Major League Baseball Properties, Inc. v. Sed Non Olet Denarius, Ltd.
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Full Opinion
OPINION
FINDINGS OF FACT AND CONCLUSIONS OF LAW
I. INTRODUCTION
Plaintiffs, Major League Baseball Properties, Inc. (âPropertiesâ) and Los Angeles Dodgers, Inc. (âLos Angelesâ), allege in their Amended Complaint 1 that the conduct of the three corporate defendants, Sed Non Olet Denarius, Ltd., d/b/a The Brooklyn Dodger Sports Bar and Restaurant (âSNODâ), BUMS, Inc., d/b/a The Brooklyn Dodger Sports Bar and Restaurant (âBUMSâ), and 9506, Inc., d/b/a The Brooklyn Dodger (â9506â) (hereinafter collectively âThe Brooklyn Dodgerâ), and the conduct of the three individual defendants, David Senatore, Richard Picardi and Kevin Boyle, constitute: a) an infringement upon the rights of plaintiffsâ trademarks in violation of 15 U.S.C. §§ 1114 and 1117; b) a wrongful appropriation of plaintiffsâ trademarks in violation of 15 U.S.C. § 1125 c) a violation of plaintiffsâ common law trademark and property rights; d) a â violation of plaintiffsâ rights under the New York General Business Law § 368-d; e) unfair competition; and f) the intentional use by defendants of a counterfeit mark in violation of 15 U.S.C. § 1117(b).
Each of these six causes of action is alleged to flow from defendantsâ use of the words âThe Brooklyn Dodgerâ as the name and servicemark of the restaurants which defendants have operated in Brooklyn, New York, beginning in March 1988. Plaintiffs initially sought permanent injunctive relief, an accounting of profits, the destruction of physical items containing the allegedly infringing marks, monetary damages, and attorneysâ fees.
By their Answer and Amended Answer defendants denied any infringement of plaintiffsâ alleged right to use a âBrooklyn Dodgerâ trademark. Defendants also pleaded the defenses of abandonment by plaintiffs of any *1109 âBrooklyn Dodgersâ mark which plaintiffs may have owned at one time, as well as laches. The abandonment defense was premised upon the plaintiffsâ failure to make any commercial or trademark use of the âBrooklyn Dodgersâ name for at least 25 years after Los Angeles left Brooklyn in 1958. The laches defense was premised upon the fact that plaintiffs waited for more than a year and a half after learning of defendantsâ use of the allegedly infringing trademark before advising defendants of any alleged infringement. During this period defendants expended substantial resources and monies in establishing their restaurants in Brooklyn, New York. Defendants further pleaded the defense of unclean hands.
Finally, in their Amended Answer, defendants counterclaimed for the cancellation of various trademark registrations for âBrooklyn Dodgersâ filed by plaintiffs after defendantsâ application to register the âBrooklyn Dodgerâ servicemark was filed on April 28, 1988. 2 These cancellations are sought on the ground that plaintiffsâ registrations: a) falsely and deceptively suggest and imply a connection between plaintiffs and the Borough of Brooklyn which has not existed since 1958; b) inherently and directly misrepresent the origin of plaintiffsâ goods and services as Brooklyn, New York when in fact this is untrue, in violation of 15 U.S.C. § 1052; and c) plaintiffsâ use of a âBrooklyn Dodgersâ mark suggests an association with defendants which does not exist, in violation of 15 U.S.C. § 1125(a).
On July 29, 1991, plaintiffs filed a motion for a preliminary injunction seeking to enjoin the use of the âDodgerâ and âBrooklyn Dodgerâ name and defendantsâ logo in connection with the Canarsie establishment. (Tr. of 3/31/92 Hearing at 72; Tr. 707)
On March 31, 1992, the Honorable Kimba M. Wood of this court, to whom this case was then assigned, conducted a hearing. The parties submitted memoranda of law and affidavits in connection with the motion for a preliminary injunction. The court granted plaintiffsâ motion for a preliminary injunction and enjoined defendants from using the mark the âBrooklyn Dodgerâ and the word âDodgerâ written in standard athletic script as now used by defendants in connection with their third restaurant. (Tr. of 3/31/92 Hearing 69)
However, the court denied plaintiffsâ application for summary judgment. Plaintiffs withdrew all claims for legal damages set forth in paragraph 4 of their Prayer for Relief, leaving only their equitable claims for injunctive relief (Prayer for Relief ¶ 1) and the destruction of all physical objects which make use of the âBrooklyn Dodgerâ mark (Prayer for Relief ¶ 3) and an accounting on their Lanham Act and common law claims. (See correspondence between counsel dated April 14, 16 and 17, 1992) (Tr. 2) Plaintiffs also seek an award of their attorneysâ fees under the Lanham Act and common law. Following a preliminary hearing, a bench trial commenced on May 18,1992 and continued until May 21, 1992. At the close of the trial the court reserved decision on all issues presented and requested that the parties submit proposed Findings of Fact and Conclusions of Law not later than July 17, 1992.
