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Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 1 of 11 Page ID #:4031 
LINK: 
UNITED STATES DISTRICT COURT 
CENTRAL DISTRICT OF CALIFORNIA 
CIVIL MINUTES – GENERAL 
Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 
Title ANHING CORPORATION V. VIET PHU, INC. ET AL. 
Present: The Honorable BEVERLY REID O’CONNELL, United States District Judge 
Renee A. Fisher Not Present N/A 
Deputy Clerk Court Reporter Tape No. 
Attorneys Present for Plaintiffs: Attorneys Present for Defendants: 
Not Present Not Present 
Proceedings: (IN CHAMBERS) 
ORDER DENYING MOTION FOR ATTORNEY’S FEES [161] 
I. INTRODUCTION 
Pending before the Court is Defendant Viet Phu, Inc.’s motion for attorney’s fees 
and costs pursuant to 15 U.S.C. § 1117(a). (Dkt. No. 161.) After consideration of the 
papers filed in support of and in opposition to the instant motion, the Court deems this 
matter appropriate for decision without oral argument of counsel. See Fed. R. Civ. P. 78; 
C.D. Cal. L.R. 7-15. For the following reasons, the Court DENIES Defendant’s motion. 
II. BACKGROUND 
In this lawsuit, Plaintiff Anhing Corporation (“Plaintiff” or “Anhing”) accused 
Defendants Viet Phu, Inc. (“Viet Phu”) and An N Cuong Co., Ltd. (“An N Cuong”) of 
trademark infringement, unfair competition, false designation, and trademark dilution. 
(Compl. ¶¶ 43–85.) Defendant An N Cuong produces fish sauce in Vietnam for 
Defendant Viet Phu. The fish sauce is then sold to Viet Phu in Vietnam. Under the 
direction of Viet Phu, An N Cuong affixes a label with an icon depicting two red ships 
and the words “Red Boat.” Viet Phu then arranges for shipping of the fish sauce from 
Vietnam to California, where it distributes the sauce in stores and over the internet. 
Plaintiff Anhing, which produces and distributes its own fish sauce under a registered 
trademark depicting an Asian-style sailboat with the letter “A” in the sail, sued 
Defendants for trademark infringement of its mark. 
CV-90 (06/04) CIVIL MINUTES – GENERAL Page 1 of 11
Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 2 of 11 Page ID #:4032 
LINK: 
UNITED STATES DISTRICT COURT 
CENTRAL DISTRICT OF CALIFORNIA 
CIVIL MINUTES – GENERAL 
Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 
Title ANHING CORPORATION V. VIET PHU, INC. ET AL. 
Anhing’s Logo 
(Compl. ¶ 15.) 
Viet Phu’s Red Boat Design and Mark 
(Compl. ¶ 17.) 
Plaintiff initiated this action on June 17, 2013, alleging causes of action against 
both Viet Phu and An N Cuong. (Dkt. No. 1.) On December 18, 2013, the Court granted 
Defendant An N Cuong’s motion to dismiss for lack of personal jurisdiction. (Dkt. No. 
36.) Plaintiff and Defendant Viet Phu then proceeded to trial. On September 11, 2014, a 
jury rendered a verdict in favor of Viet Phu, finding no likelihood of confusion between 
Plaintiff’s asserted marks and Viet Phu’s mark. (See Dkt. No. 151 at 2.) As a result, the 
Court entered judgment in favor of Viet Phu. (Dkt. No. 151 at 2.) 
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LINK: 
UNITED STATES DISTRICT COURT 
CENTRAL DISTRICT OF CALIFORNIA 
CIVIL MINUTES – GENERAL 
Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 
Title ANHING CORPORATION V. VIET PHU, INC. ET AL. 
On October 2, 2014, Viet Phu filed the instant motion for attorney’s fees pursuant 
to section 35(a) of the Lanham Act, 15 U.S.C. § 1117(a), alleging that the Court should 
award Viet Phu attorney’s fees because Plaintiff’s pursuit of this lawsuit was groundless 
and unreasonable. (Dkt. No. 161.) Plaintiff opposed this motion on October 27, 2014, 
(Dkt. No. 171), and Viet Phu replied on November 24, 2014, (Dkt. No. 179). 
III. LEGAL STANDARD 
Section 35(a) of the Lanham Act states that “[t]he court in exceptional cases may 
award reasonable attorney fees to the prevailing party.” 15 U.S.C. § 1117(a). Whether to 
award attorney’s fees and the amount of such an award is within the Court’s discretion, 
provided that the Court finds the case to be “exceptional.” See Stephen W. Boney, Inc. v. 
Boney Servs., Inc., 127 F.3d 821, 825 (9th Cir. 1997). The Lanham Act, however, 
“nowhere defines what makes a case ‘exceptional,’” id., and “[t]he line distinguishing 
exceptional cases from non-exceptional cases is far from clear,” Secalt S.A. v. Wuxi 
Shenxi Constr. Mach. Co., 668 F.3d 677, 687 (9th Cir. 2012). This line “is especially 
fuzzy where the defendant prevails due to plaintiff’s failure of proof.” Secalt, 668 F.3d at 
687. Nevertheless, the Ninth Circuit has “held that this requirement is met when the case 
is either ‘groundless, unreasonable, vexatious, or pursued in bad faith.’” Cairns v. 
Franklin Mint Co., 292 F.3d 1139, 1156 (9th Cir. 2002) (quoting Avery Dennison Corp. 
v. Sumpton, 189 F.3d 868, 881 (9th Cir. 1999)); accord Lindy Pen Co. v. Bic Pen Corp., 
982 F.2d 1400, 1409 (9th Cir. 1993) (“[G]enerally a trademark case is exceptional for 
purposes of an award of attorneys’ fees when the infringement is malicious, fraudulent, 
deliberate or willful.”). In considering whether to award attorney’s fees, the Court is to 
construe this requirement narrowly. See Classic Media, Inc. v. Mewborn, 532 F.3d 978, 
990 (9th Cir. 2008); Am. Optometric Soc., Inc. v. Am. Bd. of Optometry, Inc., No. CV10- 
03983 AHM FFMX, 2012 WL 6012861, at *1 (C.D. Cal. Dec. 3, 2012). 
“A claim is considered factually groundless where there is ‘no reasonable basis to 
believe’ in the factual allegations underlying the claim and is considered legally 
groundless where there is ‘no legal basis’ for the claim itself, which instead rests on 
‘absurd’ or ‘just short of frivolous’ contentions of law.” Brown v. Elec. Arts, Inc., 722 F. 
Supp. 2d 1148, 1152 (C.D. Cal. 2010) (quoting Cairns v. Franklin Mint Co., 115 F. Supp. 
2d 1185, 1188–89 (C.D. Cal. 2000)); accord Secalt, 668 F.3d at 687–88 (“exceptional 
cases include instances where plaintiff’s case is frivolous or completely lacking in 
CV-90 (06/04) CIVIL MINUTES – GENERAL Page 3 of 11
Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 4 of 11 Page ID #:4034 
LINK: 
UNITED STATES DISTRICT COURT 
CENTRAL DISTRICT OF CALIFORNIA 
CIVIL MINUTES – GENERAL 
Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 
Title ANHING CORPORATION V. VIET PHU, INC. ET AL. 
merit”). Thus, if the plaintiff’s claim raises “debatable issues of law and fact,” then the 
case is not an “exceptional” one, and an award of attorney’s fees is not warranted. 
