Leo Stoller
Encyclopedia
Leo D. Stoller is an American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 self-styled "intellectual property
Intellectual property
Intellectual property is a term referring to a number of distinct types of creations of the mind for which a set of exclusive rights are recognized—and the corresponding fields of law...

 entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...

" based in suburban Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...

, Illinois. Stoller controversially claimed rights to a large inventory of "famous" trademark
Trademark
A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...

s and engaged in the assertive enforcement of those alleged trademark rights, threatening infringement
Trademark infringement
Trademark infringement is a violation of the exclusive rights attaching to a trademark without the authorization of the trademark owner or any licensees...

 action
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...

 against people and companies who attempt to use similar marks.

Though he managed to obtain license
Brand licensing
Licensing means renting or leasing of an intangible asset. Examples of intangible assets include a song , a character , a name or a brand . An arrangement to license a brand requires a licensing agreement...

 payments in some circumstances through demand letter
Demand letter
A demand letter, or LOD, ie. a Letter Of Demand , is letter stating a legal claim which makes a demand for restitution or performance of some obligation, owing to the recipients' alleged breach of contract, or for a legal wrong.In the United States, demand letters from a debt collector relating to...

s, Stoller lost some key challenges in federal court, and was sanctioned by United States regulators for filing thousands of motions. A federal court labeled Stoller and his companies as "vexatious litigants
Vexatious litigation
Vexatious litigation is legal action which is brought, regardless of its merits, solely to harass or subdue an adversary. It may take the form of a primary frivolous lawsuit or may be the repetitive, burdensome, and unwarranted filing of meritless motions in a matter which is otherwise a...

" in 2005, and his bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....

 filing from that year was converted to a liquidation
Liquidation
In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...

 in 2006 after the judge found Stoller's filing to have been made in bad faith. On August 8, 2007, the bankruptcy court approved the sale of Stoller's trademark assets to the Society for the Prevention of Trademark Abuse, LLC.

Background

Stoller's companies included Rentamark.com, Stealth Industries Inc., S Industries Inc., Sentra Sporting Goods U.S.A., and Central Manufacturing Company. Through these companies are in his own name, Stoller has registered trademarks with the United States Patent and Trademark Office
United States Patent and Trademark Office
The United States Patent and Trademark Office is an agency in the United States Department of Commerce that issues patents to inventors and businesses for their inventions, and trademark registration for product and intellectual property identification.The USPTO is based in Alexandria, Virginia,...

 (USPTO) for over 25 years including Stealth, Sentra, Dark Star, Air Frame, Triana, Stradivarius, Havoc, Chestnut, Trillium, White Line Fever, Fire Power, Love Your Body, and many others.

Stoller has filed oppositions to others' trademark applications with the USPTO Trademark Trial and Appeal Board
Trademark Trial and Appeal Board
The Trademark Trial and Appeal Board is a body within the United States Patent and Trademark Office responsible for hearing and deciding certain kinds of cases involving trademarks. These include appeals from decisions by USPTO Examiners denying registration of marks, and opposition proceedings...

 (TTAB) numerous times, and filed applications for extension of the deadline to file such oppositions even more times. Stoller claims a number of large and small companies have resolved trademark controversies. When approaching infringers, Stoller is reported to document his claims with copies of letters which demonstrate capitulation with his demands. Such letters are said to be from companies such as K-Mart
Sears Holdings Corporation
Sears Holdings Corporation is a retail conglomerate formed in 2005 by the merger of Sears, Roebuck and Co., of Hoffman Estates, Illinois, with Kmart Holdings Corporation, of Troy, Michigan...

, and often marked "Confidential".

A list of thousands of proceedings involving Leo Stoller and his companies (Stealth Industries, Inc., Leo Stoller Stealth Industries Inc., Leo Stoller Central Mfg. Co, Central Mfg. Co., Central Mfg. Inc., Sentra Industries Inc.) can be found in the USPTO site.