II. FINDINGS OF FACTS
After hearing the evidence and weighing the testimony and exhibits received in evidence, as well as the credibility of the witnesses, the court makes the following findings of fact:
A The Parties
Plaintiff Properties is a corporation with offices and its principal place of business in New York, New York. It is the official trademark licensing, publishing, and marketing arm of the 26 Major League Baseball Clubs (the âMajor League Clubsâ). Properties is also charged with the responsibility of protecting the trademarks of these teams. (Trial Transcript âTr.â at 41)
Plaintiff Los Angeles is a corporation with offices and its principal place of business in Los Angeles, California. It is the owner of the Los Angeles Dodgers, a professional *1110 baseball team which, since 1958, has played baseball in Los Angeles, California under the name the âLos Angeles Dodgers.â (Plaintiffsâ Exhibit âPXâ 17) Prior to 1958 the same professional baseball team played baseball in Brooklyn, New York and were known as the âBrooklyn Dodgersâ or the âDodgers.â
In 1958, the team moved the site of its home games from Brooklyn to Los Angeles. (Tr. 252-53) At that time, the corporation was known as the Brooklyn National League Baseball Club, Inc. which owned the Brooklyn Dodgers or the Dodgers. It pointedly changed its name to Los Angeles Dodgers, Inc. (Tr. 259-60) Since then the team known as the âLos Angeles Dodgersâ has never played baseball in Brooklyn, New York. (Tr. 332).
By agreement with the Major League Clubs, Properties has been granted the exclusive right to market, license, publish, publicize, promote nationally, and protect the trademarks owned by the Major League Clubs, including those owned by the Los Angeles Dodgers. (Tr. 41, 52-53, 116-17)
Propertiesâ licensing activities on behalf of the Major League Clubs have evolved and expanded over time. In the early 1980s, the Major League Clubs were responsible for licensing on their own, with some additional baseball-wide licensing provided by Properties. In the mid-1980s, by agreement with the Major League Clubs, all of the retail licensing activities of the Major League Clubs were consolidated within Properties. (Tr. 41-42)
Over 400 licensed manufacturers sell more than 2,500 different Major League Baseball licensed products. (Tr. 57) The range of products includes apparel, such as caps and T-shirts, trading cards, games, electronic items, novelties and accessories, and youth âLittle Leagueâ merchandise.
In 1986, retail sales of licensed Major League Baseball merchandise were approximately $200 million. (PX 16 at 11) By 1991, retail sales of licensed Major League Baseball merchandise were in excess of $2 billion. (Tr. 55-56) Properties, however, receives only a royalty payment on the wholesale price of these products. (Tr. 55) After trial, in response to the courtâs request for information concerning the amount of sales attributable to commercial use of the âBrooklyn Dodgersâ mark after 1981, plaintiffs responded that precise figures could not be provided. Specifically, plaintiffs stated:
... Propertiesâ records from the 1980s regrettably do not permit a precise breakdown of sales of goods bearing a specific trademark. As a result, figures representing sales of goods bearing the Dodgersâ marks incorporating the word Brooklyn were, in most instances, subsumed within overall sales figures of merchandise bearing the Dodgersâ marks, and not separately itemized. Recently, however, we have been accumulating more accurate records regarding sales of goods bearing individual Club trademarks. Based on this information and our general knowledge of our products, it is our best estimate that approximately $9 million worth of goods bearing the Dodgersâ marks incorporating the word Brooklyn were sold in 1991.... we have contacted many of Propertiesâ licensees, but unfortunately their records also do not permit us to obtain a more precise determination of annual retail sales during the 1980s of good bearing specifically the mark âBrooklyn Dodgers,â separate and apart from retail sales of goods bearing the Dodgersâ trademarks as a group.
