Experience Hendrix L.L.C. v. Hendrixlicensing.com Ltd.
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Full Opinion
ORDER AND AMENDED OPINION
ORDER
The Opinion filed January 29, 2014, appearing at 742 F.3d 377, is amended sua sponte to remove footnote 6.
A copy of the our amended decision and original concurrence is attached to this Order and filed concurrently with this Order.
With this amendment, the panel has voted unanimously to DENY the petition for REHEARING and the petition for REHEARING EN BANC. The full court has been advised of the petition for rehearing en banc, and no judge has requested a vote on whether to rehear the matter. Fed. R.App. P.35.
The petition for rehearing and the petition for rehearing en banc are DENIED. No further petitions for panel rehearing or for rehearing en banc will be entertained.
OPINION
This litigation stems from a dispute over the commercial use of a deceased celebrity’s image, likeness, and name. The sole heir of deceased rock legend Jimi Hendrix formed two companies, Plaintiffs Experience Hendrix, L.L.C., and its wholly owned subsidiary, Authentic Hendrix, L.L.C. (collectively “Experience Hendrix”). Among other things, Experience Hendrix owns trademarks that it uses to sell and license products related to Jimi Hendrix. In this litigation, Experience Hendrix succeeded on its claims alleging that Defendants Andrew Pitsicalis and his company, Hendrixlicensing.com, L.L.C. (collectively “Pitsicalis”
For his part, Pitsicalis sought a declaratory judgment declaring that a third statute, Washington’s Personality Rights Act, does not afford the heir of Jimi Hendrix any postmortem publicity rights. The district court held that the Act does purport to give the heir of Jimi Hendrix postmortem publicity rights, which Experience Hendrix would own. But the district court went on to hold that those portions of the Washington Personality Rights Act affording those publicity rights are unconstitutional. We AFFIRM the district court’s decision interpreting the Act to give postmortem publicity rights to Jimi Hendrix’s heir, but REVERSE and VACATE the holding that the statute is unconstitutional as applied to the narrow circumstances presented here. Thus, we REMAND Pit-sicalis’s claims as well for further proceedings.
I. Background
Experience Hendrix holds a number of trademarks associated with Jimi Hendrix, including the names “Hendrix” and “Jimi Hendrix” and Jimi Hendrix’s signature, as well as logos incorporating a “headshot” of Hendrix. Experience Hendrix uses these trademarks to market, sell and license Hendrix-related merchandise, including apparel, posters, and artwork sold to the public through Internet websites and brick-and-mortar retail stores throughout the United States, including the state of Washington.
Pitsicalis has also used Jimi Hendrix’s celebrity status commercially. Pitsicalis owns, or has licenses to use, photographs and original pieces of art depicting Hendrix, as well as visual artwork created by Hendrix himself. In 2008, Pitsicalis began licensing the right to use these images to produce and sell Hendrix-related merchandise, including apparel, posters and household items. Like Experience Hendrix, Pit-sicalis’s licensees sold this merchandise over the Internet and in brick-and-mortar stores. Pitsicalis placed marks on his licensed products that used the names “Hendrix” and “Jimi Hendrix,” as well as Jimi Hendrix’s signature and a logo of Hendrix’s headshot with a guitar. In conducting his business, Pitsicalis also used two websites with the domain names hen-drixlicensing.com and hendrixartwork.com.
In March 2009, Experience Hendrix sued Pitsicalis under two statutes. First, Experience Hendrix alleged that Pitsicalis was infringing Experience Hendrix’s trademarks in violation of the federal Lan-ham Act, see 15 U.S.C. §§ 1051-1127. Second, Experience Hendrix alleged that this trademark infringement also amounted to an unfair or deceptive trade practice proscribed by Washington’s Consumer Protection Act (“WCPA”), see Wash. Rev. Code §§ 19.86.010-19.86.920. The district court granted Experience Hendrix partial summary judgment on the federal Lanham Act claim, concluding that Pitsicalis had infringed Experience Hendrix’s trademarks. The court permanently enjoined
Pitsicalis, in turn, asserted counterclaims against Experience Hendrix, seeking a judgment declaring that a third statute, Washington’s Personality Rights Act (“WPRA”), Wash. Rev.Code §§ 63.60.010-63.60.080, does not provide Experience Hendrix with Hendrix’s post-mortem publicity rights.
