OPINION AND ORDER
Plаintiffs ITC Limited and ITC Hotels Limited (collectively, “ITC”) sue defendant Punchgini, Inc. and its principals, alleging defendants’ “Bukhara Grill,” a restaurant with, until recently, two locations in Manhattan, infringes upon ITC’s rights in the “Bukhara” trademark and dress associated with its own “Bukhara” restaurants located throughout the world. Defendants move for summary judgment dismissing the complaint in its entirety, and separately move in limine to exclude the testimony of ITC’s expert witness. The summary judgment motion will be granted in its entirety, mooting the motion in limine.
BACKGROUND
Plaintiffs ITC Limited and ITC Hotels Limited are large Indian corporations engaged in a variety of ventures, including ownership of the Maurya Sheraton Hotel & Towers in New Delhi, India.
1
,
2
The Maurya Sheraton complex contains a handful of restaurants, including “Bukhara,” which opened in 1977, and is named for the legendary Great Silk Road city in Uzbekistan. (P.R. 56.1 Stmt. ¶ 84; Marsh Reply Decl. Ex. 35.) As conceived by ITC, the menu of the New Delhi “Bukhara” is drawn from the cuisine of the “North West Frontier” region of India, with a decor to match: “The restaurant’s look is pure Flintstones: walls of boulders, solid-wood tables and menus printed on laminated sections of tree.”
(Curry Without the Hurry,
Time, Dec. 23, 2002, Koustenis Decl. Ex. 60;
see also
P.R. 56.1 Stmt. ¶¶ 84-86; Draft Concept Note, Koustenis Decl. Ex. 54.) Acting as eithеr operators
The New York ITC “Bukhara” closed in 1991, and ITC terminated its licensing agreement with the Chicago “Bukhara” on August 28, 1997. Since terminating the Chicago licensing agreement, ITC has not owned, operated, or licensed a restaurant in the United States using the “Bukhara” mark or dress. ITC asserts that it has continued to seek out appropriate business partners to open a “Bukhara” restaurant in the United States, a contention strongly disputed by defendants in defending against ITC’s trademark infringement claims, see Part II below. In the past three years, ITC, in partnership with its U.S. importer, King Maker Marketing, has begun marketing a line of packaged food products in the United States, including “Dal Bukhara,” derived from the dish of that name served at ITC’s New Delhi “Bukhara,” and has applied for trademark registrations for the “Bukhara” mark in connection with food products. (Sekhar Aff. ¶¶ 21-25; Marsh Decl. Ex. 6 (trademark registration applications).)
When this litigation began, defendants owned two restaurants in New York City, “Bukhara Grill” and “Bukhara Grill II.” 3 The first of these restaurants was opened in 1999, and the second in 2001. Defendants Vicky Vij, Raja Jhanjee, Mahendra Singh, Bachan Rawat, and Dhandu Ram, all employees of defendant Punchgini, Inc., were previously employed by ITC. (D. Objections and Responses to Plaintiffs’ First Set of Interrogatories, Koustenis Decl. Ex. 52, at 5-6.) ITC alleges that many aspects of defendants’ “Bukhara Grill” restaurants are borrowed from its “Bukhara” franchise, including the rustic decor, heavy wooden menus, use of checkered bibs in lieu' of napkins, and logo font. (P. Opp. Mem.18.)
