%PDF-1.3 %% %%Page: 1 1 4 0 obj << /Length 5 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 664.5 Tm /F1 13 Tf 100 Tz 88.1395 -8.4 Td 1.3 Tw 0 Tc (FOR PUBLICATION) Tj /F1 15 Tf 100 Tz -78.2395 -24 Td 1.5 Tw (UNITED STATES COURT OF APPEALS) Tj 43.47 -16 Td (FOR THE NINTH CIRCUIT) Tj /F2 12 Tf 100 Tz -53.37 -18 Td 1.2 Tw () Tj 0 Tw ( ) Tj 1.2 Tw 0 0 Td 183.8 0 Td /F3 20 Tf 100 Tz -2.18 -17.6 Td 2 Tw () Tj /F2 12 Tf 100 Tz -181.62 -2.8 Td 1.2 Tw (S) Tj /F2 8.4 Tf 101.1 Tz .79 Tw (ELLER) Tj /F2 12 Tf 100 Tz 0 Ts 1.2 Tw ( A) Tj /F2 8.4 Tf 101.1 Tz .79 Tw (GENCY) Tj /F2 12 Tf 100 Tz 0 Ts 1.2 Tw ( C) Tj /F2 8.4 Tf 101.1 Tz .79 Tw (OUNCIL) Tj /F2 12 Tf 100 Tz 0 Ts 1.2 Tw (, I) Tj /F2 8.4 Tf 101.1 Tz .79 Tw (NC) Tj /F2 12 Tf 100 Tz 0 Ts 1.2 Tw (.,) Tj /F4 12 Tf 100 Tz 38.676 -13.2 Td (Plaintiff-counter-defendant-) Tj 90.336 -13.2 Td (Appellee,) Tj /F2 12 Tf 100 Tz 86.058 -6.6 Td (No. 08-56791) Tj -132.57 -11.4 Td (v.) Tj 144.234 -6.6 Td (D.C. No.) Tj -226.734 -11.4 Td (K) Tj /F2 8.4 Tf 101.1 Tz .79 Tw (ENNEDY) Tj /F2 12 Tf 100 Tz 0 Ts 1.2 Tw ( C) Tj /F2 8.4 Tf 101.1 Tz .79 Tw (ENTER FOR) Tj /F2 12 Tf 100 Tz 0 Ts 1.2 Tw ( R) Tj /F2 8.4 Tf 101.1 Tz .79 Tw (EAL) Tj /F2 12 Tf 100 Tz 0 Ts 1.2 Tw ( E) Tj /F2 8.4 Tf 101.1 Tz .79 Tw (STATE) Tj /F2 12 Tf 100 Tz 0 Ts 211.674 -1.8 Td 1.2 Tw (8:06-cv-00679-) Tj /F3 20 Tf 100 Tz -30.054 -1.3 Td 2 Tw () Tj /F2 12 Tf 100 Tz -181.62 -10.1 Td 1.2 Tw (E) Tj /F2 8.4 Tf 101.1 Tz .79 Tw (DUCATION) Tj /F2 12 Tf 100 Tz 0 Ts 1.2 Tw (, I) Tj /F2 8.4 Tf 101.1 Tz .79 Tw (NC) Tj /F2 12 Tf 100 Tz 0 Ts 1.2 Tw (., a Georgia) Tj 221.67 -1.8 Td (AHS-MLG) Tj -221.67 -11.4 Td (corporation; J) Tj /F2 8.4 Tf 101.1 Tz .79 Tw (OE) Tj /F2 12 Tf 100 Tz 0 Ts 1.2 Tw ( K) Tj /F2 8.4 Tf 101.1 Tz .79 Tw (ENNEDY) Tj /F2 12 Tf 100 Tz 0 Ts 1.2 Tw (, an) Tj 224.34 -6.6 Td (OPINION) Tj -224.34 -6.6 Td (individual,) Tj /F4 12 Tf 100 Tz 24.024 -13.2 Td (Defendants-counter-claimants-) Tj 95.64 -13.2 Td (Appellants.) Tj /F3 20 Tf 100 Tz 61.956 -8.8 Td 1.6 Ts 2 Tw () Tj 0 Ts /F2 12 Tf 100 Tz -142.878 -26.2 Td 1.2 Tw (Appeal from the United States District Court) Tj 21.438 -13.2 Td (for the Central District of California) Tj -26.838 -13.2 Td (Alicemarie H. Stotler, District Judge, Presiding) Tj 61.128 -26.2 Td (Argued and Submitted) Tj -43.086 -13.2 Td (February 9, 2010Pasadena, California) Tj 37.818 -26.2 Td (Filed September 3, 2010) Tj -65.322 -26.2 Td (Before: Sidney) Tj 0 Tw ( ) Tj 1.2 Tw (R.) Tj 0 Tw ( ) Tj 1.2 Tw (Thomas and Barry) Tj 0 Tw ( ) Tj 1.2 Tw (G.) Tj 0 Tw ( ) Tj 1.2 Tw (Silverman,) Tj 2.862 -13.2 Td (Circuit Judges, and Jeremy Fogel, District Judge*) Tj 63.624 -26.2 Td (Opinion by Judge Fogel) Tj ET Q q 1 0 0 1 156 664.5 cm 0 G .9 w 0 -65.95 m 183.8 -65.95 l s 1.2 w 186.6 -136.7 m 186.6 -73.8 l s 1.2 w 186.6 -216.6 m 186.6 -153.7 l s .9 w 0 -223.55 m 183.3 -223.55 l s Q q BT 0 Tr 0 g 1 0 0 1 156 189.7 Tm /F2 12 Tf 100 Tz 148.5 -1 Td 1.2 Tw 0 Tc () Tj 0 Tw ( ) Tj 1.2 Tw /F2 10 Tf 100 Tz -138.5 -26 Td 2.46 Tw (*The Honorable Jeremy Fogel, United States District Judge for the) Tj -10 -11.2 Td 1 Tw (Northern District of California, sitting by designation. ) Tj ET Q q 1 0 0 1 156 189.7 cm 0 G .5 w 0 -12.75 m 300 -12.75 l s Q q BT 0 Tr 0 g 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 292.25 -664.5 Td 1.1 Tw 0 Tc (13415) Tj ET Q endstream endobj 5 0 obj 3455 endobj 3 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 10 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R /F3 8 0 R /F4 9 0 R >> /ProcSet 1 0 R >> /Contents 4 0 R >> endobj %%Page: 2 2 12 0 obj << /Length 13 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F1 12 Tf 100 Tz 120.996 -8.4 Td 1.2 Tw 0 Tc (COUNSEL) Tj /F2 12 Tf 100 Tz -120.996 -24.5 Td 2.96 Tw (Arthur A. Gardner and Joseph W. Staley, Gardner, Groff,) Tj 0 -12.3 Td 4.14 Tw (Greenwald & Villanueva, P.C., Atlanta, Georgia, for the) Tj 0 -12.3 Td 1.2 Tw (defendants-appellants.) Tj 0 -24.5 Td 1.33 Tw (Grant J. Hallstrom and Timothy D. Otte, Hallstrom Klein &) Tj 0 -12.3 Td 1.2 Tw (Ward, LLP, Irvine, California, for the plaintiff-appellee.) Tj /F1 12 Tf 100 Tz 123.666 -41.4 Td (OPINION) Tj /F2 12 Tf 100 Tz -123.666 -24.6 Td (FOGEL, District Judge:) Tj 12 -24.6 Td 3.56 Tw (Appellants Joe Kennedy \() Tj (Kennedy) Tj (\) and the Kennedy) Tj -12 -12.3 Td .58 Tw (Center for Real Estate Education, Inc. \() Tj (KCREE) Tj (\) appeal the) Tj 0 -12.3 Td 1.28 Tw (district court's order denying them damages, attorneys' fees,) Tj 0 -12.4 Td 3.25 Tw (and costs in an action for trademark infringement against) Tj 0 -12.4 Td 0 Tw (Appellees Seller Agency Council, Inc. \() Tj (SAC) Tj (\), RealtyU, Inc.) Tj 0 -12.4 Td 1.45 Tw (\() Tj (RealtyU) Tj (\), and Stefan Swanepoel \() Tj (Swanepoel) Tj (\). The dis-) Tj 0 -12.4 Td 1.14 Tw (trict court found that Appellants are the owners of the trade-) Tj 0 -12.4 Td 3.53 Tw (marks in question, but it also determined that Appellants) Tj 0 -12.4 Td 1.27 Tw (consented and acquiesced to the use of the marks by Appel-) Tj 0 -12.4 Td 1.47 Tw (lees. Appellants argue that the district court erred in finding) Tj 0 -12.4 Td 1.48 Tw (consent and acquiescence. We affirm in part, vacate in part,) Tj 0 -12.4 Td .75 Tw (and remand for further proceedings consistent with this opin-) Tj 0 -12.4 Td 1.2 Tw (ion.) Tj /F1 12 Tf 100 Tz 96.168 -24.6 Td (I.) Tj 9 Tw ( ) Tj 1.2 Tw (BACKGROUND) Tj /F1 12 Tf 100 Tz -96.168 -24.6 Td (A.) Tj 9 Tw ( ) Tj 1.2 Tw (Factual Background) Tj /F2 12 Tf 100 Tz 12 -24.6 Td 0 Tw (Kennedy, the owner of KCREE, created an educational cur-) Tj -12 -12.4 Td 1.23 Tw (riculum called the Accredited Seller Representative \() Tj (ASR) Tj (\)) Tj 0 -12.4 Td 2.52 Tw (program. In connection with the ASR program, Appellants) Tj 0 -12.4 Td 5.56 Tw (developed and registered several trademarks \() Tj (the ASR) Tj /F5 6 Tf 100 Tz 0 Ts /F2 12 Tf 100 Tz 0 -12.4 Td 4.08 Tw (marks\).) Tj 4.9 Ts /F5 6 Tf 100 Tz (1) Tj 0 Ts /F2 12 Tf 100 Tz ( In 2003, Appellants began to market and earn) Tj /F2 10 Tf 100 Tz 10 -24.5 Td 4.1 Ts /F5 6 Tf 100 Tz 1.82 Tw (1) Tj 0 Ts /F2 10 Tf 100 Tz (The marks at issue have the following federal registration numbers:) Tj -10 -10.6 Td 1 Tw (3,071,769; 3,088,326; 3,093,851; 3,139,782; 3,325,443; and 3,240,837. ) Tj ET Q q 1 0 0 1 156 643.5 cm 0 G .5 w 0 -117.45 m 300 -117.45 l s .5 w 0 -467.95 m 300 -467.95 l s Q q BT 0 Tr 0 g 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 428.5 -136.5 Td 1.1 Tw 0 Tc (13419) Tj -223.4766 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. K) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENNEDY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENTER) Tj /F2 11 Tf 100 Tz 0 Ts ET Q q 1 0 0 1 0 792 cm 0 G .5 w 156 -140.25 m 456 -140.25 l s Q endstream endobj 13 0 obj 3485 endobj 11 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 10 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R /F4 9 0 R /F5 14 0 R >> /ProcSet 1 0 R >> /Contents 12 0 R >> endobj %%Page: 3 3 16 0 obj << /Length 17 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F2 12 Tf 100 Tz 0 -8.4 Td 3.78 Tw 0 Tc (income from the ASR program. A third-party real estate) Tj 0 -13 Td 1.8 Tw (school would pay KCREE an annual fee \(referred to as the) Tj 0 -13 Td .05 Tw (license fee\) in order to use the ASR materials to teach an ASR) Tj 0 -13 Td .07 Tw (class. In addition to the license fee, KCREE charged the third-) Tj 0 -13 Td .41 Tw (party schools a fee for each student in an