Viacom International, Inc. v. IJR Capital Investments, L.L.C.

891 F.3d 178 (2018)

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Viacom International, Inc. v. IJR Capital Investments, L.L.C.

United States Court of Appeals for the Fifth Circuit
891 F.3d 178 (2018)

Facts

IJR Capital Investments, LLC (IJR) (defendant) sought to open seafood restaurants named The Krusty Krab. Viacom International, Inc. (Viacom) (plaintiff) sued IJR in federal district court for claims including infringement of its trademark for “The Krusty Krab.” The Krusty Krab was a restaurant featured in Viacom’s fictional children’s television program SpongeBob SquarePants. The Krusty Krab was shown in 166 of the 203 total episodes and in two SpongeBob SquarePants movies, featured on themed merchandise, referenced in a mobile-application game, and frequently mentioned online in advertising and media reports. The Krusty Krab had not been licensed by Viacom for use in any restaurants. Viacom presented evidence to the district court in support of its argument that consumers would be confused by IJR’s use of The Krusty Krab by submitting a consumer survey showing that approximately 35 percent of consumers would be confused by IJR’s use of The Krusty Krab and anecdotal evidence that an investor thought the IJR restaurant referred to the Viacom franchise. Viacom moved for and was granted summary judgment. IJR appealed.

Rule of Law

Issue

Holding and Reasoning (Owen, J.)

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