On March 22, 2000, counsel for ITC sent defendant Raja Jhanji a letter informing him of ITC’s registration of the “Bukhara” mark, charging Punchgini, Inc. with “passing off [their] new business as that of’ ITC, and threatening legаl proceedings unless defendants desisted from use of the “Bukhara” mark and compensated ITC accordingly. (Marsh Decl. Ex. 23.) Defendants’ counsel responded that their preliminary investigation showed no present use of the “Bukhara” mark by ITC in the United States, and encouraged discussions between the parties to avoid litigation. (Marsh Decl. Ex. 24.) In June and July, 2000, defendants’ counsel attempted to engage ITC’s counsel in discussion of their clients’ respective rights, stating they
No further communication was received from ITC or its counsel until the complaint in the instant case was filed on February 26, 2003. Defendants moved to dismiss the complaint, but their motion was denied. See Order of June 9, 2003. Having survived defendants’ motion to dismiss, ITC amended its complaint on April 9, 2004. The Amended Complaint stated five causes of action in somewhat conclusory terms, three under the Lanham Act, 15 U.S.C. § 1051 et seq. (infringement of registered trademark, false designation of origin, unfair competition), one under New York General Business Law § 349 (deceptive acts and practices), and one under New York common law (trademark infringement and unfair competition). But in opposing defendants’ present motion for summary judgment, ITC has clarified its complaint as claiming only trademark and trade dress infringement, unfair competition, and false advertising claims. (P. Opp.Mem.l — 2.) Defendants asserted a number of counterclaims in their Amended Answer of April 26, 2004, including a claim for cancellation of ITC’s trademark registration for the “Bukhara” mark. (Counterclaim II, Am. Answer ¶¶ 16-36.)
Defendants now move for summary judgment to dismiss the complaint against them and to cancel ITC’s trademark registration for the “Bukhara” mark. Defendants also move to exclude the testimony of ITC’s expert witness, William J. Guil-foyle.
DISCUSSION
I. Summary Judgment Standard
Summary judgment is appropriate when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). A “genuine issue as to any material fact,” in turn, is established “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.”
Anderson v. Liberty Lobby, Inc.,
As set forth in their moving papers, defendants construed ITC’s complaint as asserting claims sounding almost exclusively in trademark and trade dress infringement. It now moves for summary judgment dismissing these claims on the sole grоund of ITC’s alleged abandonment of its rights in the “Bukhara” mark and dress.
4
In its opposition papers, ITC, while asserting that it has not abandoned
Nonetheless, defendants’ motion for summary judgment on these additional claims is properly before the Court. First, defendants have moved for summary judgment dismissing the complaint in its entirety, and so the issues are technically before the Court. Second, given the sparsity of ITC’s complaint, and the complaint’s overt references to this being a trademark and trade dress case, it was reasonable for defendants not to have fully identified the unfair competition and false advertising theories now espoused in ITC’s opposition papers. Finally, ITC has not sought permission to file a sur-reply, thereby signaling that it believes the.issues were adequately briefed in their opposition papers, and that no new or unexpected matters were raised in the reply. Therefore, the Court will proceed to consider whether any of ITC’s causes of action present genuine issues of material fact for trial.
II. ITC’s Abandonment of the “Bukhara” Mark and Dress
Defendants move for summary judgment dismissing ITC’s trademark and dress infringement claims on the sole ground of abandonment.
5
Abandonment, which provides a complete defense to a claim of infringement, returns the mark to the public domain, where it may be appropriated anew.
Dial-A-Mattress Operating Corp. v. Mattress Madness, Inc.,
Here, ITC does' not seriously dispute that the statutory presumption of abandonment has been met; it has not owned, operated, or licensed restaurants in the United States using the “Bukhara” trademark or trade dress since at least August 28, 1997, five-and-a-half years before ITC filed its Complaint on February 26, 2003. (P.R. 56.1 Stmt. ¶ 29.) The statutory presumption had arisen as of August 28, 2000. But ITC does contend that it has demonstrated a genuine issue of material fact as to its intent to resume use, sufficient to rebut the statutory presumption at trial and precluding summary judgment. (P. Opp.Mem.4-11.)
A party’s intent is ordinarily a question of fact, about which conflicting inferences can usually be drawn. Defendants thus bear a heavy burden in arguing here that no reasonable fact finder could conclude that ITC retained an intention to make use of the “Bukhara” trademark and trade dress in the United States. Nonetheless, the ordinary summary judgment standard applies, and “an averment of no intent to abandon is little more than a denial in a pleading, which is patently insufficient to preclude summary judgment on the ground the facts are disputed.”