(See Affidavit of Richard E. White, sworn Sept. 11, 1992 at 5-6)
In addition to its licensing and marketing efforts, Properties seeks to prevent infringement of the trademarks of the Major League Clubs. (Tr. 71-72)
Properties seeks to protect the Major League Clubs and retailers from unfair competition by counterfeiters, to ensure that consumers are not confused as to which products are authorized by the Major League Clubs, and to ensure that only safe, quality products reach consumers. (Tr. 73-74)
To enforce the trademark rights of the Major League Clubs, Properties relies on counsel, relies on the Clubs, polices and investigates the market itself, and relies on licensees. (Tr. 75) At times, Properties com- *1111 menees litigation to prevent infringement at substantial expense. (Tr. 75-76)
Defendant SNOD is a corporation organized and existing under the laws of the State of New York and has its office and principal place of business at 7509 Third Avenue, Brooklyn, New York. (Tr. 480) On March 17, 1988 SNOD began doing business as a restaurant under the name âThe Brooklyn Dodger Sports Bar and Restaurant.â (Tr. 480)
Defendant BUMS was a corporation organized and existing under the laws of the State of New York and had an office and principal place of business at 360 Coney Island Avenue, Brooklyn, New York. On February 6,1989 BUMS began doing business as a restaurant under the name âThe Brooklyn Dodger Sports Bar and Restaurant.â (Tr. 646) In November 1990, for reasons wholly unrelated to this litigation, BUMS ceased doing business as âThe Brooklyn Dodger Sports Bar and Restaurant.â
Defendant 9506 is a corporation organized and existing under the laws of the State of New York and has its office and principal place of business at 9505 Avenue L, Brooklyn, New York. (Tr. 384) On July 1, 1991, to replace the restaurant previously operated by BUMS, 9506 began doing business as a restaurant under the name âThe Brooklyn Dodger Sports Bar and Restaurant.â
All three corporate defendants, at various times during this litigation, have been engaged in providing restaurant and tavern services to the consuming public in Brooklyn, New York. This is the only business in which the defendants are engaged. (Tr. 383)
Defendant David Senatore is an owner of all three corporate defendants and assisted in forming the businesses. (Tr. 383) Defendant Richard Picardi is a resident of New York, New York, an owner of all three corporate defendants and assisted in forming the businesses. (Tr. 383) Defendant Kevin Boyle is a resident of Brooklyn, New York, an owner of BUMS and 9506 and assisted in forming all three businesses. (Tr. 383) These businesses were to be the livelihood of Senatore, Picardi, and Boyle. (Tr. 521, 623, 706)
B. The Brooklyn Dodger Restaurants
In 1987, the individual defendants, together with Brian Boyle, defendant Kevin Boyleâs brother, decided to open a restaurant in Brooklyn, New York. (Tr. 483, 516-517, 599-600, 740).
It was the individual defendantsâ decision that their restaurants would emphasize the multiple themes of fun, sports aiid Brooklyn. Their intention was to create a nostalgic setting where Brooklynites could relax and reminisce about times gone by. (Tr. 526, 534, 607, 742; DX C)
They initially chose toâ name their establishment âEbbets Fieldâ after the former baseball park located in Brooklyn, New York in which a baseball team know as the âBrooklyn Dodgersâ played baseball until October, 1957. (Tr. 499, 518, 601, 740-41)
To assure themselves that the use of this name would not conflict with any other personâs use of it, the individual defendants commissioned a trademark search for the name âEbbets Fieldâ in April, 1987. (Tr. 518, 522, 602, 741; DX U) Although this search established that no trademark registration for âEbbets Fieldâ had been filed, the individual defendants learned that a small restaurant, not unlike the one they hoped to open in Brooklyn, was operating in Hicksville, New York. (Tr. 524, 604-605, 741-64)
In light of this fact, and in an attempt to avoid any possible legal entanglements, the individual defendants chose not to use the name âEbbets Fieldâ and continued their search for another name. (Tr. 520, 525-26, 561, 607, 646^47, 765)
The individual defendants were aware that there once was a baseball team known as the âBrooklyn Dodgersâ which had once played in Brooklyn, New York. Defendants also knew that in 1958 that team left Brooklyn and relocated to Los Angeles, California.
The defendants knew that the departure of the âBrooklyn Dodgersâ in 1958 had been accompanied by monumental hard feelings in the Borough of Brooklyn. In fact the relocation was one of the most notorious abandon-ments in the history of sports. (Tr. 527, 563) At the time defendants selected their logo, they were aware that Los Angeles owned *1112 federal trademark registrations for the word âDodgers.â (Tr. 492, 562, 659, 735-36) However, at no time during their consideration of the âBrooklyn Dodgerâ name did the individual defendants have any reason to believe that âThe Brooklyn Dodgerâ mark was being used by Los Angeles, and certainly not for restaurant or tavern services. (Tr. 526-27) When considering the use of the âBrooklyn Dodgerâ mark, at no time was there any discussion among the individual defendants and Brian Boyle about trading on the goodwill of Los Angeles in Brooklyn. (Tr. 528) Indeed, non-party witness Brian Boyle, a lifelong Brooklyn resident, testified that, given the acrimonious abandonment of Brooklyn by Los Angeles, the idea of trading on Los Angelesâ âgoodwillâ in Brooklyn is almost âlaughable.â (Tr. 529)
