Plaintiffs have moved to preliminarily enjoin defendants from distributing certain leaflets that contain plaintiffs’ trademarks outside of plaintiffs’ restaurants. The Court held a hearing on March 7, 2006, at which time the Court denied plaintiffs’ motion for a temporary restraining order. The parties subsequently briefed the instant motion, and for the reasons below the Court now denies plaintiffs’ request for a preliminary injunction.
BACKGROUND
The relevant facts are not in dispute. 1 Plaintiffs own two restaurants that are at the center of this dispute: Trattoria Dell’Arte at 900 Seventh Avenue, New York, New York, and Brooklyn Diner USA at 212 West 57th Street, New York, New York. Defendant The Restaurant Opportunities Center of New York, Inc. (“ROC”) is a non-profit organization that seeks to improve conditions for New York City’s restaurant workers. 2 - As part of this mission, ROC “works to establish and maintain worker-owned cooperative restaurants.” (Robb Aff. Ex. A ¶ 3.) One such restaurant is Colors Restaurant, which is operated by defendant 417 Lafayette Restaurant LLC (“417 Lafayette”) at 417 Lafayette Street, New York, New'York. ROC owns a 40% interest in 417 Lafayette. 3
Beginning in March 2006, defendants began stationing individuals outside Trat-toria Dell’Arte and the Brooklyn Diner to hand out the leaflets that are the subject of this dispute. Each leaflet is essentially a single sheet of paper folded in half to create a'pamphlet. The front of the leaflet displays the trademarked logo of one of plaintiffs’ restaurants, 4 along with the text “SPECIAL FOR YOU.” On the inside of the leaflet, the left side contains the text “DO YOU REALLY WANT TO EAT HERE?” ■ and the right side contains the text:
Workers from this restaurant company have sued the company' in Federal Court for misappropriated tips and unpaid overtime hours worked. More than 50 ■current and former workers from the . restaurant company approached the , Restaurant Opportunities Center of New York, complaining of misappropriated tips, unpaid overtime wages, racial and gender discrimination, sexual harassment, harsh working conditions in the restaurant, and retaliation for speaking up for their rights.
. SUPPORT THE WORKERS IN THEIR STRUGGLE FOR DECENT WORKING CONDITIONS!
FOR MORE INFORMATION, PLEASE CALL ROC-NY (THE RESTAURANT OPPORTUNITIES CENTER OF NEW YORK) AT 212-343-1771.
The back of the leaflet contains the text:
The Restaurant Opportunities Center of New York (ROC-NY) is a non-profit organization that seeks improved working conditions for restaurant workers citywide. ROC-NY assists restaurant workers seeking legal redress against employers who violate their employment rights. ROC-NY seeks to provide customers and the public with information about the litigation in this restaurant through these handbills, not to picket or interfere with deliveries. ROC-NY is not a labor organization and does not seek to represent the workers or be recognized as a collective bargaining agent of the workers at this restaurant.
DISCUSSION
Plaintiffs’ motion for a preliminary injunction is based on their claims that defendants’ distribution of the above-described leaflets infringes on their trademarks in violation of the Lanham Act, 15 U.S.C. §§ 1114, 1125, and dilutes their trademarks in violation of the Lan-ham Act, 15 U.S.C. § 1125 and N.Y. Gen. Bus. Law § 360-7
To obtain a preliminary injunction, plaintiffs must demonstrate both (1) a likelihood of irreparable harm in the absence of relief and (2) either (a) a likelihood of success on the merits or (b) sufficiently serious questions regarding the merits along with a showing that the balance of hardships favors the injunction.
1-800 Contacts, Inc. v. WhenU.Com, Inc.,
I. Likelihood of Success of Plaintiffs’ Infringement Claims
Plaintiffs bring their claims of trademark infringement under 15 U.S.C. §§ 1114, 1125(a). Section 1114 prohibits “the [unauthorized] use in commerce [of another’s trademark] in connection with the sale, offering for sale, distribution, or advertising of any goods or services ... [if] such use is likely to cause confusion, or to cause mistake, or to deceive.” Section 1125(a) prohibits the unauthorized use “in commerce” and “in connection with any goods or services” of “any word, term, name, symbol, or device, or any combination thereof ... which ... is likely to cause confusion, or to cause mistake, or to deceive as to the ... origin, sponsorship, or approval of [the unauthorized user’s] goods, services, or commercial activities by another person.”
