Best Cellars, Inc. v. Wine Made Simple, Inc.

320 F. Supp. 2d 60, 2003 U.S. Dist. LEXIS 3958, 2003 WL 1212815
CourtDistrict Court, S.D. New York
DecidedMarch 14, 2003
Docket01 Civ. 11780(GEL)
StatusPublished
Cited by16 cases

This text of 320 F. Supp. 2d 60 (Best Cellars, Inc. v. Wine Made Simple, 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
Best Cellars, Inc. v. Wine Made Simple, Inc., 320 F. Supp. 2d 60, 2003 U.S. Dist. LEXIS 3958, 2003 WL 1212815 (S.D.N.Y. 2003).

Opinion

OPINION AND ORDER

LYNCH, District Judge.

Plaintiff Best Cellars, Inc., owns and operates retail wine stores, as do the defendants. Best Cellars claims in this action that its stores use a distinctive trade dress protected by law, and that the wine shops operated by defendants are so similar to plaintiffs that they infringe upon the protections provided to Best Cellars (1) against trademark infringement, trade dress infringement and false designation of origin pursuant to Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); (2) against trademark dilution under the Trademark Dilution Act, 15 U.S.C. § 1125(c); and (3) against unfair, competition under the laws of the States of New York, California, Arizona, Colorado and Idaho.

Best Cellars- seeks injunctive relief, as well as compensatory and punitive damages, against defendants Wine Made Simple, Inc., its principals Brigitte Baker and William Baker, its New York licensee LJG Wines, Inc., and LJG’s principal Lisa Grossman (collectively “defendants”). The parties have cross-moved for summary judgment. For the reasons explained below, because there are genuine disputes about issues of material fact particularly concerning the likelihood of confusion, plaintiffs motion will be denied, and defendants’ motion will be granted in part and denied in part.

BACKGROUND

The following facts are taken from the voluminous record submitted by the parties on their respective motions. As might be suspected from the submission of approximately two feet of exhibits, affidavits, and briefs, including statements of allegedly undisputed material facts that have .been followed by counter-statements and reply statements of allegedly undisputed facts, the parties are not in agreement about many issues of fact, inference and characterization. The following statement attempts to state as fact only what is truly undisputed, identifying significant disputes and indicating evidentiary sources for most of the Court’s statements. Given the procedural posture of the case, the following do not constitute findings of fact; rather, the Court is attempting only to outline the nature and history of the dispute, as a context for resolution of the legal issues at hand.

Development of Best Cellars

Plaintiff Best Cellars owns and operates four wine stores, including its flagship store on the Upper East Side of Manhattan, which pursue the novel marketing strategy of organizing wines by taste category rather than by grape type or country of origin. The flagship store has a clean, crisp, modern decor that demonstrates that the owners invested energy and capital in the design of the store as well as in the development of the marketing theme. Best Cellars opened its flagship store in November 1996. The store’s genesis dates from some time earlier when Joshua Wesson, a wine expert and author, began developing the idea of “a totally new kind of retail store for wine” intended to simplify the wine shopping experience for the novice wine consumer. (Aff. of Joshua Wesson, dated July 21, 2002 (“Wesson Aff.”) at ¶¶ 21-22.) In 1995, Wesson joined forces with other-industry professionals Michael *66 Green, the managing director of a New York wine store, and Richard Marmet, a corporate lawyer affiliated with Food & Wine magazine. (PL’s Mem. Supp. Summ. J. at 5.) After developing the concept of a store that retails wine, by taste (such as light, medium or heavy-bodied white or red wines, sparkling and dessert wines), the three men selected an architectural firm and graphic design firm, to create the interior decor for the store. (Id. at 5-6.) The interior design included wine racks built into a wall, which consist of tubes to hold bottles of wine horizontally, creating the appearance of a grid of steel rimmed holes in a light wood-paneled wall. The graphic design elements include computer-generated icons and brightly colored signs associated with each taste category.

Development of the prototype design for the store took twelve months. (Id. at 3.) The end result was dubbed “Best Cellars,” and consisted of a store that stocks a limited selection of wines, retailing for under 20 dollars a bottle, sorted by taste and displayed in a what has been called a “wall of wine.” Specialty wine and architectural magazines described the store as “a different kind of wine store” and “radically new” (id. at 9, citing the magazines Wine & Spirits and Interiors), and the store has been described in more general-subject publications as “revolutionizing] wine shopping” and as offering “the most original approach to selling wine” (id., citing the New York Daily News and Time Out New York magazine). Plaintiff now also has stores in Brookline and Boston, Massachusetts, Washington, D.C., and Seattle, Washington, and licenses its trade dress to a store in Great Barrington, Massachusetts. (PL’s R. 56.1 Counter-Statement at ¶ 75; Def.’s Reply to PL’s R. 56.1 Counter-Statement at ¶ 75.)

Best Cellars Defends Its Trade Dress

As is common in a free market economy, competitors were quick to imitate plaintiffs successful design and marketing strategy, and plaintiff sought the protection of intellectual property law to protect its legitimate interest in the trade dress it had developed. In 2000, after showing likelihood of success on its claims of trade dress and copyright infringement, Best Cellars won a preliminary injunction against a competitor who had blatantly imitated its trade dress. Best Cellars, Inc. v. Grape Finds at Dupont, Inc., 90 F.Supp.2d 431, 458, 460 (S.D.N.Y.2000). In that action, Best Cellars identified fourteen specific elements which it “believe[d] constitute^ the uniqueness of its trade dress,” including the eight taste categories, the dominant building materials, the design of the wine racks, the lighting design, the point-of-sale cards and the signage and graphic designs used in the store. Id. at 452. The Court in Grape Finds concluded that the “essence of the look ... is the ‘wall of wine,’ i.e., the color-coded, mono-graphic wall signs identifying the eight taste categories above single display bottles on stainless-steel wire pedestals which run along the store perimeter, above identical color-coded vertical arrays of nine glowing bottles stacked horizontally, above a strip of cabinets or drawers which extend to the floor.” Id. at 452. Plaintiff seems to rely on those elements in this action as well, listing them in the section of its brief entitled “The Distinctiveness of Best Cellars” without suggesting that any of those features have changed or are no longer relevant. (PL’s Mem. Supp. Summ. J. at 8-10.)

Advent of Bacchus

In December 1998, defendants Brigitte and William Baker opened a wine store in Manhattan Beach, California, called “Bacchus.” (Def.’s Mem. Supp. Summ. J. at 3.) Subsequently, their company, Wine Made Simple, licensed additional Bacchus stores *67 in Scottsdale, Arizona, Boulder, Colorado, and Ketchum, Idaho. (Id.

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320 F. Supp. 2d 60, 2003 U.S. Dist. LEXIS 3958, 2003 WL 1212815, Counsel Stack Legal Research, https://law.counselstack.com/opinion/best-cellars-inc-v-wine-made-simple-inc-nysd-2003.