Nevertheless, acting in good faith, the individual defendants, again desirous of avoiding any legal entanglements, commissioned yet a second trademark search, this one for the name âBrooklyn Dodgerâ in October, 1987. (Tr. 489, 609-11, 621-22, 744; PX 28) While defendants were aware at the time they selected their logo that Los Angeles owned federal trademark registrations for the word âDodgers,â 3 their second trademark search established that no registration of any âBrooklyn Dodgerâ mark had ever been filed. (Tr. 492, 532, 562, 659, 735-36; PX 28)
Accordingly, in October, 1987 the individual defendants formed the corporate defendant SNOD for the purpose of operating a restaurant. SNOD began doing business with the public on March 17, 1988 as âThe Brooklyn Dodger Sports Bar and Restaurant.â (Tr. 480)
Having invested the time, money, and effort in founding this restaurant and having exercised all reasonable diligence to satisfy themselves that no one was using a âBrooklyn Dodgerâ trademark for restaurant and tavern services, and that no one had filed a registration for this trademark for use in any other field, the principals of SNOD sought to protect their interests in their new name. (Tr. 571) Accordingly, on April 28, 1988, an application to register a composite design mark incorporating the term âThe Brooklyn Dodgerâ as a servicemark for restaurant and tavern services was filed with the United States Patent and Trademark Office in Washington, D.C. (Tr. 571, 630, 637, 728; PX 37)
C. Defendantsâ Use of the Trademark
In connection with each of defendantsâ âThe Brooklyn Dodgerâ restaurants, defendants make and/or made prominent use of the âDodgerâ name and the âBrooklyn Dodgerâ name, with the word âDodgerâ in stylized script, in the color blue, and in blue script. (PX 40 at 1, 27, 31-37, 41-44)
The defendantsâ composite design mark consisted of three words: âThe,â âBrooklynâ and âDodgerâ are entwined with one another and with an impish character, designed by Lincoln Peirce, which was styled after the Charles Dickensâ character, the âArtful Dodgerâ from the novel Oliver Twist, leaning against the ârâ in âDodger.â (Tr. 165; PX 37, 38) Defendants, however, make significant use of their logo without the cartoon character to promote their business, including on merchandise such as apparel, in advertisements, on their letterhead and as part of their servicemark. (PX 32, 33 at 1, 34, 35; DX V; Tr. 674-79)
Defendantsâ logo is similar to Los Angelesâ trademarks. The name âBrooklyn Dodgersâ is similar to the name âBrooklyn Dodgersâ as *1113 used by plaintiffs. The script used by the defendants in their logo is similar to that used in Los Angelesâ trademarks. The color blue used by defendants is similar to the color blue used by and associated with Los Angelesâ sports club in Brooklyn. The swash or tail of the word âDodgerâ used by defendants is similar to that used in Los Angelesâ trademarks in terms of style and length. (PX 2, 3, 58 at 2, 53 at 69; Tr. 227, 319, 430, 673-74, 682, 759)
The similarity of the partiesâ marks is further evidenced and emphasized by the fact that defendants use their logo in a sports-oriented atmosphere containing numerous references to baseball and the Brooklyn Dodgers. (See PX 40)
The similarity of defendantsâ logo to Los Angelesâ trademarks as used prior to 1958 is further evidenced and emphasized by the fact that defendants, in selecting their name and creating their logo, intended to allude to the Brooklyn Dodgers baseball club and to track the script used by the Brooklyn Dodgers. (Tr. 486-89) Indeed, virtually every witness at trial, including the artist who designed defendantsâ logo and defendantsâ expert witness, testified to the similarity of the marks. (Tr. 115, 148-58, 167, 319, 430-31, 486-87, 569, 667-68, 684, 759; PX 53 at 69)
In selecting their logo, defendants intentionally sought to reproduce the Brooklyn Dodgersâ trademarks. Indeed, the script for the defendantsâ logo was intentionally chosen by defendants to track the script used by the Brooklyn Dodgers. As one of defendantsâ former principals testified:
Q: ... The script for the Dodger restaurant, the Brooklyn Dodger restaurant, the script, that tracks that of the Brooklyn Dodger baseball team, doesnât it?
A: Yes.
Q: And that was intentional, wasnât it?
A: I imagine so ... We wanted a reference to the Brooklyn Dodgers baseball team, yes. (Tr. 569)
Defendantsâ cartoon character was intentionally selected to allude in part to the famous âBrooklyn Bumâ character associated with the Brooklyn Dodgers. (Tr. 487-89; compare PX 40 at 6 (The Brooklyn Dodger bum) with PX 11 at 6 (the Brooklyn Dodgers bum)) In selecting their name, logo and cartoon character, defendants were intentionally alluding to the Brooklyn Dodgers. (Tr. 486-89, 569, 688) However, rather than tracing the allegedly infringing mark âDodgerâ from any exemplar, Peirce testified quite clearly that âI drew it freehand. I drew it, I outlined it in a pen, a felt-tipped pen, and I think I colored it in.â (Tr. 165) Peirce was paid $100.00 for his services. (Tr. 165, 684-86; DX J)