To succeed on these claims, plaintiffs must prove four elements: (1) that they possess the trademarks at issue, (2) that defendants’ use of the marks is in commerce, (3) that defendants’ use of the marks is in connection with goods or services, and (4) that the defendants’ use of the marks is likely to cause confusion. With respect to the first element, defendants concede that plaintiffs are the trademark holders for the logos displayed on the covers of defendants’ leaflets.
A. Use of the Trademark In Commerce
The second element — -whether defendants’ use of plaintiffs’ marks is in commerce — is a question regarding the extent of Congress’s commerce power, because Congress’s use of the phrase “in commerce” in the Lanham Act “reflects Congress’s intent to legislate to the limits of its authority under the Commerce Clause.”
United We Stand Am., Inc. v. United We Stand, Am. N.Y., Inc.,
B. Use of the Trademark in Connection with Goods or Services
Defendants contend that their use of plaintiffs’ marks is not in connection with goods or services because their, use is “for an ‘expressive purpose’ and as part of a ‘communicative message’ of criticism or commentary.” (Def.Mem.9.) 5 The scope of the Lanham Act, however, is not so narrow. Defendants claim that they are a “non-profit organization that endeavors to raise awareness of restaurant employees’ abyssmal [sic] work conditions.” (Id. 4.) To that end, “[t]he circulation of leaflets is ... in furtherance of their mission to educate the public.” (Id.) Such activities would generally be considered a public service in the normal sense of those words. Similarly, defendants’ activities qualify as “services” as defined by the Lanham Act.
“The term ‘services’ has been interpreted broadly” by our Court of Appeals, and various courts have applied the Lanham Act against “defendants furnishing a wide variety of noncommercial public and civic benefits.”
United We Stand,
Defendants do not argue, nor could they, that their use of plaintiffs’ marks is not in connection with their “mission to educate the public.” (Def.Mem.4.) Instead, defendants rely on the fact that their use is in connection with expressive activity and not a “for-profit scheme.”
(Id.)
However, as
United We Stand
makes clear, defendants’ lack of profit motivation does not place their ¿ctivities beyond the scope of the Lanham Act’s definition- of “services.” Plaintiffs’ marks are clearly displayed on the- front of the pámphlets distributed by defendants, and the distribution of those educational leaflets is a service under the
C. Likelihood of Confusion
To satisfy the fourth element of their infringement claim, plaintiffs must show that defendants’ use of them marks is likely to cause confusion. In this Circuit, the likelihood of confusion is traditionally evaluated using the factors laid out by our Court of Appeals in
Polaroid Corp. v. Polarad Elecs. Corp.,
When an individual is handed one of defendants’ leaflets, both parties agree that the individual will initially think that the leaflet is associated with plaintiffs’ restaurant, because the front of the leaflet displays the restaurant’s logo. 6 However, the parties also agree that as soon as the individual opens the leaflet and reads the message inside, the individual will immediately realize, based on the critical nature of the message, that the leaflet is not in fact associated with plaintiffs. 7 Therefore, the existence of confusion is not in dispute. Instead, the disagreement centers around whether the confusion created by defendants’ use of plaintiffs’ trademarks is sufficient to meet the Lanham Act’s requirement.
Plaintiffs and defendants focus their arguments on the doctrine of initial interest confusion. That doctrine states that confusion exists for purposes of the Lanham Act when “potential customers initially are attracted to the junior user’s mark by virtue of its similarity to the senior user’s mark, even though these consumers are not actually confused at the time of purchase.”
Jordache Enters., Inc. v. Levi Strauss & Co.,
Defendants recognize that our Court of Appeals has adopted the doctrine of initial interest confusion. However, defendants argue that the doctrine does not apply to the instant matter because, while defendants admittedly use plaintiffs’ marks to initially attract the attention of passers-by, they do not redirect “potential customers from Plaintiffs’ goods or services to Defendants’ own goods or services.” (Def.Mem.8.) Essentially, defendants seek
At least one court has explicitly adopted the position advocated by defendants
8
In
Lamparello v. Falwell,
the Fourth Circuit rejected Jerry Falwell’s argument that the defendant’s use of the website www.falwell.com constituted confusion under the Lanham Act, because the defendant did not “profit[ ] financially from [the] initial interest confusion” caused by his use of Falwell’s name in the website’s address.