Brown, 722 F. Supp. 2d at 1152 (quoting Stephen W. Boney, 127 F.3d at 827; Gibson 
Guitar Corp. v. Viacom Int’l Inc., No. CV 12-10870 DDP AJWX, 2013 WL 3779593, at 
*1 (C.D. Cal. July 18, 2013)). 
IV. DISCUSSION 
Viet Phu raises four primary arguments in support of its motion for attorney’s fees. 
First, Viet Phu argues that Plaintiff’s trademark infringement claim was groundless. 
Second, it contends that Plaintiff pursued this claim in bad faith to gain an improper 
competitive advantage. Next, Viet Phu claims that Plaintiff’s trademark dilution claim 
was frivolous. Finally, Viet Phu maintains that Plaintiff had no basis for including An N 
Cuong in this lawsuit. As discussed below, the Court rejects each of these arguments. 
A. Plaintiff’s Trademark Infringement Claim 
First, Viet Phu attacks Plaintiff’s trademark infringement claim. Viet Phu contends 
that Plaintiff’s infringement claim was groundless because Plaintiff had no evidence that 
it had sustained any damages. Indeed, Plaintiff was unable to present any evidence of 
damages at trial because Plaintiff failed to comply with Federal Rule of Civil Procedure 
26’s disclosure requirements related to its theory of damages. Based on Plaintiff’s failure 
to disclose its damages theory, Viet Phu contends that “it is entirely reasonable to assume 
that Anhing has known since the outset of this case that it had not suffered any damage or 
harm, yet Anhing pursued its claims all the way through trial.” (Dkt. No. 163 at 11.) 
That the Court precluded Plaintiff from presenting any evidence on damages, however, 
does not necessarily mean that it had no such evidence to present. 
Rather, Plaintiff’s inability to present evidence of damages at trial was a result of 
the Court imposing sanctions under Federal Rule of Civil Procedure 37 on Plaintiff for 
Plaintiff’s failure to disclose its damages theory. True, Plaintiff’s failure to disclose any 
damages theory may raise the inference that it had no such theory—and thus damages— 
to present, but the Court cannot say as a matter of law that this inference is correct. In 
fact, the Court has never had the opportunity to consider Plaintiff’s alleged lack of 
damages evidence because Viet Phu never moved for summary judgment. And despite 
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LINK: 
UNITED STATES DISTRICT COURT 
CENTRAL DISTRICT OF CALIFORNIA 
CIVIL MINUTES – GENERAL 
Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 
Title ANHING CORPORATION V. VIET PHU, INC. ET AL. 
Viet Phu’s assertions to the contrary, a motion in limine does not provide the Court with 
the same opportunity to evaluate the merits of Plaintiff’s claim.1 Had Viet Phu 
successfully moved for summary judgment and established that Plaintiff had no 
admissible evidence of damages, the Court could say as a matter of law that Plaintiff had 
no basis to pursue its claim.2 
Instead, the Court is left with a weak inference and Viet Phu’s argument. 
Moreover, this “is not a situation where Plaintiff sued on an invalid trademark 
registration for a generic term and without admissible evidence for a good faith belief that 
infringement was occurring.” M2 Software, Inc. v. M2 Commc’ns, L.L.C., 281 F. Supp. 
2d 1166, 1177 (C.D. Cal. 2003). Rather, Plaintiff holds a valid trademark that shares 
several appearance characteristics with Viet Phu’s mark on a very similar product, and 
Plaintiff presented evidence of actual confusion. For these reasons, the Court found 
Plaintiff’s evidence at trial to be “sufficient for the jury to determine a likelihood of 
confusion.” (Dkt. No. 156 at 149.) As stated above, Plaintiff presented no evidence of 
damages because it was precluded from doing so as a discovery sanction. This case is 
thus similar to M2 Software in that “Plaintiff’s discovery failures are partly the reason 
Plaintiff was unable to” succeed at trial. 281 F. Sup. 2d at 1177. And as in M2 Software, 
“[t]hat Plaintiff lost its case is a sufficient sanction for its sloppy discovery conduct.” Id. 
Accordingly, the Court rejects Viet Phu’s argument that Plaintiff’s lack of damages 
evidence renders this case “exceptional” and warrants an award of attorney’s fees under 
the Lanham Act. 
1 In ruling on Viet Phu’s Motion in Limine No. 1—which Viet Phu claims was a motion for summary 
judgment “re-styled as a motion in limine,” (Dkt. No. 179-1 at 3)—the Court considered only whether 
Plaintiff had complied with its disclosure obligations pursuant to Federal Rule of Civil Procedure 26; it 
did not consider whether Plaintiff had in its possession any admissible evidence to support its claim for 
damages. 
2 Of course, even had Viet Phu successfully moved for summary judgment, that alone would not have 
rendered this case “exceptional.” “A case is not exceptional simply because the court granted summary 
judgment; otherwise, every Lanham Act case in which a summary judgment motion was granted would 
be considered an ‘exceptional’ case.” Sand Hill Advisors, LLC v. Sand Hill Advisors, LLC, No. C 08- 
5016 SBA, 2010 WL 8500520, at *3 (N.D. Cal. Sept. 20, 2010). 
CV-90 (06/04) CIVIL MINUTES – GENERAL Page 5 of 11
Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 6 of 11 Page ID #:4036 
LINK: 
UNITED STATES DISTRICT COURT 
CENTRAL DISTRICT OF CALIFORNIA 
CIVIL MINUTES – GENERAL 
Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 
Title ANHING CORPORATION V. VIET PHU, INC. ET AL. 
B. Bad Faith 
In addition to arguing that Plaintiff lacked a reasonable basis for pursuing this 
claim, Viet Phu contends that Plaintiff only did so in order to prevent a potential 
competitor from surviving in the marketplace. Cf. Nightingale Home Healthcare, Inc. v. 
Anodyne Therapy, LLC, 626 F.3d 958, 962 (7th Cir. 2010) (“The owner of a trademark 
might bring a Lanham Act suit against a new entrant into his market, alleging trademark 
infringement but really just hoping to drive out the entrant by imposing heavy litigation 
costs on him.”). While a finding of bad faith is not required for an award of attorney’s 
fees, see Cairns, 292 F.3d at 1156, “whether a plaintiff ha[d] ‘an ulterior anti-competitive 
motive’ could be a factor in the attorneys’ fees analysis,” Am. Optometric Soc., 2012 WL 
6012861, at *2. Viet Phu supports its bad faith argument both by identifying Plaintiff’s 
improper litigation tactics and by noting the size discrepancy between the parties as 
evidence of an attempt to gain a competitive advantage. 
