Summer Associates Not Worth $185/hour

Top Tobacco, L.P. v. North Atlantic Op. Co., No. 08 C 950, 2007 WL 2688452 (N.D. Ill. Sep. 6, 2007) (Kennelly, J.).

Judge Kennelly previously granted defendant summary judgment on all claims in this trademark infringement case regarding plaintiff’s “TOP and “Fresh-Top Canister” marks and awarded defendant’s attorneys’ fees pursuant to 15 U.S.C. § 1117(a).* The Court reduced the rates charged by defendant’s counsel Kirkland & Ellis’ summer associates from $185 to $125, more in line with paralegal rates. The Court acknowledged that Kirkland & Ellis’s attorneys showed skill “commensurate with its… high rates,”** but reduced Kirkland & Ellis’s rates because that skill did not result in the time savings (as required by the Seventh Circuit). Kirkland & Ellis billed roughly 30% more hours than plaintiff’s counsel. The Court, therefore, reduced Kirkland & Ellis’s rates to those charged by plaintiff’s counsel.

Click here to read more about this case and related cases in the Blog’s archives.

** Having worked with Kirkland & Ellis’s lead counsel on this matter, Paul Garcia, I can confirm the Court’s praise.

Lanham Act Case Deemed Exceptional Because of Weak Claims and Litigation Conduct

Top Tobacco, L.P. v. North Atl. Operating Co., No. 06 C 950, 2007 WL 118527 (N.D. Ill. Jan. 4, 2007) (Kennelly, J.).

Judge Kennelly granted defendants' motion for attorneys' fees and granted in part their bill of costs.  In January, Judge the Court granted summary judgment for defendants on plaintiff's trademark, unfair competition and dilution claims (read more about that decision in the Blog's archives).  The Court ruled that no reasonable jury could find that consumers were confused between plaintiffs' TOP mark and defendants' "Fresh-Top Canister" mark.  Defendants then filed the instant bill of costs and motion for attorneys' fees arguing that the case was exceptional.  The Court held the case exceptional for three reasons.  First, the Court found that plaintiffs' infringement and dilution claims were "exceptionally weak" stating that "a simple look at the canisters as they appeared on store shelves shows the virtual impossibility that consumers would be confused . . . ."  The Court disregarded plaintiffs' purported evidence of actual confusion, which it presented for the first time in its response to the motion for attorneys' fees.  Second, plaintiffs argued before the PTO that other "top" marks in the tobacco classification were narrow.  But before the Court plaintiffs took the "diametrically opposite" position, arguing that their TOP mark should enjoy broad protection.  Third, the Court found defendant Top Tobacco's chairman Donald Levin's testimony that the two products looked identical because they were both cans of tobacco "absurd."  The Court analogized Levin's argument to the position that all the books on library shelves are identical because they are all books, without regard to their titles, jacket designs or colors.

Taken together, the Court held that these three elements made the case exception and awarded defendants' reasonable attorneys fees.  But the Court cautioned defendants that its fee petition should exercise "billing judgment" and that billed time should be organized by activity as opposed to date or timekeeper.  The Court also noted that it would not wade through an unreasonable petition to make it reasonable. 

Finally, the Court reviewed defendants bill of costs.  Of particular note on the bill of costs, the Court only awarded transcription costs, not videography costs, for depositions with one exception.  In the one instance where there was specific evidence, beyond arguments that video testimony was value for impeachment purposes, of the need for video of the deposition, both transcription and video costs were awarded.

If You Risk Not Using a Survey in a Trademark Case, Explain Your Reasoning

Top Tobacco, L.P. v. North Atl. Operating Co., No. 06 C 950, 2007 WL 118527 (N.D. Ill. Jan. 4, 2007) (Kennelly, J.).

Judge Kennelly granted summary judgment for defendants on plaintiff's trademark, unfair competition and dilution claims.  Plaintiffs, Top Tobacco and Republic Tobacco ( collectively "Top Tobacco ") own various trademarks associating the word "top" or a picture of a toy top with tobacco products.  Both Top Tobacco and defendant, North Atlantic Operating and National Tobacco Company ("National Tobacco"), are large players in the "make your own" and "roll your own" cigarette market.  Top Tobacco alleged that its Top marks were infringed and diluted by National Tobacco's use of its "Fresh-Top Canister" mark.  The Court granted summary judgment of non-infringement because it ruled that no reasonable jury could find that consumers were confused between Top Tobacco's TOP mark and National Tobacco's "Fresh-Top Canister" mark.  The Court held that they were visually distinct and cited Top Tobacco's remarks to the USPTO during prosecution of its marks that its TOP marks were visually distinct from marks relating to lids, as does the National Tobacco mark.  Additionally, the Court noted that Top Tobacco had chosen not to present a consumer survey to show actual confusion and did not explain why no survey was done.

The Court also granted summary judgment for National Tobacco on the dilution claim because it held that the TOP marks were not famous.  Top Tobacco argued that the marks were famous within the smoking market.  But the Court held that the relative weakness of the marks, the vast number of similar marks held by others and Top Tobacco's admission during prosecution that the marks were weak collectively would not allow a finding that the TOP marks were famous.

 

But the most interesting part of the opinion was in a footnote.  The Court explained that the "Fresh-Top Canister" mark appears below a registered design of a Zouave and in a footnote explains:

A Zouave is a soldier in a particular French infantry unit that originated in Algeria in 1831.  According to legend, while fighting in the 1854-55 Siege of Sevastopol during the Crimean War, an unlucky Zouave had his clay pipe broken by a bullet.  Determined to smoke anyway, the Zouave rolled tobacco in a piece of paper torn from his bag of gunpowder.  The cigarette was born.  The French expression "faire le zouave" can be translated roughly as "to play the fool." . . . apt descriptor for the person who apparently first decided to smoke a cigarette.