Decision 9th Cir Levis Abercrombie Dilution

8/7/2019 Decision 9th Cir Levis Abercrombie Dilution

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FOR PUBLICATION

UNITED STATES COURT OF APPEALSFOR THE NINTH CIRCUIT

LEVI STRAUSS & C OMPANY ,Plaintiff-Appellant, No. 09-16322

v. D.C. No.3:07-cv-03752-JSWABERCROMBIE & F ITCH TRADING

COMPANY , OPINION Defendant-Appellee.

Appeal from the United States District Courtfor the Northern District of California

Jeffrey S. White, District Judge, Presiding

Argued and SubmittedJune 16, 2010San Francisco, California

Filed February 8, 2011

Before: Kenneth F. Ripple, Senior Circuit Judge,*

Pamela Ann Rymer and Raymond C. Fisher, Circuit Judges.Opinion by Judge Ripple

*The Honorable Kenneth F. Ripple, Senior United States Circuit Judgefor the Seventh Circuit, sitting by designation.

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COUNSEL

Gregory S. Gilchrist, Townsend & Townsend & Crew, SanFrancisco, California, for the plaintiff-appellant.

J. Michael Keyes, K & L Gates, Spokane, Washington, for thedefendant-appellee.

David H. Bernstein, Debevoise & Plimpton, New York, NewYork, for amicus curiae International Trademark Association.

OPINION

RIPPLE, Senior Circuit Judge:

Levi Strauss & Co. (Levi Strauss) seeks review of a dis-trict court judgment that Abercrombie & Fitch Trading Co.

2372 L EVI STRAUSS v. A BERCROMBIE & F ITCH


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(Abercrombie) did not dilute Levi Strausss trademarkedArcuate design in violation of the Trademark Dilution Revi-sion Act of 2006 (TDRA), 15 U.S.C. 1125(c). LeviStrauss maintains that the district court applied an incorrectlegal standard in evaluating its dilution claim, namely that the

junior mark be identical or nearly identical to the seniorone. We agree with Levi Strauss that the identical or nearlyidentical standard did not survive Congresss enactment of the TDRA and that the district courts use of the incorrectstandard was not harmless error. Accordingly, we reverse the

judgment of the district court and remand the case for furtherproceedings consistent with this opinion.

BACKGROUND

A. The Stitched Designs

Levi Strauss created, and began selling, blue jeans in the1870s. Since 1873, the company has stitched the back pocketof its jeans with two connecting arches that meet in the centerof the pocket; Levi Strauss holds a federally registered trade-mark on this Arcuate design. Sales of garments bearing theArcuate mark have accounted for more than ninety-five per-cent of Levi Strausss revenue over the past thirty years, total-ing roughly fifty billion dollars. Levi Strauss activelymonitors use of competing stitching designs and enforces itstrademark rights against perceived infringers.

In 2006, Abercrombie began using a stitching design on theback pockets of its jeans that, according to Levi Strauss, in-corporates the distinctive arcing elements of the Arcuatetrademark. Appellants Br. 4. Abercrombies Ruehl designconsists of two less-pronounced arches that are connected bya dipsy doodle, which resembles the mathematical sign forinfinity. The design on the Abercrombie jeans sits lower onthe pocket than Levi Strausss Arcuate design.**

**Images of the Arcuate and Ruehl designs appear at the end of this opinion.

2373LEVI STRAUSS v. A BERCROMBIE & F ITCH


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B. District Court Proceedings

In 2007, Levi Strauss brought an action against Abercrom-bie for trademark infringement, unfair competition and trade-mark dilution under both federal and California state law.Before trial, Levi Strauss dropped its state-law trademark dilution claim, and it withdrew its claim for monetary relief on its federal dilution claim. Consequently, Levi Strausssfederal trademark dilution claim, for which it sought onlyinjunctive relief, was tried before the court with advisory rul-ings from the jury.

During trial, Levi Strauss presented the testimony of Dr.Sanjay Sood. Dr. Sood conducted a survey to evaluatewhether women associated Abercrombies Ruehl design withLevi Strauss. Dr. Soods Confusion Survey revealed that[a]pproximately 30% of all respondents identified the Ruehl

jeans as made, sponsored or endorsed by the same companythat made the LEVIS jeans, as compared to lower percent-ages for the control jeans. Levi Strauss & Co. v. Abercrom-bie & Fitch Trading Co. , No. C 07-03752 JSW, 2009 WL1082175, at *4 (N.D. Cal. Apr. 22, 2009). Dr. Sood testifiedthat the Ruehl design would erode the distinctiveness of the

Arcuate mark, in light of what he opined was a significantlevel of confusion between the Ruehl jeans and the [LeviStrauss] jeans. Id. Dr. Sood also testified concerning a Rec-ognition Survey that he had conducted. According to Dr.Sood, the survey revealed that approximately 32% to 35% of the respondents actually associated the Arcuate mark with[Levi Strauss]. Id. at *5.

For its part, Abercrombie presented the testimony of Dr.Gerald Ford, who had been engaged in commercial marketingresearch for more than three decades and had offered experttestimony in over 50 trademark cases. Dr. Ford testified that

Dr. Soods confusion survey was not conducted according togenerally accepted and standard practices; as a result, the sur-vey was so flawed that it render[ed] the survey results and



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Dr. Soods conclusions meaningless. Id. (internal citationsomitted). Nevertheless, Dr. Ford acknowledged that, [i]f alikelihood of confusion survey is conducted in a valid andreliable manner, a finding that ten percent or more of the pop-ulation is confused is problematic to a trademark owner. Id.Dr. Ford opined that Dr. Soods recognition survey was prob-lematic; specifically, it was flawed[ ] because it did not con-trol for spurious recognition, used ambiguous questions,lacked an appropriate control cell, and suffered from orderbias. Id.

As part of its deliberations, the district court requested thatthe jury provide advisory rulings on factual issues related toLevi Strausss federal dilution claims. With respect to the ele-ments of the dilution claim, the court asked the jury to answerthe following question: Is Abercrombies Ruehl design iden-tical or nearly identical to the Arcuate trademark? ER 67.Although the jury later determined that the Arcuate trademark was famous and distinctive, it found that the marks were notidentical or nearly identical and also determined that theArcuate trademark was not likely to be diluted by the Ruehldesign.

C. Findings of Fact and Conclusions of LawOn April 22, 2009, the district court entered judgment in

favor of Abercrombie on Levi Strausss federal dilutionclaim. In its findings of fact, the district court noted that,[w]ith the exception of visual depictions of the two designs,Dr. Soods testimony regarding the results of the ConfusionSurvey was [Levi Strauss]s only evidence that the Ruehldesign was identical or nearly identical to the Arcuate mark.