With regard to Plaintiff’s litigation tactics, courts have typically held in this 
context that “litigation conduct must rise to the level of oppressive in order to justify 
declaring a case exceptional.” TE-TA-MA Truth Found.-Family of URI, Inc. v. World 
Church of the Creator, 392 F.3d 248, 264 (7th Cir. 2004). “Playing hard—by the rules— 
cannot suffice to make a case exceptional under § 1117(a).” Id. Viet Phu identifies an 
improper comment that Plaintiff’s counsel made to Sam Luu, Viet Phu’s President, 
during Mr. Luu’s deposition as evidence that Plaintiff was attempting to extract an 
unreasonable settlement in order to gain a competitive advantage over Viet Phu. 
Specifically, Plaintiff’s counsel told Mr. Luu that the litigation fees he had paid up until 
that point were “just the tip of the iceberg,” and he questioned Mr. Luu as to whether he 
thought it made “more business sense for Viet Phu to continue defending the litigation 
than settling the case.” (Dkt. No. 163 at 125.) While the Court finds this behavior 
troubling and agrees with Viet Phu that this constitutes an improper litigation tactic, the 
Court does not find this conduct to rise to the level of “oppressive.” Cf. S Indus., Inc. v. 
Centra 2000, Inc., 249 F.3d 625, 626 (7th Cir. 2001) (finding plaintiff’s litigation 
conduct oppressive and fees appropriate where plaintiff engaged in such dilatory tactics 
and antics as: not responding to discovery requests, repeatedly failing to serve properly or 
sign motions, failing to satisfy local rules provisions, ignoring filing deadlines, 
submitting motions late or not at all, missing scheduled hearings, and otherwise engaging 
in tactics resulting in an extra nine months of delay and added costs to defendant). 
CV-90 (06/04) CIVIL MINUTES – GENERAL Page 6 of 11
Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 7 of 11 Page ID #:4037 
LINK: 
UNITED STATES DISTRICT COURT 
CENTRAL DISTRICT OF CALIFORNIA 
CIVIL MINUTES – GENERAL 
Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 
Title ANHING CORPORATION V. VIET PHU, INC. ET AL. 
As for the size discrepancy between the parties, Viet Phu is correct to argue that 
this factor can be considered as evidence of bad faith. See Nightingale Home Healthcare, 
626 F.3d at 962. Yet while “[d]isparity in size will often be relevant in evaluating the 
legitimacy of the suit or defense, . . . it is as likely to favor the defendant as the plaintiff.” 
Id. at 964; accord id. (“Big businesses sue big and small businesses for trademark 
infringement and false advertising, and small businesses sue big and small businesses for 
the same torts.”). That Anhing is a larger company than Viet Phu is thus insufficient to 
establish a finding of bad faith. Accordingly, Viet Phu has failed to demonstrate 
sufficient evidence of bad faith to render this suit “exceptional.” 
C. Plaintiff’s Trademark Dilution Claim 
Next, Viet Phu argues that Plaintiff’s trademark dilution claim was groundless 
because Plaintiff “had no viable chance at proving that its marks are famous.” (Dkt. No. 
163 at 24.) Indeed, establishing that a mark is famous is a necessary element of any 
claim for trademark dilution. See Panavision Int’l, L.P. v. Toeppen, 141 F.3d 1316, 1324 
(9th Cir. 1998). And the standard for demonstrating a mark’s fame is quite high. Many 
courts have found that, “[u]nless a mark rises to the level of ‘KODAK’ or ‘COKE,’ it is 
not considered famous and thus not afforded protection from dilution.” Self–Ins. Inst. of 
Am., Inc. v. Software & Info. Indus. Ass’n, 208 F. Supp. 2d 1058, 1077 (C.D. Cal. 2000). 
As a result, “[n]iche market fame is insufficient.” Xen, Inc. v. Citrix Sys., Inc., No. CV 
11-09568 DDP MRWX, 2012 WL 5289609, at *6 (C.D. Cal. Oct. 25, 2012). Rather, a 
mark can only be considered famous if it is “widely recognized by the general consuming 
public of the United States as a designation of source of the goods or services of the 
mark’s owner.” 15 U.S.C. § 1125(c)(2)(A) (emphasis added). 
At first blush, it seems highly unlikely that Plaintiff’s marks could rise to the level 
of recognition that marks such as “KODAK” and “COKE” enjoy. Nevertheless, despite 
courts’ frequent allusions to such famous marks, the test for fame is not limited to 
comparing a plaintiff’s mark to such household names. Rather, the Lanham Act dictates 
that courts are to consider “all relevant factors,” including: (1) the “duration, extent, and 
geographic reach of advertising and publicity of the mark”; (2) the “amount, volume, and 
geographic extent of sales of goods or services offered under the mark”; (3) the “extent of 
actual recognition of the mark”; and (4) “[w]hether the mark was registered under the Act 
of March 3, 1881, or the Act of February 20, 1905, or on the principal register.” Id. 
CV-90 (06/04) CIVIL MINUTES – GENERAL Page 7 of 11
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LINK: 
UNITED STATES DISTRICT COURT 
CENTRAL DISTRICT OF CALIFORNIA 
CIVIL MINUTES – GENERAL 
Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 
Title ANHING CORPORATION V. VIET PHU, INC. ET AL. 
While the Court doubts that Plaintiff would be able to establish its marks’ fame by a 
preponderance of the evidence, Plaintiff did present evidence regarding the significant 
market share that its products have occupied for several decades. 
Moreover, the Court has never had the occasion to consider “all relevant factors” 
in this analysis for two reasons. First and most importantly, Viet Phu never moved either 
to dismiss Plaintiff’s dilution claim or for summary judgment on this claim.3 Second, 
Plaintiff withdrew its dilution claim before Viet Phu ever challenged it to this Court. 
While this is not dispositive on Viet Phu’s motion for attorney’s fees, the Court is not 
inclined to grant Viet Phu attorney’s fees on a claim that Viet Phu never even challenged 
before it was withdrawn by Plaintiff. And Plaintiff was certainly within its rights to 
dismiss a claim voluntarily that, after conducting discovery, it determined to be too weak 
to pursue at trial. See N.Y. Stock Exch., Inc. v. Gahary, No. 00 Civ. 5764, 2003 U.S. Dist. 
LEXIS 165, at *6–7 (S.D.N.Y. Jan. 7, 2003). Accordingly, as the Court never had the 
opportunity to evaluate this claim due to Viet Phu’s own decision not to challenge it until 
it was withdrawn, the Court declines to grant attorney’s fees for Plaintiff’s dilution claim. 