The exteriors of defendantsâ bars have signs and awnings bearing the Brooklyn Dodger logo. The âDodgerâ portion of the sign outside of the Bay Ridge Brooklyn restaurant is in blue script with the ârâ in the word âDodgerâ continuing in a âswashâ or tail which underlines the word âDodger.â (PX 40 at 1; Tr. 384)
Defendants and their employees wear or have worn shirts with defendantsâ âBrooklyn Dodgerâ logo or with âDodger Staffâ printed on them, the âDodgerâ portion being in stylized script similar to Los Angelesâ trademark for the mark Dodgers in cursive script. Defendants had these shirts designed and manufactured for their restaurants. (PX 31, 53 at 87, 54 at 94; Tr. 384-85) Defendantsâ sell and have sold or distributed apparel, including T-shirts and caps, bearing the name âBrooklyn Dodger.â (PX 40 at 9; Tr. 386) Defendants have also sold or given to patrons bumper stickers and gift certificates bearing the âBrooklyn Dodgerâ logo. (Tr. 387)
Defendants have used the word âDodgerâ alone without the word âBrooklynâ on merchandise, such as apparel bearing the logo âDodger Staff,â and on food products to promote their business, such as âDodger Blueâ Cheese, âDeep Dish Dodgerâ pizza, âDodger Seafood Chowder,â ribs with âDodger Sauce,â âDodger Pee-Weeâ pasta, and âThe Dukeâ and âThe Furilloâ hamburgers (references to former Dodgers Pee Wee Reese, Duke Snider, and Carl Furillo). (PX 14, 31, 53 at 87, 54 at 94; Tr. 311, 385, 482, 654) Defendants also sell food products referring to the âbumâ character associated with the Brooklyn Dodgers, such as âBumâs House Salad.â (PX 14)
*1114 There is a replica of a Brooklyn Dodgers jersey and cap displayed inside defendantsâ restaurant. (PX 40 at 4) A baseball bat used by Brooklyn Dodgers player Jackie Robinson and baseballs autographed by Brooklyn Dodgers players are also displayed in defendantsâ restaurant. (PX 40 at 5; Tr. 386) A wall-sized mural of Ebbets Field, the Brooklyn ballpark of the Brooklyn Dodgers, dominates one wall in defendantsâ restaurant. (PX 40 at 5; Tr. 386) Photographs of Los Angeles and Brooklyn Dodgers players and newspaper articles referring to the Brooklyn Dodgers are displayed throughout defendantsâ restaurant. (PX 40) Defendants decorate their restaurant with cartoons depicting the âbumâ character associated with the Brooklyn Dodgers. (PX 40 at 4, 6)
Defendantsâ menus and placemats reference the names of Brooklyn Dodgers players and the word âDodger.â (PX 14; Tr. 311, 386, 482, 654) Defendants have disseminated to the public corporate checks identifying the drawer as âThe Brooklyn Dodgersâ (with the âsâ). (PX 45 at 4; Tr. 387, 389, 652-53)
Defendants have caused to be published a newspaper advertisement referring to their establishments as âThe Brooklyn Dodgersâ (with the âsâ). (PX 34)
In February 1989, the individual defendants, through a second corporate defendant, BUMS, Inc., opened a second âThe Brooklyn Dodger Sports Bar and Restaurantâ on Coney Island Avenue, not far from defendantsâ initial establishment. The same logo and servicemark were used with respect to this restaurant. 4
D. Plaintiffsâ Use of the Trademark
Upon relocating its franchise to Los Ange-les, California, plaintiff Los Angeles changed its corporate name from the âBrooklyn National Baseball Club, Inc.â to âLos Angeles Dodgers, Inc.â and began playing baseball under the same name. Of the 26 baseball teams currently playing baseball, no team plays under the name the âBrooklyn Dodgers.â The only Dodger team currently playing baseball is the âLos Angeles Dodgersâ (PX 17) which is the name the team has played under since its departure from Brooklyn in 1958. (Tr. 563)
Plaintiffsâ use of the âBrooklyn Dodgersâ mark was based upon its physical location, until October 1957, in Brooklyn, New York. However, in 1959, Los Angeles made prominent commercial use and reference to their Brooklyn heritage and trademarks in connection with the promotion of Roy Campanella Night, honoring the former Brooklyn Dodgers player and present employee. (Tr. 94-96, 266-67; PX 1 at 2, 22) Los Angeles made prominent use of their trademarks incorporating the word âBrooklynâ at their annual oldtimers games. (PX 1 at 37, 40; Tr. 270) Oldtimers games are commercial baseball exhibitions at which former players are honored and perform so that older fans can recall the past and younger fans can learn about the history of the Club. (Tr. 267-68)
In 1966, Los Angeles sent a cease and desist letter to a member of the Continental Football League to prevent it from infringing Los Angelesâ trademark by calling itself the Brooklyn Dodgers. (PX 8; Tr. 287-89)
Since approximately 1967, Los Angeles has licensed manufacturers of hot dogs to sell a hot dog known as the Dodger Dog using the Los Angelesâ trademarks (without the âsâ). (PX 12,13; Tr. 305-08) The wrapper for the Dodger Dog bears the word âDodgerâ in blue script and is underlined. (PX 13A; Tr. 308) Other uses of the âDodgerâ trademark by Los Angeles include the authorization of Alo-ma, Inc. to use Los Angelesâ trademarks in the operation of the Dodger Pines Golf and Country Club, including its restaurant facilities. (PX 10, 11; Tr. 298) Displayed in that restaurant are an array of sports photographs and memorabilia referring to the Los Angeles Dodgers, including their Brooklyn *1115 history, such as a photograph of Ebbets Field and a pennant depicting the âbumâ associated with the Brooklyn Dodgers. (Tr. 302-03; PX 11)
