DMACC Prevails in Two Key Rulings in Trademark Case
The United States District Court for the Southern District of Iowa sided with Des Moines Area Community College (DMACC) yesterday on two significant rulings in ongoing trademark litigation brought on by Drake University.
Chief District Judge Stephanie Rose granted DMACC's motion to increase Drake’s required preliminary injunction bond amount from $25,000 to $250,000, while simultaneously denying Drake's motion for an order to show cause regarding alleged non-compliance following the Court’s previous order that DMACC remove all instances of the logo at the center of Drake’s lawsuit.
In denying Drake's motion, the Court found DMACC's interpretation of previous orders "reasonable" and its actions "based on good faith." DMACC had argued that it worked diligently to comply, successfully managing a complex logistical process in just three weeks. The Court agreed, recognizing that “the eradication of the uses of the enjoined ‘D’ required in the preliminary injunction is no small task.”
“We are thankful that the Court upheld what we have maintained all along, that DMACC moved quickly to comply with the preliminary injunction,” said Erica Spiller, vice president of student affairs at DMACC. “It took an enormous team effort to accomplish what we did in only 21 days, including the Thanksgiving holiday and finals week. To then have to defend ourselves against Drake’s unreasonable allegations that we defied the Court’s order was an affront to our faculty, staff, and corporate, educational, and community partners across central Iowa.”
In affirming DMACC’s motion to increase Drake’s injunction bond from $25,000 to $250,000, the Court recognized DMACC’s comprehensive documentation of the expenses it incurred in complying with the preliminary injunction. An injunction bond protects a defendant from financial damages if they are harmed by a wrongfully issued injunction. DMACC submitted “over 30 exhibits, including invoices and price quotes for new materials and products needed to comply with the preliminary injunction.” Drake contended that DMACC made unnecessary purchases and speculated on the actual amount of damages it incurred. The Court rejected Drake’s arguments and required Drake to remit an additional bond in the amount of $225,000 within 14 days.
“Again, we are pleased that the Court saw through Drake’s unreasonable demands,” said Spiller. “As anyone who manages the brand of a large institution would know, complying with the Court’s order to take down that branding, while still providing the experience that students and athletes at any quality institution should expect, is a costly endeavor.”
Spiller reiterated DMACC’s openness to settling the case. “We have repeatedly offered to compromise, both before Drake filed suit and since,” she said. “Most recently, we offered to switch the logo to an alternate DMACC ‘D’ mark that is already part of a federally registered trademark, has been in use at DMACC for more than a decade, and that the Judge reiterated was ‘visually distinct and fundamentally different’ from Drake’s generic ‘D’ mark at issue.
“We remain willing to discuss reasonable settlement terms. Until then, we will continue to defend ourselves, as it is critical to discern and resolve that Drake University does not own the letter ‘D’ in all its forms.”
DMACC remains focused on student success. President Rob Denson, who recently announced his retirement at the end of the year, underscored DMACC’s core mission. “DMACC is on the move,” Denson said. “Our enrollment is up, our student retention is up, and our message of offering students the lowest tuition and fees in Iowa is resonating with students and families. We will continue to keep students at the center of everything we do, and this lawsuit will not distract us from that mission.”
For more information, contact:
Erica Spiller, Vice President, Student Affairs
(515) 964-6622, elspiller@dmacc.edu