Articles about Stoller have appeared in The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...

and the Chicago Sun-Times
Chicago Sun-Times
The Chicago Sun-Times is an American daily newspaper published in Chicago, Illinois. It is the flagship paper of the Sun-Times Media Group.-History:The Chicago Sun-Times is the oldest continuously published daily newspaper in the city...

. He has been quoted in the Wall Street Journal and interviewed on Fox News, CBS News
CBS News
CBS News is the news division of American television and radio network CBS. The current chairman is Jeff Fager who is also the executive producer of 60 Minutes, while the current president of CBS News is David Rhodes. CBS News' flagship program is the CBS Evening News, hosted by the network's main...

 and talk radio programs.

9/11 charity charges

In August 2002 the Illinois Attorney General
Illinois Attorney General
The Illinois Attorney General is the highest legal officer of the state of Illinois in the United States. Originally an appointed office, it is now an office filled by election through universal suffrage...

 filed suit against Stoller for illegally soliciting funds on behalf of victims of the September 11, 2001 attacks
September 11, 2001 attacks
The September 11 attacks The September 11 attacks The September 11 attacks (also referred to as September 11, September 11th or 9/119/11 is pronounced "nine eleven". The slash is not part of the pronunciation...

 via his web site giveagiftonline.com. Twelve charities Stoller listed said they never received any money from Stoller, despite assurances on the site that "100 percent of all donations" would be forwarded. He was accused of not being a licensed charitable organization and listing charities without their permission. Stoller paid a $2,000 fine and was barred from soliciting for charities in Illinois, but made no admission of wrongdoing.

S Industries, Inc. v. Centra 2000

In 1996 S Industries, Inc. filed suit alleging that Centra 2000, a producer of data management
Data management
Data management comprises all the disciplines related to managing data as a valuable resource.- Overview :The official definition provided by DAMA International, the professional organization for those in the data management profession, is: "Data Resource Management is the development and execution...

 software, infringed its/Stoller's "Sentra" trademark in violation of the Lanham Act
Lanham Act
The Lanham Act is a piece of legislation that contains the federal statutes of trademark law in the United States. The Act prohibits a number of activities, including trademark infringement, trademark dilution, and false advertising.-History:Named for Representative Fritz G...

. District Judge George W. Lindberg ruled in favor of Centra 2000, finding that S Industries did not hold a federal registration for the "Sentra" mark for use on computer hardware or software. Because S Industries' claims were, in the judge's view, completely unfounded and because its procedural maneuvering multiplied the cost of defending against the suit, Centra 2000 was awarded attorney's fees in July 1998. This was affirmed on appeal.

Columbia Pictures v. Stoller

When Columbia Pictures
Columbia Pictures
Columbia Pictures Industries, Inc. is an American film production and distribution company. Columbia Pictures now forms part of the Columbia TriStar Motion Picture Group, owned by Sony Pictures Entertainment, a subsidiary of the Japanese conglomerate Sony. It is one of the leading film companies...

 brought out the 2005 movie Stealth
Stealth (film)
Stealth is a 2005 American science fiction action film starring Jessica Biel, Josh Lucas, Jamie Foxx, and Sam Shepard. The film was directed by Rob Cohen, director of The Fast and the Furious and xXx....

, Stoller attempted to force the movie studio to change the name of the movie or pay him royalties
Royalties
Royalties are usage-based payments made by one party to another for the right to ongoing use of an asset, sometimes an intellectual property...

, but the studio responded by counterclaiming against Stoller.