Los Angeles authorizes the Dodgertown Conference Center, located at the Los Ange-les Dodgersâ Spring training facility in Vero Beach, Florida, to use Los Angelesâ trademarks to decorate a cafeteria and lounge. (PX 11; Tr. 298) Displayed in those facilities are sports photographs and memorabilia referring to the Los Angeles Dodgers, including their Brooklyn history. (PX 11; Tr. 302-03) Los Angeles has authorized the concessionaire at Dodger Stadium to decorate a restaurant, bar, and meeting facility called The Stadium Club at Dodger Stadium with photographs and/or paintings of Brooklyn Dodgers players. (Tr. 297) A restaurant owned by Bobby Valentine, manager of the Texas Rangers baseball club, is also authorized to use the trademarks of certain Major League Clubs. (Tr. 108)
One document which covered calendar year 1977, established that there was a licensing agreement between Major League Baseball Promotion Company, the predecessor to Properties, and a third party which was licensed to use the names, symbols, and logos of all major league baseball teams including âLos Angeles Dodgers.â (DX F) No reference to the âBrooklyn Dodgersâ is made in this agreement. However, on April 6, 1981, this licensing agreement was amended to include the name, symbols, logos, etc. of The âBrooklyn Dodgersâ as well. (PX 19) Despite voluminous discovery in this case, at trial this document was the earliest licensing use of the âBrooklyn Dodgerâ name, following Los Angelesâ departure from Brooklyn.
While plaintiffs have from time to time made use of their former âBrooklyn Dodgersâ mark occasionally and sporadically for historical retrospective such as âOld Timerâs Dayâ festivities, the documentary proof establishes that, following its departure from Brooklyn, Los Angelesâ earliest licensing of the âBrooklyn Dodgersâ mark occurred on April 6, 1981. (PX 19)
Between 1981 and March 17, 1988, the date of defendantsâ first use of their mark for restaurant and tavern services, plaintiffs used their âBrooklyn Dodgersâ mark for a variety of purposes. Those uses were almost exclusively in the context of T-shirts, jackets, sportswear, sports paraphernalia and on various types of novelty items (i.e. on drinking mugs, cigarette lighters, pens, Christmas tree ornaments, wristbands, etc.). (PX 2,16) However, none of these uses competes with defendantsâ use of the mark for restaurant and tavern services.
In 1981, plaintiffs licensed Eastport manufacturing Co. to merchandise T-shirts bearing, inter alia, the Brooklyn Dodger named and logo. (PX 19; Tr. 79-81)
In 1984, Los Angeles agreed to permit Martin Dorf to use photographs of the Brooklyn Dodgers as wall decorations in a restaurant in New Jersey called Burger Boys of Brooklyn. (PX 4; Tr. 78-79)
In 1985, Los Angeles authorized United Airlines to broadcast radio commercials which referred to the Brooklyn Dodgers. (PX 6; Tr. 282)
In 1986, Los Angeles agreed to license the Bank of New England to run an advertisement using the Los Angelesâ trademarks incorporating the word âBrooklyn.â (PX 5; Tr. 281) In 1986, Los Angeles entered into an agreement with Oxford University Press to permit them to use Los Angelesâ trademarks incorporating the word âBrooklynâ in connection with a book. (PX 7; Tr. 283) In 1986, plaintiffs authorized Trench Manufacturing Co. to sell various items of merchandise bearing, inter alia, the Los Angelesâ trademarks incorporating the word âBrooklyn.â (PX 20; Tr. 82)
In March 1987, plaintiffs and Roman Art Embroidery Corp. entered into a licensing agreement to manufacture and sell caps bearing, inter alia, Los Angelesâ trademarks incorporating the word âBrooklyn.â (PX 21; Tr. 83-84)
In approximately 1986, Properties began promoting Los Angelesâ trademarks incorporating the word âBrooklynâ together with other âoldtimerâ trademarks of Major League Clubs (that is, trademarks that had not been worn on the playing field for at least five years) under the name âthe Coo *1116 perstown Collection.â (Tr. 83-86; see also PX 18)
Los Angeles licensed the use of their marks incorporating the word âBrooklynâ in connection with the television series âBrooklyn Bridge.â (Tr. 296-97) Los Angeles licensed the Brooklyn Dodgers Hall of Fame, located in Brooklyn, to use Los Angelesâ trademarks incorporating the word âBrooklyn.â (Tr. 296-97)
Defendants did not select the name âThe Brooklyn Dodgerâ for their restaurant until sometime after October 14, 1987, and did not open their first bar and restaurant using their âBrooklyn Dodgerâ logo until March 1988. (Tr. 383, 480, 490-91, 541, 621)
While plaintiffs placed in evidence various uses of the âBrooklyn Dodgersâ mark, such as photo permissions in 1984 (PX 4, 5), a permission for use on United Airlines Radio Commercials (PX 6) and a permission to use the Brooklyn âBâ in conjunction with a written history of the Brooklyn Dodgers baseball team (PX 7), such uses, granted, for minimal or no compensation, do not constitute trademark uses as is discussed more fully in the courtâs Conclusions of Law. Similarly plaintiffs attempt to prevent a third party from using the âBrooklyn Dodgersâ mark in 1966 (PX 8) is not a trademark use; neither did these uses involve restaurant and tavern services.