II. DISCUSSION
We address first Pitsiealis’s counterclaims regarding the WPRA, before turning to Experience Hendrix’s claims.
A. Jimi Hendrix’s post-mortem publicity rights under the WPRA
1. Standing
Through his counterclaims, Pitsi-calis sought a judgment declaring that 1) the WPRA “does not apply to publicity rights in Jimi Hendrix” and, therefore, 2) “it is possible to trade in original images and likenesses of Jimi Hendrix without creating a per se infringement of Experience [Hendrix’s] trademark rights.” As a threshold matter, Experience Hendrix contends that Pitsicalis lacks Article III standing to assert these declaratory judgment claims.
However, there is no doubt that an actual controversy exists between Pitsicalis and Experience Hendrix under the federal Lanham Act, in light of this ongoing litigation Experience Hendrix initiated against Pitsicalis. As a result of this litigation, Experience Hendrix has notified potential customers of Pitsiealis-licensed products as to Experience Hendrix’s trademark rights. And there is no question about Experience Hendrix’s standing to assert its Lanham Act claims against Pitsicalis for trademark infringement.
It is within this same litigation that Pit-sicalis sought a judgment declaring that, under the WPRA, Experience Hendrix has acquired from Jimi Hendrix no post-mor-tem publicity rights, which Experience Hendrix could use to sue or threaten to sue Pitsicalis and his licensees, customers and potential customers. Experience Hendrix has in fact previously asserted Jimi Hendrix’s publicity rights, albeit under an earlier version of the WPRA, in prior litigation which resulted in a final ruling that the initial version of the WPRA was inapplicable to Jimi Hendrix. That ruling was based upon choice-of-law principles which required application of New York law. New York was the domicile of Jimi Hendrix at the time of his death and it did not recognize these post-mortem rights. Experience Hendrix, LLC v. Electric Hendrix, LLC, No. C07-0338 TSZ, 2008 WL 3243896, at *2-*4 (W.D.Wash. Aug. 7, 2008) (unreported).
In 2008, however, the Washington legislature amended the WPRA to apply it “to all individuals and personalities, living and deceased, regardless of place of domicile or place of domicile at time of death.” Wash. Rev.Code § 63.60.010. The amended
The record here does not reveal any evidence that Experience Hendrix has explicitly threatened Pitsicalis, or his licensees, customers or potential customers with suit under the amended WPRA. But Pitsicalis alleged that Experience Hendrix, relying on rights that go beyond its federally protected trademarks, interfered with the sale, by one of Pitsicalis’s licensees to the retailer Spencer’s Gifts, of Pitsicalis-licensed Hendrix-related merchandise that did not infringe Experience Hendrix’s trademarks.
2. The WPRA is constitutional as applied to the narrow set of non-speculative circumstances at issue here
The parties do not dispute that the amended WPRA recognizes post-mortem personality rights belonging to Jimi Hendrix, notwithstanding that 1) he died in 1970, before Washington originally enacted the WPRA; 2) he was domiciled in New York at the time of his death; and 3) New York law does not recognize a post-mor-tem right of publicity that would survive Jimi Hendrix’s death and descend to his heir. The parties also do not dispute that, under the WPRA, Experience Hendrix owns Jimi Hendrix’s post-mortem personality rights. Notwithstanding that the WPRA thus on its face provides Experience Hendrix with Jimi Hendrix’s postmortem personality rights, the district
The narrow, non-speculative WPRA controversy before us, as Pitsicalis has alleged it, involves only (1) Pitsicalis’s “reasonable apprehension” that Experience Hendrix will use the WPRA to stop his attempts to license unofficial Hendrix-related products for sale in Washington, and (2) Pitsicalis’s licensee’s unsuccessful attempt to introduce into Washington, through his licensee’s dealings with Spencer’s Gifts, Pitsi-calis-licensed goods that bore Hendrix’s image and likeness, but that did not carry marks that infringed Experience Hendrix’s trademarks.
