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

Background

Allied Medical provides training for current and aspiring emergency medical responders. It owns the United States service mark “KNOWLEDGE SAVES LIVES.” Monique Doward enrolled in one of Allied Medical’s courses, did not complete it, and requested a refund that she did not receive. Doward later formed Knowledge2SaveLives L.L.C., which offered the same services and used the “Knowledge2SaveLives” mark in promotional materials.

Allied Medical sued Doward and Knowledge2SaveLives L.L.C. for trademark infringement, unfair competition, deceptive practices, and related claims. The defendants never appeared or filed a response. The court therefore entered a default judgment permanently enjoining them from using “KNOWLEDGE 2 SAVE LIVES” or a confusingly similar mark and ordering them to pay Allied Medical $9,016 in attorneys’ fees and costs.

Contempt Motion

Allied Medical moved to hold the defendants in contempt and requested sanctions, including a $500-per-day fine and possible imprisonment. Allied Medical’s counsel sent Doward the default-judgment order by email. Doward’s response indicated that she knew about the order and would not pay the court-ordered fees. Allied Medical also offered to waive the attorneys’ fees and pay the cost of changing the company’s name. The defendants did not respond, and the record showed that they had neither stopped using the mark nor paid the fees.

To establish contempt, Allied Medical had to prove by clear and convincing evidence that the defendants knew about the order and violated an order that was specific enough to enforce. The court found that Allied Medical met that burden. The defendants did not appear or submit evidence showing that compliance was impossible. The court also found that the record supported a finding that their noncompliance was willful.

Sanctions Analysis

The court explained that civil-contempt sanctions may be used to force compliance, compensate for losses, or both. In deciding whether sanctions were appropriate, the court considered the harm from noncompliance, the likely effectiveness of the sanctions, the defendants’ financial resources and the burden imposed, and the willfulness of the violation.

The court found that the similar marks created a likelihood of consumer confusion and a probability of irreparable harm, but Allied Medical had not shown harm to its bottom line or that the defendants had taken business from it. The court also found no evidence that the defendants could pay a monetary sanction and concluded that imprisonment would be substantially disproportionate to the modest harm shown.

Order

The court granted Allied Medical’s motion in part and denied it in part. It granted the motion to the extent it sought a contempt finding and declared Knowledge2SaveLives L.L.C. and Monique Doward in contempt for willfully violating court orders. It denied the motion to the extent it sought sanctions, including monetary sanctions and imprisonment. The denial of sanctions was without prejudice, meaning Allied Medical could renew that request if circumstances changed. The court also ordered Allied Medical to serve the order on the defendants by email.