Weems Industries, Inc. v. Teknor Apex Company
The Eighth Circuit affirmed the district court's bench trial decision canceling Weems Industries' registered trademark in the color chartreuse as applied to water hoses and awarding defendant Teknor Apex over three million dollars in attorneys' fees. Weems brought claims under Lanham Act §§ 32 and 43(a)(1)(A) for infringement of its registered color mark when Teknor introduced fluorescent green and yellow hoses. The district court held that Weems's mark was invalid both because chartreuse on water hoses is a functional feature and because the color lacked acquired distinctiveness; the Eighth Circuit affirmed on functionality grounds alone, applying the TrafFix standard that a feature is functional if it affects the cost or quality of the article. The court held that Teknor firmly rebutted the presumption of validity that attaches to registered marks under 15 U.S.C. § 1057(b), relying principally on Weems's own extensive advertising touting the safety benefits of high-visibility chartreuse hoses in preventing tripping accidents. The court rejected Weems's argument that functionality requires a feature to improve the "operation" of goods in a narrow mechanical sense, holding instead that enhanced visibility affecting safety constitutes a quality improvement sufficient to establish functionality under TrafFix.
The court's treatment of both functionality evidence and the exceptional-case fee award merits attention. On functionality, the court gave dispositive weight to the trademark owner's own utility advertising, characterizing Weems's promotional emphasis on chartreuse's safety benefits as "strong evidence of functionality" under McCarthy § 7:74, and held that patent evidence describing chartreuse's visibility advantages in unrelated product categories (road signs, softballs) remained probative even though the patents did not involve water hoses. The court also rejected the argument that availability of alternative high-visibility colors defeats functionality, reaffirming that under Pocket Plus competitors need not explore alternative designs when a feature affects product quality. On attorneys' fees under 15 U.S.C. § 1117(a), the court held that plaintiff's lack of candor before the USPTO—specifically, withholding promotional materials emphasizing visibility after the examining attorney expressly requested "any material that relates specifically to the applied-for color mark" and warned that functional features cannot be registered—combined with extensive baseless evidentiary objections and witness credibility problems, rendered the case "exceptional" under Octane Fitness's totality-of-the-circumstances standard and that fees bore a sufficient causal nexus to the misconduct because the defective registration "allowed Weems to drag Teknor into this case in the first place."