Washington’s approach to post-mortem personality rights raises difficult questions regarding whether another state must recognize the broad personality rights that Washington provides. But we need not resolve that issue. Here, the limited controversy before us, as Pitsicalis has alleged it, involves only Experience Hendrix’s interference with the sale in Washington of Pitsicalis-licensed, unofficial but non-infringing goods bearing Hendrix’s likeness, as well as Pitsicalis’s “reasonable apprehension” that Experience Hendrix will attempt to stop such targeted sales in Washington in the future.
a. Due Process/Full Faith and Credit Clauses
The district court held that applying Washington’s WPRA here, instead of the law of New York, the state where Jimi Hendrix was domiciled at the time of his death, violated choice-of-law principles protected by the Due Process and Full Faith and Credit Clauses of the U.S. Constitution. Those Clauses require that, “for a State’s substantive law to be selected [and applied to a particular case] in a constitutionally permissible manner, that State must have a significant contact or significant aggregation of contacts, creating state interests, such that choice of its law is neither arbitrary nor fundamentally unfair.” Allstate Ins. Co. v. Hague, 449 U.S. 302, 312-13, 101 S.Ct. 633, 66 L.Ed.2d 521 (1981).
Washington has sufficiently significant contacts with the actual, non-speculative controversy at issue here, which involves the loss of sales in Washington of Pitsical-is-licensed goods. Therefore, because these contacts are sufficient to give Washington an interest in applying its own law to this controversy, it is not arbitrary or unfair to apply the WPRA here. See id.; see also AT & T Mobility LLC v. AU Optronics Corp., 707 F.3d 1106, 1111 (9th Cir.2013) (noting that “Allstate places only ‘modest restrictions on the application of forum law,’ and most commentators have viewed Allstate as setting a highly permissive standard” (internal citation omitted)).
The district court also held that applying the WPRA to this case would violate the dormant Commerce Clause, which limits the power of states to enact laws imposing substantial burdens on interstate commerce. See Nat’l Ass’n of Optometrists & Opticians v. Harris, 682 F.3d 1144, 1148-50 (9th Cir.2012). The district court reasoned that, although the WPRA does not discriminate against out-of-state interests, to apply the WPRA to the controversy at issue here would, nevertheless, give the WPRA an impermissible extraterritorial reach, encompassing “a variety of transactions occurring ‘wholly outside’ Washington’s borders.” However, the limited, non-speculative controversy at issue here, does not affect transactions occurring wholly outside Washington. Cf. Am. Trucking Ass’ns, Inc. v. Mich. Pub. Serv. Comm’n, 545 U.S. 429, 434, 125 S.Ct. 2419, 162 L.Ed.2d 407 (2005) (holding Michigan’s flat tax on activities taking place exclusively within that state did not violate the dormant Commerce Clause). Nor does the record suggest that the application of the WPRA to the limited, non-speculative controversy at issue here would otherwise im-permissibly burden interstate commerce. See id. at 434-38, 125 S.Ct. 2419.
3. Conclusion as to Pitsicalis’s declaratory judgment claims
For the foregoing reasons, we conclude that the WPRA can be applied constitutionally to the narrow controversy at issue here. We, therefore, reverse the district court’s decision to grant Pitsicalis summary judgment on his declaratory judgment claims and we remand those claims to the district court with instructions for the district court to enter summary judgment in favor of Experience Hendrix. See Gospel Missions of Am. v. City of Los Angeles, 328 F.3d 548, 553 (9th Cir.2003) (“Even when there has been no cross-motion for summary judgment, a district court may enter summary judgment sua sponte against a moving party if the losing party has had a full and fair opportunity to ventilate the issues involved in the matter.” (internal quotation marks omitted)).
