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French Transit, Ltd. v. Modern Coupon Systems, Inc.

Citations: 818 F. Supp. 635; 29 U.S.P.Q. 2d (BNA) 1626; 1993 U.S. Dist. LEXIS 4849; 1993 WL 120949Docket: No. 91 Civ. 6734 (KC)

Court: District Court, S.D. New York; April 15, 1993; Federal District Court

Narrative Opinion Summary

In the case between French Transit, Ltd. (FT) and Hargen Distributing, Inc., FT filed a lawsuit for trademark infringement, trade dress infringement, unfair competition, and misappropriation under New York law, including violations of New York General Business Law. Hargen's motion for summary judgment was denied, as the court found unresolved material facts regarding key issues. The court ruled that FT's trademark 'LE CRYSTAL NATUREL' is suggestive, not descriptive, and thus protectable, rejecting Hargen's argument under the doctrine of foreign equivalents. The Polaroid factors were employed to evaluate the likelihood of consumer confusion between the competing products, but the court found material questions unresolved, such as the strength of FT's mark and the similarity between the marks. Hargen's claim of good faith in adopting its mark lacked evidence of bad faith. The court also denied summary judgment on FT’s trade dress claims due to contested facts about the functionality of FT's packaging. Ultimately, the court's decision left significant issues to be determined by a jury, including the likelihood of consumer confusion and the nature of the trade dress.

Legal Issues Addressed

Classification of Trademarks: Suggestive vs. Descriptive

Application: FT's mark 'LE CRYSTAL NATUREL' is classified as suggestive rather than descriptive, as consumers must use imagination to associate the mark with a body deodorant.

Reasoning: The court concludes that FT's mark is suggestive rather than descriptive, as it requires consumers to use imagination to associate 'LE CRYSTAL NATUREL' with a body deodorant.

Good Faith Adoption of Trademark

Application: Hargen's claim of good faith in adopting its mark was not substantiated with evidence of bad faith, leaving questions about its intent unresolved.

Reasoning: Hargen has not been shown to act in bad faith regarding its product name or packaging, despite FT’s president, Rosenblatt, making unsubstantiated allegations to the contrary.

Likelihood of Confusion: Polaroid Factors

Application: The court uses the Polaroid factors to assess likelihood of confusion between the parties' marks, finding unresolved issues of material fact, including strength of the mark, similarity, and market overlap.

Reasoning: The Second Circuit employs the 'Polaroid factors' to assess the likelihood of confusion, which include the strength of FT's mark, the similarity between the marks, product proximity, the likelihood of market overlap, consumer sophistication, instances of actual confusion, Hargen's intent in adopting the mark, and the quality of Hargen's product.

Trade Dress Infringement under the Lanham Act

Application: The court denies summary judgment on FT's trade dress claims due to disputed issues of material fact regarding the functionality of FT's trade dress.

Reasoning: Disputed issues of material fact regarding the functionality of FT's trade dress persist, leading to the denial of Hargen’s summary judgment motion on FT's trade dress claims.

Trademark Infringement and the Doctrine of Foreign Equivalents

Application: The court determined that the doctrine of foreign equivalents is not applicable to FT’s mark 'LE CRYSTAL NATUREL' because it combines both French and English components, thus creating a unique commercial impression.

Reasoning: Regarding trademark infringement, Hargen argues that FT’s mark 'LE CRYSTAL NATUREL' should be classified based on the English translation 'the natural crystal' using the doctrine of foreign equivalents. However, the court finds this doctrine inapplicable because the mark combines both French and English components.