Imperial Tobacco Ltd., Assignee of Imperial Group PLC v. Philip Morris, Inc.,
ITC’s evidence may be grouped into two categories. First, ITC has produced internal documents (and one news report) purportedly showing a commitment by ITC to increase the international recognition of the “Bukhara” mark. These internal memoranda show that periodic reorganizations took place within ITC for the purpose of heightening and renewing efforts to expand the “Bukhara” brand internationally. (Koustenis Deck Exs. 27, 40, 41.) The last of these reorganizations, however, occurred in 1998, tolling the statutory presumption until 2001 at the latest. In any event, these reorganizations do not appear to have been directed in any specific manner toward expansion in the United States. Similarly, a July 22, 2002, news report in the Times of India cited by ITC describes ITC’s plans to “cash in on its popular Bukhаra and Dum Pukht restaurants,” but makes no mention of specific investment opportunities or plans in the United States. (Swati Bharadwaj-Chand, ITC Plans Restaurant Chain, Times of India, July 22, 2002, Koustenis Decl. Ex. 28.) Moreover, minutes from a Corporate Management Committee (“CMC”) meeting in February, 2003, show that a policy of “exiting all overseas stand alone Restaurants” was recommended. (Koustenis Deck Ex. 34.) 7
In the same vein, ITC also points to internal minutes dated October, 2003 (some six months after the Complaint in this case was filed), at which the CMC suggested the “time was appropriate to explore the possibility of investing in hotel properties in select markets overseas such as London, Bangkok, and New York.” (Koustenis Deck Ex. 29.) But even assuming that self-serving statements after the filing of litigation can be considered, a plan to “invest[ ] in hotel properties” is not itself evidence of intent to resume use of the “Bukhara” mark for restaurant services. It is unknowable and entirely speculative whether the projected hotel properties might have included a “Bukhara” restaurant. ITC has provided no evidence that such opportunities were ever gеnuinely explored in the United States. The assertion in ITC’s brief that, following the meeting of the CMC in October, 2003, “ITC expressed its intent to start looking for opportunities to invest directly in New York” (P. Opp.Mem.6), is supported, if at all, only by Sekhar’s averment that ITC is “enthusiastic about the possibility of returning their Bukhara franchise to the United States and are exploring opportunities for such expansion around the globe with, amongst others, its partner Starwood Hotels.” (Sekhar Aff. ¶ 14.) This will not suffice to raise a genuine issue of material fact as to ITC’s intent to resume use of the “Bukhara” mark and dress.
Second, ITC attempts to establish that concrete franchise opportunities in the United States have been pursued by providing the Court with standard franchise agreements “representative of agreements that ITC has been implementing for years with franchisees throughout the world” and by including correspondence with potential franchisees over the years. (P. Opp. Mem. 6-7; Koustenis Deck Exs. 31-33, 35-36, 38-39). The executed franchise agreements provided, however, are for franchises in Bangladesh, Bahrain, and the United Arab Emirates (Koustenis Deck Exs. 36, 38, 39), аnd none of the potential franchisees to whom information, including “concept note[s]” and “salient features of franchise agreement[s]” was provided to
ITC claims to have entered franchise negotiations for “Bukhara” restaurants with five parties in the United States since the 1997 closure of their Chicago restaurant (P. Opp.Mem.7), but, as a careful exploration of the evidence adduced in connection with each of these putative negotiations reveals, ITC has provided no real evidence of its own efforts, and thus, intent, to resume restaurant services. In the first case, ITC proffers only an unsolicited email in 2002 from a software engineer interested in developing a “Bukhаra” franchise in Houston, Texas. (Koustenis Ex. 24.) S.C. Sekhar, an ITC Executive Director with responsibility for expansion of the “Bukhara” brand, never responded to the email, but did meet with the software engineer in New Delhi, where he explained that ITC was not interested in proposals for stand-alone restaurants. (Sekhar Dep., Koustenis Decl. Ex. 3, at 285-86.)