B. Trademark infringement and deceptive trade practices
We turn now to the claims Experience Hendrix asserted against Pitsicalis. Experience Hendrix’s claims against Pitsicalis are premised on allegations that Pitsicalis infringed several of Experience Hendrix’s trademarks related to Jimi Hendrix. Experience Hendrix asserted trademark infringement claims under two different statutes. First, Experience Hendrix brought a claim under the federal Lanham Act specifically alleging trademark infringement. The district court ultimately ruled as a matter of law that Pitsicalis had in fact infringed several of Experience Hendrix’s trademarks.
Second, Experience Hendrix brought a claim against Pitsicalis under the Washington Consumer Protection Act (“WCPA”), which prohibits unfair or deceptive trade practices. Under the WCPA, Experience Hendrix alleged that Pitsicalis’s conduct in infringing Experience Hendrix’s trademarks amounted to an unfair or deceptive trade practice proscribed by the WCPA. A jury found that Pitsicalis had in fact committed an unfair trade practice by infringing Experience Hendrix’s trademarks.
On appeal, Pitsicalis challenges only one aspect of the district court’s conclusion that he is liable for infringing Experience Hendrix’s trademarks: Pitsicalis argues that his domain names hendrixlieensing. com and hendrixartwork.com did not violate the federal Lanham Act by infringing Experience Hendrix’s trademark “Hen
Experience Hendrix sought several remedies to redress Pitsicalis’s infringing conduct under both the federal Lanham Act and WCPA. First, Experience Hendrix sought an injunction permanently enjoining Pitsicalis from further infringing Experience Hendrix’s trademarks. The district court entered such a permanent injunction, but Experience Hendrix, nevertheless, challenges language the court included in that injunction. We conclude that one sentence of the injunction is sufficiently unclear to require a remand so the district court can clarify what conduct is and is not enjoined.
' Experience Hendrix also sought damages, under both the federal Lanham Act and the WCPA, to compensate Experience Hendrix for Pitsicalis’s past infringement. The jury awarded Experience Hendrix several different measures of damages under both acts, totaling over $1.7 million. The district court struck all but $60,000 of that award. On appeal, Experience Hendrix seeks reinstatement of the jury’s entire damages award. We agree with Experience Hendrix that it was error for the district court, under Fed.R.Civ.P. 50(b)(3), to set aside all but $60,000 of the jury’s award. There was legally sufficient evidence to support that award. However, the district court, alternatively, ruled that, if our court reinstated the jury’s damages award, as we do here, then a new trial on damages is warranted under Rule 59. We conclude that the district court’s alternative ruling for a new trial was not an abuse of discretion and we, therefore, remand for a new trial limited to the issue of damages.
Finally, Experience Hendrix requested an award of attorney’s fees in the amount of over $500,000. The district court awarded a much smaller amount, $50,000. Experience Hendrix challenges the court’s denial of much of its attorney fee request. We vacate the fee award and remand for the district court’s reconsideration because many of the factors on which the district court based its attorney fee decision have now changed.
1. Pitsicalis’s liability under the federal Lanham Act for using domain names that infringed Experience Hendrix’s trademark “Hendrix”
The district court granted Experience Hendrix partial summary judgment, concluding Pitsicalis had infringed several of Experience Hendrix’s trademarks. On appeal, Pitsicalis challenges only one aspect of that ruling, arguing that the district court erred in determining that his domain names, hendrixlicensing.com and hendrixartwork.com, infringed Experience Hendrix’s trademark “Hendrix.” We review that determination de novo.