ASR class, and suc-) Tj 0 -13 Td 2.92 Tw (cessful students also would pay yearly fees to KCREE to) Tj 0 -13.1 Td 1.2 Tw (maintain their ASR registration.) Tj 12 -26 Td 1.53 Tw (In 2005, Swanepoel, the owner and president of RealtyU,) Tj -12 -13.1 Td 3.05 Tw (approached Kennedy with a business proposition. RealtyU) Tj 0 -13.1 Td 1.58 Tw (represented that it could provide KCREE with access to the) Tj 0 -13.1 Td .13 Tw (RealtyU affiliates across the country and thus to a larger num-) Tj 0 -13.1 Td 1.26 Tw (ber of students. Kennedy and Swanepoel signed a ) Tj (Letter of) Tj 0 -13.1 Td 1.43 Tw (Intent) Tj ( on June 28, 2005, agreeing to form a new company,) Tj 0 -13.1 Td 3.03 Tw (SAC. KCREE was to transfer the ASR marks to SAC in) Tj 0 -13.1 Td 2.46 Tw (return for 49% ownership of the company. RealtyU would) Tj 0 -13.1 Td 2.66 Tw (contribute working capital to SAC and own the remaining) Tj 0 -13.1 Td .33 Tw (51%. Other than teaching fees earned by Kennedy, all student) Tj 0 -13.1 Td 1.08 Tw (course fees, provider licensing fees, and renewal fees related) Tj 0 -13.1 Td .18 Tw (to the ASR marks would belong to SAC, and profits would be) Tj 0 -13.1 Td 4.11 Tw (distributed according to the parties' respective ownership) Tj 0 -13.1 Td 2.81 Tw (shares. Neither KCREE nor SAC was required to pay the) Tj 0 -13.1 Td 1.21 Tw (annual licensing fee. Kennedy testified that SAC had discre-) Tj 0 -13.1 Td .81 Tw (tion to waive the licensing fee for RealtyU affiliated schools.) Tj 12 -26 Td 3.07 Tw (On or about September 8, 2005, the parties executed a) Tj -12 -13.1 Td .05 Tw (series of formal agreements, including a stock purchase agree-) Tj 0 -13.1 Td 1.75 Tw (ment. Among other things, the agreements required SAC to) Tj 0 -13.1 Td 1.1 Tw (take the ) Tj (best overall actions) Tj ( for the company. SAC was to) Tj 0 -13.1 Td 1.55 Tw (acquire the ASR marks upon closing; however, SAC had to) Tj 0 -13.1 Td 2.81 Tw (meet certain conditions precedent before the closing could) Tj 0 -13.1 Td 2.75 Tw (occur, including the transfer of SAC shares to Appellants.) Tj 0 -13.1 Td .21 Tw (Although the share transfer never occurred, SAC and RealtyU) Tj 0 -13.1 Td .88 Tw (utilized the ASR marks between September 8, 2005 and July) Tj 0 -13.1 Td 1.2 Tw (12, 2006 without objection by Appellants.) Tj 12 -26 Td 1.71 Tw (After executing the agreements, Appellants learned that a) Tj -12 -13.1 Td 5.57 Tw (significant stream of ASR program revenue was being) Tj 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 156 -136.5 Td 1.1 Tw 0 Tc (13420) Tj 49.0234 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. K) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENNEDY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENTER) Tj /F2 11 Tf 100 Tz 0 Ts ET Q q 1 0 0 1 0 792 cm 0 G .5 w 156 -140.25 m 456 -140.25 l s Q endstream endobj 17 0 obj 3590 endobj 15 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 10 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R >> /ProcSet 1 0 R >> /Contents 16 0 R >> endobj %%Page: 4 4 19 0 obj << /Length 20 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F2 12 Tf 100 Tz 0 -8.4 Td 2.36 Tw 0 Tc (diverted from SAC directly to RealtyU. On July 12, 2006,) Tj 0 -13.1 Td .71 Tw (Appellants sent a cease-and-desist letter to Swanepoel stating) Tj 0 -13.1 Td 2.63 Tw (that ) Tj (your companies do not have a contract with [Appel-) Tj 0 -13.1 Td 1.21 Tw (lants], [and] your continued use of [their] trademarks consti-) Tj 0 -13.1 Td 3.52 Tw (tutes trademark infringement.) Tj () Tj ( SAC filed a complaint for) Tj 0 -13.1 Td .08 Tw (declaratory relief on July 25, 2006, requesting a determination) Tj 0 -13.1 Td .84 Tw (that SAC was the rightful owner of the ASR marks. On Feb-) Tj 0 -13.1 Td 1.95 Tw (ruary 2, 2007, Appellants filed counterclaims for trademark) Tj 0 -13.1 Td 1.2 Tw (infringement against SAC, RealtyU, and Swanepoel. ) Tj 12 -26.1 Td 1.74 Tw (On July 28, 2006, three days after commencement of the) Tj -12 -13.1 Td 1.63 Tw (action for declaratory relief, Kennedy sent an email to Tom) Tj 0 -13.1 Td 1.81 Tw (Mitchell \() Tj (Mitchell) Tj (\), the Senior Vice President of RealtyU) Tj 0 -13.1 Td 2.17 Tw (Group, Inc.) Tj 4.9 Ts /F5 6 Tf 100 Tz (2) Tj 0 Ts /F2 12 Tf 100 Tz ( Kennedy forwarded a complaint of a potential) Tj 0 -13.1 Td .63 Tw (ASR student who was having difficulty registering for an on-) Tj 0 -13.1 Td 1.62 Tw (line ASR course. Kennedy told the potential student that he) Tj 0 -13.1 Td 1.11 Tw (was ) Tj (forwarding this to our IT folks.) Tj ( Mitchell responded to) Tj 0 -13.1 Td .51 Tw (Kennedy that it was ) Tj ([t]aken care of.) Tj ( More than a year later,) Tj 0 -13.2 Td 2.33 Tw (on November 19, 2007, Kennedy sent Mitchell a facsimile) Tj 0 -13.2 Td 2.87 Tw (regarding ) Tj (Candidate Apps.) Tj ( The cover page read ) Tj ([f]rom) Tj 0 -13.2 Td .3 Tw (Kennedy Center to be placed in database.) Tj ( The facsimile con-) Tj 0 -13.2 Td .24 Tw (tained several ASR candidate applications and the candidates') Tj 0 -13.2 Td 1.87 Tw (completed ASR course exams. The district court found that) Tj 0 -13.2 Td 2.11 Tw (Kennedy had ) Tj (ask[ed] SAC to make use of the intellectual) Tj 0 -13.2 Td 1.42 Tw (property by requesting that it process certificates and certify) Tj 0 -13.2 Td 1.2 Tw (members in the ASR program for classes.) Tj () Tj /F1 12 Tf 100 Tz 0 -26.1 Td (B.) Tj 9 Tw ( ) Tj 1.2 Tw (The District Court's Determinations) Tj /F2 12 Tf 100 Tz 12 -26.1 Td .91 Tw (The district court determined that Appellants are the right-) Tj -12 -13.2 Td .16 Tw (ful owners of theASR marks. It concluded that SAC could not) Tj 0 -13.2 Td 3.1 Tw (enforce the agreement requiring Appellants to transfer the) Tj 0 -13.2 Td .33 Tw (intellectual property because SAC had not satisfied the condi-) Tj 0 -13.2 Td 2.48 Tw (tions precedent contained in the stock purchase agreement,) Tj 0 -13.2 Td .87 Tw (including its obligation to issue stock to Appellants. The dis-) Tj /F2 10 Tf 100 Tz 10 -26 Td 4.1 Ts /F5 6 Tf 100 Tz 1.54 Tw (2) Tj 0 Ts /F2 10 Tf 100 Tz (Based on Appellees' corporate disclosure statement, RealtyU Group,) Tj -10 -11.2 Td 1 Tw (Inc. owns RealtyU, Inc. ) Tj ET Q q 1 0 0 1 156 643.5 cm 0 G .5 w 0 -466.55 m 300 -466.55 l s Q q BT 0 Tr 0 g 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 428.5 -136.5 Td 1.1 Tw 0 Tc (13421) Tj -223.4766 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. K) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENNEDY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENTER) Tj /F2 11 Tf 100 Tz 0 Ts ET Q q 1 0 0 1 0 792 cm 0 G .5 w 156 -140.25 m 456 -140.25 l s Q endstream endobj 20 0 obj 3895 endobj 18 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 10 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R /F5 14 0 R >> /ProcSet 1 0 R >> /Contents 19 0 R >> endobj %%Page: 5 5 22 0 obj << /Length 23 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F2 12 Tf 100 Tz 0 -8.4 Td 1.47 Tw 0 Tc (trict court also found that SAC could not enforce the agree-) Tj 0 -13 Td 1 Tw (ment because it had unclean hands: while the stock purchase) Tj 0 -13.1 Td .48 Tw (agreement required SAC to take the ) Tj (best overall actions) Tj ( for) Tj 0 -13.1 Td .9 Tw (the company, SAC in fact diverted many of the ASR student) Tj 0 -13.1 Td 1.2 Tw (course fees to RealtyU rather than keeping the fees itself. ) Tj 12 -26 Td 2.33 Tw (The district court noted that ) Tj ([f]rom