Dckt. #18-2 at p. 32). 2 Home Chef
grew 150% in 2017, bringing in $250 million in revenue.
(Dckt. #18-1 at ¶10; Dckt. #18-2 at p. 35). Since at least
2018, Home Chef has enjoyed the highest rate of customer
satisfaction amongst companies who sell meal kits. (Dckt.
#18-1 at ¶30).
In June 2018, Home Chef finalized a merger with
grocery retailer the Kroger Co. (“Kroger”), which has
2,800 retail food stores nationwide under a variety of
banner names, including Mariano’s in Illinois. (Dckt.
#18-1 at ¶¶10, 16; Dckt. #18-2 at pp. 35-36, 43). Home
Chef decided to pursue the merger to “further expand the
company’s availability and trade channels by making its
products available through Kroger family retail grocery
stores nationwide.” (Dckt. #18-1 at ¶10; Dckt. #18-2 at p.
35). Home Chef also decided to expand its range of product
offerings beyond meal kits. Specifically, in October 2018,
Home Chef started providing a new line of in-store “Home
Chef Express” products “featuring quick-cook meal kits
ready to eat in 15 minutes,” to “address a major customer
need — faster meals.” (Dckt. #18-1 at ¶11; Dckt. #18-2
at p. 44). By 2019, Home Chef was offering its “Readyto-Cook” and “Ready-to-Eat” meal options in more than
2. Throughout this Report and Recommendation, citations
to specific page numbers refer to the CM/ECF page numbers
indicated at the top of each page.
65a
Appendix C
2,100 Kroger family stores nationwide with double digit
growth in the fresh meal category. (Dckt. #18-1 at ¶12;
Dckt. #18-2 at p. 64).
Currently, Home Chef offers hundreds of products,
including meal kits, heat-and-eat meals, and ready-to-eat
options. (Dckt. #18-1 at ¶15). Representative samples of
the heat-and-eat and ready-to-eat meals include Home
Chef’s heat-and-eat soups (listed for $5.99 and under),
heat-and-eat pasta dishes (listed for $7.99), and varieties
of Home Chef’s ready-to-eat rotisserie and fried chicken,
available “hot” (listed for $7.99 and under). (Dckt. #187 at pp. 162-65 – Printout from Kroger’s website dated
10/29/21; Dckt. #18-8 at pp. 134-36 – Printout from
Instacart’s website dated 11/1/21).
Home Chef’s products can be purchased through
Home Chef’s website and mobile application, Kroger’s
website and mobile application, and in 2,000 Kroger family
stores, either for pick up or delivery. (Id. at ¶16). Since
2021, Home Chef has also partnered with meal delivery
service DoorDash — a Grubhub competitor — to “promote
and sell Home Chef’s meal kits and prepared meals for
pickup and home delivery throughout select Kroger family
stores.” (Dckt. #18-3 at ¶34 – Decl. of Senior Director
of Brand Marketing Shira Schwarz; Dckt. #18-5 at p.
140 (advertisement promoting delivery of Home Chef’s
prepared chicken by Door Dash)). Customers can also
order Home Chef’s meal kits, heat-and-eat, and readyto-eat meals for pick up and home delivery from Kroger
through Instacart, another grocery and meal delivery
service. (Id. at ¶35; Dckt. #18-8 at pp. 134-36). In addition,
select customers can order Home Chef vouchers directly
66a
Appendix C
through the Grubhub mobile app for redemption on the
Home Chef website. (Dckt. #18-8 at pp. 173, 183-86, 190
(Auburn University articles advising students how to
order Home Chef vouchers through the Grubhub app);3
Dckt. #39 at ¶¶72-73 (Grubhub’s answer to Home Chef’s
counterclaims)).
Home Chef’s annual sales, which were $250 million
at the time of its merger with Kroger in 2018, have now
reached $1 billion as of October 25, 2021. (Dckt. #18-1 at
¶¶10, 13; Dckt. #18-2 at pp. 35-36, 121).
b.
Home Chef’s Branding
To strengthen Home Chef’s brand identity and to
distinguish it from its competitors, Vihtelic commissioned
a design company to develop a design suggestive of and
consistent with the HOME CHEF name and word mark.
(Dckt. #18-1 at ¶19). In 2014, Home Chef selected the
following design (hereinafter, the “HC House Mark”):
3. One college student reported that she first learned of Home
Chef from the Grubhub app. (Dckt. #18-8 at p. 184); see Mechling v.
Operator of Website Muaythaifactory.com, No. 21-CV-01538, 2021
U.S. Dist. LEXIS 165876, 2021 WL 3910752, at *1 (N.D.Ill. Sept. 1,
2021) (noting that courts can consider hearsay at the preliminary
injunction stage).