Levi Strauss & Co. , 2009 WL 1082175, at *5 (emphasisadded). Although the district court acknowledged that Dr.Soods survey suggested confusion among thirty percent of

the participants, the court determined that Dr. Fords critiqueof Dr. Soods methodology was persuasive and that his testi-mony was more reliable than that offered by Dr. Sood.



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Turning to its conclusions of law, the court first reviewedthe elements of a claim under the TDRA, 15 U.S.C. 1125(c). The court stated:

To prevail on its dilution claim, [Levi Strauss] hasthe burden of proving by a preponderance of evi-dence the following elements: (a) that [Levi Strauss]is the owner of a trademark that is famous; (b) thatthe famous mark is distinctive, either inherently orthrough acquired distinctiveness; (c) that [Abercrom-bie] is making or has made use in commerce of anidentical or nearly identical trademark, in this casethe Ruehl design; (d) that [Abercrombie]s use of itsRuehl design began after [Levi Strauss]s Arcuatemark became famous; and (e) that [Abercrombie]suse of its Ruehl design is likely to cause dilution byblurring of [Levi Strauss]s Arcuate mark. 15 U.S.C. 1125(c); Jada Toys, Inc. v. Mattel, Inc. , 518 F.3d628, 634 (9th Cir. 200[8]).

Levi Strauss & Co. , 2009 WL 1082175, at *7 (emphasisadded). The district court noted that the advisory jury had notfound that the Ruehl design and the Arcuate mark were iden-

tical or nearly identical , a standard that required that thetwo marks . . . be similar enough that a significant segmentof the target group of customers sees the two marks as essen-tially the same . Id. (emphasis added).

After setting forth this standard for similarity, a standardwhich is more stringent than in the infringement context, id. at *8 (quoting adidas-America, Inc. v. Payless ShoeSource, Inc. , 546 F. Supp. 2d. 1029, 1060 (D. Ore. 2008)), thecourt observed that, although the evidence showed that LeviStrauss had expended significant amounts of money adver-tising the Arcuate mark, this was not a case where the two

marks at issue involve only minor differences, id. The dis-trict court then reviewed aspects of the Arcuate mark and theRuehl design and observed that [t]his evidence demonstrates



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that a significant segment of the target group of customerswould not view the marks as essentially the same . Id.(emphasis added). It concluded that, consistent with the advi-sory jurys finding, Levi Strauss has not established that[Abercrombie] is making commercial use of a mark that isidentical or nearly identical to the Arcuate mark. Id. at *9(emphasis added). The court then concluded:

As noted, the test for similarity of the marks ismore stringent in the dilution context than for likeli-hood of confusion purposes, and the two marks mustbe essentially the same mark . For the reasons setforth above, the Court finds that the Ruehl designand the Arcuate mark are not visually similar. Fur-thermore, as set forth above, the Court does not findthe results of Dr. Soods survey to be entitled to anygreat weight. Thus, [Levi Strauss] has not put forthpersuasive evidence of actual association betweenthe Arcuate mark and the Ruehl design. Therefore,these factors weigh in [Abercrombie]s favor andagainst a finding of likelihood of dilution.

. . . .

Having considered all of the evidence, even if thedegree of inherent or acquired distinctiveness of theArcuate mark and the degree of recognition of themark weigh in [Levi Strauss]s favor, the Court findsthat those factors do not outweigh the factors thatweigh in [Abercrombie]s favor. Accordingly, theCourt concludes, consistent with the advisory jurysfinding, that [Levi Strauss] has not met its burden toestablish by a preponderance of the evidence that theRuehl design is likely to cause dilution by blurringof the Arcuate mark.

Id. (quoting Thane Intl, Inc. v. Trek Bicycle Corp. , 305 F.3d894, 907 (9th Cir. 2002); footnote omitted; emphasis added).



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The district court therefore entered judgment in favor of Abercrombie.

DISCUSSION

Levi Strauss submits that the district court erred in requir-ing it to establish that its mark was identical or nearly identi-cal to the Ruehl design. Levi Strauss looks to the plainlanguage of 15 U.S.C. 1125(c) and notes that the termsidentical or nearly identical appear nowhere in the languageof the statute. The statute, it maintains, does not require a

prima facie showing of substantial similarity before a districtcourt balances the dilution factors listed in 1125(c)(2)(B).Instead, degree of similarity is one of several factors that adistrict court must balance in order to determine whether dilu-tion has occurred and whether, therefore, a plaintiff is entitledto injunctive relief. 1

Abercrombie, by contrast, bases its argument not on thelanguage of the statute but, instead, on the case law of thiscourt. It argues that, even after the passage of the TDRA, thiscourt thrice has determined that a junior mark must be identi-

cal or nearly identical to that of the senior user in order fora trademark-dilution plaintiff to be entitled to relief. See Per-

fumebay.com Inc. v. eBay, Inc. , 506 F.3d 1165 (9th Cir.2007); Jada Toys, Inc. v. Mattel, Inc. , 518 F.3d 628 (9th Cir.2008); Visa Intl Serv. Assn v. JSL Corp. , No. 08-15206,2010 WL 2559003 (9th Cir. June 28, 2010).

To properly evaluate the parties contentions, we must look at the origins of the identical or nearly identical standard,how it has been employed and whether it remains viable afterthe enactment of the TDRA.

1 The International Trademark Association, amicus in this appeal, agreeswith the interpretation of the TDRA proffered by Levi Strauss.



