Exquisite Form Indus., Inc. v. Exquisite Fabrics of LondonExquisite Form Indus., Inc. v. Exquisite Fabrics of London
OPINION
This is an action for trademark infringement and unfair competition, brought pursuant to the Lanham Act,
Exquisite Form Industries (hereafter “Exquisite Form”) is a New York corporation with its principal place of business in New York City. Since approximately 1945 it has been engaged in the manufacture and sale of women’s underwear, principally brassieres, garter belts and girdles; in more recent years it has also marketed swim trunks, women’s body shirts, and men’s hosiery. 3 Over the past twenty-five years its sales have totalled approximately $375,000,000, and it has expended over $30,000,000 for advertising. Its products are publicized widely: on television and radio, in newspapers and magazines, and in department store displays.
Exquisite Form is the owner of two trademarks, both duly filed with the United States Patent Office. The first, No. 592,771, was registered on July 20, 1954. The mark is “Exquisite Form”, written in script with only the “E” and “F” capitalized and particularly prominent. Many of the Exquisite Form labels submitted in evidence closely approximate this mark. The registration form notes that the mark is to be used for brassieres, garter belts, and girdles. The other trademark, No. 642,681, was registered on March 12, 1957. It is simply the word “Exquisite”, in block capital letters. This, too, is specified for use with brassieres, garter belts, and girdles. An affidavit of continued use аnd incontestability, pursuant to §§ 8 and 15 of the Lanham Act,
Hamilton Adams Imports, Ltd. (hereafter “HAIL”), the only defendant to have appeared in the action,
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is a Delaware corporation with offices in New York City. It is engaged in the importation of fabrics from various European countries, principally Ireland, England and France, and their distribution in the United States. Its principal customers are fabric departments of stores and manufacturers of women’s outer garments. HAIL is now a subdivision of Moygashel Linens, an Irish corporation, which is in turn owned by Courtaulds, Ltd., a British corporation. Among the manufacturers from whom HAIL makes purchases is Exquisite Knitwear, Ltd., а British corporation, also a subsidiary of Courtaulds. Since 1969 it has purchased acrylic double knits from Exquisite Knitwear; such purchases account for perhaps 10% of HAIL’s imports. The knits are purchased as “piecegoods”; that is, in 60 yard rolls. The fabric
The instant controversy originated with the appearance of an advertisement in the May 20, 1970 issue of Women’s Wear Daily, a publication with an extensive readership in the garment industry. In it, HAIL announced “a new line of knitted fabrics for Spring 1971”, which was further identified as “the most extraordinary collection of new knits from one of the finest fabric houses, Exquisite Knitwear Ltd., of England.” The advertisement prompted a letter from Exquisite Form’s counsel to HAIL, stating that Exquisite Form believed that HAIL was infringing its rights in the use of the name “Exquisite”, and demanding that HAIL desist from such use. HAIL’s counsel replied, also by letter, that he believed that Exquisite Form’s mark was in no way infringed by HAIL’s advertisement, and that HAIL would not refrain from the use of the name “Exquisite”. The matter apparently remained dormant thereafter until the appearance of two more ads for Exquisite Knitwear in Women’s Wear Daily, on June 7 and June 21, 1972. The advertisements, оne of which is reproduced in full in the margin, 5 refer repeatedly to HAIL’s product as “Exquisite”, without the inclusion of any noun which the adjective modifies. One of them begins by saying, “We’re Exquisite. The largest double-knitters in Europe.”; the other states, for example, that “Exquisite will give your range a different, unique look in a crowded market.” The full name is given only in the lower right hand corner of each advertisement. One, that of June 7, identifies the advertiser as Exquisite Knitwear Limited; the other, that of June 21, as Exquisite Fabrics of London. In each ad, furthermore, the word Exquisite — and Exquisite only— appears in the lower right hand corner in bold face script, in what plaintiff contends is a copy of Exquisite Form’s logo. The instant action was commenced shortly after the appeаrance of these advertisements.
The complaint alleges four causes of action. The first charges the defendants with infringing plaintiff’s “Exquisite” trademark (No. 642,681) in viola
I.
