Akiro LLC v. House of Cheatham, Inc.

946 F. Supp. 2d 324, 2013 WL 2181088, 2013 U.S. Dist. LEXIS 72233
CourtDistrict Court, S.D. New York
DecidedMay 17, 2013
DocketNo. 12 Civ. 5775 (JSR)
StatusPublished
Cited by28 cases

This text of 946 F. Supp. 2d 324 (Akiro LLC v. House of Cheatham, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Akiro LLC v. House of Cheatham, Inc., 946 F. Supp. 2d 324, 2013 WL 2181088, 2013 U.S. Dist. LEXIS 72233 (S.D.N.Y. 2013).

Opinion

[329]*329 MEMORANDUM

JED S. RAKOFF, District Judge.

Plaintiff Akiro LLC (“Akiro”) filed this action against defendants House of Cheat-ham, Inc. (“HOC”) and Robert H. Bell, asserting claims for trademark infringement and false designation of origin under the Lanham Act, and for unfair competition and trademark dilution under New York law. By stipulation and order signed by the Court on March 4, 2013, the claims against defendant Bell have been dismissed with prejudice. The parties then cross-moved for summary judgment on all claims against defendant HOC. On April 12, 2013, the Court issued a “bottom-line” order granting HOC’s motion in part and denying it in part, and denying Akiro’s motion in full. Specifically, the Court denied both parties’ motions with respect to the claims for trademark infringement, false designation of origin, and state-law unfair competition. As to the claim for trademark dilution, the Court denied Akiro’s motion and granted HOC’s motion, and thus dismissed the claim. This Memorandum explains the reasons for those rulings.

On summary judgment, the Court “construes] the evidence in the light most favorable to the nonmoving party and draw[s] all reasonable inferences in that party’s favor.” Scottsdale Ins. Co. v. R.I. Pools Inc., 710 F.3d 488, 491 (2d Cir.2013). Summary judgment is appropriate “only if the moving party shows that there are no genuine issues of material fact and that the moving party is entitled to judgment as a matter of law.” Id. Where the parties cross-move for summary judgment, the Court analyzes each motion separately, “in each case construing the evidence in the light most favorable to the non-moving party.” Novella v. Westchester Cnty., 661 F.3d 128, 139 (2d Cir.2011).

The following facts are undisputed unless otherwise noted. Akiro is the owner of a valid registration for the trademark MISS JESSIE’S, under which it sells a number of products in the so-called “natural and curly” hair product market. Pl.’s Statement of Undisputed Facts Pursuant to Local Civ. Rule 56.1(a) (“Pl.’s 56.1”) ¶¶ 1, 4, 13.1 This market primarily serves the growing number of African American women who choose not to chemically alter or “relax” their hair, instead allowing it to remain “natural” and curly. Id. ¶ 2.

Akiro has sold hair care products under the MISS JESSIE’S mark continuously and without interruption since at least 2003. Id. ¶¶ 4, 6. Over the last ten years, Akiro has expended considerable financial and other resources towards marketing and promoting goods under the MISS JESSIE’S mark. Id. ¶ 7. Akiro has participated in hair product trade shows, purchased advertising placements in a number of popular national magazines, placed ads on billboards and radio broadcasts, and hired publicists and public relations firms to promote products under the MISS JESSIE’S mark. Id. ¶ 8-9. Recently, MISS JESSIE’S was the official U.S. hair care product partner of the movie Sparkle, starring Jordin Sparks and Whitney Houston. Id. ¶ 10.

HOC is the owner of a valid registration for the trademark AUNT JACKIE’S, under which it sells its own line of products in the natural and curly hair product market. Def.’s Local Rule 56.1(a) Statement of Undisputed Material Facts (“Def.’s 56.1”) ¶¶ 36, 41. HOC began exploring the possibility of entering this market in 2010. Id. ¶¶ 1-2. Between January 2010 and [330]*330April 2012, HOC extensively researched this market, including interviewing retailers, visiting hair shows and salons, assessing existing products, reviewing industry data, and hiring a market researcher to conduct quantitative a survey of consumers at shopping malls. Id. ¶¶ 1-3. HOC’s research showed that natural hair products associated with a personality or a person’s name were most successful and popular, and that consumers in this market were relatively sophisticated in that they read product labels and research available products and styles. Id. ¶¶ 4-5.2

In December 2011, HOC determined that an opportunity existed in this market for products priced at an intermediate point between the so-called “premium” and “value” levels, and began developing a brand for this portion of the market. Id. ¶¶ 6-7.3 As part of that development, according to Dwan White, HOC’s Director of Marketing and Product Development, HOC conducted a number of product formula trials in a salon. Id. ¶ 8. According to White, the colors used in the test formulas, including the purple color that was eventually used in HOC’s AUNT JACKIE’S “curl la la” product, came from the formulas of other existing HOC products. Id. ¶ 10.

On January 24, 2012, White forwarded a list of potential brand names to HOC’s trademark counsel, Nathan Belzer, Esq., and asked his firm to search for conflicts with registered trademarks. Id. ¶ 11. The potential marks White forwarded all took the form “Ms. [name]’s True Natural Hair Therapies,” with five names inserted: Carol, Betty, Chelsea, Jenny, and Carter. Id. ¶ 12. White also forwarded potential product names to be searched for conflicts as well. Id. ¶ 13. One week later, White forwarded two additional potential brand names to Belzer — Lady Chelsea’s True Natural Hair Therapies and Aunt Jenny’s True Natural Hair Therapies. Id. ¶ 15.

On February 1, 2012, Belzer sent White a chart summarizing the results of the trademark searches and noting any issues with the proposed names. Id. ¶ 17. On February 3, 2012, White forwarded Belzer another two more potential names to search: Miss Jackie’s (or Jacqui’s) Coils and Curls and Miss Leslie’s Coils and Curls, and on February 6, 2012, Belzer sent White an updated chart noting any issues for the new names. Id. ¶¶ 19-21. In that email, Belzer stated that, “[o]f the two [most recently proposed names], Leslie’s was clearer than Miss Jackie’s/Jaequi’s.” Aff. of Tit Branch (“Branch Aff.”), ex. K, at DEF16. A week later, at Belzer’s recommendation, White directed Belzer to apply to register the following trademarks on behalf of HOC: Miss Jackie’s Curls and Coils, Oh So Clean!, La Creme, Curl La La, and Knot On My Watch, which Belzer proceeded to do. Id. ¶¶ 24-26.

White now states in her declaration that she “did not look at or review the Miss Jessie’s brand and did not use Miss Jessie’s as a model or template at any point in the development of Aunt Jackie’s.” Decl. of Dwan White, ¶ 10. On February 22, 2012, however, White forwarded to Belzer photos of proposed Miss Jackie’s Curls & [331]*331Coils product packaging, as well as photos of existing MISS JESSIE’S product packaging. White explained:

The images attached are of our new Miss Jackie’s Curls & Coils brand and another competitor. A few brands in this natural hair category have trade dress that conveys a premium, old fashioned look and feel. That is the direction we have chosen too. We would like your opinion on whether there could be a high risk or strong argument for Miss Jackie’s trade dress and the attached competitor’s trade dress being confusingly similar.

Decl. of Mercedes Colwin, ex. C, at DEF56-58. Belzer responded:

We may need to discuss this a bit. When I ran the search names, I did not know that you had specific competitors!’] products in mind.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
946 F. Supp. 2d 324, 2013 WL 2181088, 2013 U.S. Dist. LEXIS 72233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/akiro-llc-v-house-of-cheatham-inc-nysd-2013.