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A. Origin of the Identical or Nearly IdenticalStandard

The identical or nearly identical requirement traces itsroots in this circuit to Playboy Enterprises, Inc. v. Welles , 279F.3d 796 (9th Cir. 2002). In that case, a former Playmate of the Year, Terri Welles, had used this descriptive on a websitedevoted to the sale of her pictures and to the promotion of herservices as a spokeswoman. Playboy sued Welles on varioustheories, including a federal trademark dilution claim underthe prior statute. 2 We determined that most of Welless use of

2 Specifically, the predecessor of the TDRA, the Federal Trademark Dilution Act (FTDA), provided:

(c) Remedies for dilution of famous marks

(1) The owner of a famous mark shall be entitled, subject to theprinciples of equity and upon such terms as the court deems rea-sonable, to an injunction against another persons commercial usein commerce of a mark or trade name, if such use begins after themark has become famous and causes dilution of the distinctivequality of the mark, and to obtain such other relief as is providedin this subsection. In determining whether a mark is distinctiveand famous, a court may consider factors such as, but not limitedto

(A) the degree of inherent or acquired distinctiveness of themark;

(B) the duration and extent of use of the mark in connectionwith the goods or services with which the mark is used;

(C) the duration and extent of advertising and publicity of the mark;

(D) the geographical extent of the trading area in which themark is used;

(E) the channels of trade for the goods or services withwhich the mark is used;

(F) the degree of recognition of the mark in the trading areasand channels of trade used by the marks owner and the per-

son against whom the injunction is sought;(G) the nature and extent of use of the same or similar marksby third parties; and



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Playmate of the Year were nominative uses and, therefore,excepted from coverage. However, Welless use of the abbre-viation PMOY on the wallpaper of her site was not nomina-tive, and, therefore was not excepted from the anti-dilutionprovisions. Playboy Enters. , 279 F.3d at 806. As a result, wereversed the judgment in favor of Welles on the dilution issueand gave the following instructions to the district court:

We note that if the district court determines thatPMOY is not entitled to trademark protection,PEIs claim for dilution must fail. The trademarked

term, Playmate of the Year is not identical or nearly identical to the term PMOY. Therefore, useof the term PMOY cannot, as a matter of law,dilute the trademark Playmate of the Year .

Id. (emphasis added; footnote omitted).

Our authority for the identical or nearly identical lan-guage employed in Playboy Enterprises was Luiginos, Inc. v.Stouffer Corp. , 170 F.3d 827, 832 (8th Cir. 1999), and J.Thomas McCarthy, McCarthy on Trademarks and UnfairCompetition 24:90.2 (4th ed. 2001). See Playboy Enters. ,279 F.3d at 806 n.41. In Luiginos , the Eighth Circuit heldthat, [t]o support an action for dilution by blurring, themarks must at least be similar enough that a significant seg-ment of the two target groups of customers sees the twomarks as essentially the same. 170 F.3d at 832 (quoting J.Thomas McCarthy, McCarthy on Trademarks and UnfairCompetition 24:90.1, at 24-145 (4th ed. 1998)). In supportof this proposition, the Eighth Circuit not only relied onMcCarthy on Trademarks and Unfair Competition, but also

(H) whether the mark was registered under the Act of March

3, 1881, or the Act of February 20, 1905, or on the principalregister.

15 U.S.C. 1125(c)(1) (2005).



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Mead Data Central, Inc. v. Toyota Motor Sales, U.S.A., Inc. ,875 F.2d 1026, 1029 (2d Cir. 1989).

Tracing the ancestry of the standard a step further, Mead Data Central involved a trademark dilution claim broughtunder a New York state statute. According to the Second Cir-cuit, the legislative history of that act stated the purpose of the statute as preventing the whittling away of an establishedtrade-marks selling power and value through its unauthorizeduse by others upon dissimilar products. Mead Data Cent. ,875 F.2d at 1028 (quoting 1954 N.Y. Legis. Ann. 49; empha-

sis added by the Second Circuit). The court continued:If we were to interpret literally the italicized wordits, we would limit statutory violations to theunauthorized use of the identical established mark.. . . However, since the use of obvious simulationsor markedly similar marks might have the samediluting effect as would an appropriation of the origi-nal mark, the concept of exact identity has beenbroadened to that of substantial similarity. Neverthe-less, in keeping with the original intent of the statute,the similarity must be substantial before the doctrineof dilution may be applied.

Id. at 1028-29 (internal citations omitted). The court stoppedshort of requiring that the marks in question . . . be suffi-ciently similar that confusion may be created as between themarks themselves. Id. at 1029. Instead, it held that themarks must be very or substantially similar and that,absent such similarity, there can be no viable claim of dilu-tion. Id. 3

3 In a concurring opinion, one member of the panel articulated a differ-ent approach. He believed that there were two elements necessary to estab-lish a dilution claim under state law: an extremely strong mark and alikelihood of dilution. Mead Data Cent., Inc. v. Toyota Motor Sales,U.S.A., Inc. , 875 F.2d 1026, 1032 (2d Cir. 1989) (Sweet, J., concurring).



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1324 (9th Cir. 1998) and Avery Dennison [Corp. v.Sumpton, 189 F.3d 868, 874 (9th Cir. 1999)],[ 4 ] andwith the statutes legislative history and purposes .

The statute establishes that the junior user, to beliable for dilution, must use a mark or trade name. . . after the mark has become famous. 1125(c)(1)(emphasis added). As articulated in Panavision and

Avery Dennison , the test for dilution similarly pro-vides that to make out an antidilution cause of action, a plaintiff must show that its mark is

famous and the defendant is making commercialuse of the mark in commerce. Avery Dennison , 189F.3d at 874 (emphasis added); see Panavision , 141F.3d at 1324; see also Mattel, Inc. v. MCA Records,

Inc. , 296 F.3d 894, 903 (9th Cir. 2002) ( Dilutionrefers to the whittling away of the value of a trade-mark when its used to identify different products.)(emphasis added) (citation omitted). These locutionsindicate that the defendant must use essentially thesame mark, not just a similar one.

Id. at 905 (emphasis in first paragraph added). Thus, Thanetied the requirement for identity or near identity to the lan-guage of the then-governing FTDA and to the tests that wehad developed in interpreting the FTDA.

4 In Panavision International, L.P. v. Toeppen , 141 F.3d 1316, 1324 (9thCir. 1998), we articulated the following test under the FTDA:

In order to prove a violation of the Federal Trademark DilutionAct, a plaintiff must show that (1) the mark is famous; (2) thedefendant is making a commercial use of the mark in commerce;(3) the defendants use began after the mark became famous; and(4) the defendants use of the mark dilutes the quality of the mark by diminishing the capacity of the mark to identify and distin-

guish goods and services. 15 U.S.C. 1125(c). Id. at 1324; see also Avery Dennison Corp. v. Sumpton , 189 F.3d 868, 874(9th Cir. 1999) (same).