Pitsicalis defended his use of the trademark “Hendrix” in his domain names
2. Paragraph 5 of the permanent injunction is inadequate
After concluding that Pitsicalis infringed several of Experience Hendrix’s trademarks, the district court issued in-junctive relief under the Lanham Act, permanently enjoining Pitsicalis’s infringing conduct. Experience Hendrix, the beneficiary of that injunction, argues that Paragraph 5 of the injunction fails to state clearly the terms of the injunction and does not describe in reasonable detail the acts that are and are not restrained. See Fed.R.Civ.P. 65(d)(1). We agree with Experience Hendrix in part.
Briefly summarized, paragraph l(iii)-(iv) of the challenged injunction permanently enjoins Pitsicalis from using Pitsicalis’s “ ‘guitar and headshot’ logo or any similar mark, brand, or logo,” and from using the Jimi Hendrix signature set forth in the injunction, “or any similar signature, mark, brand, or logo.” But then, contrary to that provision, the first sentence in the challenged Paragraph 5 states that “[n]othing in this Permanent Injunction shall be construed as enjoining, prohibiting, or otherwise inhibiting [Pitsicalis] or any other entity or person from creating, reproducing, advertising, distributing, selling, or otherwise commercially trading in images or likenesses of Jimi Hendrix.” These two provisions appear to be in some conflict or at least are ambiguous when read together. Thus, in this particular, the injunction does not clearly state what conduct is and is not restrained. We, therefore, vacate the permanent injunction and remand to the district court to revise the permanent injunction in order to clarify what conduct is and is not restrained.
We reject Experience Hendrix’s challenges to the rest of Paragraph 5. The second sentence of Paragraph 5 states that “[t]he Court makes no ruling concerning whether ... images or likenesses [of Jimi Hendrix] might be otherwise protected by copyright laws.” The district court did not abuse its discretion in including this language in the permanent injunction, see Skydive Ariz., Inc. v. Quattrocchi, 673 F.3d 1105, 1110 (9th Cir.2012), because this language only clarified that the district court had not ruled on any possible infringement of Experience Hendrix’s copyrights because Experience Hendrix never alleged a copyright claim. See id. at 1116 (“An injunction should be tailored to
The third and final sentence of Paragraph 5 states that “nothing in this Permanent Injunction shall be construed as enjoining, prohibiting, or otherwise inhibiting Defendants or any other entity or person from using the names or marks ‘Jimi Hendrix’ or ‘Hendrix’ to identify the subject of an associated image or the author or creator of an associated work of art.” This language does not conflict with the injunction’s earlier language specifically precluding Pitsicalis from using “Hendrix” in its business and domain names. Nor does this third sentence, contrary to Experience Hendrix’s argument, affirmatively permit Pitsicalis or anyone else to infringe Experience Hendrix’s trademarks “Hendrix” and “Jimi Hendrix.” Instead, this language accurately indicates that the district court never ruled on Experience Hendrix’s claims, abandoned in the district court, which alleged that Pitsicalis’s use of the names “Hendrix” and “Jimi Hendrix” to describe the images Pitsicalis used in his unofficial Hendrix-related products infringed Experience Hendrix’s trademarks “Hendrix” and “Jimi Hendrix.” In this regard, the district court again properly limited the terms of the injunction to the specific claims before it, and then only to those claims on which Experience Hendrix prevailed. See Skydive Ariz., 673 F.3d at 1116; see also Toyota Motor Sales, U.S.A., Inc. v. Tabari, 610 F.3d 1171, 1176 (9th Cir.2010) (noting that court must tailor injunction “to eliminate only the specific harm alleged”) (quoting E. & J. Gallo Winery v. Gallo Cattle Co., 967 F.2d 1280, 1297 (9th Cir.1992)); cf. Aspex Eyewear, Inc. v. Marchon Eyewear, Inc., 672 F.3d 1335, 1344 (Fed.Cir.2012) (noting, in patent infringement case, the frequent admonishment that district courts are “not to issue sweeping injunctions against potentially infringing activities ..., but to restrict the scope of the injunction to the particular adjudicated infringing activity”).
