Changed Circumstances Warrant Dismissal With Costs, Not Attorney's Fees

Milwaukee Elec. Tool Corp. v. Robert Bosch Tool Corp., No. 05 C 1171, 2007 WL 2875232 (N.D. Ill. Sep. 28, 2004) (Kendall, J.)

Judge Kendall granted plaintiff’s motion to dismiss its Lanham Act case with prejudice and awarded defendant its costs but not its fees pursuant to 15 U.S.C. § 1117(a). The Court held that attorney’s fees were not warranted because the case and its dismissal after substantial fact discovery were not exceptional. Plaintiff dismissed its case because of two significant events which plaintiff believed reduced its likelihood of success.

            First, during discovery Congress passed the Trademark Dilution Revision Act (“TDRA”)* which changed the definition of “famous” such that fame within a niche market was no longer sufficient for dilution. Plaintiff was not certain it could prove fame outside its market. Second, defendant changed the trade dress, and particularly the color scheme, of its accused SKIL line of power tools. Plaintiff believed that defendant’s new trade dress was less similar to plaintiff’s and, therefore, plaintiff’s case was more difficult to prove. The Court accepted plaintiff’s reasoning and, therefore, held that the case was not exceptional. The Court did, however, award costs, which plaintiff had originally agreed it would pay.

* For more on the TDRA, click here for the Seattle Trademark Lawyer’s coverage of the TDRA this week in honor of the TDRA’s first anniversary.

Rule 41(a)(2) Dismissal With Prejudice Warrants Costs But Not Fees

Illinois Tool Works, Inc. v. Chester Bros. Mach. Prods., Inc., No. 05 C 5002, 2007 WL 2278448 (N.D. Ill. Aug. 6, 2007) (Guzman, J.).

Judge Guzman granted in part plaintiff’s Fed. R. Civ. P. 41(a)(2) motion to dismiss, dismissing the case with prejudice but awarding defendant’s costs. The Court also denied defendant’s motion for attorneys fees. After sending several cease and desist letters, plaintiff Illinois Tool Works (“ITW”) filed suit against Chester Brothers Machined Products (“Chester”) alleging that Chester infringed plaintiff’s trademark in the color orange used with pneumatic nailers and staplers. ITW amended its complaint after Chester served ITW with a Fed. R. Civ. P. 11 motion explaining that Chester did not sell pneumatic nailers. Chester answered the amended complaint and the case proceeded. But during discovery one of ITW’s customers began selling orange pneumatic nailers. As a result, ITW amended its trademark registration to exclude pneumatic nailers and filed the instant motion. The Court agreed to dismiss the claims with prejudice, but held that costs were justified because Chester had not engaged in litigation misconduct. The Court, however, denied defendant’s motion for attorneys fees because Chester never explicitly told ITW that it did not manufacture pneumatic nailers and because ITW’s claims survived Chester’s motion to dismiss.