I turn first to Count 1, which would appear to have been the focus of plaintiff’s concern in his written presentations to this court and at the trial. The standard for determining trademark infringement under
“Where the products are different, the prior owner’s chance of success is a function of many variables: the strength of his mark, the degree of similarity between the two marks, the proximity of the products, the likelihood that the prior owner will bridge the gap, actual confusion, and the reciprocal of the defendant’s good faith in adopting its own mark, the quality of defendant’s product, and the sophistication of the buyers. Even this extensive catalogue does not exhaust the possibilities — the court may have to take still other variables into account. American Law Institute, Restatement of Torts, §§ 729, 730, 731.”287 F.2d at 495 .
See also, Triumph Hosiery Mills, Inc. v. Triumph International Corp.,
The first to be considered is the “strength” of plaintiff’s mark. The concept of strength and weakness, as one commentator has noted, “is, at best, amorphous and hot susceptible of easy definition.”
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Furthermore, the definitions verge on the tautological: strong marks are those entitled to extensive protection against infringement, weak marks those which are not. Nevertheless, it is now generally agreed that strong marks are those which are “conspicuously distinctive”;
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they tend to be coined or fanciful words, such as Kodak or Polaroid, that are purely the product of invention. Weak marks, on the other hand, are generally generic or descriptive of the product. W. E. Bassett Company v. Revlon, Inc.,
I do not think it can be seriously disputed that plaintiff’s mark is intrinsically weak. It should be noted at the outset that plaintiff only claims infringement of its “Exquisite” trademark, No. 642,681; its complaint makes no mention of its “Exquisite Form” mark, No. 592,771. Hence my sole focus here is necessarily on the strength of the word “Exquisite”, not of “Exquisite Form”. “Exquisite”, it would seem, fits readily into the category of so-called laudatory words that have not been given extensive protection against infringement in our Court of Appeals. In Supreme Wine Co. v. American Distilling Co.,
“In order to qualify for trademark protection, a mark must be distinctive, that is, it must be capable of distinguishing the user’s goods from others. Merely laudatory words, such as ‘best’, ‘outstanding’, or ‘supreme’ cannot of their own force indicate the source or origin of the labeled goods.”
See also, Burmel Handkerchief Corp. v. Cluett, Peabody & Co.,
As a laudatory word, “exquisite”
per se
is entitled to no trademark protection. A further index of its weakness is the extent to which it is employed by other concerns, to identify other types оf goods and services. Cf. Triumph Hosiery Mills, Inc. v. Triumph International Corp.,
The weakness of the mark, of course, is not fatal if the owner can establish a secondary meaning. Plaintiff’s burden, then, was to show that the relevant class of consumers associated “Exquisite” with brassieres, girdles, etc. so as to raise the term above the level of simple laudation and give it an independent identity. I am compelled to conclude thаt plaintiff’s evidence is insufficient to justify any such finding. One element in establishing a secondary meaning is the amount of advertising undertaken in support of the mark. Miss Universe, Inc. v. Patricelli,
Furthermore, a mere showing of advertising does not provide a basis for determining the extent of customer awareness of a mark; such awareness, of course, is at the core of the term “secondary meaning”. As the Ninth Circuit has stated, “[t]he test of secondary meaning is the effectiveness of the effort to create it, and the chief inquiry is directed towards the consumer’s attitude about the mark in question; does it denote to him ‘a single thing coming from a single sourcе?’ ” Carter-Wallace, Inc. v. Proctor & Gamble Company,
The next variable to be considered is the proximity of the products. Plaintiff and defendant obviously manufacture dissimilar products for dissimilar markets. Exquisite Form manufactures and sells finished goods, which are primarily sold to retail customers. The focus of their advertising is those customers, as witnessed by their extensive expenditures for radio and television. HAIL, on the other hand, sells only piece goods under the “Exquisite Fabrics” mark; these goods are sold in sixty yard rolls to garment manufacturers and fabric departments of stores. Their only advertisements submitted in evidence appeared in Women’s Wear Daily, essentially a trade journal which has only recently developed a “retail” readership. The fact that the products аre not identical is not fatal to plaintiff’s claim if they are sufficiently similar as to create a likelihood of confusion. The question, then, is what constitutes sufficient similarity ?
