Wedgwood Homes, Inc. v. Lund

For 25 years, Wedgwood Homes of Portland, Inc. (Wedgwood) (plaintiff) developed real estate and constructed and marketed residential homes in eastern Washington County, Oregon under the mark “Wedgwood Homes.” Wedgwood conducted an advertising program to promote the quality and styling of its residential constructions. Victor Lund (defendant) began in 1977 to maintain housing for the elderly within two retirement apartment complexes, also located in eastern Washington County. Lund used the terms “Wedgwood Downs” and “Wedgwood Place” as business names. Together with its wholly owned subsidiary Wedgwood Homes, Inc. (plaintiff), Wedgwood sued Lund, asserting causes of action for common-law unfair competition and for trade-name dilution under an Oregon anti-dilution statute (the Oregon statute) and seeking to enjoin Lund from using the word “Wedgwood” in his business names. At trial, Wedgwood introduced survey evidence that demonstrated a high degree of positive association, in the minds of consumers, between the words “Wedgwood” and “Homes.” The trial court found that Wedgwood had failed to prove a likelihood of consumer confusion and that Wedgwood’s common-law unfair-competition claim therefore failed. As to Wedgwood’s dilution claim, however, the trial court found that the name “Wedgwood Homes” was locally famous within eastern Washington County, that “Wedgwood Homes” had attained secondary meaning after 25 years of use, and that, although Wedgwood did not prove dilution by tarnishment, it proved dilution by blurring. The trial court therefore ruled in Wedgwood’s favor on the dilution claim and granted the sought injunction. The court of appeals affirmed the trial court’s judgment, and Lund appealed.