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In adopting this standard, we also were persuaded by thelegislative history of the FTDA and by the McCarthy trea-tises explanation of the nature of a dilution claim. The legis-lative history, although not definitive on the issue,suggest[ed] that the marks must be identical or close there-to. Id. Specifically, the Senate Report had given the follow-ing examples of dilution: Kodak being used for pianos andBuick being used for aspirin. Id. at 906 (citing S. Rep. No.100-515, at 7 (1988), as reprinted in 1988 U.S.C.C.A.N.5577, 5583). Furthermore, referencing the McCarthy treatise,we observed that a dilution claim alleges a form of appropri-ation. Id. We continued:

Appropriation implies the adoption of the mark itself, not the use of a similar mark. As discussedpreviously, infringement is designed to protectagainst consumer confusion about the source of aproduct that may arise, inter alia , because a com-pany uses a similar mark. Dilution, on the otherhand, protects the distinctiveness of a particularmark whether or not the products compete or con-sumer confusion exists. 1127. Because dilution andlikelihood of confusion tests are directed at differentactions, it does not make sense to import the rela-tively subjective similarity of the marks test from thelikelihood of confusion context into the dilution con-text. See 4 J. McCarthy, Trademarks and Unfair Competition , 24:90.2 (4th ed. 2001).

Id.

Finally, we observed, other courts similarly had adopted anidentical or nearly identical requirement. Indeed, Playboy

Enterprises had borrowed this standard from the Eighth Cir-cuits decision in Luiginos , and other circuits had employedequally stringent standards for similarity.

Thus, although the identical or nearly identical standardhad its roots in pre-FTDA state dilution law, we determined



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in Thane that our adoption of the standard was rooted in thelanguage of the FTDA, the legislative history and purpose of that statute, our prior interpretations of the FTDA, and thepolicies we believed were embodied in that statute.

C. The Moseley Decision and Adoption of the TDRA

After our decision in Thane , the Supreme Court handeddown a decision that greatly impacted many courts of appeals interpretations of the FTDA. In Moseley v. V Secret Catalogue, Inc. , 537 U.S. 418 (2003), the Court held, contrary

to the approach that had been taken by this court, as well asthe courts of appeals for the Second and Sixth Circuits, thatthe text of the FTDA unambiguously requires a showing of actual dilution, rather than a likelihood of dilution. Id. at 433(emphasis added).

However, this requirement of actual dilution was not long-lived. In 2006, largely in response to the Moseley decision,Congress enacted the TDRA. In doing so, Congress did notsimply alter the language on which the Court in Moseley hadrelied; 5 instead, Congress replaced the FTDA with a more

detailed statute. The TDRA did provide relief for likely, asopposed to actual, dilution. 15 U.S.C. 1125(c)(1). However,it also explicitly provided relief for dilution by blurring orby tarnishment, id. , and defined both types of dilution, id. 1125(c)(2). Section 1125(c)(1) of Title 15 now states in rel-evant part:

5 The FTDA had provided: The owner of a famous mark shall be enti-tled . . . to an injunction against another persons commercial use in com-merce of a mark or trade name, if such use begins after the mark hasbecome famous and causes dilution of the distinctive quality of the mark ,and to obtain such other relief as is provided in this subsection. 15 U.S.C. 1125(c) (2005) (emphasis added). In Moseley v. V Secret Catalogue,

Inc. , 537 U.S. 418 (2003), the Court held that the highlighted languagerequired a showing of actual dilution.



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Subject to the principles of equity, the owner of afamous mark that is distinctive, inherently or throughacquired distinctiveness, shall be entitled to aninjunction against another person who, at any timeafter the owners mark has become famous, com-mences use of a mark or trade name in commercethat is likely to cause dilution by blurring or dilutionby tarnishment of the famous mark, regardless of thepresence or absence of actual or likely confusion, of competition, or of actual economic injury.

15 U.S.C. 1125(c)(1). Subsection (c)(2) defines dilution byblurring accordingly:

(B) For purposes of paragraph (1), dilution by blur-ring is association arising from the similaritybetween a mark or trade name and a famous mark that impairs the distinctiveness of the famous mark.In determining whether a mark or trade name islikely to cause dilution by blurring, the court mayconsider all relevant factors, including the following:

(i) The degree of similarity between the mark ortrade name and the famous mark.

(ii) The degree of inherent or acquired distinctive-ness of the famous mark.

(iii) The extent to which the owner of the famousmark is engaging in substantially exclusive use of the mark.

(iv) The degree of recognition of the famous mark.

(v) Whether the user of the mark or trade nameintended to create an association with the famousmark.



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(vi) Any actual association between the mark ortrade name and the famous mark.

15 U.S.C. 1125(c)(2)(B).

[2] Several aspects of the TDRA are worth noting. Thefirst, as mentioned previously, is that Congress did not merelymake surgical linguistic changes to the FTDA in response to

Moseley . Instead, Congress created a new, more comprehen-sive federal dilution act. Furthermore, any reference to thestandards commonly employed by the courts of appealsidentical, nearly identical, or substantially similarareabsent from the statute. The TDRA defines dilution by blur-ring as the association arising from the similarity betweena mark or a trade name and a famous mark that impairs thedistinctiveness of the famous mark. Id. 1125(c)(2)(B)(emphasis added). Moreover, in the non-exhaustive list of dilution factors that Congress set forth, the first is [t]hedegree of similarity between the mark or trade name and thefamous mark. Id. 1125(c)(2)(B)(i). Thus, the text of theTDRA articulates a different standard for dilution from thatwhich we utilized under the FTDA.

D. Post-TDRA, Ninth Circuit Case LawAbercrombie claims that, despite the absence of any refer-

ence in the TDRA to the identical or nearly identical stan-dard, this standard nonetheless survived the passage of theTDRA. It points to three cases from this court to support thatclaim. Two of these cases, Perfumebay.com Inc. v. eBay, Inc. ,506 F.3d 1165 (9th Cir. 2007), and Jada Toys, Inc. v. Mattel,

Inc. , 518 F.3d 628 (9th Cir. 2008), were addressed by the par-ties in their briefs; Abercrombie maintains that Levi Strausssentire appeal is foreclosed by these cases. See AppelleesBr. 12. The third case, Visa International Service Association

v. JSL Corp. , No. 08-15206, 2010 WL 2559003 (9th Cir. June28, 2010), was decided after oral argument in this appeal.Abercrombie submitted the case as further authority in sup-



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port of its position, see Fed. R. App. P. 28(j), and Levi Strausssimilarly submitted its comments on the cases application tothe matter presently before the court.

[3] Our review of these cases leads us to conclude that theissue that we must decide todaywhether, to establish dilu-tion by blurring under the TDRA, the junior mark must beidentical or nearly identical to the senior markwas notpresented or squarely resolved in these prior cases.

1.