Central Manufacturing Co. v. Brett

A case decided by summary judgment
Summary judgment
In law, a summary judgment is a determination made by a court without a full trial. Such a judgment may be issued as to the merits of an entire case, or of specific issues in that case....

 on September 30, 2005, Central Manufacturing Co. v. Brett, pitted a Stoller-owned company against Hall-of-Fame
National Baseball Hall of Fame and Museum
The National Baseball Hall of Fame and Museum is an American history museum and hall of fame, located at 25 Main Street in Cooperstown, New York, operated by private interests serving as the central point for the study of the history of baseball in the United States and beyond, the display of...

 baseball
Baseball
Baseball is a bat-and-ball sport played between two teams of nine players each. The aim is to score runs by hitting a thrown ball with a bat and touching a series of four bases arranged at the corners of a ninety-foot diamond...

 player George Brett
George Brett (baseball)
George Howard Brett , nicknamed "Mullet", is a former Major League Baseball third baseman, designated hitter, and first baseman. He played his entire 21-year baseball career for the Kansas City Royals. Brett's 3,154 career hits are the most by any third baseman in major league history, and 15th...

, whose company, Brett Brothers Sports International Inc., sells a bat
Baseball bat
A baseball bat is a smooth wooden or metal club used in the game of baseball to hit the ball after the ball is thrown by the pitcher. It is no more than 2.75 inches in diameter at the thickest part and no more than 42 inches in length. It typically weighs no more than 33 ounces , but it...

 under the name "Stealth". It was alleged in this case that the use of that name infringed upon Stoller's trademark rights.

In its decision, the United States District Court for the Northern District of Illinois
United States District Court for the Northern District of Illinois
The United States District Court for the Northern District of Illinois is the trial-level court with jurisdiction over the northern counties of Illinois....

 determined that there was no likelihood of confusion
Confusing similarity
In trademark law, confusing similarity is a test used during the examination process to determine whether a trademark conflicts with another, earlier mark, and also in trademark infringement proceedings to determine whether the use of a mark infringes a registered trade mark.In many jurisdictions...

 where consumers would mistakenly regard Brett's bats as being from Stoller's company. The court also found that Stoller failed to provide adequate proof that his company and its licensees had even sold baseball-related merchandise at all. The court found likelihood of confusion in the opposite direction, found Brett's trademark rights to be senior, and hence canceled Stoller's (Central Manufacturing) registration. In the decision, the court described Stoller's tactics and enumerated dozens of unsuccessful infringement cases he had brought in that court.

Chief Judge Charles P. Kocoras from the Northern District of Illinois then issued a citation to Stoller after reviewing his "filing history" having filed at least "49 lawsuits in this court, individually or through one of his many wholly owned corporations". "The Executive Committee (of the Northern District of Illinois) in its capacity as the supervisor of the assignment of cases, has directed that Leo Stoller inform this court of any claim by him why the Executive Committee should not impose reasonable and necessary restraints upon Mr. Stoller's ability to file civil cases in this District." After a thorough review of Leo Stoller's entire filing history the Executive Committee of the Northern District of Illinois issued a decision stating that "the committee will take no further action in this matter."

On July 9, 2007, in an opinion that opened with a laudatory description of the George Brett "Pine Tar Incident
Pine Tar Incident
The Pine Tar Incident was a controversial incident during an American League game played between the Kansas City Royals and New York Yankees on July 24, 1983 at Yankee Stadium in New York City. With his team trailing 4–3 in the top half of the ninth inning, George Brett of the Royals hit a 2-run...

," the United States Court of Appeals for the Seventh Circuit
United States Court of Appeals for the Seventh Circuit
The United States Court of Appeals for the Seventh Circuit is a federal court with appellate jurisdiction over the courts in the following districts:* Central District of Illinois* Northern District of Illinois...

 affirmed the District Court's judgment, including the order for Stoller to pay Brett's attorney fees.

Central Mfg. Co. v. Pure Fishing, Inc.