D. Plaintiff’s Claims Against An N Cuong 
Finally, Viet Phu requests attorney’s fees on the ground that Plaintiff had no basis 
for naming An N Cuong as a defendant. In support of this argument, Viet Phu notes that 
the Court granted An N Cuong’s motion to dismiss for lack of personal jurisdiction. (See 
Dkt. No. 36.) Although the Court has already found that An N Cuong could not be 
subject to this lawsuit, as discussed below, the Court finds that neither Viet Phu nor An N 
3 Viet Phu asserts that its motion for summary judgment “re-styled as a motion in limine” was “nearly 
completed when three (3) days before the deadline for the filing of motions in limine, Anhing dismissed 
its dilution claim, thereby mooting the motion.” (Dkt. No. 179 at 14 n.9.) Indeed, the deadline for filing 
motions in limine was July 28, 2014, three days after Plaintiff’s counsel indicated that Plaintiff would be 
withdrawing its dilution claim. (Dkt. Nos. 21 at 14; 161-3.) The last day for hearing motions, however, 
was July 7, 2014. (Dkt. No. 21 at 14.) Thus, in order to comply with the Court’s scheduling order and 
its Standing Order (which requires a party to file a motion for summary judgment forty-nine days prior 
to the last day for hearing motions), Viet Phu would have had to file its motion for summary judgment 
by May 19, 2014—over two months before Plaintiff withdrew its dilution claim. And although Viet Phu 
states that its summary judgment was “re-styled” as a motion in limine for “strategic reasons,” failing to 
meet this Court’s deadlines is not an acceptable strategy, nor is attempting to couch a motion for 
summary judgment in a motion in limine. 
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Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 9 of 11 Page ID #:4039 
LINK: 
UNITED STATES DISTRICT COURT 
CENTRAL DISTRICT OF CALIFORNIA 
CIVIL MINUTES – GENERAL 
Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 
Title ANHING CORPORATION V. VIET PHU, INC. ET AL. 
Cuong has standing to seek attorney’s fees on this basis because An N Cuong is not a 
“prevailing party” as required by 15 U.S.C. § 1117(a).4 
Section 1117(a) provides that the Court “in exceptional cases may award 
reasonable attorney fees to the prevailing party.” 15 U.S.C. § 1117(a) (emphasis added). 
Thus, only “prevailing parties” in a suit brought under the Lanham Act can be awarded 
attorney’s fees on this basis. Although the Lanham Act does not define what constitutes 
a “prevailing party,” a few courts have considered whether this definition includes 
defendants who have been dismissed from an action for lack of personal jurisdiction. 
In Buccellati Holding Italia Spa v. Laura Buccellati, LLC, No. 11 CIV. 7268 PGG, 
2014 WL 1325748, at *2 (S.D.N.Y. Mar. 17, 2014), for example, the court denied a 
request for attorney’s fees under the Lanham Act because the defendants seeking 
attorney’s fees were dismissed for lack of personal jurisdiction and thus did not qualify as 
“prevailing parties.” In doing so, the court relied on the Supreme Court’s decision in 
Buckhannon Board & Home Care v. West Virginia Department of Health & Human 
Services, 532 U.S. 598 (2001). As the court explained in Buccellati, “[i]n Buckhannon, 
the Supreme Court held that for a party to be ‘prevailing,’ there must be a ‘judicially 
sanctioned change in the legal relationship of the parties,’” such as “a judgment on the 
merits and a consent decree.” 2014 WL 1325748, at *2 (quoting Buckhannon, 532 U.S. 
at 605). Because a dismissal for lack of personal jurisdiction does not involve such a 
change in the legal relationship of the parties, the defendants could not be considered 
“prevailing parties.” Id. 
Similarly, in Hayes v. FM Broadcasting Station WETT, the court noted that, 
“[a]lthough the D.C. Circuit has held that a court may award fees under 15 U.S.C. 
§ 1117(a) to a litigant who has won a dismissal for improper venue—a holding that 
would presumably also apply to dismissals for lack of personal jurisdiction—that case 
may no longer be good law” because of the Supreme Court’s holding in Buckhannon. 
930 F. Supp. 2d 145, 153 (D.D.C. 2013) (citations omitted). The court nevertheless 
4 Moreover, “the sheer fact that a motion to dismiss is granted does not suffice to show that the claim 
was groundless or was not a colorable claim. Otherwise, every case in which a motion to dismiss a 
Lanham Act claim was granted would be considered an ‘exceptional’ case and soon the exceptional 
would become the ordinary.” Brown, 722 F. Supp. 2d at 1152. 
CV-90 (06/04) CIVIL MINUTES – GENERAL Page 9 of 11
Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 10 of 11 Page ID 
LINK: 
#:4040 
UNITED STATES DISTRICT COURT 
CENTRAL DISTRICT OF CALIFORNIA 
CIVIL MINUTES – GENERAL 
Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 
Title ANHING CORPORATION V. VIET PHU, INC. ET AL. 
declined to decide the issue because it concluded that the case at bar was not an 
“exceptional case” within the meaning of the Lanham Act. Id.; accord Pebble Beach Co. 
v. N. Bay LLC, 405 F. Supp. 2d 1019, 1025–26 (W.D. Wis. 2005) (“The Court has not 
reached the merits of plaintiffs’ Lanham Act allegations concerning defendant Wilkerson 
and because the Court granted his motion to dismiss for lack of personal jurisdiction he 
will not sustain increased costs for having to defend against the merits of the action. 
Accordingly, the Court does not find this is an exceptional case under the Lanham Act 
and attorney’s fees will not be awarded.”). 
Although this issue remains somewhat unsettled in the context of the Lanham Act, 
see Hayes, 930 F. Supp. 2d at 153, courts considering this issue in the context of similar 
statutes have held that a party dismissed for lack of personal jurisdiction cannot be 
considered a “prevailing party.” “Those courts which have directly addressed the issue 
have held that a party successful on a motion to dismiss for lack of personal jurisdiction 
is not a prevailing party for purposes of any statute making attorney fees available to 
prevailing parties.” ITI Holdings, Inc. v. Prof’l Scuba Ass’n, Inc., No. 05-184-P-S, 2007 
WL 1002245, at *2 (D. Me. Mar. 30, 2007) (citing Caraustar Custom Packaging Group 
(Md.), Inc. v. Stockart.com, LLC, No. 3:05CV377-MU, 2006 WL 3371679, at *1 
(W.D.N.C. Nov. 20, 2006) (federal copyright claim); Dahn World Co. v. Chung, No. CV 
05–3477–PCT–JAT, 2006 WL 3313951, at *2–3 (D. Ariz. Nov. 13, 2006) (same); 
Lichtenheld v. Juniper Features, Ltd., No. 94 C 4385, 1996 WL 685443, at *2 (N.D. Ill. 
Nov. 21, 1996) (same)). “These courts reason that a court which lacks personal 
jurisdiction over a defendant lacks the power to decide any issue in favor of that 
defendant or to act in any way that benefits that defendant and that the defendant 
accordingly cannot be a prevailing party with respect to that litigation.” Id. 
The Court finds the reasoning of these cases persuasive. As the court explained in 
Buccellati, the Supreme Court in Buckhannon explicitly rejected the argument that “the 
term ‘prevailing party’ authorizes an award of attorney’s fees without a corresponding 
alteration in the legal relationship of the parties.” 532 U.S. at 605. Although the Court in 
Buckhannon addressed the term in the context of the Fair Housing Amendments Act of 
1988, there is no indication that the term should be interpreted differently in the context 
of the Lanham Act. And as in Buccellati, this Court determines that a dismissal for lack 
of personal jurisdiction does not effect a “judicially sanctioned change in the legal 
relationship of the parties.” 2014 WL 1325748, at *2 (quoting Buckhannon, 532 U.S. at 
CV-90 (06/04) CIVIL MINUTES – GENERAL Page 10 of 11
Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 11 of 11 Page ID 
LINK: 
#:4041 
UNITED STATES DISTRICT COURT 
CENTRAL DISTRICT OF CALIFORNIA 
CIVIL MINUTES – GENERAL 
Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 
Title ANHING CORPORATION V. VIET PHU, INC. ET AL. 