In another two cases, ITC offers only follow-up emails or letters sent by two separate, potential franchisees following unsolicited meetings in New Delhi with Sekhar or his colleague, Ravi Suri. In the first, the potential franchisee informs Sek-har of his plans to contact the managers of local hotels in California about establishing a “Bukhara” restaurant. (Koustenis Ex. 25.) But Sekhar testified that a proposal never materialized from this potential franchisee, and he took no steps to pursue one. (Sekhar Dep. 294-97.) In the second, the potential franchisee describes his plans to visit San Francisco to “study the market and shortlist two or three sites.” (Koustenis Ex. 23.) Sekhar, however, had never heard of the potential franchisee (Sekhar Dep. 297), and testified that at the time the potential franchisee had been in contact with ITC, his proposal would have been of little interest, given ITC’s move away from overseas stand-alone restaurants. (Sekhar Dep. 300-301.)
In a fourth purported “franchise negotiation,” ITC contends that negotiations matured into the purchase of property in New York and the submission of floor plans for ITC’s approval. (P. Opp.Mem.7.) But documents provided by ITC do not substantiate this assertion, consisting of no more than a floor plan and cover letter addressed to Ravi Suri from Varinder Datta, at the time, an employee of an ITC subsidiary (Sekhar Dep. 280), indicating that the floor plan was “for the proposed location which [the potential franchisee, A. Dutta] has negotiated for acquisition, subject to your approval.” (Koustenis Decl. Exs. 21-22.) There is no evidence that approval was granted, and in fact, Sekhar did not recall ever having heard of Dutta or his proposal prior to preparing for his deposition. (Sekhar Dep. 269-281.) Most importantly, even assuming bona fide negotiations took place (rather than simply an unsolicited, unanswered proposal), they date to 1998, again well outside the three-year period predating the original complaint in this matter and giving rise to a statutory presumption of non-use.
Finally, ITC claims there are ongoing negotiations with Starwood Hotels, which owns luxury hotel properties throughout the world, including thirteen in New York City. (P. Opp. Mem. 7; Sekhar Aff. ¶ 20.) ITC has previously partnered with Star-wood to open “Bukhara” restaurants in Bangkok and Hong Kong, and points to a 2002 letter from Starwood, which followed
These putative negotiations, no more than a handful in the seven years since 1997, amount to little more than a series of unsolicited proposals, which ITC neither initiated nor pursued, and, in the case of Starwood, vague, unsubstantiated plans for resuming use in unspecified non-Indian locations. While ITC is free to pick and choose among proposals received for use of its mark according to its own business judgment, and executed franchise agreements are not necessary to show intent to resume use, ITC has provided no evidence whatever of any actions on its part during the relevant time frame to develop restaurant services utilizing the “Bukhara” mark in the United States. 8
To explain the absence of any real activity to resume use of the mark in the United States, ITC asserts that it is simply waiting for the “right partner” to come along. (Sekhar Dep. 78.) For the abandonment doctrine to have any teeth at all, however, more is required than simply the owner’s inchoate wish to keep the mark for some vague, unspecified future use; this would constitute precisely the impermissible “warehousing” of the mark against which the doctrine guards.
See Emmpresa Cu-bana,
ITC’s remaining arguments do nothing to disturb this conclusion. ITC claims that it has maintained the goodwill of the “Bukhara” mark in the United States through continued marketing efforts in the United States, consisting primarily of use of the “Bukhara” mark to promote a line of packaged goods, including one product named
Although promotional materials distributed for “Dal Bukhara” in connection with its trade show appearances reference ITC’s New Delhi “Bukhara” restaurant (Koustenis Decl. Ex. 101), appearance at two trade shows, sale of two shipments of the product in the United States, and an unsubstantiated, yet-to-be concluded distribution agreement postdating the commencement of litigation are nothing more than “minor activities” insufficient to “rekindle the public’s identification of the mark with the proprietor” several years after the cessation of restaurant services in the United States.
See Silverman,
Finally, ITC attempts to explain away its apparent abandonment of the mark for restaurant services by asserting that its non-use may be excused because of “economic and regulatory circumstances.” (P. Opp.Mem.9-10.) As a matter of law, ITC is correct that external barriers to use of a mark may excuse non-use, such that abandonment is not established.
See Silverman,
Regardless, excusable non-use requires more than just reasonable business explanations for the decision not to use a trademark; the trademark owner must also demonstrate an intent to resume use if and when conditions so permit.
