Case Explained: MFIB, LLC V. IBCA, LLC, ET AL.

Court: United States Court of Appeals for the Ninth Circuit Filed: 2026-06-05 Docket: 2:25-cv-02517-SPL The Ninth Circuit affirmed the district court’s denial of a motion for a preliminary injunction barring defendants from using the “ICON,” “ICON Builders,” and “THE ORIGINAL ICON BUILDERS” trademarks. The court applied the abuse of discretion standard, reviewing whether MFIB demonstrated a likelihood of success on the merits of its trademark infringement claim. The key legal basis for the decision was that MFIB failed to establish senior rights to the marks because the defendants’ owner, Allen Sands, had continuously used the marks since 1985 through various business entities. The court found sufficient “privity” between Sands and the current defendant, IBCA, LLC, noting Sands’s control (50–100% ownership and final say) over all prior businesses that utilized the marks. Consequently, under 15 U.S.C. § 1115(b)(5) and common law priority principles, the defendants held senior rights to the marks in the geographic areas where they had previously used them. The court further held that the district court did not abuse its discretion by denying a nationwide injunction when MFIB’s motion primarily sought broad relief based on alleged abandonment, while the evidence of current infringement was limited only to the specific areas of prior use. The practical consequence is that the denial of the preliminary injunction stands, allowing defendants to continue using the marks in their existing geographic markets. However, the court explicitly noted that the affirmation is without prejudice, meaning MFIB may still seek preliminary or permanent injunctive relief to prevent the defendants from using the marks in areas outside those of prior use upon making an appropriate showing. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.