Robert Trent Jones II, Inc., and Robert Trent Jones Licensing Group, LLC v. GFSI, Inc. d/b/a Gear for Sports, Inc.

537 F. Supp. 2d 1061 (2008)

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Robert Trent Jones II, Inc., and Robert Trent Jones Licensing Group, LLC v. GFSI, Inc. d/b/a Gear for Sports, Inc.

United States District Court for the Northern District of California
537 F. Supp. 2d 1061 (2008)

Facts

Robert Trent Jones II, Inc., and Robert Trent Jones Licensing Group, LLC (collectively, Jones) (plaintiffs) entered into a licensing agreement with GFSI, Inc. d/b/a Gear for Sports, Inc. (Gear) (defendant). Under the agreement, Gear agreed to produce and distribute clothes bearing Jones’s trademarks. The agreement provided that Gear would not sell the licensed products to discount stores. Gear sold these products to the Golf Warehouse (Warehouse). Subsequently, Jones sued Gear in federal district court for trademark infringement, arguing that the Warehouse was a discount store, and moved for a preliminary injunction. The term discount store was not defined in the agreement. Both parties offered definitions of discount store in testimony. A Gear executive testified that Gear had been selling Jones-marked apparel to the Warehouse since the agreement took effect, without objection from Jones. A Jones executive testified that once he became aware of the extent of sales to the Warehouse, he immediately sought to stop further sales to the Warehouse. Before that, the Jones executive knew that there were some sales to the Warehouse.

Rule of Law

Issue

Holding and Reasoning (Conti, J.)

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