Stoller and the "Central Mfg. Co. (a Delaware corporation)" sued a fishing tackle
Fishing tackle
Fishing tackle, is a general term that refers to the equipment used by fishermen when fishing. Almost any equipment or gear used for fishing can be called fishing tackle. Some examples are hooks, lines, sinkers, floats, rods, reels, baits, lures, spears, nets, gaffs, traps, waders and tackle...

 company, Pure Fishing, Inc. in February 2005 in Illinois for selling Spiderwire Stealth fishing line. Pure Fishing denied infringement and counterclaimed alleging that Stoller's trademark business violated various state and federal laws against unfair business practices
Unfair business practices
Unfair business practices encompass fraud, misrepresentation, and oppressive or unconscionable acts or practices by business, often against consumers and are prohibited by law in many countries. For instance, in the European Union, each member state must regulate unfair business practices in...

. Pure Fishing also acquired and asserted in another counterclaim (piercing the corporate veil
Piercing the corporate veil
Piercing the corporate veil or lifting the corporate veil is a legal decision to treat the rights or duties of a corporation as the rights or liabilities of its shareholders or directors. Usually a corporation is treated as a separate legal person, which is solely responsible for the debts it...

 and continuation of business theories) the unsatisfied 1998 sanction judgment that had been awarded to Centra 2000 against Stoller's S Industries, Inc.
Pure Fishing also showed that Stoller had signed his attorney's name to pleadings that were filed with the court. Stoller's case was dismissed
Motion (legal)
In law, a motion is a procedural device to bring a limited, contested issue before a court for decision. A motion may be thought of as a request to the judge to make a decision about the case. Motions may be made at any point in administrative, criminal or civil proceedings, although that right is...

 with prejudice
Prejudice (law)
There are two meanings for "prejudice" in legal proceedings; civil and criminal.-Civil procedure:Within legal civil procedure, prejudice is a loss or injury, and refers specifically to a formal determination against a claimed legal right or cause of action. Thus, in a civil case, dismissal without...

 and default judgments entered against all corporate defendants for lack of prosecution and against Stoller as a sanction under Rule 11.

During Stoller's 2006 bankruptcy proceedings (see below), Pure Fishing went back to the district court for entry of a Final Judgment. On October 4, 2006, a federal court in Chicago entered final judgment in Central Mfg. Co., et al. v. Pure Fishing, Inc., et al. The Court declared the case to be "exceptional" under 15 U.S.C. § 1117(a) and ordered Central Mfg. to pay Pure Fishing’s costs, charges and disbursements, including a reasonable attorneys' fees, incurred in the action. The court further ordered that Stoller and his companies were "vexatious litigants
Vexatious litigation
Vexatious litigation is legal action which is brought, regardless of its merits, solely to harass or subdue an adversary. It may take the form of a primary frivolous lawsuit or may be the repetitive, burdensome, and unwarranted filing of meritless motions in a matter which is otherwise a...

" and barred them "from instituting any lawsuit or trademark opposition without prior leave of this Court pursuant to this Court’s authority under the All Writs Act
All Writs Act
The All Writs Act is a United States federal statute, codified at , which authorizes the United States federal courts to "issue all writs necessary or appropriate in aid of their respective jurisdictions and agreeable to the usages and principles of law"....

, 28 U.S.C. § 1651(a)." The court also cancelled the marks asserted in the Complaint. Stoller filed a Notice of Appeal from the October 4 judgment and has moved to stay the enforcement of the said judgment pending the appeals.

On December 12, 2006, the Court entered judgment in favor of Pure Fishing, Inc. in the total amount of $969,751.81.

Target and Google trademark claims

Stoller filed an opposition with the TTAB in April 2006 to Target Stores bulls-eye logo
Logo
A logo is a graphic mark or emblem commonly used by commercial enterprises, organizations and even individuals to aid and promote instant public recognition...

.

In 2006, Stoller filed an opposition to Google
Google
Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program...

's attempt at registering a trademark to the name "Google" in the category of exercise balls. Stoller claims that the "Google" mark has become generic
Genericized trademark
A genericized trademark is a trademark or brand name that has become the colloquial or generic description for, or synonymous with, a general class of product or service, rather than as an indicator of source or affiliation as intended by the trademark's holder...

