Procedural Missteps Cause Fifth Circuit To Affirm Judgment, Fee Award

M2 Tech., Inc. v. M2 Software, Inc.

In an unpublished decision, the U.S. Court of Appeals for the Fifth Circuit held that a federal district court did not abuse its discretion in issuing a default judgment and fee award against a registered trademark owner based in part on the owner's procedural missteps.  M2 Tech., Inc. v. M2 Software, Inc., Case No. 13-4106014 (5th Cir., Oct. 20, 2014) (per curiam).

David Escamilla and his company, M2 Software, Inc., provide information-technology management services under the mark M2.  In 1995, the parties registered the mark M2 with the U.S. Patent and Trademark Office (USPTO) in M2 Software's name.  In 2008, plaintiff M2 Technology, unaffiliated with Escamilla and M2 Software, applied to register M2 and M2 TECHNOLOGY with the USPTO.  Escamilla opposed the applications before the USPTO's Trademark Trial and Appeal Board, and M2 Technology withdrew the applications.  However, M2 Technology kept using the M2 marks in connection