September 8, 2005,) Tj -12 -13.1 Td 1.12 Tw (until July 12, 2006, [i]t is undisputed that . . . SAC had per-) Tj 0 -13.1 Td .5 Tw (mission or an implied license to use the ASR Trademarks.) Tj ( It) Tj 0 -13.1 Td 2.96 Tw (also concluded that Appellants' conduct after the July 12,) Tj 0 -13.1 Td 2.04 Tw (2006 cease-and-desist letter led SAC, RealtyU, and Swane-) Tj 0 -13.1 Td 0 Tw (poel to believe they had permission to continue using the ASR) Tj 0 -13.1 Td .37 Tw (marks, and it denied damages and royalties for that period ) Tj (in) Tj 0 -13.1 Td .83 Tw (light of [Appellants'] acquiescence to [Appellees'] use of the) Tj 0 -13.1 Td .71 Tw (trademarks) Tj ( after the cease-and-desist letter and the initiation) Tj 0 -13.1 Td 1.44 Tw (of litigation. For the same reason, the district court declined) Tj 0 -13.1 Td .6 Tw (to award attorneys' fees. The district court did, however, per-) Tj 0 -13.1 Td .71 Tw (manently enjoin SAC, RealtyU, and Swanepoel from infring-) Tj 0 -13.1 Td 5.1 Tw (ing or otherwise making use of Appellants' intellectual) Tj 0 -13.1 Td 1.2 Tw (property.) Tj /F1 12 Tf 100 Tz 107.496 -26 Td (II.) Tj 9 Tw ( ) Tj 1.2 Tw (ANALYSIS) Tj /F2 12 Tf 100 Tz -95.496 -26 Td .24 Tw (Appellants challenge the district court's decision on several) Tj -12 -13.1 Td .03 Tw (grounds. They argue that because SAC had unclean hands, the) Tj 0 -13.1 Td .83 Tw (court erred in sustaining SAC's affirmative defense of acqui-) Tj 0 -13.1 Td 1.7 Tw (escence. They also contend that the record is insufficient to) Tj 0 -13.1 Td .47 Tw (support the conclusion that they gave any form of consent for) Tj 0 -13.1 Td .6 Tw (RealtyU ) Tj (to use the ASR marks, either before or after the July) Tj 0 -13.1 Td 1.52 Tw (12, 2006 cease-and-desist letter. Finally, they also challenge) Tj 0 -13.1 Td .22 Tw (the finding of acquiescence itself, arguing that the evidence in) Tj 0 -13.1 Td 1.58 Tw (the record is insufficient to support the conclusion that they) Tj 0 -13.1 Td 1.2 Tw (acquiesced to use of the ASR marks by SAC or RealtyU.) Tj /F1 12 Tf 100 Tz 0 -26 Td (A.) Tj 9 Tw ( ) Tj 1.2 Tw (Standards of Review) Tj /F2 12 Tf 100 Tz 12 -26 Td 1.16 Tw (To the extent that Appellants challenge the district court's) Tj -12 -13.1 Td 2.17 Tw (factual findings, such findings are reviewed for clear error.) Tj 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 156 -136.5 Td 1.1 Tw 0 Tc (13422) Tj 49.0234 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. K) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENNEDY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENTER) Tj /F2 11 Tf 100 Tz 0 Ts ET Q q 1 0 0 1 0 792 cm 0 G .5 w 156 -140.25 m 456 -140.25 l s Q endstream endobj 23 0 obj 3541 endobj 21 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 10 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R /F4 9 0 R >> /ProcSet 1 0 R >> /Contents 22 0 R >> endobj %%Page: 6 6 25 0 obj << /Length 26 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F2 12 Tf 100 Tz 0 -8.4 Td 1.5 Tw 0 Tc (Fed. R. Civ. P. 52\(a\)\(6\). A district court's finding of fact is) Tj 0 -12.7 Td 1.14 Tw (clearly erroneous if it is ) Tj (\(1\) `illogical,' \(2\) `implausible,' or) Tj 0 -12.7 Td .27 Tw (\(3\) without `support in inferences that may be drawn from the) Tj 0 -12.7 Td 3.11 Tw (facts in the record.') Tj 0 Tw ( ) Tj 3.11 Tw ( ) Tj /F4 12 Tf 100 Tz (United States v. Hinkson) Tj /F2 12 Tf 100 Tz (, 585 F.3d) Tj 0 -12.7 Td .7 Tw (1247, 1262 \(9th Cir. 2009\) \(citing ) Tj /F4 12 Tf 100 Tz (Anderson v. City of Besse-) Tj 0 -12.7 Td 1.2 Tw (mer City, N.C.) Tj /F2 12 Tf 100 Tz (, 470 U.S. 564, 577 \(1985\)\). ) Tj 12 -25.3 Td 1.08 Tw (The application of the equitable doctrine of unclean hands) Tj -12 -12.7 Td 1.3 Tw (is within the discretion of the trial court and is reviewed for) Tj 0 -12.7 Td .66 Tw (abuse of that discretion. ) Tj /F4 12 Tf 100 Tz (See TransWorld Airlines, Inc. v. Am.) Tj 0 -12.7 Td .5 Tw (Coupon Exch., Inc.) Tj /F2 12 Tf 100 Tz (, 913 F.2d 676, 694 \(9th Cir. 1990\) \(citing) Tj /F4 12 Tf 100 Tz 0 -12.7 Td .81 Tw (Wash. Capitols Basketball Club, Inc. v. Barry) Tj /F2 12 Tf 100 Tz (, 419 F.2d 472,) Tj 0 -12.7 Td 4.44 Tw (478 \(9th Cir. 1969\) \(finding that the application of the) Tj 0 -12.7 Td 1.33 Tw (unclean hands doctrine was committed to the district court's) Tj 0 -12.7 Td .47 Tw (discretion\). Similarly, while the question appears to be one of) Tj 0 -12.7 Td 2.03 Tw (first impression in our circuit, we join our sister circuits in) Tj 0 -12.7 Td 2.33 Tw (concluding that the application of the equitable doctrine of) Tj 0 -12.7 Td .07 Tw (acquiescence is within the discretion of the trial court and also) Tj 0 -12.7 Td 1.55 Tw (is reviewed for abuse of discretion. ) Tj /F4 12 Tf 100 Tz (See Coach House Rest.,) Tj 0 -12.7 Td 1.48 Tw (Inc. v. Coach & Six Rests., Inc.) Tj /F2 12 Tf 100 Tz (, 934 F.2d 1551, 1558 \(11th) Tj 0 -12.8 Td .71 Tw (Cir. 1991\) \(finding that ) Tj ([b]ecause acquiescence is an equita-) Tj 0 -12.8 Td 1.77 Tw (ble defense, it will be reviewed for an abuse of discretion\);) Tj /F4 12 Tf 100 Tz 0 -12.8 Td .44 Tw (Piper Aircraft Corp. v. Wag-Aero, Inc.) Tj /F2 12 Tf 100 Tz (, 741 F.2d 925, 932-33) Tj 0 -12.8 Td 1.28 Tw (\(7th Cir. 1984\) \(finding that because acquiescence imports a) Tj 0 -12.8 Td 1.12 Tw (fact-based analysis, its determination rests in the ) Tj (sound dis-) Tj 0 -12.8 Td .15 Tw (cretion of the trial court and only will be disturbed on review) Tj 0 -12.8 Td 1.2 Tw (for ) Tj (clear abuse) Tj ( of that discretion\).) Tj /F2 12 Tf 100 Tz 12 -25.3 Td 1.3 Tw (Finally, ) Tj () Tj 0 Tw ( ) Tj 1.3 Tw (`[w]e may affirm on any basis supported by the) Tj -12 -12.8 Td 2.66 Tw (record, whether or not relied upon by the district court.') Tj 0 Tw ( ) Tj 2.66 Tw () Tj /F4 12 Tf 100 Tz 0 -12.8 Td .3 Tw (Bank of N.Y. v. Fremont Gen. Corp.) Tj /F2 12 Tf 100 Tz (, 514 F.3d 1008, 1020 n.8) Tj 0 -12.8 Td 1.2 Tw (\(9th Cir. 2008\) \(quoting ) Tj /F4 12 Tf 100 Tz (Hall v. N. Am. Van Lines, Inc.) Tj /F2 12 Tf 100 Tz (, 476) Tj 0 -12.8 Td (F.3d 683, 686 \(9th Cir. 2007\)\) \(alteration in the original\).) Tj /F1 12 Tf 100 Tz 0 -25.3 Td 3.05 Tw (B.) Tj 9 Tw ( ) Tj 3.05 Tw (SAC's Equitable Defenses and the District Court's) Tj 23 -12.8 Td 1.2 Tw (Finding of Unclean Hands) Tj /F1 12 Tf 100 Tz -11 -25.4 Td .24 Tw ([1]) Tj /F2 12 Tf 100 Tz () Tj 3 Tw ( ) Tj .24 Tw (Appellants argue that SAC's unclean hands should pre-) Tj -12 -12.8 Td .33 Tw (clude it as a matter of law from benefitting from the equitable) Tj 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 428.5 -136.5 Td 1.1 Tw 0 Tc (13423) Tj -223.4766 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. K) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENNEDY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENTER) Tj /F2 11 Tf 100 Tz 0 Ts ET Q q 1 0 0 1 0 792 cm 0 G .5 w 156 -140.25 m 456 -140.25 l s Q endstream endobj 26 0 obj 4318 endobj 24 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 10 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R /F4 9 0 R >> /ProcSet 1 0 R >> /Contents 25 0 R >> endobj %%Page: 7 7 28 0 obj << /Length 29 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F2 12 Tf 100 Tz 0 -8.4 Td 2.77 Tw 0 Tc (defense of acquiescence. ) Tj (The doctrine [of unclean hands]) Tj 0 -13 Td 2.14 Tw (bars relief to a plaintiff who has violated conscience, good) Tj 0 -13 Td .37 Tw (faith or other equitable principles in