In sum, the first sentence in Paragraph 5 of the permanent injunction — stating that “[njothing in this Permanent Injunction shall be construed as enjoining, prohibiting, or otherwise inhibiting Defendants or any other entity from creating, reproducing, advertising, distributing, selling, or otherwise commercially trading in images or likenesses of Jimi Hendrix”— conflicts with the earlier provisions of the injunction restraining Pitsicalis from using a Jimi Hendrix “guitar and headshot” logo or any similar mark, brand or logo. We, therefore, vacate the permanent injunction and remand to the district court to clarify what conduct is and is not enjoined.
3. Damages under both the federal Lanham Act and the WCPA
In addition to seeking an injunction permanently enjoining Pitsicalis from infringing Experience Hendrix’s trademarks, Experience Hendrix also sought damages to compensate it for Pitsicalis’s past infringement. There are two related issues involving damages that we must address, one involving the district court’s order entering a greatly reduced damages award under Fed.R.Civ.P. 50(b)(3), and the other involving the district court’s alternative order granting a new trial on damages under Fed.R.Civ.P. 59.
The second issue regarding damages involves the same damages awards, but this time under Rule 59’s new-trial provisions. Rule 59 provides a different legal standard for both the district court and for us. Regarding a Rule 59 motion, the district court can weigh the evidence, make credibility determinations, and grant a new trial for any reason necessary to prevent a miscarriage of justice. The appellate court reviews the district court’s determination of these matters for an abuse of discretion. Those standards require that we affirm here the district court’s grant of a new trial under Rule 59, even though we reverse the district court’s decision to grant Pitsicalis judgment as a matter of law under Rule 50(b)(3).
a. Overview of the jury’s award of damages under the federal Lan-ham Act and the WCPA
Based on Pitsicalis’s infringing Experience Hendrix’s trademarks in violation of the Lanham Act, the jury awarded Experience Hendrix 1) $60,000, representing the profits Pitsicalis made from licensing his infringing goods; and 2) $306,650 to compensate Experience Hendrix for the profits Experience Hendrix lost because of Pitsicalis’s infringing conduct.
Finding that this same trademark infringement also amounted to an unfair or deceptive trade practice under the WCPA, the jury further awarded Experience Hendrix a total of $1,365,650 in damages under that statute. The WCPA award represented apparently the same $306,650 in lost profits for Experience Hendrix as a result of Pitsicalis’s unfair trade practices, $750,000 for injury to Experience Hendrix’s reputation, and $300,000 for Experience Hendrix’s loss of goodwill.
After the jury’s verdict, the district court granted Pitsicalis’s Fed.R.CivJP. 50(b)(3) motion and struck, as unsupported by the evidence, all of the damages awarded except the $60,000 award under the Lanham Act for the profits Pitsicalis made from infringing Experience Hendrix’s trademarks.
At first glance, our resolution—first reinstating the jury’s damages award and then affirming the district court’s decision to have a new trial on damages—may seem contradictory. But our decision is consistent with the differing standards that governed the district court’s consideration of Pitsicalis’s Rule 50(b)(3) and Rule 59 motions, as well as the differing standards by which we review the district court’s determination of those motions.
In considering a Rule 50(b)(3) motion for judgment as a matter of law, the district court must uphold the jury’s award if there was any “legally sufficient basis” to support it. Costa v. Desert Palace, Inc., 299 F.3d 838, 859 (9th Cir.2002). In making that determination, the district court considers all of the evidence in the record, drawing all reasonable inferences in favor of the nonmoving party, Experience Hendrix; the court may not make any credibility determinations or reweigh the evidence. See Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 150, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000). Because we review the district court’s Rule 50(b)(3) decision de novo, we apply those same legal standards on appeal. See Go Daddy Software, 581 F.3d at 961.