605). Accordingly, the Court finds that An N Cuong is not a “prevailing party” and thus 
cannot recover attorney’s fees pursuant to the Lanham Act.5 
V. CONCLUSION 
For the foregoing reasons, Defendant’s motion for attorney’s fees is DENIED. 
The hearing set for Monday, December 1,2 014 is VACATED. 
IT IS SO ORDERED. : 
Initials of Preparer rf 
5 Viet Phu provides no reason why it should somehow receive attorney’s fees on An N Cuong’s behalf, 
and the Court declines any invitation to grant Viet Phu attorney’s fees on this basis. 
CV-90 (06/04) CIVIL MINUTES – GENERAL Page 11 of 11

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Anhing v. Viet Phu - Order denying defendant's motion for attorney's fees

  • 1. Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 1 of 11 Page ID #:4031 LINK: UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES – GENERAL Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 Title ANHING CORPORATION V. VIET PHU, INC. ET AL. Present: The Honorable BEVERLY REID O’CONNELL, United States District Judge Renee A. Fisher Not Present N/A Deputy Clerk Court Reporter Tape No. Attorneys Present for Plaintiffs: Attorneys Present for Defendants: Not Present Not Present Proceedings: (IN CHAMBERS) ORDER DENYING MOTION FOR ATTORNEY’S FEES [161] I. INTRODUCTION Pending before the Court is Defendant Viet Phu, Inc.’s motion for attorney’s fees and costs pursuant to 15 U.S.C. § 1117(a). (Dkt. No. 161.) After consideration of the papers filed in support of and in opposition to the instant motion, the Court deems this matter appropriate for decision without oral argument of counsel. See Fed. R. Civ. P. 78; C.D. Cal. L.R. 7-15. For the following reasons, the Court DENIES Defendant’s motion. II. BACKGROUND In this lawsuit, Plaintiff Anhing Corporation (“Plaintiff” or “Anhing”) accused Defendants Viet Phu, Inc. (“Viet Phu”) and An N Cuong Co., Ltd. (“An N Cuong”) of trademark infringement, unfair competition, false designation, and trademark dilution. (Compl. ¶¶ 43–85.) Defendant An N Cuong produces fish sauce in Vietnam for Defendant Viet Phu. The fish sauce is then sold to Viet Phu in Vietnam. Under the direction of Viet Phu, An N Cuong affixes a label with an icon depicting two red ships and the words “Red Boat.” Viet Phu then arranges for shipping of the fish sauce from Vietnam to California, where it distributes the sauce in stores and over the internet. Plaintiff Anhing, which produces and distributes its own fish sauce under a registered trademark depicting an Asian-style sailboat with the letter “A” in the sail, sued Defendants for trademark infringement of its mark. CV-90 (06/04) CIVIL MINUTES – GENERAL Page 1 of 11
  • 2. Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 2 of 11 Page ID #:4032 LINK: UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES – GENERAL Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 Title ANHING CORPORATION V. VIET PHU, INC. ET AL. Anhing’s Logo (Compl. ¶ 15.) Viet Phu’s Red Boat Design and Mark (Compl. ¶ 17.) Plaintiff initiated this action on June 17, 2013, alleging causes of action against both Viet Phu and An N Cuong. (Dkt. No. 1.) On December 18, 2013, the Court granted Defendant An N Cuong’s motion to dismiss for lack of personal jurisdiction. (Dkt. No. 36.) Plaintiff and Defendant Viet Phu then proceeded to trial. On September 11, 2014, a jury rendered a verdict in favor of Viet Phu, finding no likelihood of confusion between Plaintiff’s asserted marks and Viet Phu’s mark. (See Dkt. No. 151 at 2.) As a result, the Court entered judgment in favor of Viet Phu. (Dkt. No. 151 at 2.) CV-90 (06/04) CIVIL MINUTES – GENERAL Page 2 of 11
  • 3. Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 3 of 11 Page ID #:4033 LINK: UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES – GENERAL Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 Title ANHING CORPORATION V. VIET PHU, INC. ET AL. On October 2, 2014, Viet Phu filed the instant motion for attorney’s fees pursuant to section 35(a) of the Lanham Act, 15 U.S.C. § 1117(a), alleging that the Court should award Viet Phu attorney’s fees because Plaintiff’s pursuit of this lawsuit was groundless and unreasonable. (Dkt. No. 161.) Plaintiff opposed this motion on October 27, 2014, (Dkt. No. 171), and Viet Phu replied on November 24, 2014, (Dkt. No. 179). III. LEGAL STANDARD Section 35(a) of the Lanham Act states that “[t]he court in exceptional cases may award reasonable attorney fees to the prevailing party.” 15 U.S.C. § 1117(a). Whether to award attorney’s fees and the amount of such an award is within the Court’s discretion, provided that the Court finds the case to be “exceptional.” See Stephen W. Boney, Inc. v. Boney Servs., Inc., 127 F.3d 821, 825 (9th Cir. 1997). The Lanham Act, however, “nowhere defines what makes a case ‘exceptional,’” id., and “[t]he line distinguishing exceptional cases from non-exceptional cases is far from clear,” Secalt S.A. v. Wuxi Shenxi Constr. Mach. Co., 668 F.3d 677, 687 (9th Cir. 2012). This line “is especially fuzzy where the defendant prevails due to plaintiff’s failure of proof.” Secalt, 668 F.3d at 687. Nevertheless, the Ninth Circuit has “held that this requirement is met when the case is either ‘groundless, unreasonable, vexatious, or pursued in bad faith.’” Cairns v. Franklin Mint Co., 292 F.3d 1139, 1156 (9th Cir. 2002) (quoting Avery Dennison Corp. v. Sumpton, 189 F.3d 868, 881 (9th Cir. 1999)); accord Lindy Pen Co. v. Bic Pen Corp., 982 F.2d 1400, 1409 (9th Cir. 1993) (“[G]enerally a trademark case is exceptional for purposes of an award of attorneys’ fees when the infringement is malicious, fraudulent, deliberate or willful.”). In considering whether to award attorney’s fees, the Court is to construe this requirement narrowly. See Classic Media, Inc. v. Mewborn, 532 F.3d 978, 990 (9th Cir. 2008); Am. Optometric Soc., Inc. v. Am. Bd. of Optometry, Inc., No. CV10- 03983 AHM FFMX, 2012 WL 6012861, at *1 (C.D. Cal. Dec. 3, 2012). “A claim is considered factually groundless where there is ‘no reasonable basis to believe’ in the factual allegations underlying the claim and is considered legally groundless where there is ‘no legal basis’ for the claim itself, which instead rests on ‘absurd’ or ‘just short of frivolous’ contentions of law.” Brown v. Elec. Arts, Inc., 722 F. Supp. 2d 1148, 1152 (C.D. Cal. 2010) (quoting Cairns v. Franklin Mint Co., 115 F. Supp. 2d 1185, 1188–89 (C.D. Cal. 2000)); accord Secalt, 668 F.3d at 687–88 (“exceptional cases include instances where plaintiff’s case is frivolous or completely lacking in CV-90 (06/04) CIVIL MINUTES – GENERAL Page 3 of 11