With respect to restaurant and tavern services, the evidence established that while the âBrooklyn Dodgersâ were playing baseball in Brooklyn, there existed, also in Brooklyn, a restaurant and tavern which used the name âDodgers Cafe.â (DX K) The logo of this establishment was the word âDodgers,â in script, with the figure of a swinging baseball batter. (DX L) The evidence shows that the âDodgers Cafeâ began operating with a State Liquor Authority license in 1942 and continued to operate until 1968, long after Los Angeles had left Brooklyn. Plaintiffs conceded that they took no step whatsoever while they were playing baseball in Brooklyn, or after they had relocated to Los Angeles, to cause the âDodgers Cafeâ to cease using the name as its servicemark for its restaurant.
E. Timing of the Litigation
In September, 1987 at approximately the same time that the trademark search for the name âThe Brooklyn Dodgerâ was being conducted, defendant Boyle wrote a letter to Peter OâMalley, the President and part owner of Los Angeles, seeking OâMalleyâs best wishes âfor the new businessâ which Boyle advised OâMalley he was about to open in Brooklyn. (Tr. 609-11)
In July 1988, plaintiff Los Angeles discovered defendantsâ use of the Brooklyn Dodger logo when plaintiff received a copy of the menu of defendant SNOD bearing the allegedly infringing mark. (Tr. 310; PX 14) This menu was sent to Los Angeles by defendant Boyle. (Tr. 631-32, 643) Although finding the allegedly infringing mark to be âa serious concernâ (Tr. 345 â 46), on July 20, 1988 Los Angeles sent the menu bearing the allegedly infringing mark to Properties for further action, asking Properties to investigate the potential infringement of Los Angelesâ trademarks but asking Properties to consider, before taking any enforcement action, the potential for negative publicity to the Los An-geles Dodgers. (Tr. 115-16, 346; PX 55; see Tr. 114, 319) Los Angeles took this action pursuant to the agreement between the Major League Clubs and Properties. Neither plaintiff Los Angeles nor plaintiff Properties chose to do anything further about the alleged infringement until April 24, 1989. (Tr. 361; PX 15)
As defendantsâ success in their new venture grew, they sought to take additional legal steps to protect their mark. Accordingly, on August 9,1988 the composite design mark at issue, containing the term âThe Brooklyn Dodgerâ was registered as a ser-vicemark with the Secretary of State of the State of New York, yet again giving notice of defendantsâ interest in the name. (Tr. 555-56, 643; DX V)
In approximately February 1989, notice of defendantsâ attempt to register their logo with the United States Patent and Trademark Office was first officially published. (Tr. 494)
On April 24, 1989, fully nine (9) months after receipt by plaintiff Los Angeles of the *1117 menu sent by Boyle, plaintiffs wrote to defendants and claimed for the first time that the defendantsâ conduct was allegedly infringing their trademark and demanding that they cease and desist from any acts of infringement. (Tr. 318, 383, 646; PX 15 at 1-2)
From April 1989 to March 1990, there were periodic conversations during which the parties attempted unsuccessfully to resolve the dispute. (Tr. 319) When those efforts failed, plaintiffs filed their complaint in March 1990.
In June 1991, while this litigation was pending, counsel for plaintiffs learned during discovery that defendants had formed 9506 to open yet another establishment calling itself âThe Brooklyn Dodger Sports Bar and Restaurantâ in a new neighborhood in Brooklyn. Within days of that discovery, counsel for plaintiffs delivered to counsel for defendants a letter demanding that defendant cease and desist. (PX 15 at 3; Tr. 383) Defendants nevertheless chose to open another establishment in the Canarsie section of Brooklyn. (Tr. 704-06)
In July 1991 plaintiffs field their amended complaint. In March 1992 Judge Wood granted plaintiffsâ motion for preliminary injunction concerning the Canarsie establishment but denied plaintiffs application for summary judgment. This court concluded trial of this matter in May 1992.
III. CONCLUSIONS OF LAW
A. Jurisdiction
This court has jurisdiction over the subject matter of each of the plaintiffsâ causes action pursuant to 28 U.S.C. §§ 1331, 1338 and 15 U.S.C. § 1121 and principles of pendant jurisdiction, and consequently also has jurisdiction over the parties and over defendantsâ pleaded defenses and counterclaims.