his prior conduct, as well) Tj 0 -13 Td 2.2 Tw (as to a plaintiff who has dirtied his hands in acquiring the) Tj 0 -13 Td 1.87 Tw (right presently asserted.) Tj ( ) Tj /F4 12 Tf 100 Tz (Dollar Sys., Inc. v. Avcar Leasing) Tj 0 -13 Td 1.16 Tw (Sys., Inc.) Tj /F2 12 Tf 100 Tz (, 890 F.2d 165, 173 \(9th Cir. 1989\) \(citations omit-) Tj 0 -13 Td 1.1 Tw (ted\). The doctrine of unclean hands also can bar a defendant) Tj 0 -13 Td 2.42 Tw (from asserting an equitable defense. ) Tj /F4 12 Tf 100 Tz (See Jarrow Formulas,) Tj 0 -13.1 Td 2.06 Tw (Inc. v. Nutrition Now, Inc.) Tj /F2 12 Tf 100 Tz (, 304 F.3d 829, 841-42 \(9th Cir.) Tj 0 -13.1 Td 1.58 Tw (2002\) \(noting that a defendant with unclean hands is barred) Tj 0 -13.1 Td .63 Tw (from asserting the equitable defense of laches\). ) Tj () Tj 0 Tw ( ) Tj .63 Tw (`It is funda-) Tj 0 -13.1 Td .73 Tw (mental to [the] operation of the doctrine that the alleged mis-) Tj 0 -13.1 Td 4.83 Tw (conduct by the [party] relate directly to the transaction) Tj 0 -13.1 Td 1.16 Tw (concerning which the complaint is made.') Tj 0 Tw ( ) Tj 1.16 Tw ( ) Tj /F4 12 Tf 100 Tz (Dollar Sys.) Tj /F2 12 Tf 100 Tz (, 890) Tj 0 -13.1 Td 1.11 Tw (F.2d at 173 \(quoting ) Tj /F4 12 Tf 100 Tz (Arthur v. Davis) Tj /F2 12 Tf 100 Tz (, 126 Cal. App. 3d 684,) Tj 0 -13.1 Td .25 Tw (693-94 \(Cal. Ct. App. 1981\)\). ) Tj ([U]nclean hands does not con-) Tj 0 -13.1 Td 1.7 Tw (stitute `misconduct in the abstract, unrelated to the claim to) Tj 0 -13.1 Td 1.18 Tw (which it is asserted as a defense.') Tj 0 Tw ( ) Tj 1.18 Tw ( ) Tj /F4 12 Tf 100 Tz (Jarrow) Tj /F2 12 Tf 100 Tz (, 304 F.3d at 841) Tj 0 -13.1 Td .14 Tw (\(citing ) Tj /F4 12 Tf 100 Tz (Republic Molding Corp. v. B.W. Photo Utils.) Tj /F2 12 Tf 100 Tz (, 319 F.2d) Tj 0 -13.1 Td 1.2 Tw (347, 349 \(9th Cir. 1963\)\).) Tj 12 -26 Td 4.41 Tw (The district court found that SAC had unclean hands) Tj -12 -13.1 Td .7 Tw (because it diverted substantially all of its ASR program reve-) Tj 0 -13.1 Td 1.33 Tw (nue to RealtyU, despite the provisions of the stock purchase) Tj 0 -13.1 Td 2.1 Tw (agreement, which specified that ASR program revenue was) Tj 0 -13.1 Td .22 Tw (for the benefit of SAC and that SAC was obligated to take the) Tj 0 -13.1 Td 1.3 Tw (best overall actions) Tj ( for the benefit of the company. It was) Tj 0 -13.1 Td 1 Tw (this diversion of revenue that ultimately precipitated the July) Tj 0 -13.1 Td 3.24 Tw (12, 2006 cease-and-desist letter and Appellants' claim for) Tj 0 -13.1 Td 1.2 Tw (trademark infringement.) Tj /F1 12 Tf 100 Tz 12 -26 Td 1.24 Tw ([2]) Tj /F2 12 Tf 100 Tz () Tj 3 Tw ( ) Tj 1.24 Tw (However, the district court's finding of unclean hands) Tj -12 -13.1 Td .25 Tw (related explicitly to events that occurred ) Tj /F4 12 Tf 100 Tz (before) Tj /F2 12 Tf 100 Tz ( July 12, 2006.) Tj 0 -13.1 Td 1.17 Tw (SAC's claim of acquiescence was based on events occurring) Tj /F4 12 Tf 100 Tz 0 -13.1 Td .41 Tw (after) Tj /F2 12 Tf 100 Tz ( July 12, 2006, specifically Kennedy's requests that SAC) Tj 0 -13.1 Td 2.55 Tw (continue to use the ASR marks even after Appellants sent) Tj 0 -13.1 Td 3.12 Tw (their cease-and-desist letter. The record does not reflect a) Tj 0 -13.1 Td 2.66 Tw (determination by the district court with respect to whether) Tj 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 156 -136.5 Td 1.1 Tw 0 Tc (13424) Tj 49.0234 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. K) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENNEDY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENTER) Tj /F2 11 Tf 100 Tz 0 Ts ET Q q 1 0 0 1 0 792 cm 0 G .5 w 156 -140.25 m 456 -140.25 l s Q endstream endobj 29 0 obj 4291 endobj 27 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 30 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R /F4 9 0 R >> /ProcSet 1 0 R >> /Contents 28 0 R >> endobj %%Page: 8 8 32 0 obj << /Length 33 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F2 12 Tf 100 Tz 0 -8.4 Td .74 Tw 0 Tc (SAC acted with unclean hands after July 12, 2006. However,) Tj 0 -13 Td 4.24 Tw (we must presume that in sustaining SAC's acquiescence) Tj 0 -13 Td 1.55 Tw (defense, the district court found implicitly that SAC did not) Tj 0 -13 Td 3.33 Tw (have unclean hands with respect to Appellants' claim for) Tj 0 -13 Td 2.1 Tw (trademark infringement, which could have arisen only after) Tj 0 -13 Td 1.46 Tw (July 12, 2006. The district court did not abuse its discretion) Tj 0 -13.1 Td .55 Tw (in concluding that SAC's earlier breach of the stock purchase) Tj 0 -13.1 Td 1.75 Tw (agreement did not preclude SAC from claiming that Appel-) Tj 0 -13.1 Td 1.2 Tw (lants acquiesced to its use of the ASR marks thereafter.) Tj /F1 12 Tf 100 Tz 0 -26 Td 1.96 Tw (C.) Tj 9 Tw ( ) Tj 1.96 Tw (RealtyU's Right to Use the ASR Marks before July) Tj 23.6 -13.1 Td 1.2 Tw (12, 2006) Tj /F2 12 Tf 100 Tz -11.6 -26 Td .41 Tw (Appellants contend that RealtyU never had any right to use) Tj -12 -13.1 Td 1.71 Tw (the ASR marks, notwithstanding any acquiescence that may) Tj 0 -13.1 Td .47 Tw (have occurred after July 12, 2006. The district court's finding) Tj 0 -13.1 Td .87 Tw (of consent is a factual determination that we review for clear) Tj 0 -13.1 Td .7 Tw (error. ) Tj /F4 12 Tf 100 Tz (See ) Tj (Fremont Gen. Corp.) Tj /F2 12 Tf 100 Tz (, 523 F.3d at 1020 \(noting that) Tj 0 -13.1 Td 3.95 Tw (a district court's factual findings established consent and) Tj 0 -13.1 Td 1.95 Tw (could not be overturned without a showing that the finding) Tj 0 -13.1 Td 3.66 Tw (was clearly erroneous\); ) Tj /F4 12 Tf 100 Tz (Gonzalez-Caballero v. Mena) Tj /F2 12 Tf 100 Tz (, 251) Tj 0 -13.1 Td 1.9 Tw (F.3d 789, 795 \(9th Cir. 2001\) \(noting that a district court's) Tj 0 -13.1 Td 2.66 Tw (factual finding of consent was not clearly erroneous\); ) Tj /F4 12 Tf 100 Tz (PIC) Tj 0 -13.1 Td (Realty Corp. v. Evans) Tj /F2 12 Tf 100 Tz (, 605 F.2d 476, 483 \(9th Cir. 1979\)) Tj 0 -13.1 Td 2.08 Tw (\(agreeing with the district court that the bankruptcy court's) Tj 0 -13.1 Td 1.85 Tw (finding of no consent was not clearly erroneous\). ) Tj (A district) Tj 0 -13.1 Td .75 Tw (court's finding of fact is clearly erroneous if it is ) Tj (\(1\) `illogi-) Tj 0 -13.1 Td 1.83 Tw (cal,' \(2\) `implausible,' or \(3\) without `support in inferences) Tj 0 -13.1 Td 1.64 Tw (that may be drawn from the facts in the record.') Tj 0 Tw ( ) Tj 1.64 Tw ( ) Tj /F4 12 Tf 100 Tz (Hinkson) Tj /F2 12 Tf 100 Tz (,) Tj 0 -13.1 Td 1.2 Tw (585 F.3d at 1262. ) Tj /F1 12 Tf 100 Tz 12 -26 Td 2 Tw ([3]) Tj /F2 12 Tf 100 Tz () Tj 3 Tw ( ) Tj 2 Tw (The district court found explicitly that SAC had per-) Tj -12 -13.1 Td .02 Tw (mission or an implied license to use the ASR marks from Sep-) Tj 0 -13.1 Td .71 Tw (tember 8, 2005 until July 12, 2006. Although it did not make) Tj 0 -13.1 Td 1.85 Tw (such an explicit finding with respect to RealtyU, because it) Tj 0 -13.1 Td 2.55 Tw (declined to award damages based on RealtyU's use of the) Tj 0 -13.1 Td .36 Tw (ASR marks, it must have decided implicitly that RealtyU also) Tj 0 -13.1 Td 1.24 Tw (had consent of some type to use the ASR marks before July) Tj 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 428.5 -136.5 Td 1.1 Tw 0 Tc (13425) Tj -223.4766 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. K) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENNEDY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENTER) Tj /F2 11 Tf 