Emmpresa Cubana,
ITC has failed to come forward with evidence creating a genuine issue of material fact as to its intent to resume use of the “Bukhara” mark and dress in connection with restaurant services in the United States, and therefore would not be able to defeat at trial the statutory presumption raised under § 1127 by non-use for a period exceeding three years. Therefore, as a matter of law, ITC has abandoned the “Bukhara” mark and dress and may not maintain infringement claims against defendants. Summary judgment dismissing plaintiffs’ trademark and trade dress infringement claims and cancelling ITC’s “Bukhara” registration is granted. 11
III. ITC’s Unfair Competition Claims
In opposing summary judgment, ITC asserts that its unfair competition claims under section 43(a) of the Lanham Act and the New York common law provide a basis for liability independent of trademark law. Even if it abandoned the “Bukhara” mark and dress within the United States, ITC claims it is nonetheless protected from unfair competition by virtue of the “well known” or “famous” marks
The very existence of this doctrine is controversial, as is its scope. Neither party cites, nor has the Court found, any Supreme Court or Second Circuit authority upholding liability on this theory, and it has been applied infrequently by the federal district courts. The doctrine has only recently been applied for the first time by any federal court of appeals. In
Grupo Gigante S.A. de C.V. v. Dallo & Co.,
Two early cases in New York state courts, with fact patterns strikingly similar to the events alleged here by ITC, exemplify the doctrine. In
Maison Prunier v. Prunier’s Restaurant & Cafe, Inc.,
Assuming without deciding that these cases support the existence of an unfair competition claim, even in the absence of a viable U.S. trademark, on the basis of a foreign mark that is “well known” or “famous,” it remains unclear how to determine what foreign marks are sufficiently “famous” to qualify. Both parties urge the use of the “secondary meaning” test, derived at least in part from
Vaudable,
citing the district court opinion in
Grupo Gigante S.A. de C.V. v. Dallo & Co., Inc.,
The Ninth Circuit, however in
its
opinion in
Grupo Gigante
(which postdates the briefing on this motion), required more. While confirming the existence of the “well known” or “famous” mark doctrine, the court concluded that applying “secondary meaning” as the test of notoriety without more eviscerates an important distinction between a geographically remote, but domestic user, protected by the
Tea Rose-Rectanus
doctrine, and a ordinarily unpro
[WJhere the mark has not before been used in the American market, the court must be satisfied, by a preponderance of the evidence, that a substantial percentage of consumers in the relevant American market is familiar with the foreign mark. The relevant American market is the geographic area where the defendant uses the alleged infringing mark. In making this determination, the court should consider such factors as the intentional copying of the mark by the defendant, and whether customers of the American firm are likely to think they are patronizing the same firm that uses the mark in another country. While these factors are not necessarily determinative, they are particularly relevant because they bear heavily on the risks of consumer confusion and fraud, which are the reasons for having a famous-mark exceptiоn.
By requiring more of foreign users than would be required of domestic users seeking to extend the geographic range of their marks, the Ninth Circuit manages to neatly square the circle of what has often been considered a somewhat anomalous, and perhaps even unnecessary, doctrine. 13 But the Ninth Circuit’s decision in Grupo Gi-gante leaves undisturbed the apparent consensus that, at the very least, and whether derived from Vaudable or by analogy to Tea Rose-Rectanus, “secondary meaning” must be established in the relevant American market for a mark to qualify under the “well known” or “famous” mark doctrine. Because ITC has failed even to establish a triable issue as to the existence of “secondary meaning” in the New York market in which defendants operate, it is unnecessary to decide whether to adopt the Ninth Circuit’s analysis requiring an additional showing over and above “secondary meaning.”
The following factors are relevant to determination of “secondary meaning” in this Circuit: “(1) advertising expenditures, (2) consumer studies linking the mark to a source, (3) unsolicited media сoverage of the product, (4) sales success, (5) attempts to plagiarize the mark, and (6) length and exclusivity of the mark’s use.”
