Plaintiff appeals from the district court’s 1 dеnial of its motion for a preliminary injunction enjoining defendants from using the word “DAKOTA” in connection with their marketing and sale of denim clothing. The district court denied preliminary relief on the basis of the evidence plaintiff had presented “to date.” We аgree with the court’s assessment that the propriety of injunctive relief in this case should be determined in conjunction with a triаl on the merits and, accordingly, we affirm the court’s denial of plaintiff’s motion for a preliminary injunction.
I.
Plaintiff Dakota Industries is a manufacturer of clothing in Tea, South Dakota. Plaintiff has been in the clothing business twenty-three years. In 1970, plaintiff applied for trademark registration for the trademark DAKOTA. The trademark was registered on August 22, 1972, and was approved as an incontestable trademark on August 15,1978. Plaintiff has entered into a licensing agreement with M. Fine & Sons, which allows M. Fine to use the DAKOTA trademark on men’s аnd boy’s jeans. Pursuant to this licensing arrangement, M. Fine has manufactured and sold jeans with labels bearing the words DAKOTA and DAKOTA BLUES. Plaintiff also manufаctures its own line of men’s and women’s clothing, which has included various styles of pants, jackets, and outerwear, and which beаrs the name DAKOTA.
In 1988, defendant Carl Eckhaus left his position as a design executive at Jordache to form his own company, Dakota Blue Corp. In 1989, Dakota Blue began shipping into the United States through a company called Ever Best Ltd. a line of women’s denim clothing manufactured in China and Hong Kong bearing the words “DAKOTA BLUE.” Plaintiff sought a preliminary injunction in August, 1989, restraining Dakota Blue and Ever Best from the unlicensed use of the word “DAKOTA.” This motion was denied.
In May, 1990, plaintiff received information that defendants intended to enter the men’s clothing line. Plaintiff attempted to obtain samples of the men’s line in Hong Kong in July, 1990, and in New York in August, 1990, with only limited success. *440 Plaintiff renеwed its motion for preliminary relief, arguing that defendants’ proposed expansion into the men’s line would create еven greater likelihood of customer confusion. The court again denied the motion. Plaintiff has appealed.
II.
Trаdemarks such as DAKOTA are used by manufacturers to signify to consumers that all goods bearing the trademark come from the samе source and are of an equal level of quality. Trademarks also serve as the objective symbol of a business’s goоd will and are a prime instrument in advertising and selling goods. See 1 J. McCarthy, Trademarks and Unfair Competition §§ 3:l-3:5 (1984). The Lanham Act extends trademark protection to any “word, name, symbоl, or device” used to identify a manufacturer's or merchant’s goods and distinguish them from those manufactured by others. 15 U.S.C. § 1127.
The Act prohibits use of any reproduction, counterfeit, copy, or colorable imitation of a registered mark which is likely to сause confusion among consumers. 15 U.S.C. § 1114. Section 1116 of the Act authorizes injunctive relief “according to the principles of equity and upon such terms as the court may deem reasonable” to prevent any trademark infringement.
Id.
§ 1116(a). As the district сourt properly recognized, in evaluating a motion for preliminary relief under the Act, the court must consider: (1) the threat of irreparable harm to the movant; (2) the balance between this harm and the injury granting the injunction will inflict on other partiеs; (3) the probability that the movant will succeed on the merits; and (4) the public interest.
Calvin Klein Cosmetics Corp. v. Lenox Laboratories, Inc.,
The burden of demonstrating that a preliminary injunction is warranted is a heavy one where, as here, granting the preliminary injunction will give plaintiff substantially the relief it would obtain аfter a trial on the merits.
Calvin Klein,
Plaintiff argues the district court misapplied the relevant factors identified by this Court in
SquirtCo v. Seven-Up Co.,
The district court’s finding that the likelihood of confusion was a “toss-up” appears based primarily on the court’s assessment that defendаnts’ jeans are highly ornamented designer jeans, which sell to a different market than plaintiff’s more moderately priced and styled jeans. The district court made this finding, however, without a full review of defendants’ product line and without the benefit of defendants’ customer list. Plaintiff has cited at least one overlapping retailer currently selling both DAKOTA blue jeans and DAKOTA BLUE jeans, and may, at the time of trial, have a more complete picture of defendants’ retailing efforts.
Cf. Lois Sportswear,
In addition to evaluаting plaintiff’s likelihood of proving customer confusion, the district court also considered the equities of plaintiff’s request fоr preliminary relief. In balancing the threat of irreparable harm to the plaintiff pending a full trial on the merits with the harm to dеfendants, the court concluded the hardship to defendants, with several million dollars of merchandise in their pipeline, wоuld greatly exceed any hardship to the plaintiff pending trial. The court further held the public’s interest in being offered the widest rаnge of merchandise in all price brackets would best be served by denying the injunction. We find no reversible error in the court’s weighing of the available evidence.
See generally Calvin Klein,
III.
The district court’s judgment denying plaintiff’s request for preliminary relief is affirmed. Plaintiff’s right to injunctive rеlief must be determined after a trial in which plaintiff is able to present all relevant evidence for the court’s consideration. Each party shall bear its own costs in this appeal.
Notes
. The Honorable John B. Jones, United States District Judge for the District of South Dakota.