The first case on which Abercrombie relies is Perfume-bay.com . In Perfumebay.com , eBay brought a dilution claimunder California state law. In analyzing the state-law dilutionclaim, we observed that the state claim was subject to thesame analysis as a federal claim, which required that [t]hemark used by the alleged diluter . . . be identical, or nearlyidentical, to the protected mark for a dilution claim to suc-ceed. Perfumebay.com , 506 F.3d at 1180 (internal quotationmarks and citation omitted). Although applying Californiadilution law, we noted that our emphasis on the extent towhich the marks are nearly identical and the strength of the

senior mark is bolstered by Congress passage of the Trade-mark Dilution Revision Act of 2006, which explicitlyincluded [t]he degree of similarity between the mark ortrade name and the famous mark and [t]he degree of inherent or acquired distinctiveness of the famous mark inits dilution analysis. Id. at 1181 n.9 (quoting 15 U.S.C. 1125(c)(2)(B)).

We do not believe these observations ought to be consid-ered a binding determination that the identical or nearlyidentical standard survives the passage of the TDRA. Wehave held that, where a panel confronts an issue germane to

the eventual resolution of the case, and resolves it after rea-soned consideration in a published opinion, that rulingbecomes the law of the circuit, regardless of whether doing so



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is necessary in some strict logical sense. United States v. Johnson , 256 F.3d 895, 914 (9th Cir. 2001) (en banc). How-ever, in Perfumebay.com , we did not confront the issue of the applicable standard under the TDRA. Perfumebay.cominvolved a dilution claim under California state law. See Per-

fumebay.com , 506 F.3d at 1180 n.8 (eBays dilution claim ismade pursuant to Cal. Bus. & Prof. Code 14330.). We pre-viously had held that Californias state dilution law wasequivalent to the FTDA. Id. (eBays state law dilution claimis subject to the same analysis as its federal claim. (quotingPanavision Intl , 141 F.3d at 1324)). At the time that Per-

fumebay.com was decided, the California legislature had notaltered its dilution statute to reflect the changes in the newlyenacted TDRA. 6 Because the California statute had not beenaltered in the same manner as the federal statute, there simplywas no opportunity for us to consider whether a change in thelanguage of the federal statute effected a change in the stan-dard applicable to federal claims. Indeed, our reference to theTDRA in Perfumebay.com was limited to our observation infootnote 9 that our emphasis on the degree of similarity andthe strength of the senior mark was bolstered by Congressspassage of the TDRA. Id. at 1181 n.9. In sum, Perfume-bay.com did not present an opportunity for the court toaddress squarely the question currently before this panel. SeeStarbucks Corp. v. Wolfes Borough Coffee, Inc. , 588 F.3d 97,109 n.4 (2d Cir. 2009) (referencing Perfumebay.com and stat-ing that [t]he Ninth Circuit has not resolved whether thisessentially the same standard also applies to federal dilutionclaims post-TDRA).

6 In June, 2007, the International Trademark Association amended theanti-dilution provisions of the Model Bill to reflect the Trademark Dilu-tion Revision Act of 2006. The 2007 version of the model anti-dilutionprovisions generally track the 2006 federal law with changes necessary toadopt the law to a state-wide regime. . . . In 2007, California was one of the first states to enact the 2007 version of the Model State Trademark Bill. J. Thomas McCarthy, McCarthy on Trademarks and Unfair Compe-tition 22:6.25 (4th ed. 2010) (footnotes omitted).



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2.

The same is true of our decision in Jada Toys . Jada Toyshad been using the name HOT RIGZ in conjunction with itsline of toy trucks; Mattell believed that HOT RIGZ was dilut-ing its HOT WHEELS trademark and therefore sued JadaToys under state and federal law. Both at the time that Mattelinstituted its action in 2004, and at the time the district courtgranted summary judgment against Mattel in 2005, the FTDAwas the governing federal law. Similarly, when the action wasbriefed to this court, the parties framed their arguments underthe FTDA, not the TDRA. Thus we originally decided thecase under the FTDA and later amended the opinion inresponse to the TDRA. 7

The reason for amending the opinion was to apply the newlikelihood of dilution standard incorporated into the thenrecently enacted TDRA. See Jada Toys , 518 F.3d at 634 n.2.Beyond that change, the amended Jada Toys opinion did notconfront any of the other differences between the TDRA andthe FTDA. This is unsurprising because the plaintiff-appellantMattel was entitled to a remand both under Thane s interpre-tation of the FTDA as well as under the TDRAs multifactorinquiry.

In both Jada Toys opinions, we stated that Mattel had toshow that (1) the mark is famous and distinctive; (2) thedefendant is making use of the mark in commerce; (3) thedefendants use began after the mark became famous; and (4)the defendants use of the mark is likely to cause dilution,changing only the fourth element in the amended opinion tolikely to cause dilution instead of dilutes the quality of themark. Compare Jada Toys , 518 F.3d at 634, with Jada Toys,

Inc. v. Mattel, Inc. , 496 F.3d 974, 980-81 (9th Cir. 2007). Wemade no change to the statement that:

7 See Jada Toys, Inc. v. Mattel, Inc. , 496 F.3d 974 (9th Cir. 2007),amended and superseded by Jada Toys, Inc. v. Mattel, Inc. , 518 F.3d 628(9th Cir. 2008).



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[F]or a plaintiff to establish that the mark is beingused in commerce (as per step two), the mark usedby the alleged diluter must be identical, or nearlyidentical, to the protected mark. Thane Intl , 305F.3d at 905(noting that this circuits description of dilution by blurring and by tarnishment requires adefendant to use the plaintiffs actual mark) (citationomitted). In order to be nearly identical, two marksmust be similar enough that a significant segmentof the target group of customers sees the two marksas essentially the same Id. at 906 (quoting Playboy

Enters. , 279 F.3d at 806 n. 41).Compare Jada Toys , 518 F.3d at 634, with Jada Toys , 496F.3d at 981. Applying Thane s standard, Jada Toys found atriable issue of fact regarding whether HOT WHEELS wasnearly identical to HOT RIGZ. See Jada Toys , 518 F.3d at635.

We went on, after finding the marks nearly identical, sepa-rately to determine that a reasonable jury could find that HOTRIGZ was likely to dilute Mattels HOT WHEELS trademark based on the six factors enumerated in the TDRA. See JadaToys , 518 F.3d at 635-36. Because Mattel survived Jada Toysmotion for summary judgment under the standard articulatedin Thane , we were not confronted with the discrepancybetween Thane s standard and the textual changes embodiedin the TDRA. 8 In revising the Jada Toys opinion to be consis-tent with the TDRAs shift to a likelihood of dilution stan-dard, which was the principal focus of the case, we neverconsidered that other parts of the TDRA might affect our stan-dard of analysis for the requisite degree of similarity.

