Facts

Plaintiff EarthLite Massage Tables Inc. is a California corporation with its principal place of business in Vista, Calif. Since October of 1987, EarthLite has been in the business of designing, manufacturing, advertising, distributing and selling a wide variety of goods bearing its Registered Trademark – a stylized logo of the Earth together with the descriptive term: "EarthLite."

EarthLite is the premier manufacturer of massage tables (and related products) in the U.S. and worldwide. EarthLite manufactures and sells not only high-end professional and/or massage therapist use massage tables, but also less expensive, portable end-user massage tables as well. EarthLite has enjoyed a considerable amount of commercial success from the sales of its portable massage tables in the United States. EarthLite is routinely recognized as the best massage table manufacturer in the world. EarthLite tables have been widely advertised and shown on such popular TV shows as Friends, In Living Color, and in several feature films.

Defendant LifeGear Inc. is a New Jersey company with its principal place of business in Ontario, Calif. LifeGear manufactures and distributes exercise and fitness equipment throughout the world.

In 1997, LifeGear Inc. began to manufacture and import portable massage tables from China by a Taiwanese immigrant. In 2002, LifeGear Inc. opened a new company division to manufacture and distribute its massage tables. LifeGear named this new division: "EarthGear." LifeGear obtained several federally registered trademarks for its "EarthGear" mark from 2002 through 2005.

Plaintiff EarthLite learned of LifeGear's use of the EarthGear mark in the fall of 2003 and issued a cease and desists on Aug. 4, 2003. LifeGear refused to discontinue use of the EarthGear mark citing its federal registration and disclaiming any likelihood of consumer confusion.

The plaintiff alleged that in 2004, LifeGear changed its mark to even more closely resemble plaintiff's EarthLite trademark. As a result of LifeGear's refusal to discontinue use of the EarthGear mark, coupled with its 2004 modification, EarthLite filed a complaint against LifeGear on April 1, 2005. The plaintiff also alleged that LifeGear infringed upon a third parties’ Life Fitness® mark for exercise equipment.

Although disputed by LifeGear, EarthLite believed LifeGear's adoption and use of the EarthGear mark was intentional and designed to capture and capitalize on EarthLite's market dominance and goodwill. The case proceeded to trial on March 12, 2007 after several failed settlement conferences.

At trial, EarthLite argued that LifeGear had hired former EarthLite employees and copied and reverse-engineered EarthLite's products in order to create a commercial impression that LifeGear's EarthGear brand was affiliated in some way with EarthLite. The plaintiff requested damages of $1.9 million.

In defense of the action, LifeGear argued that it had received a valid trademark from the Patent and Trademark Office for its EarthGear mark, that it had received proper advice of counsel, and that there was no intentional conduct, likelihood of confusion or actual confusion between the two marks. As to damages, LifeGear argued that any damages in excess of $1.1 million lacked causation and were merely speculative.

The trial of the case concluded on March 22, 2007.

Result

The jury returned a verdict in plaintiff EarthLite’s favor for $3.3 million. The jury also found defendant Lifegear Inc.’s conduct to be intentional.

Other Information

Post-trial motions for attorney fees and costs. Prejudgment interest is pending.

Deliberation

three days

Length

eight days