American Dairy Queen Corp. v. New Line Productions, Inc.

35 F. Supp. 2d 727, 1998 U.S. Dist. LEXIS 20472, 1998 WL 915449
CourtDistrict Court, D. Minnesota
DecidedDecember 22, 1998
Docket0:98-cv-01923
StatusPublished
Cited by17 cases

This text of 35 F. Supp. 2d 727 (American Dairy Queen Corp. v. New Line Productions, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Dairy Queen Corp. v. New Line Productions, Inc., 35 F. Supp. 2d 727, 1998 U.S. Dist. LEXIS 20472, 1998 WL 915449 (mnd 1998).

Opinion

ORDER

ROSENBAUM, District Judge.

Plaintiff, American Dairy Queen Corporation (“ADQ”), seeks a preliminary injunction barring defendant, New Line Productions, Inc. (“New Line”), from using the name “Dairy Queens” as the title for one of its new movies. Both parties agree ADQ holds a valid trademark on “Dairy Queen,” the name under which ADQ conducts the bulk of its retail sales. ADQ claims New Line’s proposed title will infringe and dilute its valuable trademark. Plaintiffs motion is granted.

I. Factual Background

New Line has produced, and is preparing to release, a new feature film, and proposes to call it “Dairy Queens.” The film is described as a mock documentary (termed “mockumentary”), satirizing beauty contests in rural Minnesota, an area defendant characterizes as part of “dairy country.” The movie portrays these contests as filled with *729 backbiting and jealousy, and suggests the participants tend to suffer from eating disorders. At least a portion of the film is acknowledged to contain off-color humor and content which may offend many — and, perhaps, entertain other — viewers.

The film is a Active portrayal, written by a native Minnesotan, who claims to have participated in beauty contests which, at least in part, were similar to those in the movie. The movie is scheduled for release in early 1999. No part of the film’s content relates, depicts, or refers in any manner to plaintiffs popular restaurants. The film’s script does not refer to any kind of frozen dairy treats.

Plaintiff objects to defendant’s use of a title which is very similar to its well-established “Dairy Queen” trademark. It does business through several thousand family-oriented retail outlets, selling frozen dairy treats and other food. ADQ is particularly concerned that the title “Dairy Queens” will cause the public to associate its trademarked name with the unwholesome content of the film. ADQ fears this association will create negative impressions and confuse its customers, thereby demeaning and disparaging its mark.

ADQ claims New Line’s use of “Dairy Queens” constitutes both trademark infringement, under 15 U.S.C. § 1114, and trademark dilution, under 15 U.S.C. § 1125(c). An infringement claim raises issues of actual consumer confusion as to a product’s or service’s source; a dilution claim asserts the placement of a mark within a negative context, thus reducing its value. ADQ asks the Court to enjoin New Line from any usage which either infringes or dilutes its mark.

II. Standard for Preliminary Injunction

In the Eighth Circuit, the decision to grant a preliminary injunction is judged according to a four part test. The Court must consider:

1. The existence of a threat of irreparable harm to the movant;
2. The balance between that harm and any injury inflicted on the non-moving party;
3. The movant’s probable success on the merits; and
4. The public interest.

See Dataphase Systems, Inc. v. CL Systems, Inc., 640 F.2d 109, 114 (8th Cir.1981). The third factor, probable success on the merits, is frequently considered the most important. See S & M Constructors, Inc. v. Foley Co., 959 F.2d 97, 98 (8th Cir.1992). The Court will address each Dataphase factor in turn. When the factors apply differently to the infringement and the dilution claims, they are addressed separately.

A. Threat of Irreparable Harm

As noted, plaintiff claims both traditional trademark infringement, under 15 U.S.C. § 1114, and violation of the newer right to protection from trademark dilution, under 15 U.S.C. § 1125(c). When considering traditional trademark infringement, irreparable harm may be presumed “from a finding of probable success in proving likelihood of confusion.” Calvin Klein Cosmetics Corp. v. Lenox Laboratories, Inc., 815 F.2d 500, 505 (8th Cir.1987). This contrasts with trademark dilution, which does not require a likelihood of confusion. For trademark dilution, proof of a likelihood of dilution of a mark will support a presumption of irreparable harm. See Toys “R” Us, Inc. v. Akkaoui, 1996 WL 772709, 40 U.S.P.Q. 1836, 1838-39 (N.D.Cal.1996). The Court finds that plaintiff has shown a threat of irreparable harm under both theories.

The “Dairy Queen” mark was first used and applied to frozen dairy treats in 1940. It was registered and granted trademark protection in 1963. ADQ’s familiar sign — which presents only its trademarked name — is a frequent, well-recognized presence all along the streets and highways of the midpart of the United States. The mark is well-represented all over the nation. When the decades of effort expended in establishing a mark of the quality of “Dairy Queen” are considered, it is clear that the enormous goodwill created possessed by ADQ and represented by its “Dairy Queen” mark could be greatly diminished by a harmful usage. The Court concludes that ADQ has established a threat of irreparable harm.

*730 B. Balance of the Harm to Plaintiff Against the Injury to Defendant

The plaintiff posits a grave risk to its well-known mark if defendant’s proposed title is placed in the public’s consciousness. This contrasts with the highly conjectural harm defendant asserts if it is forced to choose a different title for its film. Plaintiff, as seen above, has spent decades establishing its mark as the recognizable sign of a wholesome, family-oriented restaurant. Defendant, on the other hand, will simply have to retitle a film for which it has engaged in virtually no marketing to date. Although the Court cannot gainsay defendant’s protestations of its difficulty in conceiving a new and original title, this factor favors plaintiff.

C. Probable Success on the Merits

Because the theories under which plaintiff seeks relief are distinct, the likelihood of success on each will be addressed separately.

1. Infringement Theory

Use of a protected mark is prohibited when a competing use is “likely to cause confusion, or to cause mistake, or to deceive.” 15 U.S.C. § 1114. Likelihood of confusion is a question of fact. See Calvin Klein Cosmetics Corp.,

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35 F. Supp. 2d 727, 1998 U.S. Dist. LEXIS 20472, 1998 WL 915449, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-dairy-queen-corp-v-new-line-productions-inc-mnd-1998.