829 F. Supp. 2d 802
D. Minnesota2011Background
- Aviva sued Manley and several retailers for patent infringement and Lanham Act false advertising plus UDTPA claims.
- The court previously granted partial summary judgment against Walmart, and later summary judgments for Fingerhut, Menard, and Kmart on some Lanham Act and UDTPA claims; remaining issues concern Manley.
- Aviva and Manley compete in inflatable pool/slide markets; Aviva also sells fixed-air products while Manley offers constant-air products.
- Aviva developed a constant-air slide in 2007 but stopped pursuing it after being told Manley already dominated that market; Target began stocking Manley products in 2007.
- Aviva alleges Manley used manipulated product images (smaller children, larger products) in ads/packaging for 95 products, constituting false advertising; damages and profits are sought under the Lanham Act and state UDTPA.
- The court assesses Manley’s motions for summary judgment and motions to exclude Aviva’s and Manley’s experts.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Lanham Act false advertising elements present? | Aviva asserts misrepresentation of product size/images. | Manley argues insufficient proof for each accused ad. | Genuine issues remain on falsity, materiality, injury, causation, and profits. |
| Standing to pursue constant-air product claims | Aviva is a competitor and thus has standing over claims involving constant-air products. | No evidence Aviva competes in that market; standing lacking. | Court need not decide standing; Aviva lacks proof of market overlap and injury. |
| Damages and causation proof for monetary relief | Aviva offers Poret, Krauss, and McCloskey to link ads to losses and profits. | Aviva failed to show causation or reliable damage figures. | Summary judgment granted to Manley on actual damages; profits/other monetary relief unresolved. |
| Admissibility of expert testimony under Rule 702 | Aviva contends experts’ methods are reliable and relevant. | Manley challenges relevance, reliability, and methodology. | Some experts excluded (Houston); others admitted; rebuttal experts defesa allowed; overall rulings noted. |
Key Cases Cited
- United Indus. Corp. v. Clorox Co., 140 F.3d 1175 (8th Cir. 1998) (false advertising elements; materiality; injury; causation; relief available)
- Porous Media Corp. v. Pall Corp., 110 F.3d 1329 (8th Cir. 1997) (damages causation; relief in Lanham Act actions; economic impact burden shift)
- ALPO Petfoods, Inc. v. Ralston Purina Co., 997 F.2d 949 (D.C. Cir. 1993) (damages framework in false advertising cases; lost profits potential for delay)
- 3M Innovative Props. Co. v. Dupont Dow Elastomers LLC, 361 F.Supp.2d 958 (D. Minn. 2005) (materiality; literal falsity; context-based analysis; consumer impact evidence)
- Rexall Sundown, Inc. v. Perrigo Co., 707 F.Supp.2d 357 (E.D.N.Y. 2010) (burden on plaintiff to prove sales; apportionment for profits not required for liability)
- Masters v. UHS of Del., Inc., 631 F.3d 464 (8th Cir. 2011) (disgorgement profits framework; equity-based relief under Lanham Act)
- Johnson & Johnson v. Carter-Wallace, Inc., 631 F.2d 186 (2d Cir. 1980) (injury and likelihood of injury standard; consumer deception notions)
