United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

FILED March 8, 2023 No. 21-40333 Lyle W. Cayce Clerk

Springboards to Education, Incorporated,

Plaintiff—Appellant/Cross-Appellee,

versus

McAllen Independent School District,

Defendant—Appellee/Cross-Appellant,

No. 21-40334

Springboards to Education, Incorporated,

Plaintiff—Appellant,

versus

IDEA Public Schools,

Defendant—Appellee.

Appeal from the United States District Court for the Southern District of Texas USDC No. 7:16-CV-523 USDC No. 7:16-CV-617 Case: 21-40334 Document: 00516670369 Page: 2 Date Filed: 03/08/2023

Nos. 21-40333 and 21-40334

Before Smith, Duncan, and Oldham, Circuit Judges. Stuart Kyle Duncan, Circuit Judge: Springboards for Education (“Springboards”) brought trademark infringement claims against McAllen Independent School District (“MISD”), a public school district in Texas, and IDEA Public Schools (“IDEA”), a nonprofit organization operating charter schools in Texas. The district court dismissed the suit against IDEA, concluding it was an arm of the state and therefore shared Texas’s sovereign immunity. As for MISD, the court found that it did not have sovereign immunity but ultimately granted summary judgment in MISD’s favor. Agreeing that MISD does not have sovereign immunity and that it was entitled to summary judgment on the merits, we affirm the district court’s judgment for MISD. Although we disagree with the district court’s conclusion that IDEA has sovereign immunity, we affirm the judgment for IDEA on alternate grounds. I. Springboards is a Texas corporation that sells educational materials designed to encourage schoolchildren to read. At issue in this case is Springboards’ Read a Million Words Campaign (“Campaign”), which urges students to read one million words over the course of the schoolyear. Participating schools receive a customized kit with Springboards’ educational materials, and students who successfully meet their reading goals become Millionaire Readers and are inducted, with much fanfare, into the Millionaire’s Reading Club. Springboards has registered several trademarks in connection with the Campaign, including “Read a Million Words,” “Million Dollar Reader,” and “Millionaire Reader.” Springboards has been vigilant in combatting what it perceives as infringement of its trademarks by local schools that operate their own monetary-themed reading programs. Our court has affirmed dismissals of

2 Case: 21-40334 Document: 00516670369 Page: 3 Date Filed: 03/08/2023

Nos. 21-40333 and 21-40334

Springboards’ trademark claims against two Texas school districts. 1 This appeal concerns similar claims against MISD and IDEA 2 under the Lanham Act, 15 U.S.C. §§ 1051 et. seq., alleging trademark infringement, trademark counterfeiting, and false designation of or