Plaintiff-appellant, McGraw-Edison Company (“McGraw-Edison”), brought this action against the defendants-appellees, Walt Disney Productions (“Disney”) and Bally Manufacturing Corporation (“Bally”), alleging that the defendants’ use of the plaintiff’s TRON trademark violates sections 32 and 43 of the Lanham Act, 15 U.S.C. §§ 1114(1) 1 and 1125(a), 2 the Illinois Anti-Dilution Act, Ill.Rev.Stat. ch. 140, § 22, 3 the Illinois Deceptive Trade Practices Act, Ill.Rev.Stat. ch. I2IV2, §§ 311-317, 4 and the common law of the State of Illinois. The district court granted summary judgment in favor of Disney and Bally, and McGraw-Edison appeals. We reverse.
Since 1900 McGraw-Edison has engaged in the manufacture, distribution, and sales of electrical and mechanical products and related services for both consumer and commercial applications. The Bussmann division of McGraw-Edison manufacturers, distributes, and sells fuses and fuse accessories, and is the world’s largest manufacturer of small and medium dimension fuses. McGraw-Edison registered its trademark TRON in 1958 (for electrical fuses) and 1968 (for fuse holders, clip clamps and fuse clips) and has used the trademark TRON to identify a line of fuses and fuse accessories, placing the TRON mark on both the product arid its packaging. The defendants do not dispute that McGraw-Edison’s registrations for the trademark TRON are in full force and effect and are the only registrations for the mark TRON on the U.S. Trademark Register.
Between 1970 and 1983, McGraw-Edison sold more than $85 million worth of TRON fuse products and spent more than $1.5 million in advertising TRON products. TRON fuse products are sold in a variety of outlets, including drug stores, grocery stores, discount stores (e.g., Target, K-Mart, Venture, Woolco-Woolworths), hardware stores (e.g., Ace Hardware, True Value Hardware), and electrical supply and catalog houses (e.g., Advent, Newark). TRON products are advertised in magazines, trade directories, catalogs and through point of sale materials.
Walt Disney Productions is in the entertainment industry, notably the production of motion pictures, television programs and the operation of amusement parks. In June 1980, Disney purchased a screenplay entitled TRON, and developed a motion picture with the same name. 5 In early 1981 Disney began to develop a merchandising program “to attract prospective manufacturers to produce and sell merchandise associated with the ‘TRON’ motion picture.” At the same time that Disney was developing the merchandise licensing program, it engaged TCR Service, Inc. to conduct a trademark search in order that Disney might determine whether the use of the name TRON would conflict with third party uses of similar names on like goods. Disney discovered that the Mego Toy Company (“Mego”) owned a federal trademark registration for the mark TRONS for futuristic toys, dolls, and toy robots, as well as federal registrations for variations of the term TRON — such as BIOTRON, MICRO-TRON, ALPHATRON, and BETATRON,— also for use on futuristic toys, dolls, and robots. Disney negotiated with Mego and acquired Mego’s registrations and rights in the mark TRONS and the variations of TRON (BIOTRON, MICROTRON, etc.) owned by Mego. Disney’s trademark search also disclosed McGraw-Edison’s registration for the trademark TRON covering electric fuses and accessories, but Disney’s senior legal counsel did not consider McGraw-Edison’s registrations as a bar to Disney’s use of the mark TRON.