  • 4. Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 4 of 11 Page ID #:4034 LINK: UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES – GENERAL Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 Title ANHING CORPORATION V. VIET PHU, INC. ET AL. merit”). Thus, if the plaintiff’s claim raises “debatable issues of law and fact,” then the case is not an “exceptional” one, and an award of attorney’s fees is not warranted. Brown, 722 F. Supp. 2d at 1152 (quoting Stephen W. Boney, 127 F.3d at 827; Gibson Guitar Corp. v. Viacom Int’l Inc., No. CV 12-10870 DDP AJWX, 2013 WL 3779593, at *1 (C.D. Cal. July 18, 2013)). IV. DISCUSSION Viet Phu raises four primary arguments in support of its motion for attorney’s fees. First, Viet Phu argues that Plaintiff’s trademark infringement claim was groundless. Second, it contends that Plaintiff pursued this claim in bad faith to gain an improper competitive advantage. Next, Viet Phu claims that Plaintiff’s trademark dilution claim was frivolous. Finally, Viet Phu maintains that Plaintiff had no basis for including An N Cuong in this lawsuit. As discussed below, the Court rejects each of these arguments. A. Plaintiff’s Trademark Infringement Claim First, Viet Phu attacks Plaintiff’s trademark infringement claim. Viet Phu contends that Plaintiff’s infringement claim was groundless because Plaintiff had no evidence that it had sustained any damages. Indeed, Plaintiff was unable to present any evidence of damages at trial because Plaintiff failed to comply with Federal Rule of Civil Procedure 26’s disclosure requirements related to its theory of damages. Based on Plaintiff’s failure to disclose its damages theory, Viet Phu contends that “it is entirely reasonable to assume that Anhing has known since the outset of this case that it had not suffered any damage or harm, yet Anhing pursued its claims all the way through trial.” (Dkt. No. 163 at 11.) That the Court precluded Plaintiff from presenting any evidence on damages, however, does not necessarily mean that it had no such evidence to present. Rather, Plaintiff’s inability to present evidence of damages at trial was a result of the Court imposing sanctions under Federal Rule of Civil Procedure 37 on Plaintiff for Plaintiff’s failure to disclose its damages theory. True, Plaintiff’s failure to disclose any damages theory may raise the inference that it had no such theory—and thus damages— to present, but the Court cannot say as a matter of law that this inference is correct. In fact, the Court has never had the opportunity to consider Plaintiff’s alleged lack of damages evidence because Viet Phu never moved for summary judgment. And despite CV-90 (06/04) CIVIL MINUTES – GENERAL Page 4 of 11
  • 5. Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 5 of 11 Page ID #:4035 LINK: UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES – GENERAL Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 Title ANHING CORPORATION V. VIET PHU, INC. ET AL. Viet Phu’s assertions to the contrary, a motion in limine does not provide the Court with the same opportunity to evaluate the merits of Plaintiff’s claim.1 Had Viet Phu successfully moved for summary judgment and established that Plaintiff had no admissible evidence of damages, the Court could say as a matter of law that Plaintiff had no basis to pursue its claim.2 Instead, the Court is left with a weak inference and Viet Phu’s argument. Moreover, this “is not a situation where Plaintiff sued on an invalid trademark registration for a generic term and without admissible evidence for a good faith belief that infringement was occurring.” M2 Software, Inc. v. M2 Commc’ns, L.L.C., 281 F. Supp. 2d 1166, 1177 (C.D. Cal. 2003). Rather, Plaintiff holds a valid trademark that shares several appearance characteristics with Viet Phu’s mark on a very similar product, and Plaintiff presented evidence of actual confusion. For these reasons, the Court found Plaintiff’s evidence at trial to be “sufficient for the jury to determine a likelihood of confusion.” (Dkt. No. 156 at 149.) As stated above, Plaintiff presented no evidence of damages because it was precluded from doing so as a discovery sanction. This case is thus similar to M2 Software in that “Plaintiff’s discovery failures are partly the reason Plaintiff was unable to” succeed at trial. 281 F. Sup. 2d at 1177. And as in M2 Software, “[t]hat Plaintiff lost its case is a sufficient sanction for its sloppy discovery conduct.” Id. Accordingly, the Court rejects Viet Phu’s argument that Plaintiff’s lack of damages evidence renders this case “exceptional” and warrants an award of attorney’s fees under the Lanham Act. 1 In ruling on Viet Phu’s Motion in Limine No. 1—which Viet Phu claims was a motion for summary judgment “re-styled as a motion in limine,” (Dkt. No. 179-1 at 3)—the Court considered only whether Plaintiff had complied with its disclosure obligations pursuant to Federal Rule of Civil Procedure 26; it did not consider whether Plaintiff had in its possession any admissible evidence to support its claim for damages. 2 Of course, even had Viet Phu successfully moved for summary judgment, that alone would not have rendered this case “exceptional.” “A case is not exceptional simply because the court granted summary judgment; otherwise, every Lanham Act case in which a summary judgment motion was granted would be considered an ‘exceptional’ case.” Sand Hill Advisors, LLC v. Sand Hill Advisors, LLC, No. C 08- 5016 SBA, 2010 WL 8500520, at *3 (N.D. Cal. Sept. 20, 2010). CV-90 (06/04) CIVIL MINUTES – GENERAL Page 5 of 11
  • 6. Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 6 of 11 Page ID #:4036 LINK: UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES – GENERAL Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 Title ANHING CORPORATION V. VIET PHU, INC. ET AL. B. Bad Faith In addition to arguing that Plaintiff lacked a reasonable basis for pursuing this claim, Viet Phu contends that Plaintiff only did so in order to prevent a potential competitor from surviving in the marketplace. Cf. Nightingale Home Healthcare, Inc. v. Anodyne Therapy, LLC, 626 F.3d 958, 962 (7th Cir. 2010) (“The owner of a trademark might bring a Lanham Act suit against a new entrant into his market, alleging trademark infringement but really just hoping to drive out the entrant by imposing heavy litigation costs on him.”). While a finding of bad faith is not required for an award of attorney’s fees, see Cairns, 292 F.3d at 1156, “whether a plaintiff ha[d] ‘an ulterior anti-competitive motive’ could be a factor in the attorneys’ fees analysis,” Am. Optometric Soc., 2012 WL 6012861, at *2. Viet Phu supports its bad faith argument both by identifying Plaintiff’s improper litigation tactics and by noting the size discrepancy between the parties as evidence of an attempt to gain a competitive advantage. With regard to Plaintiff’s litigation tactics, courts have typically held in this context that “litigation conduct must rise to the level of oppressive in order to justify declaring a case exceptional.” TE-TA-MA Truth Found.