APP Grp. (Canada) Inc. v. Rudsak USA Inc.

CourtCourt of Appeals for the Second Circuit
DecidedJanuary 9, 2024
Docket22-1965
StatusUnpublished

This text of APP Grp. (Canada) Inc. v. Rudsak USA Inc. (APP Grp. (Canada) Inc. v. Rudsak USA Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
APP Grp. (Canada) Inc. v. Rudsak USA Inc., (2d Cir. 2024).

Opinion

22-1965 APP Grp. (Canada) Inc. v. Rudsak USA Inc.

UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT

SUMMARY ORDER RULINGS BY SUMMARY ORDER DO NOT HAVE PRECEDENTIAL EFFECT. CITATION TO A SUMMARY ORDER FILED ON OR AFTER JANUARY 1, 2007, IS PERMITTED AND IS GOVERNED BY FEDERAL RULE OF APPELLATE PROCEDURE 32.1 AND THIS COURT’S LOCAL RULE 32.1.1. WHEN CITING A SUMMARY ORDER IN A DOCUMENT FILED WITH THIS COURT, A PARTY MUST CITE EITHER THE FEDERAL APPENDIX OR AN ELECTRONIC DATABASE (WITH THE NOTATION “SUMMARY ORDER”). A PARTY CITING A SUMMARY ORDER MUST SERVE A COPY OF IT ON ANY PARTY NOT REPRESENTED BY COUNSEL.

1 At a stated term of the United States Court of Appeals for the Second Circuit, 2 held at the Thurgood Marshall United States Courthouse, 40 Foley Square, in the City of 3 New York, on the 9th day of January, two thousand twenty-four. 4 5 PRESENT: 6 GERARD E. LYNCH, 7 MICHAEL H. PARK, 8 STEVEN J. MENASHI 9 Circuit Judges. 10 _____________________________________ 11 12 APP Group (Canada) Inc., DBA Mackage, 13 A.P.P. Group Inc., DBA Mackage, 14 15 Plaintiffs-Appellants, 16 17 v. 22-1965 18 19 Rudsak USA Inc., 20 21 Defendant-Appellee. 22 _____________________________________ 23 24 FOR PLAINTIFFS-APPELLANTS: GLEN LENIHAM (Darren Oved and 25 Aaron Solomon, on the brief), Oved 26 & Oved LLP, New York, NY. 27 28 FOR DEFENDANT-APPELLEE: DAVID DONAHUE (Jason D. Jones and 29 Shelby P. Rokito, on the brief), Fross 30 Zelnick Lehrman & Zissu, P.C., New 31 York, NY. 32 1 Appeal from a judgment of the United States District Court for the Southern District of

2 New York (Caproni, J.).

3 UPON DUE CONSIDERATION, IT IS HEREBY ORDERED, ADJUDGED, AND

4 DECREED that the judgment of the district court is AFFIRMED IN PART, VACATED IN

5 PART, AND REMANDED for further proceedings.

6 APP Group (Canada) Inc. and A.P.P. Group Inc. (collectively “Mackage”), owners of the

7 fashion label Mackage, bring claims for trade dress infringement, trade dress dilution, and common

8 law unfair competition against Rudsak USA Inc. (“Rudsak”). Mackage alleges that Rudsak

9 produces and sells knock-off coats featuring Mackage’s designs and engages in wrongful and

10 willful misappropriation of proprietary information to produce and sell the knock-offs. Mackage

11 argues that the district court erred both in dismissing its claims for failure to state a claim and in

12 denying leave to amend its Complaint. We assume the parties’ familiarity with the underlying

13 facts, the procedural history of the case, and the issues on appeal.

14 “We review the grant of a motion to dismiss under Rule 12(b)(6) de novo.” Elias v.