Unlike with a Rule 50 determination, the district court, in considering a Rule 59 motion for new trial, is not required to view the trial evidence in the light most favorable to the verdict. Instead, the district court can weigh the evidence and assess the credibility of the witnesses. See Kode v. Carlson, 596 F.3d 608, 612 (9th Cir.2010) (per curiam). The district court also is not limited to the grounds a party asserts to justify a new trial, but may sua sponte raise its own concerns about the damages verdict. See Fed.R.Civ.P. 59(d). Ultimately, the district court can grant a new trial under Rule 59 on any ground necessary to prevent a miscarriage of justice. See Murphy v. City of Long Beach, 914 F.2d 183, 187 (9th Cir.1990). We afford considerable deference to the district court’s new trial decision and will not overturn the district court’s decision to grant a new trial absent an abuse of discretion, meaning “only when the district court reaches a result that is illogical, implausible, or without support in the inferences that may be drawn from the record.” Kode, 596 F.3d at 612.
With these different legal standards in mind, we consider first the district court’s Rule 50(b)(3) decision to vacate most of the jury’s damages award, and then we address the district court’s Rule 59 new trial decision.
b. The district court erred in striking under Fed.R.Civ.P. 50(b)(3) most of the damages awarded by the jury
To recap, the district court, acting under Rule 50(b)(3), struck the jury’s award of lost profits under both the federal Lanham Act and the WCPA, and it struck the damages awards, made under the WCPA, for loss of goodwill and reputation. We review the district court’s determination de novo, and we will uphold the jury’s award if there was any “legally sufficient basis” to support it. Costa, 299 F.3d at 859.
i. The jury’s damages award for Experience Hendrix’s lost profits
For the amount of profits Experience Hendrix lost as the result of Pitsical-
The district court instructed jurors that they were to calculate profits “by deducting all expenses from gross revenue.” It was Experience Hendrix’s burden to prove its damages. See Lindy Pen Co. v. Bic Pen Corp., 982 F.2d 1400, 1407 (9th Cir.1993) (applying 15 U.S.C. § 1117(a)). In striking the jury’s award for Experience Hendrix’s lost profits, the district court held that, while Experience Hendrix had presented evidence of its lost revenue, it had failed to offer any evidence as to its expenses, which the jury was required to deduct from the lost revenue in order to calculate Experience Hendrix’s lost profits.
During the jury instruction conference, after the close of evidence, Experience Hendrix acknowledged that it had not presented the jury with any evidence of its expenses. This was because Experience Hendrix mistakenly believed that it bore the burden of proving only its lost revenue and that, once it had made that showing, the burden shifted to Pitsicalis to prove any expenses that jurors should deduct in order to calculate Experience Hendrix’s lost profits. The Lanham Act applies this burden-shifting framework to proof of the defendant infringer’s lost profits. See 15 U.S.C. § 1117(a). But the burden remained with Experience Hendrix, as the plaintiff, to prove its actual damages, including its own lost profits. See Lindy Pen, 982 F.2d at 1407.
Notwithstanding Experience Hendrix’s confusion as to the burdens of proof, there was sufficient evidence before the jurors from which they could calculate the profits Experience Hendrix lost due to Pitsicalis’s infringing conduct. That evidence included the following: There was undisputed evidence that, at the same time that Pitsi-calis was licensing his infringing goods, Experience Hendrix suffered a significant decline in its own licensing revenue earned from products similar to Pitsicalis’s infringing merchandise. There was also testimony describing the nature of licensing revenue generally as a licensee’s payment to the licensor of a percentage of the licensee’s revenue in return for the use of the licensor’s intellectual property. In addi
ii. The jury’s damages award for Experience Hendrix’s loss of goodwill and reputation
The jury also awarded Experience Hendrix $750,000 in damages for harm Pitsicalis caused to its reputation and $300,000 for the loss of goodwill. The jury awarded these measures of damages only under the WCPA. See Wash. State Physicians Ins. Exch. & Ass’n v. Fisons Corp., 122 Wash.2d 299, 858 P.2d 1054, 1063