The standard of similarity that has evolved is not easy to define, but, as I understand it, can be expressed as follows. Products will be deemed “sufficiently similar to create a likelihood of consusion” if they fall within the same general market, or appeal to essentially
The common thread in these cases, as I have already suggested, is that these disparate products were viewed as appealing to the same group of consumers; hence the possibility of confusion. The same cannot be said for the products in quеstion here. There is little, if any overlap between those who buy plaintiff’s products and those who buy defendant’s. Plaintiff’s sole argument in rebuttal is that both it and the defendant sell “knitwear”, if the term is defined expansively. Although both do admittedly market knit goods, the resemblance ends there: plaintiff’s goods are finished products, defendant’s nothing but uncut fabric. The force of plaintiff’s argument is diminished further by the fact that the trademark “Exquisite” has had its largest and most significant identification with girdles, garter belts, and brassieres, which are not knitwear. Many of the knit products sold by plaintiff are marketed under other trademarks: men’s hosiery is sold under the “Mandate” mark, and women’s body shirts under the “Magic Lady” mark. 13 Hence the likelihood of confusion is further diminished.
It should be noted here that the likelihood of plaintiff’s expansion into defendant’s product line, another variable in the Polaroid test, can often bridge the gap between dissimilar products. That is, if it is demonstrated that plaintiff has continuously expanded its product line in the past, and has further plans to expand into defendant’s area, a court may be justified in finding a likelihood of confusion even between dissimilar products. See Pure Foods v. Minute Maid Corp., supra. But here there has been no showing that plaintiff has plans to sell bulk fabric to other garment manufacturers. Although plaintiff does manufacture its own fabric, it does so entirely for its own consumption. See fn. 3, supra.
With regard to another variable, it cannot be denied that there is a certain similarity in the marks. Nevertheless, it should be remembered where the products involved are dissimilar and non-competing, the degree of similarity necessary to support a finding of infringement is greater than with competing products. David Sherman Corporation v. Heublein, Inc.,
Two other elements of the
Polaroid
test are the good faith of the accused infringer in adopting his mark and the degree of actual confusion among customers. Plaintiff has submitted no evidence on either point. There is nothing in the record before me suggеstive of defendant’s bad faith, nothing which raises an inference that the name “Exquisite” was adopted in order to trade on plaintiff’s name and reputation. Cf. A. T. Cross Company v. Jonathan Bradley Pens, Inc.,
In sum, I am compelled to conclude that plaintiff has failed to demonstrate a “likelihood of confusion” between its mark and defendant’s within the meaning of
II.
Having found that no likelihood of confusion exists, I can deal with plaintiff’s remaining claims in more summary fashion. I shall first consider plaintiff’s othеr Lanham Act claim, in which he alleges a violation of
Where, as here, the § 43(a) claim is coupled with a claim of trademark infringement, the nature of the proof required under this statute may be simply stated. The plaintiff must establish that “the defendant’s goods are likely to be thought to have originated with, or to have been sponsored by, the true owner of the mark.” Societe Comptoir De L'Industrie v. Alexander’s Department Stores, Inc.,
The analysis of plaintiff’s likelihood of confusion argument that appears in Part I of this opinion suffices to dispose of his claims under § 43(a) as well. I should note, however, that his argument is, if anything, weaker under this statute than that made under § 32(1). For the allegedly deceptive advertisements, one of which is set out at footnote 5, supra, emphasize the novelty and distinctiveness of defendant’s product. There is repeated stress not merely on the European origin of the fabric, but on its recent arrivаl in the United States. Thus the headline of the advertisement which appeared in the June 7, 1972 issue of Women’s Wear Daily reads: “The top name in European Acrylic Double Knits is now in America. Exquisite.” If, as plaintiff charges, defendant is attempting to capitalize on the good will plaintiff has accumulated over twenty-five years, one is forced to ask why defendant portrayed its product as a new arrival from Europe? Defendant’s advertising, on balance, serves to distinguish its products from plaintiff’s ; it scarcely promotes confusion between the two. Plaintiff’s claim under § 43(a) of the Lanham Act is accordingly dismissed.
III.
