Allied Medical Training, LLC v. Knowledge2SaveLives L.L.C.

Background

Allied Medical Training provides training for current and aspiring emergency medical responders seeking Emergency Medical Responder or Emergency Medical Technician certification. Allied owns U.S. Service Mark Registration No. 4,954,673 for “KNOWLEDGE SAVES LIVES,” which it uses in marketing, advertising, promotion, emails, websites, clothing, student materials, and its facilities.

The complaint alleged that Monique Doward, a former enrollee in one of Allied’s courses, did not complete the course and requested a refund that she did not receive. Doward later formed and registered Knowledge2SaveLives L.L.C. under Minnesota law. The defendants used “Knowledge2SaveLives” or “Knowledge 2 Save Lives” in advertising, sales, and other business activities, offering services that Allied alleged were identical to its services and directed at the same types of consumers.

The clerk entered default against the defendants on February 3, 2020. When a defendant is in default, the factual allegations in the complaint—other than allegations about the amount of damages—are treated as true, but legal conclusions are not automatically accepted.

Claims and Merits

The court determined that the accepted factual allegations stated legitimate claims for infringement of a registered mark under section 32 of the Lanham Act, unfair competition under section 43(a) of the Lanham Act, and deceptive practices under the Minnesota Deceptive Trade Practices Act. Allied also asserted common-law trademark-infringement and unfair-competition claims, but the court said it did not need to address those claims because the statutory claims were sufficient.

The court found the defendants’ mark effectively equivalent to Allied’s mark. The differences were the addition of the number “2” between “Knowledge” and “Save” and removal of the final “s” from “Saves.” The court concluded that consumers would likely be confused into believing that Allied was the source of, or affiliated with, the defendants’ services.

Injunction

The court applied the four factors used to decide whether injunctive relief is appropriate: likelihood of success, irreparable harm, the balance of harms, and the public interest. It found that Allied was likely to succeed because the defendants’ mark was nearly identical. It also found irreparable harm because customer confusion would be difficult to measure in both dollar value and frequency.

The court did not find that the balance of harms favored the defendants, who had not appeared to describe any harm they would suffer. The court also found that the public interest favored Allied because the public disfavors conduct that is plainly infringing and has an interest in avoiding consumer confusion.

Attorneys’ Fees and Costs

The Lanham Act permits a court to award reasonable attorneys’ fees and costs to a prevailing party in an exceptional case. The court found this case exceptional because the record supported a finding that the defendants’ infringement was willful and deliberate. The court relied on evidence that Doward was motivated to retaliate after not receiving the requested refund and that the defendants continued using the mark after Allied sent two demands to stop. Doward responded by demanding “a million dollars for the name of my business” and describing Allied’s conduct as harassment.

Allied requested $9,016 in attorneys’ fees and costs. The court identified problems with the supporting materials, including unexplained hourly rates, time entries that appeared related to other matters, uncertainty about an entry billed by “KN,” and a mismatch between the highlighted time entries and the amount requested. The court nevertheless awarded the requested amount because it found that a high four-figure award was reasonable, that excluding questionable entries would still leave more than $9,016, and that requiring additional submissions would generate more billing.

Disposition

Judge Eric C. Tostrud granted Allied’s motion for default judgment. Knowledge2SaveLives L.L.C. and Monique Doward were permanently enjoined from using “KNOWLEDGE 2 SAVE LIVES,” any confusingly similar mark, or any mark confusingly similar to Allied’s registered “KNOWLEDGE SAVES LIVES” mark. The defendants were also ordered to pay Allied $9,016.00 in attorneys’ fees and costs. Allied did not seek damages or equitable monetary relief.