, yet also claims that it infringes on prior alleged rights to the name held by Stoller's company. The case against the Google mark, however, was dismissed with prejudice at the instigation of Stoller's trustee in bankruptcy
Trustee in bankruptcy
A trustee in bankruptcy is an entity, often an individual, in charge of administering a bankruptcy estate.- United States :In the United States, a Trustee in Bankruptcy is a person who is appointed by the United States Department of Justice or by the creditors involved in a bankruptcy case.In a...

, who is empowered to take action in all cases in which Stoller and his companies are involved. Subsequently, on January 19, 2007, Google filed a suit against Stoller's companies alleging violations of the anti-racketeering RICO
Racketeer Influenced and Corrupt Organizations Act
The Racketeer Influenced and Corrupt Organizations Act, commonly referred to as the RICO Act or simply RICO, is a United States federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization...

 law.

On April 2, 2008 the Seventh Circuit Court of Appeals reversed a judgment in favor of Google, on the ground that the case had been pursued using contradictory principles, both treating those companies as extensions of Stoller himself, and as separate legal entities. The case was remanded to the lower court for further action. The court noted, however, that Stoller remained subject to an order "directing that all federal courts in [the Seventh Circuit] return unfiled any papers he submits directly or indirectly unless and until he pays a $10,000 fine we imposed against him in August 2007," and "he will have to pay the outstanding sanction or, as a practical matter, face certain default."

Current trademark activity

On March 17, 2008, an entity calling itself the "Stoller Pension and Profit Sharing Plan" filed Application Serial No. 77/424,372 in the USPTO, claiming trademark rights to the word "Stealth" in the fields of boat accessories and various forms of sports equipment and apparel, with a first use in commerce dating back to 1981. This organization has filed a property tort suit against Countrywide Bank.

Sanctions

Several jurisdictions have imposed sanctions against Stoller in response to the cases and motions he has brought, and his conduct in prosecuting them.
  • U.S. Patent and Trademark Office Trademark Trial and Appeal Board: In a July 14, 2006 order by the Trademark Trial and Appeal Board (TTAB), Stoller was sanctioned by the Board for filing more than 1100 requests of an extension of time to file oppositions for time period between November 2005 and March 2006. The Board vacated all the time extensions filed during that time period and prohibits Stoller from filing any additional extensions for two years. Stoller will be able to file extensions again after two years but only if the extension is filed by an attorney. The appeal to the Court of Appeals for the Federal Circuit was dismissed for lack of jurisdiction. The time for filing any appeal to the district court has lapsed.

  • U.S. District Court for the Northern District of Illinois: On March 8, 2007, the Executive Committee for the U.S. District Court for the Northern District of Illinois sanctioned Stoller and entered an injunction precluding him from filing any further lawsuits without first obtaining leave of court.

  • U.S. Court of Appeals for the Seventh Circuit: On August 23, 2007, the United States Court of Appeals for the Seventh Circuit
    United States Court of Appeals for the Seventh Circuit
    The United States Court of Appeals for the Seventh Circuit is a federal court with appellate jurisdiction over the courts in the following districts:* Central District of Illinois* Northern District of Illinois...

     imposed a $10,000 fine on Stoller. Stoller's sanction included an order requiring that all courts within the Seventh Circuit not to accept any papers filed by Stoller, until the fine was paid. In April 2008, the court noted that the sanction remained outstanding.

  • U.S. Supreme Court: On May 27, 2008, the United States Supreme Court denied Stoller's motion to proceed in forma pauperis
    In forma pauperis
    In forma pauperis is a Latin legal term meaning "in the character or manner of a pauper". In the United States, the IFP designation is given by both state and federal courts to someone who is without the funds to pursue the normal costs of a lawsuit or a criminal defense...

    and dismissed his petition for certiorari
    Certiorari
    Certiorari is a type of writ seeking judicial review, recognized in U.S., Roman, English, Philippine, and other law. Certiorari is the present passive infinitive of the Latin certiorare...

