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Buitoni Foods Corp. v. Gio. Buton & CSPA

Citations: 530 F. Supp. 949; 214 U.S.P.Q. (BNA) 475; 1981 U.S. Dist. LEXIS 15529Docket: Civ. A. No. 79 C 2780

Court: District Court, E.D. New York; November 3, 1981; Federal District Court

Narrative Opinion Summary

The case involves a legal dispute between Buitoni Foods Corporation and Gio. Buton C.S.p.A. over trademark rights concerning the use of the marks 'BUITONI' and 'BUTON' for table wines. Buitoni Foods, a New York corporation with Italian roots, filed a suit alleging trademark infringement and unfair competition under both federal and New York law, challenging a prior TTAB decision that favored Gio. Buton, an Italian beverage manufacturer. The primary legal issue revolves around the likelihood of consumer confusion between the BUITONI and BUTON marks, which the TTAB had found significant enough to cancel Buitoni's wine trademark registration. In court, Buitoni presented additional evidence and testimony to counter the TTAB's findings, arguing that the Polaroid factors used to assess trademark disputes favored their position and demonstrated no significant consumer confusion. The court agreed, highlighting the distinctiveness and established market presence of the BUITONI mark compared to the weaker BUTON mark. Consequently, the court allowed Buitoni Foods to continue marketing its wines under the BUITONI name but required an amendment to specify 'table wine' on their trademark registration. The outcome permits both parties to operate under their respective trademarks without injunctions, modifying the TTAB's decision and recognizing the importance of familial names in business branding.

Legal Issues Addressed

Common Law Trademark Infringement

Application: Both parties claim common law trademark infringement against each other, focusing on the public perception and market use of their respective trademarks.

Reasoning: The defendant counterclaimed for common law trademark infringement, unfair competition under 15 U.S.C. § 1125(a), common law unfair competition, and unfair competition under New York law.

Likelihood of Confusion in Trademark Law

Application: The court evaluates the likelihood of confusion using the Polaroid factors, determining that the marks are sufficiently distinct to avoid consumer confusion.

Reasoning: The relevant Polaroid factors include the strength of the prior owner's mark, the similarity between the marks, the proximity of the products, actual confusion, and the defendant's good faith in adopting its mark, among others.

Natural Expansion Doctrine

Application: The TTAB found that Buitoni's expansion into the wine market was not a natural extension of its existing product line, a decision the court disagrees with.

Reasoning: The TTAB emphasized that Buitoni did not demonstrate that its move into the wine market was a natural extension of its existing product line.

Review of TTAB Decision under 15 U.S.C. § 1071(b)

Application: The plaintiff seeks to reverse the TTAB's cancellation of its wine trademark registration, asserting that the decision was flawed based on the Polaroid factors.

Reasoning: The court also needs to consider modifying or reversing the TTAB's decision regarding the maintenance of Buitoni's trademark registration for BUITONI wines.

Strength of a Trademark

Application: The court assesses the strength of the BUITONI mark as strong based on its long-standing use and consumer recognition, whereas the BUTON mark is deemed weaker due to minimal U.S. market presence.

Reasoning: The BUITONI mark has achieved a secondary meaning among consumers, unlike BUTON.

Trademark Infringement under 15 U.S.C. § 1114

Application: The plaintiff alleges trademark infringement by the defendant concerning the BUITONI mark used for table wines.

Reasoning: Plaintiff Buitoni Foods Corporation filed a lawsuit against defendant Gio. Buton C. S.p. A. for trademark infringement under 15 U.S.C. § 1114...

Unfair Competition under NY General Business Law § 368(d)

Application: The plaintiff asserts claims of unfair competition related to trademark dilution under New York law.

Reasoning: Plaintiff Buitoni Foods Corporation filed a lawsuit... for unfair competition related to dilution under New York General Business Law § 368(d).

Use of Family Name in Trademark

Application: The court permits the use of the Buitoni name for marketing table wine, emphasizing the importance of family name usage in business.

Reasoning: The court argues that preventing someone from using their family name equates to stripping away their identity, a significant injury that courts aim to avoid.