No Likelihood of Confusion, 11th Circuit Declares in Custom Manufacturing v. Midway Services Case

Holding:

In this action for trademark infringement, the U.S. Court of Appeals for the Eleventh Circuit held that defendants' use and installation of modified version of trademarked circuit boards that were initially designed by plaintiff Custom Manufacturing and Engineering, Inc. ("CMEI"), and which bore plaintiff's trade name, did not create likelihood of confusion. According to the Federal Circuit, the unauthorized use of a trademark that is never perceived by anyone cannot be said to create a likelihood of consumer confusion under the Lanham Act. In this case, defendants affixed plaintiff's mark on sub-components used in water meter reading system that was marketed to apartment complex owners and managers, and not actually to plaintiff's customers. Since it was unlikely that such owners and managers would examine the circuit boards, and even if third parties might see plaintiff's trade name, confusion was unlikely. Thus, the Eleventh Circuit affirmed the district court's summary judgment rendered in favor of defendants.

Detailed Summary:

Founded in 1997, plaintiff CMEI is a privately-held technology company that provides research and development, engineering, software, and manufacturing services to the government and industrial markets. On the other hand, defendant Midway Services, Inc. (“MSI”) is a contractor of plumbing, electrical, sub-metering, and air conditioning services. Defendants Automated Engineering Corporation (“AEC”) and MDCO, Inc. are contract electronic manufacturers, and NTU Electronics, Inc. is a manufacturer of printed circuit boards.

CMEI had agreed to design for MSI a water meter reading system to be installed in residential complexes, but MSI later cancelled the contract, allegedly for the reason that Custom had breached…

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