100 Tz 0 Ts ET Q q 1 0 0 1 0 792 cm 0 G .5 w 156 -140.25 m 456 -140.25 l s Q endstream endobj 33 0 obj 3946 endobj 31 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 30 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R /F4 9 0 R >> /ProcSet 1 0 R >> /Contents 32 0 R >> endobj %%Page: 9 9 35 0 obj << /Length 36 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F2 12 Tf 100 Tz 0 -8.4 Td 1.67 Tw 0 Tc (12, 2006. In addition, ) Tj () Tj 0 Tw ( ) Tj 1.67 Tw (`[w]e may affirm on any basis sup-) Tj 0 -13.5 Td .06 Tw (ported by the record, whether or not relied upon by the district) Tj 0 -13.5 Td 1.36 Tw (court.') Tj 0 Tw ( ) Tj 1.36 Tw ( ) Tj /F4 12 Tf 100 Tz (Fremont Gen.) Tj /F2 12 Tf 100 Tz (, 514 F.3d at 1020 n.8 \(citation omit-) Tj 0 -13.5 Td 4.1 Tw (ted\). The district court determined that ) Tj (Kennedy signed) Tj 0 -13.5 Td .13 Tw (agreements with SAC in September 2005 and he and his com-) Tj 0 -13.5 Td 1.08 Tw (pany promptly began to cooperate with RealtyU and/or SAC) Tj 0 -13.5 Td .83 Tw (to market his ASR program.) Tj ( It also found expressly that the) Tj 0 -13.5 Td 3 Tw (purpose of Swanepoel's proposed business venture was to) Tj 0 -13.5 Td 3.85 Tw (provide Appellants with ) Tj (access to the RealtyU affiliates) Tj 0 -13.5 Td .6 Tw (across the country and the large number of students they pro-) Tj 0 -13.5 Td 1.66 Tw (vide. Thus, the purpose of the agreement between KCREE) Tj 0 -13.5 Td 1.9 Tw (and SAC was to allow RealtyU and its affiliates to use the) Tj 0 -13.5 Td 1.2 Tw (ASR marks. ) Tj /F1 12 Tf 100 Tz 12 -26.7 Td 1 Tw ([4]) Tj /F2 12 Tf 100 Tz () Tj 3 Tw ( ) Tj 1 Tw (This determination is neither illogical nor implausible:) Tj -12 -13.5 Td 1.03 Tw (in order for RealtyU to provide SAC with ASR student fees,) Tj 0 -13.5 Td 1.81 Tw (it had to use the ASR marks. However, Appellants contend) Tj 0 -13.5 Td 1.77 Tw (that RealtyU had consent to use the marks only if it paid a) Tj 0 -13.5 Td .83 Tw (licensing fee for that use a fee that should have been paid) Tj 0 -13.5 Td .6 Tw (to SAC. While the district court did not make an explicit fac-) Tj 0 -13.4 Td .58 Tw (tual determination as to this point, its implicit conclusion that) Tj 0 -13.4 Td .77 Tw (RealtyU or its affiliates did not have to pay a licensing fee is) Tj 0 -13.4 Td 1.41 Tw (supported by inferences that may be drawn from the record.) Tj 0 -13.4 Td 1.2 Tw (Kennedy testified at trial as follows:) Tj 22 -26.7 Td 2.16 Tw (Q:) Tj 9 Tw ( ) Tj 2.16 Tw ([Counsel] If I understand what you're saying,) Tj 24 -13.4 Td 2.33 Tw (you're testifying that you made an agreement) Tj 0 -13.4 Td 5.33 Tw (and memorialized it in the stock purchase) Tj 0 -13.4 Td .21 Tw (agreement that Kennedy Center itself would not) Tj 0 -13.4 Td .41 Tw (have to pay the thousand dollar a year licensing) Tj 0 -13.4 Td 1.2 Tw (fee, right?) Tj -24 -26.7 Td (A:) Tj 9 Tw ( ) Tj 1.2 Tw ([Kennedy] Likewise) Tj 0 -26.7 Td (Q:) Tj 9 Tw ( ) Tj 1.2 Tw (And neither would RealtyU?) Tj 0 -26.7 Td (A:) Tj 9 Tw ( ) Tj 1.2 Tw (That's correct. [) Tj 0 Tw ( ) Tj 1.2 Tw (]) Tj 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 156 -136.5 Td 1.1 Tw 0 Tc (13426) Tj 49.0234 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. K) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENNEDY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENTER) Tj /F2 11 Tf 100 Tz 0 Ts ET Q q 1 0 0 1 0 792 cm 0 G .5 w 156 -140.25 m 456 -140.25 l s Q endstream endobj 36 0 obj 3433 endobj 34 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 30 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R /F4 9 0 R >> /ProcSet 1 0 R >> /Contents 35 0 R >> endobj %%Page: 10 10 38 0 obj << /Length 39 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F2 12 Tf 100 Tz 0 -8.4 Td 1.2 Tw 0 Tc (\(ER 31:7-13.\) Kennedy continued to explain:) Tj 22 -26 Td .28 Tw (Q:) Tj 9 Tw ( ) Tj .28 Tw (So if I understand things, neither Kennedy Cen-) Tj 24 -13.1 Td .42 Tw (ter nor Seller Agency Council are [) Tj /F4 12 Tf 100 Tz (sic) Tj /F2 12 Tf 100 Tz (] required) Tj 0 -13.1 Td 1.2 Tw (to pay the annual licensing fee?) Tj -24 -26 Td (A:) Tj 9 Tw ( ) Tj 1.2 Tw (That is correct.) Tj 0 -26 Td (Q:) Tj 9 Tw ( ) Tj 1.2 Tw (What about RealtyU affiliate schools?) Tj 0 -26 Td 1.06 Tw (A:) Tj 9 Tw ( ) Tj 1.06 Tw (I believe that it's basically that it's up to Real-) Tj 24 -13.1 Td 3.66 Tw (tyU. I mean, they don't have to charge the) Tj 0 -13.1 Td 1.71 Tw (licensing fee if they don't want to. The actual) Tj 0 -13.1 Td 1.2 Tw (annual license fee.) Tj -24 -26 Td 4.43 Tw (Q:) Tj 9 Tw ( ) Tj 4.43 Tw (So Seller Agency Counsel could waive the) Tj 24 -13.1 Td 1.2 Tw (license fee for the RealtyU school?) Tj -24 -26.1 Td (A:) Tj 9 Tw ( ) Tj 1.2 Tw (That is correct. That is correct.) Tj -22 -26.1 Td (\(ER 32:6-16.\) ) Tj /F1 12 Tf 100 Tz 12 -26.1 Td 2.33 Tw ([5]) Tj /F2 12 Tf 100 Tz () Tj 3 Tw ( ) Tj 2.33 Tw (The district court's factual determination that Appel-) Tj -12 -13.1 Td 1 Tw (lants consented to RealtyU's use of ASR marks prior to July) Tj 0 -13.1 Td .87 Tw (12, 2006 is not clearly erroneous. Accordingly, RealtyU may) Tj 0 -13.1 Td .85 Tw (be liable only for infringement occurring after it received the) Tj 0 -13.1 Td 3.22 Tw (cease-and-desist letter on July 12, 2006, and then only if) Tj 0 -13.1 Td 1.2 Tw (Appellants did not consent or acquiesce to that use.) Tj /F1 12 Tf 100 Tz 0 -26.1 Td (D.) Tj 9 Tw ( ) Tj 1.2 Tw (Acquiescence) Tj /F1 12 Tf 100 Tz 12 -26.1 Td .77 Tw ([6]) Tj /F2 12 Tf 100 Tz () Tj 3 Tw ( ) Tj .77 Tw (Although we have dealt in passing with the concept of) Tj -12 -13.1 Td .38 Tw (acquiescence to infringement ) Tj /F4 12 Tf 100 Tz (see, e.g., Westinghouse Elec.) Tj 0 -13.1 Td .83 Tw (Corp. v. Gen. Circuit Breaker & Elec. Supply) Tj /F2 12 Tf 100 Tz (, 106 F.3d 894,) Tj 0 -13.2 Td .16 Tw (899 \(9th Cir. 1997\);) Tj /F4 12 Tf 100 Tz ( E. & J. Gallo Winery v. Gallo Cattle Co.) Tj /F2 12 Tf 100 Tz (,) Tj 0 -13.2 Td .2 Tw (967 F.2d 1280, 1294 \(9th Cir. 1992\);) Tj /F4 12 Tf 100 Tz ( Nat'l Lead Co. v. Wolfe) Tj /F2 12 Tf 100 Tz (,) Tj 0 -13.2 Td 2.9 Tw (223 F.2d 195 \(9th Cir. 1955\); ) Tj /F4 12 Tf 100 Tz (Golden W. Brewing Co. v.) Tj 0 -13.2 Td 2 Tw (Milonas & Sons, Inc.) Tj /F2 12 Tf 100 Tz (, 104 F.2d 880 \(9th Cir. 1939\) we) Tj 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 428.5 -136.5 Td 1.1 Tw 0 Tc (13427) Tj -223.4766 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. K) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENNEDY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENTER) Tj /F2 11 Tf 100 Tz 0 Ts ET Q q 1 0 0 1 0 792 cm 0 G .5 w 156 -140.25 m 456 -140.25 l s Q endstream endobj 39 0 obj 3276 endobj 37 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 30 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R /F4 9 0 R >> /ProcSet 1 0 R >> /Contents 38 0 R >> endobj %%Page: 11 11 41 0 obj << /Length 42 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F2 12 Tf 100 Tz 0 -8.4 Td .63 Tw 0 Tc (have not articulated a definition or established a practical test) Tj 0 -13 Td 1.9 Tw (for district courts to apply. We begin by observing that the) Tj 0 -13 Td 1.17 Tw (equitable defenses of acquiescence and laches are very simi-) Tj 0 -13 Td 1.03 Tw (lar. ) Tj (Laches is an equitable time limitation on a party's right) Tj 0 -13 Td .16 Tw (to bring suit resting on the maxim that one who seeks the help) Tj 0 -13 Td .27 Tw (of a court of equity must not sleep on his rights.) Tj ( ) Tj /F4 12 Tf 100 Tz (Jarrow) Tj /F2 12 Tf 100 Tz (, 304) Tj 0 -13 Td .75 Tw (F.3d at 835 \(citations and internal quotations marks omitted\).) Tj 0 -13 Td 3.07 Tw (Acquiescence, on the other hand, limits a party's right to) Tj 0 -13 Td .32 Tw (bring suit following an ) Tj /F4 12 Tf 100 Tz (affirmative ) Tj /F2 12 Tf 100 Tz (act by word or deed by the) Tj 0 -13 Td 1.95 Tw (party that conveys implied consent to another. 