National Football League Properties, Inc. v. Helinger (In re Helinger)

Citations: 22 B.R. 139; 1982 Bankr. LEXIS 3903Docket: Bankruptcy No. 81-188; Adv. No. 82-290

Court: United States Bankruptcy Court, M.D. Florida; June 17, 1982; Us Bankruptcy; United States Bankruptcy Court

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A preliminary injunction is sought by the National Football League Properties (NFLP) and Tampa Bay Area NFL Football, Inc. against James A. Helinger, Sr. (Debtor) in a Chapter 11 bankruptcy case. The NFLP, a corporation owned by 28 NFL Member Clubs, operates from New York, while the Buccaneers, a Florida corporation, own the Tampa Bay Buccaneers franchise. Helinger, initially a Chapter 13 debtor, converted to Chapter 11 due to challenges in confirming his plan. The Buccaneers have registered trademarks including “Tampa Bay Buccaneers” and “Bucs,” which are well-known in the Tampa-St. Petersburg area due to extensive marketing efforts. The NFLP, established in 1963, manages the commercial marketing of Member Clubs' trademarks and has exclusive rights to their use under licensing agreements with the clubs, including the Buccaneers, to prevent trademark infringement and protect their commercial interests.

Members of the public, particularly football fans, purchase merchandise with NFL trademarks under the assumption that these items are endorsed by the NFL and its Member Clubs regarding quality. NFLP has established numerous licensing agreements with manufacturers and distributors to produce and sell various merchandise, including apparel, sports equipment, and novelty items, ensuring that the quality of these goods is supervised and maintained. Specific examples of licensed novelties include flying saucers, license plates, and key chains, all of which must receive NFLP’s approval to meet established quality standards.

The NFL Charities foundation, supported by royalty payments from licensed merchandise sales, funds various charitable causes, with the Tampa Bay Buccaneers committing their licensing revenues to this initiative since 1976. In 1981, NFLP contributed approximately $1.4 million to these charities.

Helinger operated a business selling novelty items that unlawfully used the Buccaneers' trademarks and official colors, copying designs from licensed products. An investigation confirmed that Helinger was not authorized by NFLP to use these trademarks and had also sold licensed merchandise created by third-party licensees. After NFLP learned of Helinger's unauthorized sales in 1980, it demanded he cease these activities, but Helinger initially refused compliance. Although he later indicated he would stop selling unlicensed merchandise, NFLP’s attempts to resolve the issue through a settlement agreement were based on Helinger’s promise that his business would close.

Helinger filed a Chapter 13 petition shortly after receiving a settlement agreement, which he never executed. Despite this, he continued to manufacture and sell unlicensed Buccaneers merchandise in the Tampa and St. Petersburg area during the football season. The NFLP demanded he cease these activities, but Helinger did not respond. However, there is no evidence that he currently possesses or intends to sell any unlicensed merchandise. The evidentiary hearing revealed critical elements for injunctive relief: the likelihood of the plaintiff's success on the merits, the threat of irreparable harm, the balance of harms, and the public interest. While Helinger did infringe on the Buccaneers' trademark in the past, the court noted that injunctive relief is meant to prevent future violations, not to punish past actions. Given the lack of evidence indicating Helinger's intent to continue selling unlicensed merchandise, and considering that relevant sales activities begin in August, the court concluded that there is no immediate threat of harm to NFLP. Therefore, the request for a preliminary injunction was denied with prejudice, and a final evidentiary hearing for a permanent injunction is scheduled for August 18, 1982, at 2:00 p.m.