Reno Air Racing Association, Inc. V Mccord

452 F.3d 1126 (9th Cir. 2006)

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Nature of the Case

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Facts

P is the registered owner of two federal trademarks, numbers 1,322,146 and 1,371,797, for its 'pylon logo;' the marks are identical, although one is a trademark and the other a service mark. The marks have been registered since 1985 and have acquired incontestable status. Through special licensing agreements, P permits vendors inside the gates of the show to sell merchandise bearing the trademarks. D sold merchandise, including t-shirts, caps, and mugs, depicting the term 'Reno Air Races' and artwork containing images of at least one airplane and a pylon, from booths located just outside of the gates of the air races. D received a letter and telephone call from P's attorney, who objected to McCord's sale of merchandise at the air races. P filed a complaint for infringement. P also filed an ex parte application for a TRO pursuant to Rule 65(b) and a motion for a preliminary injunction. The district court granted the application after a telephonic hearing and issued an ex parte TRO that prohibited D from engaging in any types of transactions, destruction, or transfers related to the goods. D was served and packed up his goods but had great difficulty finding an attorney in Reno that did not have a conflict with P. P eventually filed a motion for contempt and claimed that D violated the TRO. The court found D in violation and awarded P $6,727 in damages arising from the sale of infringing merchandise and permanently enjoined D from 'making, manufacturing, [or] distributing... any goods, packaging or any other items which bear the Marks, or any confusingly similar variations thereof.' It then found D in civil contempt for continuing to sell infringing merchandise after being served with the TRO on September 13, 2002. The district court imposed contempt sanctions in an amount equal to P's reasonable attorneys' fees and costs in connection with the TRO and contempt motion. This appeal resulted.