67a
Appendix C
(Dckt. #18-1 at ¶¶19-20). Home Chef owns federal
reg istrations w ith the United States Patent and
Trademark Office (“USPTO”) for the HOME CHEF word
mark (Registration Nos. 5609384, 5811449, and 5362224),
the HC House Mark alone (Registration Nos. 5241586,
5294674, and 5786784), and the HC House Mark with the
HOME CHEF word mark (Registration Nos. 5609448
and 5598365). (Dckt. #18-1 at ¶¶18, 22; Dckt. #18-2 at
pp. 137-152).
Home Chef publicized the HC House Mark in 2014
and thereafter used the mark — both with and without
its registered HOME CHEF word mark — on its website,
on its various social media pages, and to advertise its
products and services — including its meal kits, heat-andeat meals, and ready-to-eat products — through a wide
array of marketing channels. (Dckt. #18-1 at ¶¶20-21, 23;
Dckt. #18-3 at ¶¶2-3). The HC House Mark combined with
the HOME CHEF word mark appears as follows:
(Dckt. #18-1 at ¶¶23, 30). Though often used in green (as
shown above), Home Chef uses the HC House Mark in
a wide variety of colors, including orange. (Dckt. #18-1
at ¶21; Dckt. #18-3 at ¶¶15-16; Dckt. #18-4 and #18-5
(including hundreds of examples of Home Chef’s use of
the HC House Mark, both alone and with the word mark,
in many different colors)).
68a
Appendix C
Home Chef also uses its HC House Mark in numerous
partnerships and co-branding efforts with celebrity
chefs (e.g., Gina Homolka and her brand Skinny Taste),
popular inf luencers (e.g., Olympic gymnast Shawn
Johnson), charities (e.g., Feeding America), businesses
(e.g., Heinz, Impossible Burger), and other well-known
brands. (Dckt. #18-3 at ¶¶17-29; Dckt. #18-4 and #185 (showing extensive use of the HC House Mark in
partnership advertisements)). Moreover, according to
Home Chef’s Senior Director of Marketing, “Home Chef
often promotes its products and services as a convenient,
low-cost alternative to restaurant takeout, including by
comparing its services with restaurant delivery.” (Dckt.
#18-3 at ¶33; Dckt. #18-5 at pp. 132-38).
Since its launch in 2014, Home Chef has spent
more than $450 million on marketing and advertising
to promote its products and services. (Dckt. #18-3
at ¶4). Home Chef’s advertising reaches a nationwide
audience of many millions of customers each day and it
regularly airs commercials through television and cable
broadcasting networks (including ABC, NBC, FOX, A&E,
AMC, BBC America, Bravo, Cooking, Discovery, E!, and
Food Network, amongst others) and various online video
streaming platforms. (Dckt. #18-3 at ¶¶5, 12-13). Home
Chef has accumulated hundreds of thousands of followers
on social media sites, including Facebook (more than a half
million followers), Instagram (218,000 followers), Pinterest
(23,000 followers), and Twitter (12,000 followers). (Dckt.
#18-3 at ¶¶7-9, 11). In addition, Home Chef’s YouTube
channel has had more than 84 million views since July 7,
2014. (Dckt. #18-3 at ¶10).
69a
Appendix C
2.
Grubhub
a.
History and Scope of Operations
Founded in 2004, Grubhub — which proclaims itself
to be one of the “most well-known brands in the United
States” – is a “leading online food-ordering and delivery
marketplace” dedicated to providing its customers with
food from local restaurants. (Dckt. #40 at ¶7; Dckt. #464 at ¶¶ 3-4 – Decl. of Grubhub’s Senior VP of Growth
Ariella Kurshan). Grubhub’s marketplace includes more
than 300,000 restaurant partners in over 4,000 U.S. cities
and provides food to Grubhub’s 32 million active diners.4
(Dckt. #46-4 at ¶¶5-6). In 2020, Grubhub provided nearly
$9 billion in gross food sales to local restaurants, and it
processed more than 745,000 restaurant orders per day.
(Dckt. #46-4 at ¶ 6). Grubhub also provides tools and
services to restaurants aimed at growing their digital
presence and increasing their business. (Dckt. #46-4 at
¶ 7). In addition to working with restaurants, Grubhub
provides meal delivery services through other channels,
including grocery stores. (Dckt. #39 at ¶ 58; Dckt. #46-4
at pp. 95-98).
Since its inception, Grubhub has expanded by
acquiring a number of different food delivery brands, many
of which operate under Grubhub’s “portfolio of brands.”
(Dckt. #18-9 at p. 115 and at pp. 76-106 (press releases
4. “Active diners” are those diners who have used the
Grubhub platform within the past twelve months. See Azar v.
Grubhub, Inc., No. 1:19-cv-07665, 2020 U.S. Dist. LEXIS 258187,
2021 WL 4077327, at *2 n.4 (N.D.Ill. Sept. 7, 2021).
70a
Appendix C
describing Grubhub’s various acquisitions)). One of those
brands is Grubhub’s “well-known” Seamless brand, which
is primarily focused in the greater New York City area
but serves a number of other major U.S. cit
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