Genesee Brewing Co. v. Stroh Brewing Co.,
ITC has failed to produce sufficient evidence of a genuine issue of material fact as to the existence of “secondary meaning.” Setting aside advertisement campaigns conducted by its New York and Chicago restaurants,
14
it has not directly
ITC has not produced a consumer study linking the “Bukhara” mark to itself. 15 Although the record does include an exhibit consisting of fourteen comment cards filled out by famous patrons of its New Delhi restaurant, including Americans such as Bill Clinton and Bill Gates (Koustenis Deck Ex. 89), such evidence is not probative of knowledge of ITC’s mark among New York restaurant-goers, or indicative that even these diners, who undoubtedly had a favorable experience at ITC’s restaurant, generally associate the “Bukhara” mark, as used in the United States, with ITC. Although ITC has continuously used the “Bukhara” mark since at least the 1977 opening of the New Delhi “Bukhara,” it cannot claim exclusive use, because defendants have demonstrated that there are other “Bukhara” restaurants unaffiliated1 with ITC throughout the United States and the world (Marsh Reply Deck Exs. 32-34), and ITC has not offered any specific information as to the success of sales of two shipments of its canned “Dal Bukhara” in May 2003 (neither one to New York) and сurrently has no other revenues from business operations in the United States utilizing the “Bukhara” mark. Thus, ITC has offered essentially no probative evidence as to factors (1), (2), (4), and (6).
This leaves only two factors through which ITC can establish “secondary meaning”: unsolicited media reports and defendants’ alleged appropriation of ITC’s mark and dress. ITC rounds up nineteen exhibits of what it claims are media reports praising its “Bukhara” restaurants. (P. Opp.Mem.13.) One exhibit is actually the collection of customer comment cards referenced above, four exhibits are media reports about or awards received by ITC’s New York and Chicago restaurants (Kous-tenis Deck Exs. 68, 78, 80-81), and the vast majority are reports in foreign publica
Consequently, ITC is left only with its somewhat circular claim that defendants’ alleged appropriation of the “Bukhara” mark and dress itself establishes the existence of “secondary meaning.” Certainly, the record contains sufficient evidence to raise a genuine issue of fact as to whether defendants have intentionally copied ITC’s “Bukhara” mark and dress. A reasonable factfinder could conclude that exhibits supplied by ITC show similarities between the parties’ restaurants, including a similar logo font (Koustenis Deck Exs. 103-104); waiter uniforms (Koustenis Deck Exs. 144-145); menus on wood slabs, bearing the legend “eating utensils upon request” (Koustenis Deck Exs. 125, 147-148); red, checkered bibs used in lieu of napkins (Koustenis Deck Exs. 145-147); a see-through kitchen (Koustenis Deck Exs. 130-131); and use of heavy wooden furniture and other rustic, decorative elements (Koustenis Deck Exs. 97, 134-143). As a result of these similarities, as well as defendants’ employment history with ITC, at least one reviewer of defendants’ restaurants has noticed a resemblance to those of ITC. (J. Walmans Travel Restaurant Entertainment & Wine Report, 2002, Kous-tenis Deck Ex. 64) (“The [menu’s warning to request eating utensils] takes its roots from Bukhara Grill’s namesake, Bukhara in New Delhi, long considered by aficionados of Indian cuisine as the finest Indian restaurant in the world.”) 16 Moreover, defendant Raja Jhanji stated in an interview with the Hindustan Times that defendants’ “Bukhara Grill” restaurant “is quite like Delhi’s Bukhara.... The food is similar ... аnd the waiters too are dressed in similar Panthani suits,” although he maintained the decor was distinct. (Shweta Rajpal, Dal “Bukhara” in NY, Hindustan Times, May 2, 2000, Kous-tenis Deck Ex. 102.)
But “[p]roof of intentional copying, by itself, does not trigger any presumption of secondary meaning under Second Circuit precedent.”