'Id.
In support of its conclusion, the
Lamparello
Court noted that cases applying the doctrine of initial interest confusion uniformly involve a defendant’s use of a competitor’s mark to divert customers for the defendant’s financial gain.
Id.
317
&
n. 5. That observation is similarly true with respct to cases in this Circuit.
Jordache v. Levi Strauss
involves “customers” being “attracted” to the defendant’s product prior to an eventual “purchase.”
Defendants and the Fourth Circuit are correct that prior cases applying the doctrine of initial interest confusion involved competitors seeking to gain a commercial advantage. This Court, however, respectfully disagrees with the conclusion of the Fourth Circuit, and the position advanced by defendants, that the case law imposes a commercial or for-profit limit on the application of the doctrine. Rather, the cases simply reflect the unsurprising fact that the typical trademark infringement case involves commercial competitors. The, Lanham Act, however, does not only apply to typical cases.
The text of the statute provides no support for the commercial advantage requirement advanced by defendants. Rather, the Lanham Act prohibits the use of
“any
reproduction, counterfeit, copy, or colorable imitation of a registered mark in connection with ...
any
goods or services ... [that] is likely to cause confusion, or to
The limitation defendants seek would most appropriately apply, if at all, to the goods and services provisions of the Act. Those provisions pertain to the behavior of the parties, the nature of their businesses, and the use of the trademark. If courts were to adopt a limitation on the parties or the uses of the mark to which the Act applied, that limitation would most likely be based on the provisions of the Act that actually pertain to the parties or the uses of the mark. The confusion provision, on the other hand, pertains to the effect of that use on the public at large. The Lanham Act seeks to protect the public from “confusion of any kind,”
Syntex Labs.,
That is not to say that profit and competition are not relevant to the Lan-ham Act as a general matter. As will be discussed below, those matters are both relevant on the question of harm. Additionally, where the existence of confusion is in issue, competition between the parties is relevant to determining the likelihood of confusion.
See Polaroid,
Defendants’ use of plaintiffs’ marks causes confusion, and therefore falls within the scope of the Lanham Act. Despite defendants’ lack of profit motivation, or the lack of competition between the parties, an individual who is handed one of defendants’ pamphlets is, at least initially, confused about the source of the pamphlet. Under the doctrine of initial interest confusion, that confusion is sufficient to trigger the protection of the Lanham Act.
Defendants’ claim that they are not “diverting] or redirecting] ... potential customers from Plaintiffs’ goods or services to Defendants’ own goods or services” (Def.Mem.8) is simply inaccurate. Defendants base their claim on the assertion that customers from plaintiffs’ restaurants are not diverted to Colors, the restaurant partially owned by defendants.
9
D. The First Amendment
Plaintiffs appear likely to succeed on all four elements of their infringement claims under the Lanham Act. Defendants, while disputing this conclusion, also assert that their actions are protected by the First Amendment. (Def.Mem.8-10.) However, because defendants’ use of plaintiffs’ marks serves to identify the source of defendants’ leaflets, and is not part of defendants’ expressive message, the First Amendment does not protect their conduct.
“[T]he First Amendment confers a measure of protection for the unauthorized use of trademarks when that use is a part of the expression of a communicative message.”
Yankee Publ'g Inc. n Netvs Am. Publ'g Inc.,
When resolving the somewhat competing protections of the Lanham Act and the First Amendment, courts have distinguished between uses of a mark “for an expressive purpose such as commentary, comedy, parody, news reporting or criticism,” and uses of a mark to identify the source of a message.
United We Stand,
Here, defendants use plaintiffs’ marks as a source identifier, and therefore defendants’ use is not protected by the First Amendment. The fact that defendants’ message is critical as a general matter is not dispositive, because the use of the mark and not the content of the message is the focus of the inquiry. Irrespective of the content of defendants’ leaflets, defendants are using plaintiffs’ marks on the cover of the leaflets to indicate that plaintiffs are the source of the leaflets. “This is precisely the use that is reserved by the Lanham Act to the owner of the mark.... It is not protected by the First Amendment.”
United We Stand,
II. Likelihood of Success of Plaintiffs’ Dilution Claims
Plaintiffs bring their claims of trademark dilution under 15 U.S.C. § 1125(c) and N.Y. Gen. Bus. Law § 360-i. To succeed on their claim under § 1125(c)
New York law provides more protection against dilution than does the Lanham Act. To succeed on their § 360 — i claims, plaintiffs must show (1) that they possess distinctive trademarks, and (2) that defendants’ use of those trademarks results in a likelihood of dilution.
