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New York Stock Exchange, Inc. v. New York, New York Hotel, LLC and New York, New York Hotel & Casino, LLC

Citations: 293 F.3d 550; 62 U.S.P.Q. 2d (BNA) 1260; 2002 U.S. App. LEXIS 5370; 2002 WL 483528Docket: 99-9276

Court: Court of Appeals for the Second Circuit; March 31, 2002; Federal Appellate Court

Narrative Opinion Summary

The New York Stock Exchange, Inc. (NYSE) brought a legal action against New York, New York Hotel, Casino, LLC (the Casino) for alleged trademark infringement and dilution under the Lanham Act, as well as blurring and tarnishment under New York law. The dispute arose from the Casino's use of modified versions of NYSE's trademarks in its decor and promotional materials, potentially confusing consumers about the source or endorsement of the Casino's offerings. The district court granted summary judgment in favor of the Casino, applying the Polaroid test to conclude that the Casino's humorous modifications did not infringe on NYSE's trademarks or dilute their distinctiveness. Although the court dismissed NYSE's blurring claim, it found potential merit in a tarnishment claim and remanded it for further proceedings. The court also held that NYSE's marks, while famous, lacked inherent distinctiveness necessary for anti-dilution protection under federal law, except potentially for its architectural logo. As a result, the court affirmed the district court's decision in part, reversed it in part, and remanded the case for further action regarding the tarnishment claim. Each party was ordered to bear its own costs.

Legal Issues Addressed

Lanham Act Trademark Infringement

Application: The court applied the Polaroid test to determine that the Casino's actions did not infringe on NYSE's trademarks as there was no likelihood of confusion among consumers.

Reasoning: The court applied the eight factors from Polaroid Corp. v. Polarad Elecs. Corp. to determine that the Casino's actions did not infringe on NYSE's trademarks under the Lanham Act.

Trademark Blurring under New York Law

Application: The court found no factual basis for NYSE's blurring claim, as the Casino's humorous use of trademarks did not diminish their distinctiveness.

Reasoning: The district court found no reasonable basis for a blurring claim but ruled differently regarding tarnishment, indicating a potential for a valid claim.

Trademark Dilution under the Lanham Act

Application: The court upheld the dismissal of NYSE's dilution claims for all but one mark, citing the lack of inherent distinctiveness in NYSE's marks.

Reasoning: The district court determined that NYSE's marks lack inherent distinctiveness, leading to the dismissal of NYSE's federal dilution claims.

Trademark Distinctiveness and Secondary Meaning

Application: NYSE's trademarks are acknowledged to have acquired distinctiveness, but the court found them not inherently distinctive, except potentially for the architectural logo.

Reasoning: NYSE's trademarks are generally deemed to have acquired distinctiveness rather than being inherently distinctive, as most combine geographic and generic terms, rendering them descriptive.

Trademark Tarnishment under New York Law

Application: The court reversed the dismissal of the tarnishment claim, noting that the Casino's portrayal of NYSE could harm NYSE's reputation for integrity.

Reasoning: The Casino's portrayal may humorously equate its operations with NYSE, potentially harming NYSE's reputation for integrity and transparency.