B. Plaintiffsâ Federal and Common Law Causes of Action
In order to obtain relief for common law trademark infringement or violations of the Federal Trademark Act (âthe Lanham Actâ) for trademark infringement, 5 or for false representation of goods, or false designation of origin, and wrongful appropriation of plaintiffsâ trademarks, 6 plaintiffs were required to prove by a fair preponderance of the credible evidence either actual confusion or a likelihood of confusion. 7 *1118 W.W.W. Pharmaceutical Co. v. Gillette Co., 984 F.2d 567, 571 (2d Cir.1993). In order to secure injunctive relief or other equitable relief, plaintiffs were required to prove a likelihood of confusion. Had plaintiffs sought to secure damages, they would have been required to prove actual confusion. See W.W.W. Pharmaceutical Co., Inc. v. Gillette Co., 808 F.Supp. 1013, 1020-21 (S.D.N.Y.1992), aff 'd, 984 F.2d 567 (2d Cir.1993). Thus, as to the likelihood of confusion, Los Angeles and Properties must show that âan appreciable number of ordinarily prudent purchasers are likely to be misled, or indeed simply confused, as to the sourceâ of the services provided by the defendants because of their use of the words âThe Brooklyn Dodgerâ in conjunction with their restaurants in Brooklyn. W.W.W. Pharmaceutical, 984 F.2d at 571 (quoting Mushroom Makers, Inc. v. R.G. Barry Corp., 580 F.2d 44, 47 (2d Cir.1978) (per curiam), cert. denied, 439 U.S. 1116, 99 S.Ct. 1022, 59 L.Ed.2d 75 (1979) quoted in McGregor-Doniger Inc. v. Drizzle Inc., 599 F.2d 1126, 1130 (2d Cir.1979)).
This court finds and concludes that plaintiffs have failed to prove either actual confusion or likelihood of confusion stemming from defendantsâ trademark âThe Brooklyn Dodgerâ even though it is similar to the âBrooklyn Dodgersâ trademark that plaintiffs held as a sports club in Brooklyn.
In determining whether a plaintiff has proven likelihood of confusion, the courts of this Circuit follow and apply to the evidence the factors set forth in Polaroid Corp. v. Polarad Electronics Corp., 287 F.2d 492, 495 (2d Cir.1961), cert. denied, 368 U.S. 820, 82 S.Ct. 36, 7 L.Ed.2d 25 (1961). âThe [Polaroid ] factors are designed to help grapple with the âvexingâ problem of resolving the likelihood of confusion issue.â W.W.W. Pharmaceutical, 984 F.2d at 572 (quoting Lois Sportswear, U.S.A., Inc. v. Levi Strauss & Co., 799 F.2d 867, 872 (2d Cir.1986) (citation omitted)). These factors are:
a)strength of plaintiffs trademark,
b) similarity between the trademark used by the parties,
c) proximity of the products,
d) the likelihood that plaintiffs will âbridge the gap,â
e) actual confusion,
f) good faith or intent of the defendant,
g) quality of defendantsâ services,
h) sophistication of purchasers.
This court finds only factors a) and b) in favor of plaintiffs. However, â[tjhis list of factors does not exhaust the possibilitiesâ the court may have to take still other variables into account. American Law Institute, Restatement of Torts §§ 729, 730, 731.â W.W.W. Pharmaceutical, 984 F.2d at 572 (quoting Polaroid Corp., 287 F.2d at 495).
1. Strength of the Mark
The strength of the mark is determined by âthe distinctiveness of the mark, or more precisely, its tendency to identify the goods sold under the mark as emanating from a particular, although possibly anonymous source.â W.W.W. Pharmaceutical, 984 F.2d at 572 (quoting McGregor-Doniger, 599 F.2d at 1131). A markâs strength, which turns on its â âorigin-indicatingâ quality in the eyes of the purchasing public,â W.W.W. Pharmaceutical, 984 F.2d at 572 (quoting McGregor-Doniger, 599 F.2d at 1131), is determined by two factors: â(1) the degree to which it is inherently distinctive; and (2) the degree to which it is distinctive in the marketplace.â W.W.W. Pharmaceutical, 984 F.2d at 572 (quoting McGregor-Doniger, 599 F.2d at 1131-33).
Courts have used four categories in measuring the distinctiveness of a mark: generic, descriptive, suggestive, and arbitrary or fanciful. Abercrombie & Fitch Co. v. Hunting World, Inc., 537 F.2d 4, 9 (2d Cir.1976). âA generic mark is generally a common description of goods and is ineligible for trademark protection. A descriptive mark describes a productâs features, qualities or ingredients in ordinary language, and may be protected only if secondary meaning is established. A *1119 suggestive mark employs terms which do not describe but merely suggest the features of the product, requiring the purchaser to use âimagination, thought and perception to reach a conclusion as to the nature of the goods.... â Fanciful or arbitrary marks are eligible for protection without proof of secondary meaning and âwith ease of establishing infringement.â â W.W.W. Pharmaceutical, 984 F.2d at 572 (citations omitted).
In assessing the strength of a mark outside its field, âcoinedâ marks, such