8 Recall that Thane s standard considered only the marks visual similar-ity and the senior marks distinctiveness, see Perfumebay.com , 506 F.3dat 1180-81 (quoting Thane , 305 F.3d 907 n.7), whereas the TDRA consid-ers all relevant factors and enumerates six of particular relevance, see 15U.S.C. 1125(c)(2)(B).



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[4] As with Perfumebay.com , we do not believe that JadaToys binds us to apply the identical or nearly identical stan-dard for purposes of assessing a dilution by blurring claimunder the TDRA. Jada Toys was tried under the FTDA, andthe FTDA was the law employed by the parties in their brief-ing before this court. We resolved the case without any dis-cussion of whether Thane s standard survived the change inlaw. Indeed, we copied the FTDA analysis of near identityinto the TDRA opinion without mentioning the materialchanges in the statutes language regarding similarity. Theparties never briefed the applicability of the TDRA or the sig-

nificance of its revisions to the antidilution law. Nor did thefacts of the case require us to confront the possible implica-tions of a less stringent similarity standard. In short, our useof the identical or nearly identical standard in Jada Toyscannot represent a definitive resolution of the issue before usafter reasoned consideration, and, therefore, does not estab-lish the standard for dilution under the TDRA.

3.

Finally, the parties have asked us to consider our recentdecision in Visa International . In that case, Visa Internationalsued JSL Corporation, which operates eVisa, a multilingualeducation and information business that exists and operatesexclusively on the Internet, at www.evisa.com. Visa IntlServ. Assn , 2010 WL 2559003, at *1. Visa Internationalclaimed that eVisa was likely to dilute the Visa trademark.The district court agreed with Visa International and grantedsummary judgment in its favor. We affirmed. Both partiesrely on the same passage of the opinion:

A plaintiff seeking relief under federal anti-dilution law must show that its mark is famous and

distinctive, that defendant began using its mark incommerce after plaintiffs mark became famous anddistinctive, and that defendants mark is likely to



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dilute plaintiffs mark. See Jada Toys, Inc. v. Mattel, Inc. , 518 F.3d 628, 634 (9th Cir. 2008). . . .

There are two types of dilution, but here we areconcerned only with dilution by blurring, whichoccurs when a mark previously associated with oneproduct also becomes associated with a second. See15 U.S.C. 1125(c)(2)(B); Mattel, Inc. v. MCA

Records, Inc. , 296 F.3d 894, 903-04 (9th Cir. 2002).This weakens the marks ability to evoke the firstproduct in the minds of consumers. For example,Tylenol snowboards, Netscape sex shops and HarryPotter dry cleaners would all weaken the commer-cial magnetism of these marks and diminish theirability to evoke their original associations. Mattel ,296 F.3d at 903. . . .

. . . Congress has enumerated factors courts mayuse to analyze the likelihood of dilution, includingthe similarity between the two marks and the distinc-tiveness and recognition of the plaintiffs mark. 15U.S.C. 1125(c)(2)(B)(i), (ii), (iv); see also Per-

fumeBay.com, Inc. v. eBay, Inc. , 506 F.3d 1165,1181 n.9 (9th Cir. 2007). And, in an appropriate

case, the district court may conclusively determineone or more of these factors before trial.

The marks here are effectively identical; the onlydifference is the prefix e, which is commonly usedto refer to the electronic or online version of a brand.That prefix does no more to distinguish the twomarks than would the words Corp. or Inc. tackedonto the end. See Horphag Research Ltd. v. Garcia ,475 F.3d 1029, 1036 (9th Cir. 2007) (use of identicalmark provides circumstantial evidence of dilu-tion).

And Visa is a strong trademark. In general, themore unique or arbitrary a mark, the more protection



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a court will afford it. Nutri/System, Inc. v. Con-Stan Indus., Inc. , 809 F.2d 601, 605 (9th Cir. 1987).

Id. at *1-2.

In its 28(j) letter submitted on July 1, 2010, Abercrombiesets forth three reasons why the opinion conclusively estab-lishes the applicability of the identical or nearly identicalstandard under the TDRA. First, Abercrombie notes thatVisa International relied on cases that employ the identicalor nearly identical standard. Second, Abercrombie believes

that the Courts emphasis on the one mark, two productsparadigm shows that the identical or nearly identical stan-dard provides the appropriate legal framework under theTDRA. Third, it continues, in assessing the similaritybetween the two marks at issue, the Court applied the identi-cal or nearly identical standard.

We cannot accept Abercrombies view of Visa Interna-tional . We believe it clear that our reference to prior cases andour use of the one mark, two products paradigm were of lit-tle significance to our analysis. Nor can we agree that Visa

International applied the identical or nearly identical stan-dard. In evaluating the district courts judgment in Visa

International , we stated that Congress has enumerated fac-tors courts may use to analyze the likelihood of dilution,including the similarity between the two marks and the dis-tinctiveness and recognition of the plaintiffs mark. Visa IntlServ. Assn , 2010 WL 2559003, at *1 (emphasis added). Wethen went on to evaluate the evidence presented according tothose statutory standards. With respect to similarity, weobserved that [t]he marks here are effectively identical withthe only difference being the prefix e. Id. at *2. Ourreference to effectively identical was a factual assessment

of the similarity of the two marks with which we were pre-sented. There simply is no basis for asserting that we requireda showing of identity or near identity in evaluating Visa Inter-



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nationals claim under the TDRA.9

With respect to the factorsof the distinctiveness and recognition of the Visa mark, weobserved that Visa had introduced uncontroverted evidencethat Visa is the worlds top brand in financial services and isused for online purchases almost as often as all other creditcards combined. Id.

[5] Having reviewed all of the authorities provided byAbercrombie, we conclude that we are the first panel toaddress the issue whether the identical or nearly identicalstandard survives Congresss adoption of the TDRA. We turn

now to that question.E. Interpretation of the TDRA

1.

Our method of statutory interpretation is well established:

Statutory interpretation begins with the languageof the statute. See United States v. Ron Enters., Inc. ,489 U.S. 235, 241 (1989). When the plain meaningof a statutory provision is unambiguous, that mean-ing is controlling. Id. at 242. To determine the plainmeaning of a statutory provision, we examine notonly the specific provision at issue, but also thestructure of the statute as a whole, including itsobject and policy. See Green v. Commissioner , 707F.2d 404, 405 (9th Cir. 1983). If ambiguity exists,we may use legislative history as an aid to interpreta-tion. See id. ; Mt. Graham Red Squirrel v. Madigan ,954 F.2d 1441, 1453 (9th Cir. 1992).

