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Misappropriation of trade secrets : the INNER PEACE MOVEMENT case

Background: Estate and two for-profit corporations that had been owned by
testator brought action against two non-profit corporations that testator had
founded alleging service mark infringement, copyright infringement,
misappropriation of trade secrets, unfair competition, and conversion. Non-profit
corporations counterclaimed alleging fraudulent trademark registration, trademark
infringement, deceptive trade practices in violation of Lanham Act, violation of
local law which required that annual board meetings comply with by-laws, unlawful
trade practices under local law, common law unfair competition, unjust enrichment,
and conversion. The United States District Court for the District of Columbia
granted summary judgment for defendants. Plaintiffs appealed.


Holdings: The Court of Appeals, Karen LeCraft Henderson, Circuit Judge, held
that:

(1) fact issues existed as to whether founder of non-profit corporations
controlled service marks under related companies doctrine and in what capacity he
registered those marks;

(2) non-profit corporation could be related company under Lanham Act whose use
of trademark was controlled by mark's registrant, without formal corporate
control;

(3) founder of non-profit corporations did not necessarily register service
marks in representative capacity on behalf of non-profit corporations;

(4) plaintiffs could be required to pay cost of mailing "remedial notices"
pursuant to temporary restraining order;

(5) potential for significant and irreparable harm to non-profit corporation
existed in absence of temporary restraining order;

(6) likelihood of success was substantial on Lanham Act deceptive trade
practices counterclaim;

(7) public interest was served by issuing temporary restraining order to prevent
people from being deceived into attending competing board meeting under same name
of non-profit corporation; and

(8) plaintiffs likely would not be harmed by issuing temporary restraining order
to prevent people from being deceived into attending their competing board meeting
under same name of non-profit corporation.

Affirmed in part, reversed in part, and remanded.

524 F.3d 1341, 86 U.S.P.Q.2d 1598 (DC Cir. 2008)

United States Court of Appeals,

District of Columbia Circuit.

ESTATE OF Francisco COLL-MONGE, by Francisco D. Coll, Administrator, et al.,

Appellants

v.

INNER PEACE MOVEMENT et al., Appellees.

No. 07-7092.

Argued April 11, 2008.

Decided May 6, 2008.

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