As a result of its licensing and merchandising program, Disney entered licensing agreements with manufacturers for a wide variety of products displaying the TRON mark for sale throughout the country. Specifically, Disney licensed the mark TRON to the defendant Bally for video games and software and to other manufacturers for items such as telephones, phonograph records, wristwatches, tee shirts and sweatshirts, posters, paperback books, nightgowns, pajamas and robes, masquerade costumes, caps, sheets, pillow cases, comforters, bed spreads, curtains, coordinated active wear, warm-up suits, infant and toddler knit shirts and sleepwear, jewelry, buttons and pins, sleeping bags, wal
In June 1982, prior to the scheduled July release of the motion picture TRON, McGraw-Edison contacted Disney and Bally (licensed by Disney to manufacture a video game entitled “TRON”) and asserted its rights in its registered trademark TRON. After negotiations failed to resolve the dispute between McGraw-Edison and Disney and Bally, Disney brought a declaratory judgment action in the United States District Court for the Southern District of New York; on the same day, McGraw-Edison filed its complaint in the present action against Disney and Bally. 6 Count I of McGraw-Edison’s complaint alleged that Disney’s and Bally’s use of the TRON mark is likely to cause confusion, or mistake, or to deceive consumers as to the origin and sponsorship of the products of McGraw-Edison, Disney and Bally in violation of the Lanham Act. 15 U.S.C. § 1114(1), § 1125(a). Count II claimed that the defendants’ use of McGraw-Edison’s TRON trademark constituted unfair competition, caused injury to McGraw-Edison’s business reputation and good will and diluted the distinctive character and quality of McGraw-Edison’s TRON mark in violation of Ill.Rev.Stat. ch. 140, § 22, ch. 12172, §§ 311-17, and Illinois common law. McGraw-Edison sought to enjoin Disney and Bally from further use of the TRON mark, requested an accounting of all profits the defendants derived from their use of the mark TRON, and prayed for compensatory as well as punitive damages.
The defendants filed a motion for summary judgment, arguing that the undisputed facts demonstrated “that the continued respective uses by the parties of the name ‘TRON’ cannot result in confusion. Nor is it likely that [the] defendant’s continued use of the name ‘TRON’ will diminish the value of plaintiff’s trademark used in connection with the sale and promotion of its fuse products.” The district court granted summary judgment in favor of the defendants on both counts of the complaint, and rejected McGraw-Edison’s claim that the existence of material issues of fact precluded summary judgment stating, “those issues [presented by McGraw-Edison] are either not material or are legally based.”
In determining whether the defendants had created a likelihood of confusion as to the origin of its products, as required to prove a violation of 15 U.S.C. §§ 1114, 1125, the district court considered the seven factors delineated by this court in
Helene Curtis Industries, Inc. v. Church & Dwight Co., Inc.,
“In light of the lack of evidence of actual confusion on the part of consumers, the lack of concurrence of markets and advertising, the difference in printing of the two marks, and the lack of intent on the part of defendants to pawn off their products as plaintiff’s the court finds that no likelihood of confusion exists.”
With respect to McGraw-Edison’s state law claims in Count II, the court noted that the Illinois Deceptive Trade Practices Act, 111. Rev.Stat. ch. 12D/2, § 312, imposes liability upon an infringer only if a likelihood of confusion exists. The court concluded that the defendants were not liable under the
II
In reviewing the district court’s grant of summary judgment, “we note that judgment is appropriate when ‘there is no genuine issue as to any material fact and ... the moving party is entitled to a judgment as a matter of law.’ ”
Black v. Henry Pratt Co.,
A. Count I
McGraw-Edison has asserted claims against Disney and Bally under sections 32 and 43 of the Lanham Act of 1946, 15 U.S.C. §§ 1114, 1125; both sections require that a plaintiff demonstrate that the defendant has created a likelihood of confusion as to the origin of his product.
See Universal City Studios, Inc. v. Nintendo Co., Ltd.,
“the degree of similarity between the marks in appearance and suggestion; the similarity of the products for which the name is used; the area and manner of concurrent use; the degree of care likely to be exercised by consumers; thestrength of the complainant’s mark; actual confusion; and an intent on the part of the alleged infringer to palm off his products as those of another.”
Helene Curtis,
1. The Degree of Similarity Between the Marks
The district court acknowledged differences between the plaintiff’s and defendants’ presentation of the mark TRON:
“The word TRON as presented by plaintiff, is spelled in straight block letters in one color. In addition, wherever the word TRON appears in plaintiff’s packaging or product, the term Buss or Bussmann also appears, indicating production by plaintiff’s Bussmann division. Sometimes the mark BUSS is as prominent as the mark TRON____
The mark TRON, as presented by defendants, is spelled with somewhat unique futuristic-type lettering, with darker colors usually above lighter colors in the letters____ In some of the packaging or advertisements for products tied into the movie, the word ‘tron’ is spelled in block letters, as plaintiff contends. ... In each case, however, the corresponding product itself has the uniquely patterned letters____ In addition, in each instance where the word ‘tron’ appears, Walt Disney’s name also appears, though in very tiny letters.”