9 Indeed, as we shall discuss later, see infra at 2399-2400, we believethat the manner in which the panel in Visa International Service Associa-tion v. JSL Corp. , No. 08-15206, 2010 WL 2559003 (9th Cir. June 28,2010), applied the TDRA is consistent with the interpretation of the statuteupon which we base todays decision.



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Childrens Hosp. & Health Ctr. v. Belshe , 188 F.3d 1090,1096 (9th Cir. 1999) (parallel citations omitted). Here, more-over, the language of the new statute, when compared to thelanguage of the former statute, provides a firm basis for deci-sion.

[6] Beginning with subsection (c)(1) of 15 U.S.C. 1125,Congress provided that the owner of a famous mark . . . shallbe entitled to an injunction against another person who . . .commences use of a mark or trade name in commerce that islikely to cause dilution. 15 U.S.C. 1125(c) (emphasisadded). When referring to the junior mark, Congress did notauthorize an injunction against another person who com-mences use of the mark; use of the definite article theclearly would have signaled that the junior mark had to be thesame as the senior. Instead, Congress employed the indefinitearticle a, which indicates that any number of unspecified,

junior marks may be likely to dilute the senior mark.

[7] Turning to the language of subsection (c)(2)(B), theTDRA defines dilution by blurring as the association aris-ing from the similarity between a mark and a trade name anda famous mark that impairs the distinctiveness of the famous

mark. Id. 1125(c)(2)(B) (emphasis added). Congress didnot require an association arising from the substantial simi-larity, identity or near identity of the two marks. Theword chosen by Congress, similarity, sets forth a lessdemanding standard than that employed by many courts underthe FTDA.

This analysis of the language of the statute, and our com-parison of this language with the now-repealed statute, arefurther supported by Congresss decision to employ, in sub-section (c)(2)(B), a non-exhaustive list of relevant factors todetermine when dilution has occurred. Congresss implemen-

tation of such a methodology is simply not compatible witha determination that identity, near identity or substantial simi-larity are necessary to constitute a threshold showing for relief



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under 1125(c). Indeed, Congress chose instead to make thedegree of similarity between the mark or trade name and thefamous mark, id. 1125(c)(2)(B)(i) (emphasis added), to bethe first of the six (or more) relevant factors to be considered.

No doubt, similarity has a special role to play in the imple-mentation of the new statutes multifactor approach. After all,dilution by blurring is defined by the statute as an associationarising from the similarity between a mark . . . and a famousmark. Id. 1125(c)(1)(B). It is also the first factor listed inthe multifactor approach. Nevertheless, Congresss decisionto make degree of similarity one consideration in a multi-factor list strongly suggests that it did not want degree of similarity to be the necessarily controlling factor.

Finally, we believe that it is significant that, in adopting theTDRA, Congress decided to re-write 15 U.S.C. 1125(c), asopposed to altering discrete wording or subsections. Thisaction suggests that Congress did not wish to be tied to thelanguage or interpretation of prior law, but instead crafted anew approach to our consideration of dilution-by-blurringclaims. 10

10

Abercrombie urges us to look to the legislative history of the TDRAas support for its claim that the identical or nearly identical standard sur-vives adoption of that statute. However, we do not resort to legislativehistory to cloud a statutory text that is clear. Cumbie v. Woody Woo,

Inc. , 596 F.3d 577, 581 n.11 (9th Cir. 2010) (quoting Ratzlaf v. United States , 510 U.S. 135, 147-48 (1994)). The TDRA contains no languagethat suggests that identity, near identity or substantial similarity is requiredin order to show dilution. Furthermore, use of legislative history is particu-larly inappropriate in circumstances where, as here, the legislators pub-lished statements do not squarely address the question presented. Oregonv. Ashcroft , 368 F.3d 1118, 1136 (9th Cir. 2004). Although the HouseCommittee cited its earlier report on the FTDA to help explain the TDRA,see H.R. Rep. No. 109-23 (2005), reprinted in 2006 U.S.C.C.A.N. 1091,the legislative history is not precise enough to overcome the clarity of thetext. We need not decide the extent of continuity between the FTDA andTDRA because, insofar as it is relevant to this case, there is none Thaneis plainly inconsistent with the TDRAs text.



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[8] Thus, the plain language of 15 U.S.C. 1125(c) doesnot require that a plaintiff establish that the junior mark isidentical, nearly identical or substantially similar to the seniormark in order to obtain injunctive relief. Rather, a plaintiff must show, based on the factors set forth in 1125(c)(2)(B),including the degree of similarity, that a junior mark is likelyto impair the distinctiveness of the famous mark.

Our interpretation of the TDRA is compatible with the caselaw of the only other court of appeals to have addressedsquarely the question whether the requirement of identity orsubstantial similarity survives the TDRA. In Starbucks , thecompany brought a federal dilution claim against Wolfesbased on its use of the term Charbucks in connection withone of its coffee blends. The district court found that themarks were not substantially similar and that [t]his dissimi-larity alone is sufficient to defeat [Starbuckss] blurringclaim. Starbucks , 588 F.3d at 107. The Second Circuit dis-agreed. It acknowledged that, pre-TDRA, it had requiredplaintiffs to show that the marks were very or substan-tially similar before they could prevail on a federal dilutionclaim. Id. (quoting Playtex Prods., Inc. v. Georgia-PacificCorp. , 390 F.3d 158, 167 (2d Cir. 2004)). This was no longer

the case under the TDRA, the court explained:The post-TDRA federal dilution statute, however,

provides us with a compelling reason to discard thesubstantially similar requirement for federal trade-mark dilution actions. The current federal statutedefines dilution by blurring as an association aris-ing from the similarity between a mark . . . and afamous mark that impairs the distinctiveness of thefamous mark, and the statute lists six non-exhaustive factors for determining the existence of an actionable claim for blurring. 15 U.S.C.

1125(c)(2)(B). Although similarity is an integralelement in the definition of blurring, we find it sig-nificant that the federal dilution statute does not use



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the words very or substantial in connection withthe similarity factor to be considered in examining afederal dilution claim.

