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829 F. Supp. 2d 802
D. Minnesota
2011
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Background

  • 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)
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Case Details

Case Name: Aviva Sports, Inc. v. Fingerhut Direct Marketing, Inc.
Court Name: District Court, D. Minnesota
Date Published: Nov 8, 2011
Citations: 829 F. Supp. 2d 802; 2011 WL 5395975; 2011 U.S. Dist. LEXIS 129501; Civil No. 09-1091 (JNE/JSM)
Docket Number: Civil No. 09-1091 (JNE/JSM)
Court Abbreviation: D. Minnesota
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