Plaintiff’s claim under § 368-d of the General Business Law of New York raises some difficult questions which plaintiff has not seen fit to address. The statute hаs never received a definitive construction from the highest court of New York and thus some confusion still exists regarding the extent to which it relaxes the standards of the Lanham Act. As Judge Gurfein has noted, this is an “anti-dilution” statute, and “dilution is an injury that differs materially from that arising out of the orthodox confusion.” Mortellito v. Nina of California, Inc.,
Although our Court of Appeals has left the question open,
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most of the lower federal courts have rejected the Call-man interpretation and required a showing of some likelihood of confusion. Girl Scouts of the United States of Ameriсa v. Personality Posters Mfg. Co.,
Regardless of the applicable standard, plaintiff’s showing has been inadequate. As I have already noted, it has demonstrated no likelihood of confusion between its products and dеfendant’s. Nor, if “dilution” is the test, has plaintiff demonstrated that its mark is strong enough, or possessed of sufficient recognition or secondary meaning, to be in danger of dilution. A weak mark is by definition already diluted, and its possessor is thus in a poor position to invoke applicable antidilution statutes. See Esquire, Inc. v. Esquire Slipper Manufacturing Co.,
IV.
Plaintiff devotes equally little attention to his claim under the common law of unfair competition. The distinction between a trademark infringement claim and that of unfair competition has been succinctly stated: “Trademark infringement rests on a relatively narrow principle compared to unfair competition. The essential element of a trademark is the exclusive right of its owner to use a word or device to distinguish his product. On the other hand, a claim of unfair competition considers the total physical image given by the product and its name together. Thus unfair competition exists if the total impression of package, size, shape, color, design and name upon the consumer will lead him to confuse the origin of the product.” Jean Patou, Inc. v. Jacqueline Cochran, Inc.,
V.
The only remaining question concerns plaintiff’s motion for a default judgment against Exquisite Fabrics of London. The record reveals that the marshal served both copies of the summons and complaint on one Henry Banks, who is president of HAIL. HAIL answered, and Exquisite Fabrics did not. It is plaintiff’s contention that Exquisite Fabrics is in some sense a division or subsidiary of HAIL, and that valid service was effected on the former through service on Banks. The facts developed at the trial do not support this theory. It is undisputed that HAIL and Exquisite Fabrics share the same address and the same telephone number. Banks, however, testified that Exquisite Fabrics of London is simply the American sales agent for Exquisite Knitwear, Ltd. He testified further that HAIL and Exquisite Fabrics, although they occupy the same floor, have different offices and different personnel. He disclaimed any participation in Exquisite
Even if I were to find service of process on Exquisite Fabrics to have been valid, plaintiff would not be entitled to a default judgment. When a default is entered against one defendant in a multi-defendant case, the preferred practice is for the court to withhold granting a default judgment until the trial of the action on the merits against the remaining defendants. If plaintiff loses on the merits, the complaint should then be dismissed against both defaulting and non-defaulting defendants.
19
Frow v. DeLaVega,
In sum, plaintiff has failed to sustain his burden of proof on any of the four causes of action. 20 The clеrk is therefore directed to enter judgment for the defendants dismissing the complaint.
It is so ordered.
Notes
.
“The district and territorial courts of the United States shall have original jurisdiction and the courts of appeal of the United States shall have appellate jurisdiction, of all actions arising under this chapter, without regard to the amount in controversy or to diversity or lack of diversity of the citizenship of the parties.”
.
“(a) The district courts shall have original jurisdiction of any civil action arising under any Act of Congress relating to patents, copyrights and trade-marks. Such jurisdiction shall be exclusive of the courts of the states in patent and copyright cases.
(b) The district courts shall have original jurisdiction of any civil action asserting a claim of unfair competition when joined with a substantial and related claim under the copyright, patent or trade-mark laws.”
. Exquisite Form manufactures its own knit fabrics, primarily in its mills in Puerto Rico. Such fabrics are not sold to other companies, and are used exclusively in the production of Exquisite Form’s own products.
. Plaintiff claims to have effected service on the other defendant, Exquisite Fabrics of London, which has never appeared or answered. Its default was noted by the Clerk of the Court on August 24, 1972 and plaintiff now seeks a default judgment against it. This iJoint will be explored more fully in Part Y of the opinion.
. The advertisement of June 21, 1972 reads as follows:
“EXQUISITE MAINTAINS A HUGE ACRYLIC DOUBLE-KNIT STOCK.
We shii) fast from a stock of 30 beautiful fiber-dyed colors.