Id. at 108. Furthermore, the court continued, in addition toleaving out any modifier for similarity, Congress alsoemployed specific language that cannot be reconciled with arequirement of substantial similarity; the court stated:

[O]ne of the six statutory factors informing theinquiry as to whether the allegedly diluting mark

impairs the distinctiveness of the famous mark is[t]he degree of similarity between the mark or tradename and the famous mark. 15 U.S.C. 1125(c)(2)(B)(i) (emphasis added). Considerationof a degree of similarity as a factor in determiningthe likelihood of dilution does not lend itself to arequirement that the similarity between the subjectmarks must be substantial for a dilution claim tosucceed.

Id. (internal citations omitted); see also Tiffany (NJ) Inc. v.eBay, Inc. , 600 F.3d 93, 111 n.18 (2d Cir. 2010) (We haverecently explained that under the [TDRA] the similaritybetween the famous mark and the allegedly blurring mark need not be substantial in order for the dilution by blurringclaim to succeed.). 11

Although we did not speak directly to the issue in Visa International , we believe that our decision in that case is con-sonant with the interpretation of the TDRA that we adopthere. In Visa International , we reviewed the district courts

11 We have held that the factors a court may consider under 1125(c)(2)B)(i-vi) are not necessarily entitled to the same weight. A suf-ficiently strong showing of similarity can overcome all other relevant fac-tors. See Visa Intl , 610 F.3d at 1090 (affirming summary judgment on thebasis of a junior mark effectively identical to a strong senior mark).



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grant of summary judgment in favor of Visa on its trademark dilution claim. We noted that likelihood of dilution is a fac-tual inquiry generally not appropriate for decision on sum-mary judgment. Visa Intl , 2010 WL 2559003, at *1. Wepointed out that Congress had enumerated factors courts mayuse to analyze the likelihood of dilution, including the similar-ity between the two marks and the distinctiveness and recog-nition of the plaintiffs mark. Id. (citing 15 U.S.C. 1125(c)(2)(B)(i), (ii), (iv)). Evaluating these factors, wedetermined that [t]he district court was quite right in grantingsummary judgment to Visa. Id. at *4. In essence, we consid-

ered the evidence in light of the factors set forth in 1125(c)(2)(B). We identified similarity as one of the fac-tors a court should consider and, notably, did not mention arequirement that the marks be identical or nearly identical.Most importantly, we took the degree of similarity intoaccount along with the other 1125(c)(2)(B) factors in deter-mining whether dilution was likely to occur. In short,although not addressing the issue now before us head-on inVisa International , we applied the methodology that we havedescribed here and made no reference to a requirement of identity or near identity of the marks. 12

F. The District Courts Error Was Not Harmless

Abercrombie also submits that, even if the district courterred in applying the identical or nearly identical require-ment, the judgment nonetheless should be affirmed becauseany error was harmless. According to Abercrombie, the dis-trict court determined the Arcuate mark and the Ruehl designwere not visually similar. Because similarity is the correct

12 Although we hold that a particular degree of similarity is not a thresh-old, similarity is the necessary predicate for dilution analysis. See 15U.S.C. 1125(c)(2)(B) ( [D]ilution by blurring is association arisingfrom the similarity between a mark or trade name and a famous mark . . . .). And greater degrees of similarity manifestly are more likely tosupport a finding of dilution.



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standard under the TDRA, Levi Strauss suffered no prejudiceas a result of the district courts application of the incorrectstandard. Abercrombie also notes that, in assessing the likeli-hood of dilution, the district court not only consideredwhether the marks were identical, but also took into accountthe other five factors set forth in 1125(c)(2)(B). Abercrom-bie maintains that, because the court engaged in a weighingof all of the factors, the similarity requirement played onlyan insignificant role in its determination.

Abercrombie presents a very strained view of the districtcourts opinion. In its order entering judgment for Abercrom-bie, the court noted that [t]he advisory jury found that theRuehl design and the Arcuate mark were not identical ornearly identical. Levi Strauss & Co. , 2009 WL 1082175, at*7. It also observed that the test for similarity in a dilutioncontext is more stringent than in the infringement context.

Id. (internal quotation marks omitted). After evaluating thevisual depictions of the designs, the court concluded that[t]his evidence demonstrates that a significant segment of thetarget group of customers would not view the marks as essen-tially the same . Id. at *8 (emphasis added). The court thenreviewed Dr. Soods testimony and concluded that, given the

survey shortcomings, there was insufficient evidence that tar-get customers would see the Ruehl design and the Arcuatemark as essentially the same . Id. (emphasis added). In sum-mary, the court stated: [T]he Court concludes, consistentwith the advisory jurys finding, that [Levi Strauss] has notestablished that [Abercrombie] is making commercial use of a mark that is identical or nearly identical to the Arcuatemark. Id. at *9. Use of the identical or nearly identicalstandard permeated the courts analysis and provided the basisupon which the court evaluated the evidence.

This standard also played a pivotal role in the courts deter-

mination that the Ruehl design was not likely to dilute theArcuate mark. With respect to the similarity of the marks, thecourt observed that the two marks must be essentially the



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same and that, [f]or the reasons set forth above, the Courtfinds that the Ruehl design and the Arcuate mark are not visu-ally similar. Id. In other words, the court equated similaritywith sameness and employed the latter, more stringent defini-tion when entering its findings of fact.

[9] Finally, our review of the district courts balancing of the relevant factors convinces us that application of the incor-rect standard affected its dilution determination. According tothe district court, degree of similarity was only one of threefactors that weighed in Abercrombies favor. The districtcourt assumed, without deciding, that Levi Strauss also hadtwo factorsacquired distinctiveness and degree of recognitionthat weighed in its favor. Thus, application of the correct, less-demanding standard could have tipped thebalance in favor of Levi Strauss. The degree of similaritybetween the Ruehl and Arcuate marks may be insufficient tosupport a likelihood of dilution, but that conclusion can comeonly after consideration of the degree of similarity in light of all other relevant factors and cannot be determined conclu-sively by application of an essentially the same threshold.

[10] Given the relative balance of the parties positions, we

cannot say, with any confidence, that the district court wouldhave reached the same result absent the legal error. See Gal-damez v. Potter , 415 F.3d 1015, 1025 (9th Cir. 2005)(presum[ing] prejudice where civil trial error is concernedand shifting the burden to the defendant to demonstrate thatit is more probable than not that the jury would have reachedthe same verdict had it been properly instructed (quotingObrey v. Johnson , 400 F.3d 691, 701 (9th Cir. 2005))). Wetherefore must reverse the judgment of the district court withrespect to Levi Strausss claim under the TDRA.

REVERSED and REMANDED.



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APPENDIX

Levi Strausss Arcuate design.



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Abercrombies Ruehl design.


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