Sigma Phi Society (the “Society”) operates the nation’s oldest existing Greek fraternity, operating since 1827. The Society’s Constitution identifies it as an all-male fraternity. Michigan Sigma Phi—the Michigan Chapter—is one of the Society’s oldest Chapters.
The Michigan Chapter began secretly allowing non-male members to join its Chapter in violation of the Society’s Constitution. The Society attempted to resolve the situation but ultimately was forced to revoke the Michigan Chapter’s use of the Society’s trademarks: “Sigma Phi” and “Σ Φ”. The Michigan Chapter nonetheless continued to use the Society’s trademarks.
The Society sued in the U.S. District Court for the Eastern District of Michigan, alleging that the Michigan Chapter had engaged in unfair competition and had infringed on the Society’s trademark rights under both common law and in violation of the federal Lanham Act, 15 U.S.C. §§ 1051 et seq. The Society sought a court order permanently prohibiting the Michigan Chapter from using the Society’s trademarks, along with attorney’s fees.
The Court initially entered a temporary restraining order, and later a preliminary injunction, against the Michigan Chapter.
After two years of litigation, both the Society and the Michigan Chapter filed motions for summary judgment. The Society argued there was no legitimate dispute that the Michigan Chapter had infringed on the Society’s trademark rights. The Michigan Chapter made multiple arguments in its defense: 1) that it retained its Charter from the Society and thus possessed an implied license to use the trademarks; 2) that the Michigan Chapter’s use of the trademarks was not likely to cause confusion; and 3) that the Court should not grant the Society relief because doing so would be “inequitable, unconscionable, and unjust.”
The Court issued a 24-page opinion in which it rejected the Michigan Chapter’s arguments and instead concluded that the Society was correct: As a matter of law, the Michigan Chapter had engaged in trademark infringement and unfair competition.
In ruling in the Society’s favor, the Court found that, while the Michigan Chapter retained its Charter and possessed an implied license, the Society had repeatedly revoked that license due to the Michigan Chapter’s violation of the Society’s Constitution.
The Court cited multiple decisions in other fraternity and non-profit cases—including the Jaycees and Kappa Sigma Fraternity—to find that the Michigan Chapter’s continued use of the Society’s trademarks would in fact likely cause confusion, concluding that the Michigan Chapter’s use of the trademarks “would cause any reasonable person to associate” the Michigan Chapter with the Society.
Finally, the Court rejected the Michigan Chapter’s arguments regarding unconscionability. The Court noted that the Michigan Chapter did “not cite a single applicable case showing” that the Society “has violated the law, nor have they identified the law” that the Society allegedly violated. The Court also pointed out that the Michigan Chapter failed to “cite any cases where a court has held that a fraternity (or sorority) violates the Equal Protection Clause or any other provision of the United States Constitution for having single sex membership requirements.”