Despite these differences in presentation, the court concluded that “there is a high degree of similarity between the marks and, though their presentation is different, the possibility of confusion exists based upon the marks alone.” Nevertheless, the district court cited “the difference in printing of the two marks” in support of its ultimate conclusion that there was no likelihood of confusion between the plaintiff’s and the defendants’ products. McGrawEdison contends that some of the Disney licensed products fail to include any mention of Disney and that some of the products do not incorporate the described color scheme. McGraw-Edison further claims that Disney considers the use of TRON in block letters to be within the scope of its (Disney’s) rights. In view of these contentions (the failure to include Disney’s name on all Disney licensed TRON products and the failure to employ the described color scheme on all of Disney’s TRON items), McGraw-Edison argues that the district court improperly distinguished the parties’ marks on the basis of Disney’s futuristic lettering style and the inclusion of Walt Disney’s name on any Disney TRON product. Were we to accept McGraw-Edison’s view of the facts regarding Disney’s use of the TRON mark (failing to place Disney’s name on all Disney licensed TRON products or incorporate the Disney color scheme on all Disney TRON merchandise), the fact remains that the marks are distinguishable since wherever the word TRON appears on McGraw-Edison’s packaging or products, the term Buss or Bussmann also appears (Disney licensed products obviously do not include the term Buss or Bussmann). The marks thus are not identical,
2. The Similarity of the Products
According to the district court, “The product lines carrying Disney’s TRON label and plaintiff’s TRON label are very different____ Plaintiff’s TRON line ... includes high quality, utilitarian electrical products. The products carrying Disney’s TRON label are entertainment-based. Video games, pajamas, toy watches, T-shirts and costumes have little to do with high quality fuses.” The court concluded that the McGraw-Edison and Disney product lines are “entirely unrelated.” McGrawEdison contends the district court failed to recognize the wide scope of Disney’s licensing program and emphasis on electrical and electronic products and overlooked the fact that McGraw-Edison fuses are compatible and consistent with the type of products licensed by Disney. The defendants argue, without providing any statutory or case law support, “the only material issue in determining similarity of the products is whether any of the goods actually licensed by Disney are in any way related to fuses.”
The fact that the products at issue may be “very different” is not dispositive of the issue of the similarity of the products in determining the existence of a likelihood of confusion between products. The question is “whether the products are the kind the public attributes to a single source.”
E. Remy Martin & Co., S.A. v. Shaw-Ross International Imports, Inc.,
3. The Area and Manner of Concurrent Use
The district court found “the TRON products licensed by Disney are generally sold to those who have seen or are interested in the movie ... [while] plaintiff’s products are generally sold to industrial users (30% to 40%) and electronic experts (40% to 50%).” The court further stated:
“Of the 10 to 20 percent purchased by the public, the fuses are sold in electrical stores or electrical departments of general stores. Only 10 per cent of plaintiff’s advertising is directed to the lay consumer. Though some stores may carry both plaintiff’s goods and Disney’s licensed goods, the intersection is small. Generally, public purchasers of plaintiff’s goods will purchase them in electrical outlet stores where goods licensed by defendant Disney with the TRON mark will usually not be available.”
Our review of the record has failed to disclose any evidence supporting the
4. The Degree of Care Likely to Be Exercised by Consumers
The district court compared the types of products manufactured by McGraw-Edison and licensed by Disney and concluded, “Generally, consumers buying fuses would take more care than those buying the products licensed by Disney.” As our review of the record has failed to reveal evidence supporting this conclusion of the district court, we hold that the defendants have failed to establish the lack of a genuine issue of material fact with respect to the degree of care likely to be exercised by consumers.
5. The Strength of McGraw-Edison’s Mark
It is undisputed that McGraw-Edison’s registration of TRON is the only registration for that trademark. The court noted, however, the existence of numerous registrations for trademarks similar to TRON, for example, TRONS, CELTRON, Z-TRON, U V TRON, FILTRON, TRINITRON, ACUTRON, TICKETRON, and VOLTRON. The court also noted that McGraw-Edison’s trademark TRON is always accompanied by Buss or Bussmann, and that the majority of TRON advertising has been geared toward a narrow, sophisticated audience through trade journals. According to the court, “These factors indicate that TRON is a relatively weak mark outside its narrow area of high quality fuse products.”