6 J. T) Tj /F2 8.4 Tf 101.1 Tz 1.92 Tw (HOMAS) Tj /F2 12 Tf 100 Tz 0 Ts 0 -13.1 Td 10.18 Tw (M) Tj /F2 8.4 Tf 101.1 Tz 10.06 Tw (C) Tj /F2 12 Tf 100 Tz 0 Ts 10.18 Tw (C) Tj /F2 8.4 Tf 101.1 Tz 10.06 Tw (ARTHY) Tj /F2 12 Tf 100 Tz 0 Ts 10.18 Tw (, ) Tj (M) Tj /F2 8.4 Tf 101.1 Tz 10.06 Tw (C) Tj /F2 12 Tf 100 Tz 0 Ts 10.18 Tw (C) Tj /F2 8.4 Tf 101.1 Tz 10.06 Tw (ARTHY ON) Tj /F2 12 Tf 100 Tz 0 Ts 10.18 Tw ( T) Tj /F2 8.4 Tf 101.1 Tz 10.06 Tw (RADEMARKS AND) Tj /F2 12 Tf 100 Tz 0 Ts 10.18 Tw ( U) Tj /F2 8.4 Tf 101.1 Tz 10.06 Tw (NFAIR) Tj /F2 12 Tf 100 Tz 0 Ts 0 -13 Td 1.67 Tw (C) Tj /F2 8.4 Tf 101.1 Tz 1.65 Tw (OMPETITION) Tj /F2 12 Tf 100 Tz 0 Ts 1.67 Tw (, 31:42 \(4th ed. 2008\) \(citing ) Tj /F4 12 Tf 100 Tz (What-A-Burger of) Tj 0 -13.1 Td 2.14 Tw (Va., Inc. v. Whataburger, Inc. of Corpus Christi, Tex.) Tj /F2 12 Tf 100 Tz (, 357) Tj 0 -13.1 Td .58 Tw (F.3d 441, 452 \(4th Cir. 2004\) \(finding that ) Tj ([a]cquiescence is) Tj 0 -13.1 Td 1.48 Tw (the active counterpart to laches, a doctrine based on passive) Tj 0 -13.1 Td .77 Tw (consent) Tj (\); ) Tj /F4 12 Tf 100 Tz (Creative Gifts, Inc. v. UFO) Tj /F2 12 Tf 100 Tz (, 235 F.3d 540, 547-48) Tj 0 -13.1 Td (\(10th Cir. 2000\) \(finding that acquiescence requires ) Tj (conduct) Tj 0 -13.1 Td 2.07 Tw (on the plaintiff's part that amounted to an assurance to the) Tj 0 -13.1 Td 1.33 Tw (defendant, express or implied, that plaintiff would not assert) Tj 0 -13.1 Td 1.21 Tw (his trademark rights against the defendant) Tj (\);) Tj /F4 12 Tf 100 Tz ( Sara Lee Corp.) Tj 0 -13.1 Td .46 Tw (v. Kayser-Roth Corp) Tj /F2 12 Tf 100 Tz (., 81 F.3d 455, 462 \(4th Cir. 1996\) \(find-) Tj 0 -13.1 Td 3.14 Tw (ing that acquiescence implies active consent, while laches) Tj 0 -13.1 Td 3 Tw (implies passive consent\); ) Tj /F4 12 Tf 100 Tz (Coach House) Tj /F2 12 Tf 100 Tz (, 934 F.2d at 1558) Tj 0 -13.1 Td 4.68 Tw (\(finding that ) Tj ([t]he difference between acquiescence and) Tj 0 -13.1 Td .08 Tw (laches is that laches denotes passive consent and acquiescence) Tj 0 -13.1 Td 1.2 Tw (denotes active consent) Tj (\)\).) Tj /F2 12 Tf 100 Tz 12 -26.1 Td 1 Tw (The district court applied the test articulated in ) Tj /F4 12 Tf 100 Tz (ProFitness) Tj -12 -13.1 Td .75 Tw (Physical Therapy Ctr. v. Pro-Fit Orthopedic & Sports Physi-) Tj 0 -13.1 Td 1.56 Tw (cal Therapy P.C.) Tj /F2 12 Tf 100 Tz (, 314 F.3d 62, 67 \(2d Cir. 2002\). Acquies-) Tj 0 -13.1 Td 3.58 Tw (cence under ) Tj /F4 12 Tf 100 Tz (ProFitness) Tj /F2 12 Tf 100 Tz ( requires that ) Tj (\(1\) the senior user) Tj 0 -13.1 Td .27 Tw (actively represented that it would not assert a right or a claim;) Tj 0 -13.1 Td 1.25 Tw (\(2\) the delay between the active representation and assertion) Tj 0 -13.1 Td 2.39 Tw (of the right or claim was not excusable; and \(3\) the delay) Tj 0 -13.1 Td .04 Tw (caused the defendant undue prejudice.) Tj ( ) Tj /F4 12 Tf 100 Tz (Id) Tj /F2 12 Tf 100 Tz (. at 67 \(internal cita-) Tj 0 -13.1 Td .5 Tw (tion omitted\). That test appears to have originated in an Elev-) Tj 0 -13.1 Td 1.22 Tw (enth Circuit opinion modifying that court's test for laches to) Tj 0 -13.1 Td .05 Tw (accommodate an acquiescence inquiry. ) Tj /F4 12 Tf 100 Tz (See ) Tj (Coach House) Tj /F2 12 Tf 100 Tz (, 934) Tj 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 156 -136.5 Td 1.1 Tw 0 Tc (13428) Tj 49.0234 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. K) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENNEDY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENTER) Tj /F2 11 Tf 100 Tz 0 Ts ET Q q 1 0 0 1 0 792 cm 0 G .5 w 156 -140.25 m 456 -140.25 l s Q endstream endobj 42 0 obj 5029 endobj 40 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 30 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R /F4 9 0 R >> /ProcSet 1 0 R >> /Contents 41 0 R >> endobj %%Page: 12 12 44 0 obj << /Length 45 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F2 12 Tf 100 Tz 0 -8.4 Td .7 Tw 0 Tc (F.2d at 1558 \(modifying the ) Tj /F4 12 Tf 100 Tz (prima facie) Tj /F2 12 Tf 100 Tz ( case for laches from) Tj /F4 12 Tf 100 Tz 0 -12.7 Td 2 Tw (Conagra, Inc. v. Singleton) Tj /F2 12 Tf 100 Tz (, 743 F.2d 1508, 1517 \(11th Cir.) Tj 0 -12.7 Td .11 Tw (1984\), to create the ) Tj /F4 12 Tf 100 Tz (prima facie) Tj /F2 12 Tf 100 Tz ( case for acquiescence as artic-) Tj 0 -12.7 Td 1.2 Tw (ulated in the opinion and recited in ) Tj /F4 12 Tf 100 Tz (ProFitness) Tj /F2 12 Tf 100 Tz (\).) Tj /F1 12 Tf 100 Tz 12 -25.3 Td 3.01 Tw ([7]) Tj /F2 12 Tf 100 Tz () Tj 3 Tw ( ) Tj 3.01 Tw (Because laches and acquiescence are closely related) Tj -12 -12.7 Td 1.41 Tw (concepts, we agree with the approach taken by the Eleventh) Tj 0 -12.7 Td .73 Tw (Circuit that modifying our current test for laches is an appro-) Tj 0 -12.7 Td .84 Tw (priate way to provide a practical test for acquiescence. In the) Tj 0 -12.7 Td .37 Tw (Eleventh Circuit, the ) Tj /F4 12 Tf 100 Tz (prima facie) Tj /F2 12 Tf 100 Tz ( case for laches required ) Tj (\(1\)) Tj 0 -12.7 Td .23 Tw (a delay in asserting a right or claim; \(2\) that the delay was not) Tj 0 -12.7 Td .93 Tw (excusable; and \(3\) that the delay caused the defendant undue) Tj 0 -12.7 Td 2.8 Tw (prejudice.) Tj ( ) Tj /F4 12 Tf 100 Tz (Conagra) Tj /F2 12 Tf 100 Tz (, 743 F.2d at 1517 \(citations omitted\).) Tj 0 -12.7 Td 1.54 Tw (The ) Tj /F4 12 Tf 100 Tz (prima facie) Tj /F2 12 Tf 100 Tz ( case for laches in our own circuit is essen-) Tj 0 -12.7 Td .8 Tw (tially identical. ) Tj (The test for laches is two-fold: first, was the) Tj 0 -12.7 Td 1.81 Tw (plaintiff's delay in bringing suit unreasonable? Second, was) Tj 0 -12.7 Td 1.85 Tw (the defendant prejudiced by the delay?) Tj () Tj /F4 12 Tf 100 Tz ( Internet Specialties) Tj 0 -12.7 Td 1.36 Tw (W., Inc. v. Milon-DiGiorgio Enters.) Tj /F2 12 Tf 100 Tz (, 559 F.3d 985, 990 \(9th) Tj 0 -12.7 Td 2.25 Tw (Cir. 2009\) \(citing ) Tj /F4 12 Tf 100 Tz (Tillamook Country Smoker, Inc. v. Tilla-) Tj 0 -12.7 Td 1.7 Tw (mook Cnty. Creamery Ass'n) Tj /F2 12 Tf 100 Tz (, 465 F.3d 1102, 1108 \(9th Cir.) Tj 0 -12.7 Td 1.27 Tw (2006\);) Tj /F4 12 Tf 100 Tz ( Jarrow) Tj /F2 12 Tf 100 Tz (, 304 F.3d at 838\). The first aspect of our test) Tj 0 -12.7 Td .86 Tw (in turn consists of two sub-parts: an assessment of the length) Tj 0 -12.8 Td .7 Tw (of the delay followed by an assessment of the reasonableness) Tj 0 -12.8 Td 1.2 Tw (of the delay. ) Tj /F4 12 Tf 100 Tz (Jarrow) Tj /F2 12 Tf 100 Tz (, 304 F.3d at 838. ) Tj /F1 12 Tf 100 Tz 12 -25.3 Td .5 Tw ([8]) Tj /F2 12 Tf 100 Tz () Tj 3 Tw ( ) Tj .5 Tw (Because we agree with the Eleventh Circuit that acqui-) Tj -12 -12.8 Td .11 Tw (escence differs from laches principally in that it requires some) Tj 0 -12.8 Td 2.14 Tw (form of active consent, we conclude that the ) Tj /F4 12 Tf 100 Tz (Coach House) Tj /F2 12 Tf 100 Tz 0 -12.8 Td 3.82 Tw (test largely comports with our own understanding of the) Tj 0 -12.8 Td .26 Tw (prima facie ) Tj (case for acquiescence. Accordingly, we