-Family of URI, Inc. v. World Church of the Creator, 392 F.3d 248, 264 (7th Cir. 2004). “Playing hard—by the rules— cannot suffice to make a case exceptional under § 1117(a).” Id. Viet Phu identifies an improper comment that Plaintiff’s counsel made to Sam Luu, Viet Phu’s President, during Mr. Luu’s deposition as evidence that Plaintiff was attempting to extract an unreasonable settlement in order to gain a competitive advantage over Viet Phu. Specifically, Plaintiff’s counsel told Mr. Luu that the litigation fees he had paid up until that point were “just the tip of the iceberg,” and he questioned Mr. Luu as to whether he thought it made “more business sense for Viet Phu to continue defending the litigation than settling the case.” (Dkt. No. 163 at 125.) While the Court finds this behavior troubling and agrees with Viet Phu that this constitutes an improper litigation tactic, the Court does not find this conduct to rise to the level of “oppressive.” Cf. S Indus., Inc. v. Centra 2000, Inc., 249 F.3d 625, 626 (7th Cir. 2001) (finding plaintiff’s litigation conduct oppressive and fees appropriate where plaintiff engaged in such dilatory tactics and antics as: not responding to discovery requests, repeatedly failing to serve properly or sign motions, failing to satisfy local rules provisions, ignoring filing deadlines, submitting motions late or not at all, missing scheduled hearings, and otherwise engaging in tactics resulting in an extra nine months of delay and added costs to defendant). CV-90 (06/04) CIVIL MINUTES – GENERAL Page 6 of 11
  • 7. Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 7 of 11 Page ID #:4037 LINK: UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES – GENERAL Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 Title ANHING CORPORATION V. VIET PHU, INC. ET AL. As for the size discrepancy between the parties, Viet Phu is correct to argue that this factor can be considered as evidence of bad faith. See Nightingale Home Healthcare, 626 F.3d at 962. Yet while “[d]isparity in size will often be relevant in evaluating the legitimacy of the suit or defense, . . . it is as likely to favor the defendant as the plaintiff.” Id. at 964; accord id. (“Big businesses sue big and small businesses for trademark infringement and false advertising, and small businesses sue big and small businesses for the same torts.”). That Anhing is a larger company than Viet Phu is thus insufficient to establish a finding of bad faith. Accordingly, Viet Phu has failed to demonstrate sufficient evidence of bad faith to render this suit “exceptional.” C. Plaintiff’s Trademark Dilution Claim Next, Viet Phu argues that Plaintiff’s trademark dilution claim was groundless because Plaintiff “had no viable chance at proving that its marks are famous.” (Dkt. No. 163 at 24.) Indeed, establishing that a mark is famous is a necessary element of any claim for trademark dilution. See Panavision Int’l, L.P. v. Toeppen, 141 F.3d 1316, 1324 (9th Cir. 1998). And the standard for demonstrating a mark’s fame is quite high. Many courts have found that, “[u]nless a mark rises to the level of ‘KODAK’ or ‘COKE,’ it is not considered famous and thus not afforded protection from dilution.” Self–Ins. Inst. of Am., Inc. v. Software & Info. Indus. Ass’n, 208 F. Supp. 2d 1058, 1077 (C.D. Cal. 2000). As a result, “[n]iche market fame is insufficient.” Xen, Inc. v. Citrix Sys., Inc., No. CV 11-09568 DDP MRWX, 2012 WL 5289609, at *6 (C.D. Cal. Oct. 25, 2012). Rather, a mark can only be considered famous if it is “widely recognized by the general consuming public of the United States as a designation of source of the goods or services of the mark’s owner.” 15 U.S.C. § 1125(c)(2)(A) (emphasis added). At first blush, it seems highly unlikely that Plaintiff’s marks could rise to the level of recognition that marks such as “KODAK” and “COKE” enjoy. Nevertheless, despite courts’ frequent allusions to such famous marks, the test for fame is not limited to comparing a plaintiff’s mark to such household names. Rather, the Lanham Act dictates that courts are to consider “all relevant factors,” including: (1) the “duration, extent, and geographic reach of advertising and publicity of the mark”; (2) the “amount, volume, and geographic extent of sales of goods or services offered under the mark”; (3) the “extent of actual recognition of the mark”; and (4) “[w]hether the mark was registered under the Act of March 3, 1881, or the Act of February 20, 1905, or on the principal register.” Id. CV-90 (06/04) CIVIL MINUTES – GENERAL Page 7 of 11
  • 8. Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 8 of 11 Page ID #:4038 LINK: UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES – GENERAL Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 Title ANHING CORPORATION V. VIET PHU, INC. ET AL. While the Court doubts that Plaintiff would be able to establish its marks’ fame by a preponderance of the evidence, Plaintiff did present evidence regarding the significant market share that its products have occupied for several decades. Moreover, the Court has never had the occasion to consider “all relevant factors” in this analysis for two reasons. First and most importantly, Viet Phu never moved either to dismiss Plaintiff’s dilution claim or for summary judgment on this claim.3 Second, Plaintiff withdrew its dilution claim before Viet Phu ever challenged it to this Court. While this is not dispositive on Viet Phu’s motion for attorney’s fees, the Court is not inclined to grant Viet Phu attorney’s fees on a claim that Viet Phu never even challenged before it was withdrawn by Plaintiff. And Plaintiff was certainly within its rights to dismiss a claim voluntarily that, after conducting discovery, it determined to be too weak to pursue at trial. See N.Y. Stock Exch., Inc. v. Gahary, No. 00 Civ. 5764, 2003 U.S. Dist. LEXIS 165, at *6–7 (S.D.N.Y. Jan. 7, 2003). Accordingly, as the Court never had the opportunity to evaluate this claim due to Viet Phu’s own decision not to challenge it until it was withdrawn, the Court declines to grant attorney’s fees for Plaintiff’s dilution claim. D. Plaintiff’s Claims Against An N Cuong Finally, Viet Phu requests attorney’s fees on the ground that Plaintiff had no basis for naming An N Cuong as a defendant. In support of this argument, Viet Phu notes that the Court granted An N Cuong’s motion to dismiss for lack of personal jurisdiction. (See Dkt. No. 36.) Although the Court has already found that An N Cuong could not be subject to this lawsuit, as discussed below, the Court finds that neither Viet Phu nor An N 3 Viet Phu asserts that its motion for summary judgment “re-styled as a motion in limine” was “nearly completed when three (3) days before the deadline for the filing of motions in limine, Anhing dismissed its dilution claim, thereby mooting the motion.” (Dkt. No. 179 at 14 n.9.) Indeed, the deadline for filing motions in limine was July 28, 2014, three days after Plaintiff’s counsel indicated that Plaintiff would be withdrawing its dilution claim. (Dkt. Nos. 21 at 14; 161-3.) The last day for hearing motions, however, was July 7, 2014. (Dkt. No. 21 at 14.) Thus, in order to comply with the Court’s scheduling order and its Standing Order (which requires a party to file a motion for summary judgment forty-nine days prior to the last day for hearing motions), Viet Phu would have had to file its motion for summary judgment by May 19, 2014—over two months before Plaintiff withdrew its dilution claim. And although Viet Phu states that its summary judgment was “re-styled” as a motion in limine for “strategic reasons,” failing to meet this Court’s deadlines is not an acceptable strategy, nor is attempting to couch a motion for summary judgment in a motion in limine. CV-90 (06/04) CIVIL MINUTES – GENERAL Page 8 of 11