In assessing the strength of the McGraw-Edison TRON mark, we initially must determine which category of trademarks the word TRON belongs to:
“Trademarks may be placed into four categories according to strength and the corresponding amount of protectionwhich will be accorded them. Trademarks can be (1) descriptive or generic, i.e., the mark describes the product or service itself; (2) suggestive, i.e., the mark describes or suggests a characteristic of the product or service; (3) arbitrary, i.e., the mark is a word in common use, but applied to a product or service unrelated to its meaning, so that the word neither describes nor suggests the product or service; and (4) coined, i.e., the mark is a word devised or invented for the purpose of identifying the product.”
Tisch Hotels, Inc. v. Americana Inn, Inc.,
Furthermore, the third party registrations of trademarks similar to TRON discussed by the district court are material in determining the strength of the TRON mark only to the extent that the similar marks are promoted by their owners or recognized by the consuming public. “A trademark which is found only in the records of the Patent and Trademark Office does not materially affect the distinctiveness of another’s mark which is actively used in trade.” Callmann, Unfair Comp., Trademarks & Monopolies § 20.44, 270 (4th Ed.1983).
“The significance of third-party trademarks depends wholly upon their usage. Defendant introduced no evidence that these trademarks were actually used by third parties, that they were well promoted or that they were recognized by consumers. As the Court pointed out in Lilly Pulitzer, Inc. v. Lilli Ann Corp.,376 F.2d 324 , 325 (1967), ‘the existence of these registrations is not evidence of what happens in the marketplace or that customers are familiar with their use.’ ”
Scarves by Vera, Inc. v. Todo Imports Ltd., Inc.,
6. Actual Confusion
Our review of the record reveals that the defendants have failed to provide any evidence to show that there was no likelihood of confusion between its TRON products and McGraw-Edison TRON prod
“problems similar to a survey discussed in Henri’s Food Products Co., Inc. v. Kraft, Inc.,717 F.2d 352 , 356-57 (7th Cir.1983). In Henri’s, the questions tended to bring to the interviewee’s mind the products which contained the allegedly infringed mark. The interviewee was then asked who made the infringing product. The court held that the previous questions had potentially contaminated the latter question.”
The plaintiff in
Henri’s
commissioned two separate and distinct surveys to be conducted, neither of which employed the same methodology as the survey in the present case: while the survey in the case at bar presented photos of both Disney’s and McGraw-Edison’s TRON products to the interviewees and asked whether the goods were “put out by the same or different companies”, both surveys discussed in
Henri’s
presented the interviewee with a single product and asked either “Who do you believe makes this product?” or “Who puts out this product?” In one of the
Henri’s
surveys, the question of “Who puts out this product?” was preceded by five other questions that potentially contaminated the responses to the final question concerning the origin of the product. The district court’s comparison and application of that survey to the survey in this case is both inappropriate and misapplied as they used a completely different methodology in comparison with the present survey. We thus disagree with the district court that the survey introduced by McGraw-Edison suffered from the same problems as the survey in
Henri’s.
Furthermore, the
Henri’s
court acknowledged that the defendant pointed to several flaws in one of the surveys “which caution against giving it too much weight,” but the court also stated, “we cannot conclude, however, that the survey should be ignored.”
Henri’s,
“[RJeason tells us that ... very little proof of actual confusion would be necessary to prove likelihood of confusion.”
World Carpets, Inc. v. Dick Littrell’s New World Carpets,
7. The Intent on the Part of the Alleged Infringer
The district court noted that Disney and Bally were aware of McGraw-Edison’s TRON trademark when they licensed products bearing that mark, but found no evidence that Disney intended to confuse consumers: “In fact, the evidence clearly shows that Disney believed it was not infringing upon plaintiff’s mark. Intent, therefore does not come into play in the court’s calculations.” McGraw-Edison argues to the contrary that Disney disregarded McGraw-Edison’s rights, since its efforts in licensing and marketing TRON products “increased the likelihood that a consumer would be confused into believing there was a common sponsorship or authorization between the parties or their products, and increased the dilution of plaintiff’s mark.” The record reveals that Disney knew of McGraw-Edison’s registration of the mark TRON and McGraw-Edison’s use of that mark, went to their own retained counsel to support their theory that McGraw-Edison’s registrations of the TRON mark did not bar Disney’s use of TRON, and proceeded with licensing and merchandising its own line of TRON products without even contacting McGraw-Edison. “Subjective issues such as good faith are singularly inappropriate for determination on summary judgment.”
