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1 in the United States District Court for the Eastern Case 3:17-cv-00480-JAG Document 47 Filed 08/18/17 Page 1 of 19 PageID# 2356 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA RICHMOND DIVISION THE KROGER CO., and THE KROGER ) CO. OF MICHIGAN, ) ) Plaintiffs, ) ) Civil Action No.: 3:17-cv-00480 v. ) ) Judge: Honorable John A. Gibney, Jr. LIDL US, LLC and LIDL STIFTUNG & ) CO. KG, ) ) Defendants. ) LIDL STIFTUNG & CO. KG’S ANSWER AND AFFIRMATIVE DEFENSES Defendant Lidl Stiftung & Co. KG (“Lidl Stiftung”) hereby responds to the Complaint (Dkt. No. 1) of Plaintiffs The Kroger Co., and the Kroger Co. of Michigan (collectively “Kroger”) and asserts the affirmative defenses set forth herein. NATURE OF ACTION 1. This is an action for: a. trademark and service mark infringement with respect to federally registered and common law trademarks of Kroger Michigan in violation of 15 U.S.C. § 1114; b. false designation of origin and unfair competition in violation of Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); c. dilution of federally registered trademarks and service marks in violation of Section 43(c) of the Lanham Act, 15 U.S.C. 1125(c); d. violation of the Virginia Consumer Protection Act, Va. Code § 59.1-200; and e. common law trademark and service mark infringement and unfair competition. ANSWER NO. 1: This paragraph consists of legal conclusions, to which no response is required. To the extent a response is required, Lidl Stiftung admits that Kroger has purported to assert claims based on the Lanham Act, 15 U.S.C. §§ 1114 and 1125(a) and (c), and Virginia statutes and common law, but denies any violation of those statues and laws. 1 Case 3:17-cv-00480-JAG Document 47 Filed 08/18/17 Page 2 of 19 PageID# 2357 THE PARTIES 2. Plaintiff Kroger Co. is an Ohio corporation having a business address at 1014 Vine Street, Cincinnati, Ohio 45202, and [sic] ANSWER NO. 2: Lidl Stiftung lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations in this paragraph and therefore denies them. 3. Plaintiff Kroger Michigan is a Michigan corporation having a business address at 40399 Grand River Avenue, Novi, Michigan 48375. ANSWER NO. 3: Lidl Stiftung lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations in this paragraph and therefore denies them. 4. On information and belief, Defendant Lidl Stiftung, is a German Kommanditgesellschaft, having an address at Stiftsbergstrasse 1, 74167 Neckarsulm, Germany. ANSWER NO. 4: Admitted. 5. On information and belief, Defendant Lidl US is a Delaware corporation, having a business address and headquarters at 3500 South Clark Street, Arlington, Virginia, 22202. ANSWER NO. 5: Admitted. 6. On information and belief, Lidl US is a subsidiary of Lidl Stiftung. ANSWER NO. 6: Admitted. JURISDICTION AND VENUE 7. This Court has subject matter jurisdiction over Plaintiffs’ federal claims under at least 15 U.S.C. § 1121(a) and 28 U.S.C. §§ 1331 & 1338(a). The Court has jurisdiction over Plaintiffs’ 2 Case 3:17-cv-00480-JAG Document 47 Filed 08/18/17 Page 3 of 19 PageID# 2358 related state and common law claims at least under 28 U.S.C. 1338(b) and the doctrine of supplemental jurisdiction pursuant to 28 U.S.C. § 1367. ANSWER NO. 7: This paragraph consists of legal conclusions, to which no response is required. To the extent a response is required, Lidl Stiftung does not contest that this Court has subject matter jurisdiction over Lidl Stiftung with respect to the claims asserted in the Complaint in this action under 28 U.S.C. §§ 1331, 1338(a)-(b) and 1367(a). 8. Defendants are subject to personal jurisdiction in this judicial district. On information and belief, Lidl US has headquarters in this judicial district and is doing business therein; Lidl Stiftung is a related company to Lidl US; Lidl Stiftung claims ownership of the trademark PREFERRED SELECTION and design complained of herein; it is using said mark in this district directly or indirectly through Lidl US; Lidl Stiftung has filed a trademark application with the United States Patent and Trademark Office (“USPTO”) in this judicial district; Lidl has opened multiple stores in this judicial district; and both Defendants are engaged in the acts of infringement, dilution, and unfair competition complained of herein and thereby causing Plaintiffs harm in this judicial district. Defendants also do business in this judicial district and engage in other systematic and continuous contacts and regular transactions within this district. ANSWER NO. 8: This paragraph consists of legal conclusions, argument, and characterizations, to which no response is required. To the extent a response is required, Lidl Stiftung