Alderman v. Iditarod Properties, Inc.

The Fourth Avenue Theater opened in 1947 and was considered to be a historic landmark in Anchorage, Alaska. Iditarod Properties, Inc. (Iditarod) (plaintiff) purchased the theater in 1991 and restored the theater to its original appearance and continued to use the theater’s original name. Iditarod had a falling out with Caleb and Barbara Alderman (defendants), trolley operators who had a parking and a rental arrangement with Iditarod. Shortly thereafter, the Aldermans registered the name “Fourth Avenue Theater Trolley Tours.” Beginning in the fall of 1997, the Aldermans used that name to conduct their trolley-tour business. In the spring of 1998, Iditarod launched its own a trolley-tour business under the trade name “Fourth Avenue Theater,” such that the parties’ respective trade names were both in use for trolley tours during the 1998 tourist season. Iditarod sued the Aldermans for trade-name infringement. During trial, Iditarod submitted evidence that its trade name “Fourth Avenue Theater,” though descriptive, had acquired secondary meaning, including three customers’ use of that trade name in letters, the appearance of the Fourth Avenue Theater in various articles and trade journals, and advertising. The jury found that Iditarod’s trade name “Fourth Avenue Theater” had attained secondary meaning prior to the Aldermans’ first use of “Fourth Avenue Theater Trolley Tours” in the fall of 1997. Also, both sides acknowledged that actual confusion between the parties’ respective trade names occurred once Iditarod launched its own trolley-tour business. However, the Aldermans argued that there could be no likelihood of confusion without direct competition, such that protection was limited only to goods or services that existed at the time the Aldermans registered “Fourth Avenue Theater Trolley Tours.” The jury ultimately found for Iditarod on its trade-name-infringement claim. The Aldermans appealed.