American International Group, Inc. v. London American International Corporation Ltd.,
Since we are convinced that the defendants have failed to meet their strict burden of proof in establishing the lack of genuine issues of material fact with respect to: 1) whether the products bearing the McGrawEdison TRON mark and the products bearing the Disney TRON mark are the kind the public attributes to a single source; 2) the area and manner of concurrent use of the products; 3) the degree of care likely to be exercised by consumers purchasing McGraw-Edison’s and Disney’s TRON products; 4) the strength of McGraw-Edison’s TRON mark; 5) the extent of actual confusion among consumers; and 6) the intent of Disney, we hold that the district court erred in concluding as a matter of law that no likelihood of confusion exists and in granting summary judgment in favor of the defendants on Count I.
B. Count II
In Count II, McGraw-Edison asserted claims under Illinois Deceptive Trade Practices Act, Ill.Rev.Stat. ch. 121
lk,
§ 312, and the Anti-Dilution Act, Ill.Rev.Stat. ch. 140, § 22.
9
Under the Illinois Deceptive
Under the Anti-Dilution Act, the relevant factors to be considered by the court are “the distinctiveness of the mark and whether the mark is being diluted.”
Hyatt Corporation v. Hyatt Legal Services,
In reversing the district court’s grant of summary judgment, we express no view as to the merits of McGraw-Edison’s claims. Rather, we only conclude that on the present record, the district court should not have decided the disputed issues in the case on a motion for summary judgment.
Ill
The judgment of the district court is Reversed.
Notes
. Section 32(1) of the Lanham Act provides: "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 color-ably 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____”
15 U.S.C. § 1114(1).
. Section 43 of the Lanham Act provides:
(a) Any person who shall affix, apply or annex, or use in connection with any goods or services, or any container or containers of 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, ... 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.”
15 U.S.C. § 1125(a).
. The Illinois Anti-Dilution Act provides in pertinent part:
"Every person ..,. adopting and using a mark [or] trade name, ... may proceed by suit, and the circuit courts shall grant injunctions, to enjoin subsequent use by another of the same or any similar mark [or] trade name ... if there exists a likelihood of injury to business reputation or of dilution of the distinctive quality of the mark [or] trade name of the prior user notwithstanding the absence of competition between the parties or of confusion as to the source of goods or services.”
Ill.Rev.Stat. ch. 140, § 22.
. The Illinois Deceptive Trade Practices Act defines as deceptive conduct which:
"(2) causes likelihood of confusion or of misunderstanding as to the source, sponsorship, approval or certification of goods or services;
(3) causes likelihood of confusion or of misunderstanding as to the affiliation, connection, or association with or certification by another;”
Ill.Rev.Stat. ch. 121'A § 312.
. According to Disney:
"The plot of the movie involved a real world in which people are controlled by an evil conglomerate using a master computer program, and an electronic world inside the computer program. The hero of the film is transported into the computer program where he wages a battle against evil in a setting filled with sights and sounds typical of a video game. The characters in the electronic world are counterparts to characters in the real world. Among these characters is a video warrior named ‘TRON.’ ”
. Disney subsequently dismissed its declaratory judgment action against McGraw-Edison in the United States District Court in New York.
. Although the district court concluded that the word "tron” is taken from the word electronic, we have found no evidence in the record to support this hypothesis or speculation which might actually be accurate, but a look into Webster’s Third New International Dictionary (unabridged) discloses that tron is a suffix denoting a vacuum tube or denoting a device for the manipulation of subatomic particles.
. One-half of those interviewed were asked, "Are these two products put out by the same company or by different companies?”; and one-half were asked the question in the reverse order, “Are these two products put out by different companies or by the same company?”
. McGraw-Edison also claimed that the defendants had engaged in unfair competition in violation of Illinois common law. We need not address this claim separately as the Illinois Deceptive Trade Practices Act, Ill.Rev.Stat. ch. 121'/2, § 311
et seq.
is merely a codification of the Illinois common law of unfair competition.