does not dispute that it filed a trademark application with the United States Patent and Trademark Office and that, solely for purposes of this action, this Court has personal jurisdiction over it with respect to the claims asserted in the Complaint. Lidl Stiftung denies that any action taken by Lidl Stiftung has resulted in infringement, dilution, or unfair competition, or that Kroger has been harmed. FACTS 9. Kroger Michigan owns the trademarks and service marks PRIVATE SELECTION and PRIVATE SELECTION and design for retail grocery store services and a very wide variety of grocery products sold in stores throughout the United States and in this judicial district. Kroger Michigan registered the marks in the USPTO. In particular, Kroger Michigan owns the 3 Case 3:17-cv-00480-JAG Document 47 Filed 08/18/17 Page 4 of 19 PageID# 2359 following United States Trademark and Service Mark Registrations (collectively “Kroger Registrations”): a. PRIVATE SELECTION for goods in Classes 29, 30, 31, and 32, filed March 26, 2001 and registered February 11, 2003 (Reg. No. 2685492); b. PRIVATE SELECTION for services in Class 35, filed September 16, 2002 and registered July 22, 2003 (Reg. No. 2740565); c. PRIVATE SELECTION for goods in Class 29, filed April 11, 2003 and registered March 9, 2004 (Reg. No. 2821350); d. PRIVATE SELECTION for goods in Class 30, filed December 15, 2004 and registered December 6, 2005 (Reg. No. 3023783); e. PRIVATE SELECTION for goods in Classes 29, 30, and 31, filed April 19, 2012 and registered December 18, 2012 (Registration No. 4260842); and for goods in Classes 29 and 30, files April 1, 2010 and registered December 4, 2012 (Reg. No. 4254353). ANSWER NO. 9: Lidl Stiftung admits that as of the date of this filing, the United States Patent and Trademark Office’s online records identify Kroger Michigan as the owner of the above-identified registrations. Lidl Stiftung lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations in this paragraph and therefore denies them. 10. The first four registrations listed above are “incontestable” within the meaning of 15 U.S.C. § 1065, and thereby establish conclusive presumptions of the validity of the registered marks and Kroger Michigan’s ownership thereof and exclusive rights to use and license the use of the same. The last two registrations enjoy prima facie presumptions of the same pursuant to 15 U.S.C. § 1057(b). 4 Case 3:17-cv-00480-JAG Document 47 Filed 08/18/17 Page 5 of 19 PageID# 2360 ANSWER NO. 10: This paragraph consists of legal conclusions, argument, and characterizations, to which no response is required. To the extent a response is required, Lidl Stiftung denies that Kroger has any rights to preclude third parties from using generic terms in connection with any good or service. 11. The Kroger Co. has more than twenty differently-named grocery and convenience store banners across the country, collectively referred to as the “Kroger Family of Stores.” ANSWER NO. 11: Lidl Stiftung lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations in this paragraph and therefore denies them. 12. Kroger Michigan licenses the PRIVATE SELECTION marks to Kroger Co. and other grocery stores banners within the Kroger Family of Stores. ANSWER NO. 12: Lidl Stiftung lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations in this paragraph and therefore denies them. 13. Kroger first used the mark PRIVATE SELECTION at least as early as twenty years ago, and the use of said mark has grown continuously and extensively since then along with the size and national reach of the Kroger Family of Stores, which include supermarkets, convenience stores, and other retail stores of diverse sizes and formats. ANSWER NO. 13: Lidl Stiftung lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations in this paragraph and therefore denies them. 14. Kroger has widely advertised the PRIVATE SELECTION mark and logo on television, promotions, coupons, social media, and the Kroger websites, Kroger.com and PrivateSelection.com. 5 Case 3:17-cv-00480-JAG Document 47 Filed 08/18/17 Page 6 of 19 PageID# 2361 ANSWER NO. 14: Lidl Stiftung lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations in this paragraph and therefore denies them. 15. Kroger sales of products in connection with the PRIVATE SELECTION marks have been in the billions of units and dollars on a steadily growing scale. ANSWER NO. 15: Lidl Stiftung lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations in this paragraph and therefore denies them. 16. Kroger’s PRIVATE SELECTION mark and logo were first used in commerce and registered long before Lidl’s acts complained of herein.
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