ANALYSIS I. ECCLESIASTICAL DEFERENCE
E. Camp St. Christopher
In some respects, the title to Camp St. Christopher presents the Court with a more straightforward analysis, in that the Dennis Canon, by its own terms, does not apply. Specifically, the Dennis Canon states, inter alia, " All real and personal property held by or for the benefit of any Parish, Mission or Congregation is held
express promises." Second, and perhaps more importantly, the concurrence
incorrectly construes our holding in I'On L.L.C. v. Town of Mt. Pleasant, 338 S.C.
406, 526 S.E.2d 716 (2000), with regards to issue preservation as it relates to additional sustaining grounds. A prevailing party need never raise an additional sustaining ground below, nor secure a ruling on it, in order for the issue to be preserved for appellate review. See Rule 220(c), SCACR (providing appellate courts may affirm the judgment of a lower court based on any ground appearing in the record). Undoubtedly, it is more prudent to raise an additional sustaining
ground in the appellate brief, as it draws the appellate court's attention to the matter and encourages it to exercise its discretion to address the issue. However,
explicitly raising the issue is not a prerequisite for the court to affirm the decision of the lower court on an alternative ground. See Rule 220(c), SCACR.
in trust for this Church and the Diocese thereof in which such Parish, Mission or Congregation is located." (emphasis added). It is undisputed the trustee
corporation holds title in fee simple to Camp St. Christopher, and that it does so for the benefit of the disassociated diocese, rather than any individual parish, mission, or congregation. Because the trustees did not accede to the Dennis Canon, there is no basis in South Carolina trust law for the national church to claim an ownership interest in Camp St. Christopher. Moreover, although the trustee corporation's initial bylaws stated that it would carry out its duties under the authority of the national church's constitution and canons, the trustees later took steps, using appropriate corporate formalities, to amend the bylaws and remove all references to the national church before the national church revoked Bishop Lawrence's authority. Accordingly, similar to the other plaintiff parishes', I would declare title to Camp St. Christopher in the trustee corporation, held for the benefit of the
disassociated diocese, just as the original deed conveyed the property.
III. INTELLECTUAL PROPERTY
Next, the plaintiffs assert their service marks are validly registered under state law and that they own the right to use the seals and symbols registered with the state. As a result, the plaintiffs claim the defendants' use of the plaintiffs'
marks amounts to service mark infringement. The defendants take the position that the plaintiffs' service marks are too similar to the defendants' federally-registered service marks, and that because the defendants registered their marks with the United States Patent and Trademark Office (USPTO), the Lanham Act70 expressly preempts state law with respect to the validity of the plaintiffs' marks.
I would narrowly affirm the trial court's finding that the plaintiffs' service marks are validly registered under state law. However, because there is already a pending federal case involving the applicability of the Lanham Act to these exact marks, I would defer to the federal courts regarding the applicability of federal copyright law.
A. Standard of Review
"Actions for injunctive relief are equitable in nature." Grosshuesch v.
Cramer, 367 S.C. 1, 4, 623 S.E.2d 833, 834 (2005). "In an action in equity tried by
70 15 U.S.C. §§ 1051–1141n (2006).
a judge alone, the appellate court may find facts in accordance with its view of the preponderance of the evidence." Goldman v. RBC, Inc., 369 S.C. 462, 465, 632 S.E.2d 850, 851 (2006). "However, this broad scope of review does not require an appellate court to disregard the findings below or ignore the fact that the trial judge is in the better position to assess the credibility of the witnesses." Pinckney v.
Warren, 344 S.C. 382, 387, 544 S.E.2d 620, 623 (2001). Moreover, appellants are not relieved of their burden of convincing an appellate court that the trial court committed an error in its findings. Id. at 387–88, 544 S.E.2d at 623.
B. Merits
Pursuant to federal law,
Any registration issued under the [Lanham Act] . . . and owned by a party to an action shall be admissible as evidence and shall be prima facie evidence of the validity of the registered mark and of the
registration of the mark, of the registrant's ownership of the mark, and of the registrant's exclusive right to use the registered mark in
commerce on or in connection with the goods or services specified in the registration subject to any conditions or limitations stated therein.
15 U.S.C. § 1115(a) (emphasis added). Moreover,
The ownership by a person of a valid registration under [the Lanham Act] . . . shall be a complete bar to an action against that person, with respect to that mark, that—
(A) is brought by another person under the common law or a statute of a State; and
(B)(i) seeks to prevent dilution by blurring or dilution by tarnishment; or
(ii) asserts any claim of actual or likely damage or harm to the distinctiveness or reputation of a mark, label, or form of
advertisement.
15 U.S.C. § 1125(c)(6).71
"In the absence of an express congressional command, state law is preempted if the law actually conflicts with federal law, or if federal law so thoroughly occupies the legislative field as to make reasonable the inference that Congress has left no room for the states to supplement it." City of Cayce v. Norfolk S. Ry. Co., 391 S.C. 395, 401, 706 S.E.2d 6, 8 (2011). Under the Lanham Act, the USPTO must refuse to grant a subsequent mark if the "dominant element" of the subsequent mark is already registered in a previous mark. In re Chatam Int'l Inc., 380 F.3d 1340, 1341–45 (Fed. Cir. 2004). Further, there are two "key
considerations" in determining the dominant element of the previously-registered mark: (1) the similarities between the names of the previous and subsequent trademarks, and (2) the similarities between the previously and subsequently trademarked goods. Id. at 1341–42.
71 South Carolina law provides:
The secretary shall cancel from the register, in whole or in part: . . . (3) a registration concerning which a court of competent jurisdiction finds that the: . . . (f) registered mark is so similar, as to be likely to cause confusion or mistake or to deceive, to a mark registered by another person in the [USPTO] before the date of the filing of the application for the registration by the registrant under this article, and not abandoned; however, if the registrant proves that the registrant is the owner of a concurrent registration mark in the
[USPTO] covering an area including this State, the registration under this article may not be canceled for that area of the State . . . .
S.C. Code Ann. § 39-15-1145(3)(f) (Supp. 2016) (emphasis added). Similarly, A mark by which the goods or services of an applicant for registration may be distinguished from the goods or services of others may not be registered if the mark: . . . (5) consists of a mark which: . . . (b) when used on or in connection with the goods or services of the applicant is primarily geographically descriptive or deceptively misdescriptive of them . . . .
S.C. Code Ann. § 39-15-1110(A)(5)(b) (Supp. 2016).