Kaufman & Fisher Wish Ltd. v. F.A.O. Schwarz,
IV. ITC’s False Advertising Claim
Section 43(a) of the Lanham Act protects against false representations which are likely to deceive or mislead consumers about the nature of goods and services. 17 ITC alleges that defendants have violated this section by making false or misleading representations in various press interviews suggesting the existence of a relationship between their restaurants and those of ITC, where in actuality there is none, bolstered by the “confusingly similar use of ITC’s Bukhara name and trade dress,” which grounded its unfair competition claims. (P. Opp.Mem.17-21.) Defendants move for summary judgment on this claim, citing section 43(a)’s standing requirement, and in the alternative, a lack of evidence as to any false or misleading representations on their part as to a relationship with ITC’s “Bukhara” franchise, made in commercial advertising or otherwise. (D. Reply Mem. 9-10.)
As the text of the statute makes clear, “to establish standing under section 43(a), the plaintiff must demonstrate a reasonable interest to be protected,” as well as a “reasonable basis for believing that this interest is likely to be damaged by the false or misleading advertising. The reasonable basis prong embodies a requirement that the plaintiff show both likely injury and a causal nexus to the false advertising.”
Havana Club Holding S.A. v. Galleon S.A.,
While acknowledging the injury requirement of section 43(a), ITC asserts it has standing to bring this claim because its plans to open a new “Bukhara” restaurant
The evidence adduced in connection with sale of its “Dal Bukhara” product consists in the main of aрpearances at two trade shows, sales of two shipments to distributors in California and New Jersey in May 2003, and an averment that “discussions for marketing its packaged food products including Bukhara products in [the] USA are in advanced stage of discussions with a leading distributor of food products in [the] USA.” (Sekhar Aff. ¶¶ 22-24.) These marketing and distribution efforts speak not at all to a potential overlap between consumers of the packaged “Dal Bukhara” and patrons of defendants’ restaurants. Therefore, even assuming defendants have made misrepresentations cognizable as false advertising, ITC has not demonstrated any potential or actual injury causally related to defendants’ conduct giving rise to standing under section 43(a). Defendants’ motion for summary judgment dismissing ITC’s false advertising claim is granted.
CONCLUSION
Summary judgment dismissing ITC’s complaint in its entirety, and cancelling ITC’s registration of the “Bukhara” mark (United States Trademark Registration No. 1,461,445) as pressed by defendants in Counterclaim II of their Amended Answer, is granted. Defendants’ motion to exclude the expert testimony of William J. Guil-foyle is therefore moot.
SO ORDERED.
Notes
. Unless otherwise indicated, the facts presented here аre those admitted by ITC in response to the Local Rule 56.1 Statement submitted by defendants in support of their motion for summary judgment.
. In briefing these motions, the parties submitted extensive materials under seal. All materials are hereby unsealed to the extent used in this Opinion and Order.
. In a letter of October 13, 2004, ITC informed the Court that “Bukhara Grill II” had been renamed "Khyber Grill,” which appears to be the name of yet another restaurant owned by ITC in Chennai, India. ITC considers this to be an act of bad faith on the part of defendants. In their reply letter of October 15, 2004, defendants clarified that “Bukhara Grill II” had actually been sold, and then renamed by its new owners. But not only is this letter outside the record on summary judgment, but as defendants noted in their reply letter, the changed ownership and name of "Bukhara Grill II” is irrelevant to ITC’s complaint, which makes no claims concerning the name "Khyber.”
. Defendants also moved to dismiss what it characterized as ITC’s claim of misappropria
. While ITC obtained registration for its “Bukhara” mаrk, it has not registered the “Bukhara" trade dress. Unregistered trade dress may still be protected from infringement under section 43(a) of the Lanham Act where the trade dress has obtained "secondary meaning.”
Wal-Mart Stores, Inc. v. Samara Bros., 529
U.S. 205, 216,
. The Fourth Circuit recently held, over dissent, that "use in commerce” may include exclusive use in foreign trade, if the foreign mark owner also uses or displays the mark in the sale or advertising of services in the United States. The court relied on Lanham Act language defining a mark to be in "use in commerce” where "it is used or displayed in the sale or advertising of services
and
the
. As discussed below, ITC's actions have been entirely consistent with this policy.