See Malletier v. Bourke, Inc.,
Plaintiffs’ dilution claims are unlikely to succeed for a variety of reasons. First, plaintiffs do not argue or present any evidence that their marks are “famous,” as required by § 1125(c), or “distinctive,” as required by § 360 — L Courts consider various types of evidence when determining whether a trademark is famous or- sufficiently distinctive: the amount of advertising and other promotions, consumer studies, attempts to plagiarize the mark, duration of use, and media coverage of the mark.
See, e.g., Strange Music, Inc. v. Strange Music, Inc.,
Furthermore, unlike plaintiffs’ infringement claims, § 1125(c) contains the additional requirement that defendants’ use be “commercial use in commerce.” Therefore, activities that would qualify as “goods and services” under the broad definition given to those terms in § 1125(a), do not fall within the scope of § 1125(c) unless they are performed for profit. See McCarthy on Trademark and Unfair Competition § 24:90 (4th ed.2006) (stating that § 1125(c)’s commercial use requirement implies that goods or services must be bought or sold). Here, plaintiffs present no evidence that defendants’ use of the marks is commercial. Indeed, while plaintiffs argue that defendants’ use satisfies the Lanham Act’s “in commerce” and “goods and services” requirements, their briefing is void of any mention of § 1125(c)’s special “commercial use” requirement.
Finally, plaintiffs misstate the law when they assert that the Lanham Act
Accordingly, for the reasons stated above plaintiffs have neither shown a likelihood of success on the merits nor sufficiently serious questions regarding the merits of their dilution claims.
III. Irreparable Harm
Plaintiffs have shown a likelihood of success on the ‘ merits of their trademark infringement claims. Therefore, plaintiffs are entitled to a preliminary injunction if they demonstrate a likelihood of irreparable harm. Here, plaintiffs have demonstrated a likelihood of 'confusion, and ordinarily “proof of a likelihood of confusion establishes ... irreparable harm.”
Brennan’s Inc. v. Brennan’s Restaurant, L.L.C.,
Plaintiffs present no evidence that they will suffer irreparable harm in the absence of an injunction. Rather, plaintiffs simply rely on the law of this Circuit that states confusion is sufficient to establish irreparable harm. (Pl.Mem.10.) The law, however, is not as cut and dried as plaintiffs assert. Plaintiffs correctly cite
Brennan’s
for the proposition that “proof of a likelihood of confusion establishes -... irreparable harm.”
This doctrine of inferring irreparable harm from a likelihood of confusion is rooted in
Omega Imp. Corp. v. Petri-Kine Camera Co.,
On the record before this Court, plaintiffs’ perfunctory citation to
Brennan’s
and reliance on the general presumption of irreparable harm is similarly insufficient. The general presumption is not automatic; the case law in this Circuit “leaves the door slightly ajar perhaps for those few cases ... where irreparable harm does not follow [from likelihood of confusion].”
Church of Scientology,
None of the factors present in Omega is present in the instant matter. Defendants use plaintiffs’ marks to pique the interest of passers-by in the hope that they will take and read one of defendants’ leaflets. Defendants do not profit from the distribution of the leaflets, and therefore there would be no need to engage in a speculative disgorgement calculation should plaintiffs prevail at trial. Furthermore, there is no risk that individuals, frustrated by the confusion caused by defendants’ use of plaintiffs’ marks, will simply turn away from plaintiffs’ restaurants and defendants’ leaflets. Unlike the confusion at issue in Omega, the confusion here at issue is dispelled almost instantly when a passer-by reads the contents of defendants’ pamphlet. Accordingly, there is no lingering confusion that could result in an irreparable loss of customers. Finally, defendants’ use of plaintiffs’ marks is unlikely to cause plaintiffs to lose any sales due to defendants’ infringement. Defendants’ use of plaintiffs’ marks undoubtedly causes some passers-by to reads one of defendants’ leaflets who otherwise would not have done so. That confusion, however, will not result in any loss of sales for plaintiffs. Confusion may lead a potential customer to pick up a leaflet, but it is not that confusion that drives the customer away from plaintiffs’ restaurant. Rather, it is the message inside the leaflet that might cause the reader to choose to dine elsewhere. That harm, however, results from defendants’ criticism, not defendants’ use of plaintiffs’ marks, and therefore it cannot provide the irreparable harm necessary to support an injunction under the Lanham Act.
