John H. Harland Company v. Clarke Checks, Inc.

219 U.S.P.Q. 515 (11th Cir. 1983) · United States Court of Appeals for the Eleventh Circuit · August 8, 1983 · No. No. 81-7002

Summary

The Eleventh Circuit reviewed claims arising from Clarke Checks’ allegedly copied bank-check products and related trade names. The court affirmed summary judgment against Harland’s copyright claim and upheld the jury’s findings of trademark and trade dress infringement, while remanding for clarification of the injunction. The opinion analyzes copyrightability of blank forms and likelihood of confusion under trademark law.

Court
United States Court of Appeals for the Eleventh Circuit
Writing for the Court
R. Lanier Anderson, III; Hill, Circuit Judge; Anderson, Circuit Judge; Seybourn H. Lynne, District Judge, sitting by designation
Jurisdiction
Federal
Decision date
August 8, 1983
Docket number
No. 81-7002
Procedural posture
Cross-appeals from a judgment of the United States District Court for the Northern District of Georgia. The district court granted summary judgment for Clarke on Harland's copyright-infringement claim, entered judgment for Harland on trademark infringement, trade dress infringement, and state-law claims after a jury trial, awarded $50,000 in damages, and issued a permanent injunction.
Standard of review
Summary judgment is reviewed to determine whether the moving party was entitled to judgment as a matter of law. Jury findings on likelihood of confusion and functionality are upheld if supported by substantial evidence—evidence of such quality and weight that reasonable and fair-minded persons could reach different conclusions. The adequacy of jury instructions is reviewed in the context of the entire charge to determine whether the jury was misled. The specificity of an injunction is reviewed under Federal Rule of Civil Procedure 65(d).
Precedential value
Published federal appellate decision and binding Eleventh Circuit precedent, subject to later controlling authority.
Parties
Clarke Checks, Inc. v. John H. Harland Company
Disposition
other

Topics

trade dresstrademark infringementcopyright lawremediesappellate procedure

Practice areas

intellectual propertytrademark lawcopyright lawcommercial litigationappellate procedure

Questions Presented

  1. Whether Harland's Memory Stub product or the claimed Memory Stub expression was copyrightable.
  2. Whether substantial evidence supported the jury's finding that Clarke's Entry Stub mark was likely to cause confusion with Harland's registered Memory Stub mark.
  3. Whether substantial evidence supported the jury's finding that Clarke infringed Harland's trade dress by copying primarily nonfunctional features of the Memory Stub product.
  4. Whether the district court's permanent injunction complied with Federal Rule of Civil Procedure 65(d)'s requirement that prohibited acts be described in reasonable detail.

Holdings

  1. The Memory Stub product was not copyrightable because it was a blank form designed to record information and did not itself convey information or contain original pictorial expression.
  2. Substantial evidence supported the jury's finding that Clarke's Entry Stub mark was likely to cause confusion with Harland's registered Memory Stub mark.
  3. Substantial evidence supported the jury's finding that Clarke infringed Harland's trade dress by copying primarily nonfunctional features that contributed to a likelihood of confusion.
  4. The injunction was insufficiently specific because it prohibited confusingly similar trade dress without identifying the objective acts Clarke was required to stop.

Key quotations

Consequently, we affirm the grant of summary judgment on the ground that the "Memory Stub expression" was not copyrightable. (¶ 15)
Thus, although we would not necessarily have found a likelihood of confusion on these facts ourselves, we hold that there was substantial evidence to support the jury's finding. (¶ 45)
Accordingly, we vacate the portion of the district court's order quoted above and remand to the district court for entry of an order which specifically describes the acts which are prohibited by the permanent injunction. (¶ 63)

Factual background

Harland marketed a desk-style checkbook incorporating an intermediate, detachable carry-around stub and carrying case, sold as the Odyssey Collection and branded with the registered mark Memory Stub. Clarke later developed and marketed a substantially similar product, using an Entry Stub mark and a nearly identical carry-around case, after reviewing Harland's catalogs and product. The parties sold competing bank-check products through the same banking institutions and to overlapping customers, and the record included two instances of actual confusion involving orders for the competing products.

Procedural history

Harland sued Clarke under the Lanham Act, the Copyright Act, and Georgia law after Clarke marketed a bank-check product modeled on Harland's Odyssey Collection and used the mark Entry Stub for a product resembling Harland's Memory Stub. The district court dismissed or granted summary judgment against the copyright claim, while the jury found trademark and trade-dress infringement and awarded damages; the court entered judgment on the remaining claims and issued an injunction. Both parties appealed: Harland challenged the copyright ruling, and Clarke challenged the infringement findings and the scope of the injunction.

Remand instructions

The district court must vacate and redraft the permanent injunction so that it specifically describes the acts Clarke is prohibited from taking, guided by the opinion's distinction between functional features, which may be copied, and primarily nonfunctional trade-dress features. The judgment is affirmed in all other respects, and each party bears its own appellate costs.

Court Document

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