adopt that) Tj 0 -12.8 Td .9 Tw (test. The elements of a ) Tj /F4 12 Tf 100 Tz (prima facie ) Tj /F2 12 Tf 100 Tz (case for acquiescence are) Tj 0 -12.8 Td 3.07 Tw (as follows: \(1\) the senior user actively represented that it) Tj 0 -12.8 Td .72 Tw (would not assert a right or a claim; \(2\) the delay between the) Tj 0 -12.8 Td 1.52 Tw (active representation and assertion of the right or claim was) Tj 0 -12.8 Td 1.22 Tw (not excusable; and \(3\) the delay caused the defendant undue) Tj 0 -12.8 Td 1.2 Tw (prejudice.) Tj 12 -25.3 Td .75 Tw (With respect to the third prong, we note that in the case of) Tj -12 -12.8 Td .74 Tw (laches, undue prejudice requires at least some reliance on the) Tj 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 428.5 -136.5 Td 1.1 Tw 0 Tc (13429) Tj -223.4766 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. K) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENNEDY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENTER) Tj /F2 11 Tf 100 Tz 0 Ts ET Q q 1 0 0 1 0 792 cm 0 G .5 w 156 -140.25 m 456 -140.25 l s Q endstream endobj 45 0 obj 4547 endobj 43 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 30 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R /F4 9 0 R >> /ProcSet 1 0 R >> /Contents 44 0 R >> endobj %%Page: 13 13 47 0 obj << /Length 48 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F2 12 Tf 100 Tz 0 -8.4 Td 2.23 Tw 0 Tc (absence of a lawsuit. ) Tj /F4 12 Tf 100 Tz (See Lathan v. Volpe) Tj /F2 12 Tf 100 Tz (, 455 F.2d 1111,) Tj 0 -13 Td 1.28 Tw (1122 \(9th Cir. 1971\), ) Tj /F4 12 Tf 100 Tz (overruled on other grounds by ) Tj (Lathan) Tj 0 -13 Td 1.23 Tw (v. Brinegar) Tj /F2 12 Tf 100 Tz (, 506 F.2d 677, 691 \(9th Cir. 1974\) \(finding ) Tj (the) Tj 0 -13 Td .2 Tw (two essential elements of laches lack of diligence by plain-) Tj 0 -13 Td .5 Tw (tiff and injurious reliance thereon by defendant) Tj (\); ) Tj /F4 12 Tf 100 Tz (accord Pro) Tj 0 -13 Td 1.56 Tw (Football, Inc. v. Harjo) Tj /F2 12 Tf 100 Tz (, 565 F.3d 880, 884 \(D.C. Cir. 2009\)) Tj 0 -13 Td .06 Tw (\() Tj (To be sure, a finding of prejudice requires at least some reli-) Tj 0 -13 Td .34 Tw (ance on the absence of a lawsuit) Tj (\). Relatedly, prejudice in the) Tj 0 -13 Td 1.75 Tw (context of acquiescence inherently must involve reliance on) Tj 0 -13 Td 2.22 Tw (the senior user's affirmative act or deed, and such reliance) Tj 0 -13.1 Td 1.71 Tw (must be reasonable. When inquiring into the reasonableness) Tj 0 -13.1 Td 1.03 Tw (of reliance, a district court must examine both the content of) Tj 0 -13.1 Td .81 Tw (the affirmative act and the context in which that act was per-) Tj 0 -13.1 Td 1.63 Tw (formed. In addition to their relevance with respect to undue) Tj 0 -13.1 Td 1.71 Tw (prejudice, findings with respect to reliance also may inform) Tj 0 -13.1 Td 0 Tw (whether the delay between the active representation and asser-) Tj 0 -13.1 Td 1.16 Tw (tion of the right or claim was excusable. ) Tj /F4 12 Tf 100 Tz (See) Tj /F2 12 Tf 100 Tz ( 3 A) Tj /F2 8.4 Tf 101.1 Tz 1.14 Tw (NNE) Tj /F2 12 Tf 100 Tz 0 Ts 1.16 Tw ( G) Tj /F2 8.4 Tf 101.1 Tz 1.14 Tw (ILSON) Tj /F2 12 Tf 100 Tz 0 Ts 0 -13.1 Td 1.18 Tw (L) Tj /F2 8.4 Tf 101.1 Tz 1.16 Tw (ALANDE) Tj /F2 12 Tf 100 Tz 0 Ts 1.18 Tw (, G) Tj /F2 8.4 Tf 101.1 Tz 1.16 Tw (ILSON ON) Tj /F2 12 Tf 100 Tz 0 Ts 1.18 Tw ( T) Tj /F2 8.4 Tf 101.1 Tz 1.16 Tw (RADEMARKS) Tj /F2 12 Tf 100 Tz 0 Ts 1.18 Tw ( ) Tj 0 Tw ( ) Tj 1.18 Tw (11.08[3][i][iii][A] \(2010\)) Tj 0 -13.1 Td 1.44 Tw (\() Tj (When the plaintiff has in some way assured the defendant) Tj 0 -13.1 Td .94 Tw (that it will not assert its rights in the mark and the defendant) Tj 0 -13.1 Td 2.28 Tw (has relied to its detriment, the plaintiff should be estopped) Tj 0 -13.1 Td .93 Tw (from bringing an action by its acquiescence regardless of the) Tj 0 -13.1 Td 1.2 Tw (period of delay.) Tj (\).) Tj /F1 12 Tf 100 Tz 12 -26 Td 2.52 Tw ([9]) Tj /F2 12 Tf 100 Tz () Tj 3 Tw ( ) Tj 2.52 Tw (While it appropriately drew upon ) Tj /F4 12 Tf 100 Tz (ProFitness) Tj /F2 12 Tf 100 Tz ( for the) Tj -12 -13.1 Td .37 Tw (elements of acquiescence, the district court apparently did not) Tj 0 -13.1 Td 2.25 Tw (make factual findings either as to the scope of Appellants') Tj 0 -13.1 Td 1.5 Tw (active representations or as to the extent and reasonableness) Tj 0 -13.1 Td 1 Tw (of Appellees' reliance on those representations. In particular,) Tj 0 -13.1 Td .66 Tw (it did not determine whether Appellants' requests that Appel-) Tj 0 -13.1 Td 1.7 Tw (lees use the ASR marks for specific purposes after July 12,) Tj 0 -13.1 Td 1.6 Tw (2006 amounted to a ) Tj /F4 12 Tf 100 Tz (carte blanche) Tj /F2 12 Tf 100 Tz ( to use the marks for any) Tj 0 -13.1 Td .3 Tw (other purposes, whether and to what extent the marks actually) Tj 0 -13.1 Td .57 Tw (were used for other purposes, or whether it was reasonable in) Tj 0 -13.1 Td 2.14 Tw (light of the cease-and-desist letter and subsequent litigation) Tj 0 -13.1 Td .63 Tw (for Appellees to use the marks either for purposes of the spe-) Tj 0 -13.1 Td 4.25 Tw (cific requests or for purposes outside of scope of those) Tj 0 -13.1 Td .2 Tw (requests. Because the application of the acquiescence doctrine) Tj 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 156 -136.5 Td 1.1 Tw 0 Tc (13430) Tj 49.0234 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. K) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENNEDY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENTER) Tj /F2 11 Tf 100 Tz 0 Ts ET Q q 1 0 0 1 0 792 cm 0 G .5 w 156 -140.25 m 456 -140.25 l s Q endstream endobj 48 0 obj 4648 endobj 46 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 49 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R /F4 9 0 R >> /ProcSet 1 0 R >> /Contents 47 0 R >> endobj %%Page: 14 14 51 0 obj << /Length 52 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F2 12 Tf 100 Tz 0 -8.4 Td 1.73 Tw 0 Tc (is within the discretion of the trial court, ) Tj /F4 12 Tf 100 Tz (see Coach House) Tj /F2 12 Tf 100 Tz (,) Tj 0 -13 Td .5 Tw (934 F.2d at 1558; ) Tj /F4 12 Tf 100 Tz (Piper Aircraft) Tj /F2 12 Tf 100 Tz (, 741 F.2d at 932-33, we will) Tj 0 -13 Td .4 Tw (vacate the judgment and remand so that the district court may) Tj 0 -13 Td .51 Tw (consider these questions consistent with the foregoing discus-) Tj 0 -13 Td 1.2 Tw (sion.) Tj /F1 12 Tf 100 Tz 0 -26 Td 1.42 Tw (E.) Tj 9 Tw ( ) Tj 1.42 Tw (Whether Appellants granted consent to use the ASR) Tj 23 -13 Td 1.2 Tw (marks after July 12, 2006) Tj /F1 12 Tf 100 Tz -11 -26 Td .52 Tw ([10]) Tj /F2 12 Tf 100 Tz () Tj 3 Tw ( ) Tj .52 Tw (Appellees contend that the judgment may be affirmed) Tj -12 -13.1 Td 1.5 Tw (based upon the district court's separate conclusion that their) Tj 0 -13.1 Td .2 Tw (use of the ASR marks was with Appellants' ) Tj (consent and per-) Tj 0 -13.1 Td 1.14 Tw (mission. The district court concluded that ) Tj ([Appellees'] use) Tj 0 -13.1 Td .37 Tw (of the intellectual property, including use past the commence-) Tj 0 -13.1 Td 2.53 Tw (ment of this litigation, was with [Appellants'] consent and) Tj 0 -13.1 Td 1.01 Tw (acquiescence. However, a fair reading of the district court's) Tj 0 -13.1 Td .5 Tw (discussion as a whole reflects a determination that Appellants) Tj /F4 12 Tf 100 Tz 0 -13.1 Td 1.09 Tw (consented ) Tj /F2 12 Tf 100 Tz (to the use of the ASR marks before July 12, 2006) Tj 0 -13.1 Td 2 Tw (and ) Tj /F4 12 Tf 100 Tz (acquiesced ) Tj /F2 12 Tf 100 Tz (to that use after July 12, 2006. The district) Tj 0 -13.1 Td .75 Tw (court observed that ) Tj ([Appellants'] conduct after they sent the) Tj 0 -13.1 Td 1.63 Tw (July 12, 2006 demand letter led [Appellees'] to believe that) Tj 0 -13.1 Td 1.71 Tw (they continued to have `permission' to use the trademarks.) Tj () Tj 0 -13.1 Td 4.03 Tw (The district court's phrasing i.e., that Appellees only) Tj /F4 12 Tf 100 Tz 0 -13.1 Td 1.08 Tw (believed ) Tj /F2 12 Tf 100 Tz (that they had ) Tj (permission) Tj ( demonstrates that the) Tj 0 -13.1 Td 1.17 Tw (district court was focused on acquiescence rather than actual) Tj 0 -13.1 Td 1.2 Tw (consent.) Tj /F1 12 Tf 100 Tz 12 -26 Td .67 Tw ([11]) Tj /F2 12 Tf 100 Tz () Tj 3 Tw ( ) Tj .67 Tw (To be sure, Kennedy made active representations that) Tj -12 -13.1 Td .7 Tw (Appellees could use the ASR marks, at least for the purposes) Tj 0 -13.1 Td 1.55 Tw (of specific tasks. The district court found that Kennedy ) Tj (re-) Tj 0 -13.1 Td .52 Tw (quest[ed] that [SAC] process certificates and certify members) Tj 0 -13.1 Td 1.77 Tw (in the ASR program for classes,) Tj ( and that he ) Tj (continued to) Tj 0 -13.1 Td .84 Tw (forward student information to SAC to be included in SAC's) Tj 0 -13.1 Td 4.28 Tw (`website system' [between July 12, 2006 and November) Tj 0 -13.1 Td 1.14 Tw (2007]. Nonetheless, as the district court determined, Appel-) Tj 0 -13.1 Td 1.63 Tw (lees did not have a contractual right to use the ASR marks.) Tj 0 -13.1 Td 1.17 Tw (Any consent that may have been granted after July 12, 2006) Tj 0 -13.1 Td 1.25 Tw (arguably amounted to nothing more than a revocable license) Tj 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 428.5 -136.5 Td 1.1 Tw 0 Tc (13431) Tj -223.4766 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. K) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENNEDY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENTER) Tj /F2 11 Tf 100 Tz 0 Ts ET Q q 1 0 0 1 0 792 cm 0 G .5 w 156 -140.25 m 456 -140.25 l s Q endstream endobj 52 0 obj 4009 endobj 50 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 49 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R /F4 9 0 R >> /ProcSet 1 0 R >> /Contents 51 0 R >> endobj %%Page: 15 15 54 0 obj << /Length 55 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F2 12 Tf 100 Tz 0 -8.4 Td 2.1 Tw 0 Tc (to use the ASR marks for the particular tasks. Because the) Tj 0 -13 Td .47 Tw (parties were litigating actively with respect to the ASR marks) Tj 0 -13 Td 1 Tw (at the time Kennedy made his requests, it would be difficult,) Tj 0 -13 Td 4.78 Tw (if not impossible, to determine if and when Appellants) Tj 0 -13 Td 1.11 Tw (revoked any post-July 12, 2006 consent to Appellees' use of) Tj 0 -13 Td .55 Tw (the marks. Because of these difficulties, the district court was) Tj 0 -13 Td .74 Tw (correct to apply the acquiescence doctrine to the instant case.) Tj 0 -13 Td .71 Tw (Rather than attempting to determine exactly when Appellants) Tj 0 -13 Td .44 Tw (granted or revoked consent, the proper inquiry is whether and) Tj 0 -13 Td 3.1 Tw (to what extent Appellees relied reasonably on Appellants') Tj 0 -13 Td 2.25 Tw (active representations that Appellees had a right to use the) Tj 0 -13 Td 1.2 Tw (marks.) Tj /F1 12 Tf 100 Tz 4.986 -25.9 Td (III.) Tj 9 Tw ( ) Tj 1.2 Tw (COSTS AND ATTORNEYS' FEES ON APPEAL) Tj /F1 12 Tf 100 Tz 7.014 -25.9 Td 1.52 Tw ([12]) Tj /F2 12 Tf 100 Tz () Tj 3 Tw ( ) Tj 1.52 Tw (Pursuant to Federal Rule of Appellate Procedure 38,) Tj -12 -13 Td 2.37 Tw (Appellees seek double costs and attorneys' fees on appeal.) Tj 0 -13 Td .95 Tw (We can award such relief only `if the result is obvious or if) Tj 0 -13.1 Td 1.3 Tw (the claims of error are wholly without merit.') Tj 0 Tw ( ) Tj 1.3 Tw ( ) Tj /F4 12 Tf 100 Tz (In re Peoro) Tj /F2 12 Tf 100 Tz (,) Tj 0 -13.1 Td 2.22 Tw (793 F.2d 1048, 1052 \(9th Cir. 1986\) \(quoting) Tj /F4 12 Tf 100 Tz ( Orange Belt) Tj 0 -13.1 Td .08 Tw (Dist. Council of Painters No. 48 v. Kashak) Tj /F2 12 Tf 100 Tz (, 774 F.2d 985, 991) Tj 0 -13.1 Td 3 Tw (\(9th Cir. 1985\)\). Appellees contend that Appellants' argu-) Tj 0 -13.1 Td 1.55 Tw (ments are without merit. Because we conclude that the case) Tj 0 -13.1 Td 1.47 Tw (must be remanded to the district court,) Tj 4.9 Ts /F5 6 Tf 100 Tz (3) Tj 0 Ts /F2 12 Tf 100 Tz ( we cannot conclude) Tj 0 -13.1 Td 1.2 Tw (that Appellants' arguments are wholly without merit.) Tj 4.9 Ts /F5 6 Tf 100 Tz .5 Tw (4) Tj 0 Ts /F1 12 Tf 100 Tz 95.166 -25.9 Td 1.2 Tw (IV.) Tj 9 Tw ( ) Tj 1.2 Tw (CONCLUSION) Tj /F2 12 Tf 100 Tz -83.166 -25.9 Td 1.5 Tw (We affirm the district court's conclusion that the doctrine) Tj -12 -13.1 Td .53 Tw (of unclean hands does not bar the application of the equitable) Tj /F2 10 Tf 100 Tz 10 -25.7 Td 4.1 Ts /F5 6 Tf 100 Tz 1.26 Tw (3) Tj 0 Ts /F2 10 Tf 100 Tz (Appellees also argue that Appellants' briefing raises matters not pre-) Tj -10 -11.1 Td .11 Tw (sented to the district court and contains misleading and inappropriate char-) Tj 0 -11.1 Td .36 Tw (acterizations of the district court's determinations. Although there is some) Tj 0 -11.1 Td .42 Tw (merit to these observations, we conclude that sanctions would be inappro-) Tj 0 -11.1 Td 1 Tw (priate. ) Tj 10 -13.9 Td 4.1 Ts /F5 6 Tf 100 Tz .47 Tw (4) Tj 0 Ts /F2 10 Tf 100 Tz (In light of this disposition, Appellants' motion to stay consideration of) Tj -10 -11.1 Td .31 Tw (this issue and to strike Appellees' brief in opposition to the motion to stay) Tj 0 -11.1 Td 1 Tw (are terminated as moot. ) Tj ET Q q 1 0 0 1 156 643.5 cm 0 G .5 w 0 -397.35 m 300 -397.35 l s Q q BT 0 Tr 0 g 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 156 -136.5 Td 1.1 Tw 0 Tc (13432) Tj 49.0234 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. K) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENNEDY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ENTER) Tj /F2 11 Tf 100 Tz 0 Ts ET Q q 1 0 0 1 0 792 cm 0 G .5 w 156 -140.25 m 456 -140.25 l s Q endstream endobj 55 0 obj 4092 endobj 53 0 obj << /Type /Page /MediaBox [0 0 612 792] /Parent 49 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R /F4 9 0 R /F5 14 0 R >> /ProcSet 1 0 R >> /Contents 54 0 R >> endobj %%Page: 16 16 57 0 obj << /Length 58 0 R >> stream q BT 0 Tr 0 g 1 0 0 1 156 643.5 Tm /F2 12 Tf 100 Tz 0 -8.4 Td 2.41 Tw 0 Tc (defense of acquiescence in this instance and its conclusion) Tj 0 -13.2 Td 2.4 Tw (that RealtyU had permission to use the ASR marks before) Tj 0 -13.2 Td .09 Tw (July 12, 2006. We vacate the judgment and remand so that the) Tj 0 -13.2 Td 3.28 Tw (district court may consider the applicability of Appellees') Tj 0 -13.2 Td .03 Tw (defense of acquiescence in a manner consistent with this opin-) Tj 0 -13.2 Td 1.2 Tw (ion. Each party shall bear its own costs.) Tj 12 -26.2 Td 5.55 Tw (AFFIRMED IN PART, VACATED IN PART, AND) Tj -12 -13.2 Td 1.2 Tw (REMANDED.) Tj 1 0 0 1 0 792 Tm /F2 11 Tf 100 Tz 428.5 -136.5 Td 1.1 Tw 0 Tc (13433) Tj -223.4766 0 Td (S) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (ELLER) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( A) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (GENCY) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( C) Tj /F2 7.7 Tf 101.2 Tz .79 Tw (OUNCIL) Tj /F2 11 Tf 100 Tz 0 Ts 1.1 Tw ( v. 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