Ironhawk Technologies, Inc. v. Dropbox, Inc.

Ironhawk Technologies, Inc. (Ironhawk) (plaintiff) developed computer software that used compression and replication to transfer data efficiently in bandwidth-constrained environments. Ironhawk began marketing the software using the name SmartSync in 2004 and obtained federal trademark registration in 2007. Ironhawk’s primary customer was the United States military, although it also marketed to commercial entities at trade shows. Ironhawk’s licenses cost between $5,000 and $20,000. Dropbox, Inc. (defendant) provided cloud-storage services to millions of individual and business users worldwide. In 2017, Dropbox launched Smart Sync, a feature that allowed users to view and access files stored in their Dropbox accounts without consuming local hard-drive space. Dropbox was aware of Ironhawk’s SmartSync mark before launching its Smart Sync feature. Dropbox promoted Smart Sync heavily, including spending thousands of dollars per month on online advertising. Ironhawk brought suit against Dropbox under the Lanham Act, claiming Dropbox’s use of the name Smart Sync infringed on Ironhawk’s SmartSync trademark and was likely to cause consumer confusion under a theory of reverse confusion. Ironhawk offered evidence suggesting consumer confusion. Dropbox challenged the sufficiency of this evidence. The district court granted summary judgment to Dropbox, finding that no reasonable jury could conclude that Dropbox’s use of Smart Sync was likely to cause consumer confusion. Ironhawk appealed.