We’re Exquisite. The largest double-knitters in Europe. Producing the finest range of European-inspired acrylics оn the market.
We produce our own fiber, spin our own yarn, utilize a unique fiber-dying process. This control helps give our acrylics exceptional handle and appearance.
And to support our world-wide distribution, we maintain a constant stock of over 30 vibrant, fiber-dyed colors in plain goods. All ready to go, all the time. So we can rush you your order fast. (That’s very important, since this fall will be tremendous for acrylics.)
Exquisite plain goods are a fully useable 68-70 inches wide, and we make allowances for faults. (You don’t pay for fabric you can’t use.) And you buy E.O.B. New York the same way you make any domestic purchase.
When it comes to fancies, we have a huge jacquard knitting capacity. So we can produce your special order fast. What you order will be special, too. Our fancy double-knit acrylics are designed in London and Paris, which means they’ll give your garments a unique look in this crowded market. And fiber-dying guarantees perfect mix and match.
So for Europe’s biggest range of top acrylics, call Exquisite now. And make sure you’re not caught short this fall.
Exquisite
Exquisite Fabrics of London, 24 West 40th St., New York, N.Y. 10018”
.
“(1) Any person who shall, without the consent of the registrant—
(a) use in commerce any reproduction, counterfeit, copy, or colorable imitation of a registered mark in connection with the sale, offering for sale, distribution, or advertising of any goods or services on or in connection with which such use is likely to cause confusion, or to cause mistake, or to deceive; or
(b) reproduce, counterfeit, copy, or colorably imitate a registered mark and apply such reproduction, counterfeit, copy, or colorable imitation to labels, signs, prints, packages, wrappers, receptacles or advertisements intended to be used in commerce upon or in connection with the sale, offering for sale, distribution, or advertising of goods or services on or in connection with which such use is likely to cause confusion, or to cause mistake, or to deceive, shall be liable in a civil action by the registrant for the remedies hereinafter provided. Under subsection (b) of this section, the registrant shall not be entitled to recover profits or damages unless the acts have been committed with knowledge that such imitation is intended to be used to cause confusion, or to cause mistake, or to deceive.”
. In the interests of accuracy it should be noted that Count 1 makes no mention of
.
“(a) Any person who shall affix, apply, or annex, or use in connection with any goods or services, or any container or containers for goods, a false designation of origin, or any false description or representation, including words or other symbols tending falsely to describe or represent the same, and shall cause such goods or services to enter into commerce, and any person who shall with knowledge of the falsity of such designation of origin or description or representation cause or procure the same to be transported or used in commerce or deliver the same to any carrier to be transported or used, shall be liable to a civil action by any person doing business in the locality falsely indicated as that of origin or in the region in which said locality is situated, or by any person who believes that he is or is likely to be damaged by the use of any such false description or representation.”
. § 368-d of the General Business Law provides :
“Likelihood of injury to business reputation or of dilution of the distinctive quality of a mark or trade name shall be a ground for injunctive relief in cases of infringement of a mark registered or not registered or in cases of unfair competition, notwithstanding the absence of competition between the parties or the absence of confusion as to the source of goods or services.”
. 3 Callman, Unfair Competition, Trademarks and Monopolies § 82.1(1).
. Id.
. I cannot, for example, attach much signifiсance to the testimony of plaintiff’s advertising and sales promotion director, Robert Paino, that the general public frequently refers to plaintiff’s products as' “Exquisite” (Tr. 66-67). Eor there is not the slightest indication that his duties involve him in any contact with the general public, or with retail or wholesale customers.
. It is true that the name Exquisite Form appears on both “Mandate” and “Magic Lady” packaging. But it is not given sufficient prominence to enable it to acquire a secondary meaning with reference to those products.
. See plaintiff’s exhibits 4, 5, 24, 25, 26, 27, 28, 30, 37. But see plaintiff’s exhibit 3, a brassiere label with an “Exquisite” mark.
. See plaintiff’s exhibits 8, 9,10,11,13,14, 38, 39.
. 3 Callman, supra, § 84.2.
. Gold Master Corp. v. Miller,
. Flexitized, Inc. v. National Flexitized Corp.,
. This rule obtains only where, as here, the liability of the defendants is joint.
. I therefore need not consider the defense of laches interposed by HAIL.