La Quinta Worldwide LLC v. Q.R.T.M., S.A. De C.V.

Q.R.T.M., S.A. de C.V. (“Quinta Real”), appeals from the district court’s judgment and order concluding that expansion of Quinta Real’s Mexican hotel business into the United States would result in a likelihood of consumer confusion with La Quin-ta Worldwide, LLC (“La Quinta”). The district court issued a permanent injunction against the use of “Quinta Real” in association with hotels and lodging in the United States. We have jurisdiction to hear this appeal pursuant to 28 U.S.C. § 1291 . We conclude that there is federal subject-matter jurisdiction over the trademark claims, and that the district court correctly found a likelihood of confusion, but that the district court did not provide a sufficient analysis balancing the equities in its decision to grant a permanent injunction. We affirm in part as to trademark violations, but vacate the permanent injunction and remand in part requesting further assessment of the equities.

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Since 1968, La Quinta has operated hotels and motels in the United States on its own and through franchise agreements, and it has long held trademarks for “La Quinta” in connection with “motel services.” Today there are more than 800 La Quinta…