. Nor has ITC apparently taken any action against other restaurants in the United States using the name "Bukhara,” of which there appear to be several. (Marsh Reply Decl. Ex. 32 (results of internet search showing "Bukhara” restаurants, unaffiliated with ITC, in New York, Massachusetts, Washington, and Virginia).). While the record has not been sufficiently developed to permit a con-elusion that failure to police use of the “Bukhara” mark itself constitutes a species of abandonment, see 15 U.S.C. § 1127 (alternative definition of abandonment includes acts of omission by owner causing mark to lose significance), the failure to act against these other users of the same name is inconsistent with a serious plan to return to the restaurant services market in the United States.
. In connection with ITC's argument that it has maintained the goodwill of the "Bukhara” mark and dress through marketing, ITC also cites to a July, 2002, Indian Air advertisement for the New Delhi "Bukhara” (Kousten-is Decl. Ex. 65); an exhibit identified only as "Clinton Advertisement,” which excerpts Bill Clinton’s statement to the New York Times that "[He] loved the Bukhara meal [he] had in Delhi.” (Koustenis Decl. Ex. 83); and a brochure advertising its hotels in India, including the Maurya Sheraton and its "Bukhara” restaurant, distributed to ITC-Welcomgroup's Star-Privilege Members, unaccompanied by information as to its circulation (Koustenis Decl. Ex. 84). These do not permit the inference that a sustained markеting campaign targeted at American consumers, sufficient to maintain the goodwill of the "Bukhara” mark and dress several years after the cessation of restaurant services in this country, exists, particularly in light of Sekhar’s testimony that while it is possible for advertisements to find their way to U.S. consumers, ITC does not target advertising for its hotels or restaurants to the United States. (Sekhar Dep. 342-43.)
. Sekhar's bare assertion that the "improvement in the industry ... makes it possible to consider acquiring or developing [ITC's] own properties outside India” (Sekhar Aff. ¶ 14) is insufficient to raise a triable issue.
. Where a federally registered mark is already in issue, a federal court may cancel the registration under section 37 of the Lanham Act. 15 U.S.C. § 1119. Abandonment is a grounds for cancellation. 15 U.S.C. § 1064(3).
. The opinion in
Vaudable
has been interpreted as establishing "secondary meaning” as the basis for extending protection to the foreign mark,
see, e.g., Empresa Cubana,
.
See, e.g., Int’l Bancorp, LLC v. Societe des Bains de Mer et du Cercle des Etrangers a Monaco,
. Evidence as to any "secondary meaning” established through operation of their Chicago and New York restaurants is not relevant to the present inquiry. Having abandoned its mark and dress in the United States, ITC’s only cognizable claim to priority, and the only unfair competition claim actually made by ITC, derives from its foreign use under the "well known” or "famous” mark doctrine.
. ITC does not cite to the market testing conducted in connection with its line of packaged goods in support of its contention that "secondary meaning” exists. The Court's conclusion that no "secondary meaning” exists, however, is buttressed by the testimony of the King Maker Marketing director, vice president, and CFO partly responsible for conducting that market testing. She stated that no research was done as to whether or not "Bukhara” was a strong brand name in the United States, and the conclusion that the "Bukhara” mark had a strong connection to the New Delhi restaurant was based solely on discussions with between twenty and fifty "informal acquaintances” who had "been to [the New Delhi] Bukhara or had knowledge of the Bukhara restaurant.” (Parameswar Dep. 39-48.)
. Notably, the reviewer did not suggest that he or she was confused about the ownership of the "Bukhara Grill,” or suggest that he or she inferred common ownership.
. Section 43(a) provides in relevant part:
a) Civil action
(1) Any person who, on or in connection with any goods or services, or any container for goods, uses in commerce any word, term, name, symbol, or device, or any combination thereof, or any false designation or origin, false or misleading description of fact, or false or misleading representation of fact, which—
(B) in commercial advertising or promotion, misrepresents the nature, characteristics, qualities or geographic origin of his or her or another person’s goods, services, or commercial activities, shall be liable in a civil action by any person who believes that he or she is or is likely to be damaged by such act.
15 U.S.C. § 1125.
