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  • Michigan Lawyers Weekly

    Court sides with national fraternity in trademark dispute

    By Michigan Lawyers Weekly Staff,

    2024-05-09

    Sigma Phi Society (“National”) operates the nation’s oldest existing Greek fraternity, operating since 1827. The National’s constitution identifies it as an all-male fraternity. Michigan Sigma Phi the Michigan Chapter is one of the National’s oldest chapters.

    The Michigan Chapter began secretly allowing non-male members to join its chapter in violation of the National’s Constitution. The National attempted to resolve the situation but ultimately was forced to revoke the Michigan Chapter’s use of the National’s trademarks: “Sigma Phi” and “S F.” The Michigan Chapter nonetheless continued to use the National’s trademarks.

    National sued in the Eastern District of Michigan, alleging that the Michigan Chapter had engaged in unfair competition and had infringed on the National’s trademark rights under both common law and in violation of the federal Lanham Act, 15 U.S.C. 1051 et seq. The National sought a court order permanently prohibiting the Michigan Chapter from using the National’s trademarks, along with attorneys’ fees.

    The court initially entered a temporary restraining order, and later a preliminary injunction, against the Michigan Chapter.

    After two years of litigation, both the National and the Michigan Chapter filed motions for summary judgment. The National argued there was no legitimate dispute that the Michigan Chapter had infringed on the National’s trademark rights. The Michigan Chapter made multiple arguments in its defense: 1) that it retained its charter from the National and thus possessed an implied license to use the trademarks; 2) that the Michigan Chapter’s use of the trademarks was not likely to cause confusion; and 3) that the court should not grant the National relief because doing so would be “inequitable, unconscionable, and unjust.”

    The court issued a 24-page opinion in which it rejected the Michigan Chapter’s arguments and instead concluded that the National was correct: As a matter of law, the Michigan Chapter had engaged in trademark infringement and unfair competition.

    In ruling in the National’s favor, the court found that, while the Michigan Chapter retained its charter and possessed an implied license, the National had repeatedly revoked that license due to the Michigan Chapter’s violation of the National’s Constitution.

    The court cited multiple decisions in other fraternity and non-profit cases including the Jaycees and Kappa Sigma Fraternity to find that the Michigan Chapter’s continued use of the National’s trademarks would in fact likely cause confusion, concluding that the Michigan Chapter’s use of the trademarks “would cause any reasonable person to associate” the Michigan Chapter with the National.

    Finally, the court rejected the Michigan Chapter’s arguments regarding unconscionability. The court noted that the Michigan Chapter did “not cite a single applicable case showing” that the National “has violated the law, nor have they identified the law” that the National allegedly violated. The court also pointed out that the Michigan Chapter failed to “cite any cases where a court has held that a fraternity (or sorority) violates the Equal Protection Clause or any other provision of the United States Constitution for having single sex membership requirements.”

    Plaintiff’s counsel, R.J. Cronkhite, provided case information.

    Type of action: Trademark infringement

    Injuries alleged: Irreparable harm

    Name of case: Sigma Phi Society v. Michigan Sigma Phi, et al.

    Court/Case no./Date: U.S. District Court, Eastern District of Michigan; 20-12817; 03/31/2024

    Tried before: Judge

    Name of judge: Hon. Denise Page Hood

    Judgment: Permanent injunction

    Attorney for plaintiff: R.J. Cronkhite, Birmingham

    Copyright © 2024 BridgeTower Media. All Rights Reserved.

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