Patrice Nelson v. MillerKnoll, Inc.
The Sixth Circuit affirmed summary judgment for MillerKnoll on all claims, including trademark infringement under § 43(a) of the Lanham Act and common law infringement claims concerning the Bubble Lamp configuration marks and the "BUBBLE LAMP" wordmark. Plaintiffs—the son and estate of mid-century furniture designer George Nelson—challenged MillerKnoll's ownership and use of three Bubble Lamp trademarks that MillerKnoll acquired from a third-party infringer, Modernica, after the George Nelson Foundation sued Modernica and settled. The court held that a 2006 Royalty Agreement between Nelson's widow and MillerKnoll (then Herman Miller), as amended by a 2015 Addendum, unambiguously authorized MillerKnoll to own and use the Bubble Lamp IP. Applying Michigan contract law, the court concluded that although the agreements used the defined term "Licensed Products," the plain language of the contracts—particularly provisions granting MillerKnoll "exclusive right, title, and interest to all inventions and designs" and "all . . . other materials pertaining to any product"—conferred ownership rights, not merely a license. Because plaintiffs authorized the conduct they challenged, the court ruled they could not sustain infringement claims and also granted summary judgment on plaintiffs' fraud, unjust enrichment, and cancellation claims.
The decision matters primarily for its holding that authorization defeats a § 43(a)(1)(A) unregistered trademark infringement claim even though the statute's text, unlike § 32's registered-mark provision, does not explicitly require use "without consent." The court imported the consent requirement from § 32 based on the parallel structure of the two provisions and reasoned that where a trademark holder authorizes use of a mark, no likelihood of confusion can exist and thus no Lanham Act violation occurs, citing Segal v. Geisha NYC LLC, 517 F.3d 501 (7th Cir. 2008). The court also addressed what rights transfer when parties use ownership-like language ("exclusive right, title, and interest to all inventions and designs") in a royalty agreement labeled as covering "Licensed Products," holding that configuration trademarks protecting product design necessarily follow assignment of the underlying design rights and that wordmarks are "materials pertaining to" the products and thus within the grant's scope. The court rejected plaintiff's argument that his subjective belief he was negotiating only a license controlled, applying Michigan law that unilateral subjective intent cannot override unambiguous contract terms.