    . The court noted that he had "repeatedly abused this Court's process," and directed its clerk not to accept any further filings from Stoller in noncriminal matters unless Stoller made a complete filing in accordance with Supreme Court Rule 33.1 (i.e., forty copies in typeset booklet form) and accompanied by the required filing fee.

  • Other sanctions: In addition to being fined and sanctioned, Stoller or his entities have been ordered to pay their opponents' attorneys' fees in at least seven reported cases.

Bankruptcy filings

On March 1, 1985, Stoller filed for Chapter 13
Chapter 13, Title 11, United States Code
Chapter 13 of the United States Bankruptcy Code, codified under Title 11 of the United States Code, governs a form of bankruptcy in the United States that allows individuals to undergo a financial reorganization supervised by a federal bankruptcy court. The goal of Chapter 13 is to enable...

 relief in the U.S. Bankruptcy Court
United States bankruptcy court
United States bankruptcy courts are courts created under Article I of the United States Constitution. They function as units of the district courts and have subject-matter jurisdiction over bankruptcy cases. The federal district courts have original and exclusive jurisdiction over all cases arising...

 for the Northern District of Illinois
United States District Court for the Northern District of Illinois
The United States District Court for the Northern District of Illinois is the trial-level court with jurisdiction over the northern counties of Illinois....

, Case No. 85-02729.

On March 23, 1998, Stoller filed for bankruptcy in the Northern District of Illinois, Case No. 98-03288 (later withdrawn).

In 2001, Stoller made a bankruptcy filing for his litigation entity, S Industries, Inc., that was filed during the appeal of the S Industries, Inc. v. Centra 2000 decision (N.D. Ill. 1998) that had levied sanctions against S Industries for oppressive litigation.

On December 20, 2005, Stoller filed a voluntary petition for relief under Chapter 13, before a final judgment could be entered in the Pure Fishing case. His petition listed $183,000 in general unsecured claims. This had the effect of an automatic stay on the litigation. Although the case against the corporate entities might have continued, Judge Lindberg stayed the case against those entities as well "in view of the unique relationship" between Stoller and his corporate entities.
Pure Fishing filed a claim in the bankruptcy case and asked the court to convert Stoller's case from Chapter 13 (debtor controlled reorganization) to Chapter 7
Chapter 7, Title 11, United States Code
Chapter 7 of the Title 11 of the United States Code governs the process of liquidation under the bankruptcy laws of the United States...

  (liquidation), with the immediate appointment of a trustee to manage the financial estate. Following a trial on the motion in August 2006, the case was immediately converted with trustee Richard M. Fogel appointed on September 5, 2006. The detailed opinion by Judge Jack B. Schmetterer of the bankruptcy court spells out in great detail how Stoller operated his business. A Notice of Appeal was filed by Stoller, who also moved to stay all proceedings pending resolution of his appeal. Stoller has also moved to disqualify the trustee on the grounds that he is biased and prejudiced against Stoller and not operating within the best interest of the estate. The court denied Stoller's motion, and Stoller's appeal was denied.

On October 5, 2006, trustee Richard M. Fogel's authority was extended to include actions as sole share holder of all corporate entities owned or controlled by Stoller, thus relieving Stoller of his ability to act as a representative of his corporations or proprietorships.

On August 8, 2007, the bankruptcy court approved an auction and sale under which Stoller's trademark assets were transferred to the Society for the Prevention of Trademark Abuse, LLC, the sole bidder in the auction, for $7,500.

Criminal actions

On December 15, 2010, Stoller was indicted on federal fraud charges related to his bankruptcy filings. He was arraigned on January 12, 2011, and a public defender
Public defender
The term public defender is primarily used to refer to a criminal defense lawyer appointed to represent people charged with a crime but who cannot afford to hire an attorney in the United States and Brazil. The term is also applied to some ombudsman offices, for example in Jamaica, and is one way...

was appointed to represent him. Trial is set for January 9, 2012.

External links

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