Background
Trojan Battery Company, a manufacturer of deep-cycle batteries, sued Golf Carts of Cypress and Trojan EV for trademark infringement and unfair competition. The defendants sold golf carts under the mark Trojan-EV, which the district court found infringed Trojan Battery’s TROJAN marks. The district court awarded disgorgement of profits and issued a permanent injunction before the defendants appealed.
The court’s reasoning
The court applied the eight-factor test for likelihood of confusion under the Lanham Act. It found that five of the eight factors weighed in favor of confusion, including the strength of the mark, similarity of the marks, and the defendants’ intent to trade on Trojan Battery’s goodwill. The court held that the district court clearly erred in finding evidence of actual confusion was sufficient, but this error did not change the ultimate outcome. The court also affirmed the disgorgement award, noting the defendants’ willful intent and the need to deter future infringement. However, the court vacated the permanent injunction, requiring further proceedings on that specific remedy.
For the following reasons, we AFFIRM the district court’s liability judgment and its disgorgement of profits award. However, we VACATE the permanent injunction and REMAND for further proceedings.
Opinion at 1
What it means going forward
Defendants remain liable for trademark infringement and must disgorge profits, but the permanent ban on their operations is lifted pending further court review.
Podcast (federal-narrative-summaries): Play in new window | Download