15 Rolling Stone LLC, 872 F.3d 97, 104 (2d Cir. 2017). “We review a district court’s denial of leave

16 to amend for abuse of discretion, unless the denial was based on an interpretation of law, such as

17 futility, in which we review the legal conclusion de novo.” Panther Partners Inc. v. Ikanos

18 Commc’ns, Inc., 681 F.3d 114, 119 (2d Cir. 2012).

19 I. Trade Dress Infringement

20 Mackage argues that it stated a claim for trade dress infringement. “To plead a claim of

21 trade dress infringement involving the overall appearance of a product, a plaintiff must offer (1) a

22 precise expression of the character and scope of the claimed trade dress,” and “must also allege

2 1 that (2) the claimed trade dress is non-functional; (3) the claimed trade dress has secondary

2 meaning; and (4) there is a likelihood of confusion between the plaintiff’s goods and the

3 defendant’s.” Eliya, Inc. v. Steven Madden, Ltd., 749 F. App’x 43, 46 (2d Cir. 2018) (citing

4 Landscape Forms, Inc. v. Columbia Cascade Co., 113 F.3d 373, 381 (2d Cir. 1997) and Yurman

5 Design, Inc. v. PAJ, Inc., 262 F.3d 101, 115-16 (2d Cir. 2001)). We address the first three

6 elements of Mackage’s trade dress infringement claim; the fourth is not in dispute.

7 A. Precise Description

8 Mackage alleges that it adequately describes its trade dress in its Complaint, enumerating

9 the design elements and supplementing them with photographs. To allege “a precise expression

10 of the character and scope of the claimed trade dress,” Mackage must “be able to point to the

11 elements and features that distinguish its trade dress,” Yurman Design, 262 F.3d at 117, and explain

12 “how they are distinctive,” Eliya, 749 F. App’x at 47. These requirements allow courts to “shape

13 narrowly-tailored relief” with knowledge of “what distinctive combination of ingredients deserves

14 protection”; otherwise, “a plaintiff’s inability to explain to a court exactly which aspects of its

15 product design(s) merit protection may indicate that its claim is pitched at an improper level of

16 generality, i.e., the claimant seeks protection for an unprotectable style, theme or idea.”

17 Landscape Forms, 113 F.3d at 381.

18 Mackage provides the following description in its Complaint:

19 The Mackage products, in particular the Mackage coats and jackets, incorporate 20 non-functional product trade dress constituting a combination of distinctive 21 features that identify the goods as originating from Mackage, including: (i) the 22 signature v-shaped fur-collar/hood used on the many of its best-selling coats (the 23 “V-Shaped Collar”); and/or (ii) the asymmetrical zipper used to close several of its

3 1 coats (the “Asymmetrical Zipper”) (the V-Shaped Collar and Asymmetrical Zipper 2 as referred to individually and collectively as the “Trade Dress”). 3 A-8 to -9. The district court held that this description does not sufficiently specify features or

4 elements of the trade dress. Cf. GeigTech East Bay LLC v. Lutron Elecs. Co., 352 F. Supp. 3d

5 265, 277 (S.D.N.Y. 2018) (providing a precise description by detailing each individual element of

6 the trade dress and showing how its trade dress is distinctive); Eliya, Inc., 749 F. App’x at 45

7 (same). Central to this holding was the language of Mackage’s Complaint identifying the trade

8 dress as including the V-Shaped Collar “and/or” the Asymmetrical Zipper. A-9. The ambiguity

9 of this language caused the Complaint’s description to “denote categories of features, not the

10 features themselves,” signaling that these features are “overbroad and unprotectible.” Cardinal

11 Motors, Inc. v. H&H Sports Prot. USA, Inc., No. 1:20-cv-07899-PAC, 2021 WL 1758881, at *4

12 (S.D.N.Y. May 4, 2021). Mackage’s inclusion of photographs does not salvage the insufficient

13 description because pictures are not a substitute for a precise description. See Int’l Leisure Prods.,

14 Inc. v. FUNBOY LLC, 747 F. App’x 23, 26 (2d Cir. 2018) (“[A] visual representation of the

15 asserted trade dress does not excuse ‘the party seeking protection’ from its burden of ‘point[ing]

16 to the elements and features that distinguish its trade dress.”) (citing Yurman Design, 262 F.3d at

17 117).

18 Mackage now describes its trade dress as “the combination of (i) Mackage’s unique,

19 signature V-shaped fur-collar/hood; and (ii) two (2) asymmetrical zippers.” Appellants’ Br. at 2

20 (emphasis added). But these changes alter the nature of the trade dress, so we do not consider the

21 new description on appeal.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
APP Grp. (Canada) Inc. v. Rudsak USA Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/app-grp-canada-inc-v-rudsak-usa-inc-ca2-2024.