  • 9. Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 9 of 11 Page ID #:4039 LINK: UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES – GENERAL Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 Title ANHING CORPORATION V. VIET PHU, INC. ET AL. Cuong has standing to seek attorney’s fees on this basis because An N Cuong is not a “prevailing party” as required by 15 U.S.C. § 1117(a).4 Section 1117(a) provides that the Court “in exceptional cases may award reasonable attorney fees to the prevailing party.” 15 U.S.C. § 1117(a) (emphasis added). Thus, only “prevailing parties” in a suit brought under the Lanham Act can be awarded attorney’s fees on this basis. Although the Lanham Act does not define what constitutes a “prevailing party,” a few courts have considered whether this definition includes defendants who have been dismissed from an action for lack of personal jurisdiction. In Buccellati Holding Italia Spa v. Laura Buccellati, LLC, No. 11 CIV. 7268 PGG, 2014 WL 1325748, at *2 (S.D.N.Y. Mar. 17, 2014), for example, the court denied a request for attorney’s fees under the Lanham Act because the defendants seeking attorney’s fees were dismissed for lack of personal jurisdiction and thus did not qualify as “prevailing parties.” In doing so, the court relied on the Supreme Court’s decision in Buckhannon Board & Home Care v. West Virginia Department of Health & Human Services, 532 U.S. 598 (2001). As the court explained in Buccellati, “[i]n Buckhannon, the Supreme Court held that for a party to be ‘prevailing,’ there must be a ‘judicially sanctioned change in the legal relationship of the parties,’” such as “a judgment on the merits and a consent decree.” 2014 WL 1325748, at *2 (quoting Buckhannon, 532 U.S. at 605). Because a dismissal for lack of personal jurisdiction does not involve such a change in the legal relationship of the parties, the defendants could not be considered “prevailing parties.” Id. Similarly, in Hayes v. FM Broadcasting Station WETT, the court noted that, “[a]lthough the D.C. Circuit has held that a court may award fees under 15 U.S.C. § 1117(a) to a litigant who has won a dismissal for improper venue—a holding that would presumably also apply to dismissals for lack of personal jurisdiction—that case may no longer be good law” because of the Supreme Court’s holding in Buckhannon. 930 F. Supp. 2d 145, 153 (D.D.C. 2013) (citations omitted). The court nevertheless 4 Moreover, “the sheer fact that a motion to dismiss is granted does not suffice to show that the claim was groundless or was not a colorable claim. Otherwise, every case in which a motion to dismiss a Lanham Act claim was granted would be considered an ‘exceptional’ case and soon the exceptional would become the ordinary.” Brown, 722 F. Supp. 2d at 1152. CV-90 (06/04) CIVIL MINUTES – GENERAL Page 9 of 11
  • 10. Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 10 of 11 Page ID LINK: #:4040 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES – GENERAL Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 Title ANHING CORPORATION V. VIET PHU, INC. ET AL. declined to decide the issue because it concluded that the case at bar was not an “exceptional case” within the meaning of the Lanham Act. Id.; accord Pebble Beach Co. v. N. Bay LLC, 405 F. Supp. 2d 1019, 1025–26 (W.D. Wis. 2005) (“The Court has not reached the merits of plaintiffs’ Lanham Act allegations concerning defendant Wilkerson and because the Court granted his motion to dismiss for lack of personal jurisdiction he will not sustain increased costs for having to defend against the merits of the action. Accordingly, the Court does not find this is an exceptional case under the Lanham Act and attorney’s fees will not be awarded.”). Although this issue remains somewhat unsettled in the context of the Lanham Act, see Hayes, 930 F. Supp. 2d at 153, courts considering this issue in the context of similar statutes have held that a party dismissed for lack of personal jurisdiction cannot be considered a “prevailing party.” “Those courts which have directly addressed the issue have held that a party successful on a motion to dismiss for lack of personal jurisdiction is not a prevailing party for purposes of any statute making attorney fees available to prevailing parties.” ITI Holdings, Inc. v. Prof’l Scuba Ass’n, Inc., No. 05-184-P-S, 2007 WL 1002245, at *2 (D. Me. Mar. 30, 2007) (citing Caraustar Custom Packaging Group (Md.), Inc. v. Stockart.com, LLC, No. 3:05CV377-MU, 2006 WL 3371679, at *1 (W.D.N.C. Nov. 20, 2006) (federal copyright claim); Dahn World Co. v. Chung, No. CV 05–3477–PCT–JAT, 2006 WL 3313951, at *2–3 (D. Ariz. Nov. 13, 2006) (same); Lichtenheld v. Juniper Features, Ltd., No. 94 C 4385, 1996 WL 685443, at *2 (N.D. Ill. Nov. 21, 1996) (same)). “These courts reason that a court which lacks personal jurisdiction over a defendant lacks the power to decide any issue in favor of that defendant or to act in any way that benefits that defendant and that the defendant accordingly cannot be a prevailing party with respect to that litigation.” Id. The Court finds the reasoning of these cases persuasive. As the court explained in Buccellati, the Supreme Court in Buckhannon explicitly rejected the argument that “the term ‘prevailing party’ authorizes an award of attorney’s fees without a corresponding alteration in the legal relationship of the parties.” 532 U.S. at 605. Although the Court in Buckhannon addressed the term in the context of the Fair Housing Amendments Act of 1988, there is no indication that the term should be interpreted differently in the context of the Lanham Act. And as in Buccellati, this Court determines that a dismissal for lack of personal jurisdiction does not effect a “judicially sanctioned change in the legal relationship of the parties.” 2014 WL 1325748, at *2 (quoting Buckhannon, 532 U.S. at CV-90 (06/04) CIVIL MINUTES – GENERAL Page 10 of 11
  • 11. Case 2:13-cv-04348-BRO-JCG Document 180 Filed 11/26/14 Page 11 of 11 Page ID LINK: #:4041 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES – GENERAL Case No. CV 13-04348 BRO (JCGx) Date November 26, 2015 Title ANHING CORPORATION V. VIET PHU, INC. ET AL. 605). Accordingly, the Court finds that An N Cuong is not a “prevailing party” and thus cannot recover attorney’s fees pursuant to the Lanham Act.5 V. CONCLUSION For the foregoing reasons, Defendant’s motion for attorney’s fees is DENIED. The hearing set for Monday, December 1,2 014 is VACATED. IT IS SO ORDERED. : Initials of Preparer rf 5 Viet Phu provides no reason why it should somehow receive attorney’s fees on An N Cuong’s behalf, and the Court declines any invitation to grant Viet Phu attorney’s fees on this basis. CV-90 (06/04) CIVIL MINUTES – GENERAL Page 11 of 11