Bellsouth Advertising & Publishing Corp. v. Lambert Publishing

45 F. Supp. 2d 1316, 51 U.S.P.Q. 2d (BNA) 1123, 1999 U.S. Dist. LEXIS 3235, 1999 WL 171492
CourtDistrict Court, S.D. Alabama
DecidedMarch 16, 1999
DocketCIV. A. 99-0168-CB-S
StatusPublished
Cited by8 cases

This text of 45 F. Supp. 2d 1316 (Bellsouth Advertising & Publishing Corp. v. Lambert Publishing) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bellsouth Advertising & Publishing Corp. v. Lambert Publishing, 45 F. Supp. 2d 1316, 51 U.S.P.Q. 2d (BNA) 1123, 1999 U.S. Dist. LEXIS 3235, 1999 WL 171492 (S.D. Ala. 1999).

Opinion

ORDER

BUTLER, Chief Judge.

This matter is before the Court on Plaintiffs Application for Preliminary Injunction (Doc. 2). Also before the Court is Defendant’s Motion for Preliminary Injunction (Doc. 14). Having held a hearing and heard testimony from the parties and witnesses called on behalf of each, and having considered Plaintiffs Memorandum, in Support (Doc. 9), Affidavits in Support (Doc. 8), and Supplemental Brief in Support (Doc. 12) as well as Defendant’s Brief in Opposition to Plaintiffs Application and Brief in Support of it Motion (Doc. 12) and Motion for Preliminary Injunction (Doc. 13), the Court finds that neither party is entitled to a preliminary injunction and therefore both Motions are hereby DENIED.

BACKGROUND

This case arises from the rough-and-tumble world of telephone book and yellow pages publishing. Plaintiff, a wholly owned subsidiary of BellSouth (one of the so-called “Baby Bells”), has held a monopoly, or near monopoly, on telephone book publishing and distribution in most markets. Lambert Publishing and its owner, Steve Lambert, entered into the fray by publishing “overlay” telephone books. These phone books encompass a wider geographic area than BellSouth’s and typically include calling areas served by Bell *1319 South and also areas served by other local phone companies. The result is that Lambert’s telephone book can be used over a wider calling area than BellSouth’s book.

Lambert and BellSouth wage their battle, not over the utility of their respective books, but, rather, over advertising. Both fund their operations by selling advertising in the yellow pages and the amount they charge depends, in large part, upon how many people actually use their books and how often they use it. In practice, both companies deploy armies of sales representatives armed with survey data indicating that their phone books are used more often by more people than the competitor’s books. Businesses then decide whether to advertise in one, none, or both of the books—it is certain that a company could take out ads in both books—in order to maximize the company’s exposure and thereby increase its business volume.

BellSouth seeks to enjoin Lambert from making certain statements in Lambert’s print and radio advertising campaign. Additionally, BellSouth requests that the Court enjoin Lambert’s salespeople from making certain representations regarding BellSouth and the BellSouth Yellow Pages in their sales presentations to potential customers. Conversely, Lambert seeks an injunction against BellSouth’s making statements regarding the Lambert Best-Talk directory in its advertising campaign and against BellSouth’s salespeople making representations about the BestTalk directory in their own sales presentations.

DISCUSSION

The grant or denial of a preliminary injunction is a decision within the discretion of the district court. United States v. Lambert, 695 F.2d 536, 539 (11th Cir.1983). Por preliminary injunctive relief to be warranted, the district court must find that the movant has satisfied four prerequisites: (1) a substantial likelihood of success on the merits; (2) irreparable injury will be suffered unless the injunction issues; (3) the threatened injury to the movant is greater than any damage the proposed injunction may cause the opposing party; and (4) the injunction, if issued, will not disserve the public interest. Cafe 207, Inc. v. St. Johns County, 989 F.2d 1136, 1137 (11th Cir.1993); Carillon Importers, Ltd. v. Frank Pesce International Group Limited, 112 F.3d 1125, 1126 (11th Cir.1997); see also United Industries Corp. v. Clorox Co. 140 F.3d 1175, 1178-79 (8th Cir.1998). No single factor is dispositive, and each factor must be considered to determine whether the balance of equities weighs toward granting the injunction. United Industries v. Clorox, 140 F.3d at 1179.

Likelihood of Prevailing on the Merits.

The Lanham Act was intended, in part, to protect persons engaged in commerce against false advertising and unfair competition. Two Pesos, Inc. v. Taco Cabana, Inc., 505 U.S. 763, 767-68, 112 S.Ct. 2753, 120 L.Ed.2d 615 (1992); 3 J. Thomas McCarthy, McCarthy on Trademarks and Unfair Competition § 27:25 at 27-40 (West Group 1997). In particular, the Act prohibits commercial advertising or promotion that misrepresents the nature, characteristics, qualities, or geographic origin of the advertiser’s or another person’s goods, services, or commercial activities. Rhone-Poulenc Rorer Pharm., Inc. v. Marion Merrell Dow. Inc., 93 F.3d 511, 514 (8th Cir.1996) citing 15 U.S.C. § 1125(a)(1)(B); Sanborn Mfg. Co., Inc. v. Campbell Hausfeld/Scott Fetzer Co., 997 F.2d 484, 486 (8th Cir.1993)(en banc). 1

*1320 To prevail on a false advertising claim under that act, BellSouth must prove:

(1) that the defendant made a false representation of fact about its own or another’s product or services in commercial advertising or promotion;
(2) that the statement actually deceived or has the tendency to deceive a substantial segment of its audience;
(3) that the decéption is material, in that it is likely to influence the purchasing decision;
(4) that the defendant caused its false statement to enter interstate commerce; and,
(5) that the plaintiff has been or is likely to be injured as a result of the false statement be a casually related diversion of sales or by a lessening of the goodwill associated with its products.

15 U.S.C. § 1125(a); Southland, Sod Farms v. Stover Seed Co., 108 F.3d 1134, 1139 (9th Cir.1997); Ditri v. Coldwell Banker, 954 F.2d 869, 872 (3rd Cir.1992) quoting U.S. Healthcare v. Blue Cross of Gr. Philadelphia, 898 F.2d 914, 922-23 (3rd Cir.1990), cert. denied, 498 U.S. 816, 111 S.Ct. 58, 112 L.Ed.2d 33; ALPO Petfoods, Inc. v. Ralston Purina Co., 913 F.2d 958, 964 (D.C.Cir.1990); and Tire Kingdom, Inc. v. Morgan Tire and Auto, Inc.,

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
45 F. Supp. 2d 1316, 51 U.S.P.Q. 2d (BNA) 1123, 1999 U.S. Dist. LEXIS 3235, 1999 WL 171492, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bellsouth-advertising-publishing-corp-v-lambert-publishing-alsd-1999.