A comparison to the typical case of initial interest confusion is illustrative. In such a case, a defendant uses plaintiffs mark to redirect an individual from plaintiffs goods or services to defendant’s goods or services. Once the individual is presented with defendant’s goods or services, he realizes that defendant is not plaintiff, and that defendant’s goods or services are not the same as plaintiffs goods or services, but at that point defendant has already secured a foot in the door and an unfair advantage with respect to plaintiff. The individual could, of course, simply return to plaintiffs goods or services, but some individuals won’t bother, either due to inconvenience or ambivalence, and therefore defendant has stolen away some customers that, but for defendant’s luring away, would have gone to plaintiff. Accordingly, in the general case, defendant’s misdirection leads to fewer individuals purchasing plaintiffs goods or services, and that harm is presumed to be irreparable.
The unique facts of this case make it one of “those few cases ... where irreparable harm does not follow from [likelihood of confusion].”
Church of Scientology,
CONCLUSION
Plaintiffs have failed to show a likelihood of success on the merits with respect to their trademark dilution claims, but have shown a likelihood of success with respect to their trademark infringement claims. However, plaintiffs have failed to establish a likelihood of irreparable harm in the absence in injunction relief. Accordingly, plaintiffs’ motion for preliminary injunction is denied.
SO ORDERED.
Notes
.The parties do dispute facts that are irrelevant to the current motion. First, the parties disagree about a dispute between the defendants and Redeye Grill — a restaurant that is not involved in this litigation' — currently proceeding both in New York State Supreme Court and the National Labor Relations Board. (Compare PI. Mem. 5, with Def. Mem. 3.) Because the dispute involving Redeye Grill is not before this Court, the parties’ disagreements regarding facts related to that matter are of no concern. Second, defendants dispute plaintiffs’ allegations that'the content of the leaflets at issue is "false and defamatoiy.” (Compare PL Mem. 7, with Def. Mem. 4.) Plaintiffs do not raise a defamation claim in support of their motion for a preliminary in-juction, and so the Court need not address plaintiffs' allegations in that respect.
. Defendants did not submit any affidavits or other evidence in connection with the instant motion. Instead, defendants cite to the ROC website — http ://www.rocny. org — for information relating to the organization.
. Defendants John Does 1-58 and John Roes 1-50 are employee-owners of Colors and outside-owners of Colors, respectively.
. Defendants do not dispute that the leaflets contain plaintiffs' trademarks.
. Defendants do not attempt to refute plaintiffs' infringement claims element by element. Instead, they argue as a general matter that the Lanham Act does not reach, defendants' activity because it is protected by the First Amendment. (Def.Mem.5.)
. Defendants admitted at the initial hearing that “the logo is what catches the eye and gets someone’s attention.’’ (TRO Hr'g Tr. 11, Mar. 7, 2006.)
. When asked at the initial hearing whether "a person looking at [a leaflet] is going to mistakenly believe that th[e] message is endorsed by [plaintiffs],” plaintiffs responded “No.” (TRO Hr’g Tr. 6, Mar. 7, 2006.)
. Defendants cite
BigStar Entertainment, Inc. v. Next Big. Star, Inc.,
Commercial competition between parties, or the lack thereof, is certainly a factor to be considered in determining whether a consumer is likely to be confused by a defendant’s use of a plaintiff's mark or a mark similar to plaintiffs. However, in a case such as the instant matter, where the parties agree that there is confusion, an analysis of the likelihood of confusion based on similarity or commercial competition is unnecessary.
. At the initial hearing on this matter, plaintiffs claimed that Colors was a restaurant in direct competition with plaintiffs’ restaurants, despite the distance between the establish-
. In some instances, trademarks are granted a presumption of distinctiveness.
See, e.g., Savin,
. The fact that plaintiffs' ability to serve customers in their restaurants is not affected by defendants' use of their marks distinguishes this case from those in which both plaintiff and defendant provide information services. For example, the plaintiff in
Planned Parenthood Fed’n of Am., Inc. v. Bucci
provided both practical “reproductive services” and political information services. No. 97 Civ. 0629,
