Bill's Birds Inc. v. Trademarketing Resources Inc.

920 F. Supp. 2d 357, 108 U.S.P.Q. 2d (BNA) 1313, 2013 WL 371646, 2013 U.S. Dist. LEXIS 13517
CourtDistrict Court, E.D. New York
DecidedJanuary 31, 2013
DocketNo. CV 11-3888
StatusPublished
Cited by3 cases

This text of 920 F. Supp. 2d 357 (Bill's Birds Inc. v. Trademarketing Resources Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bill's Birds Inc. v. Trademarketing Resources Inc., 920 F. Supp. 2d 357, 108 U.S.P.Q. 2d (BNA) 1313, 2013 WL 371646, 2013 U.S. Dist. LEXIS 13517 (E.D.N.Y. 2013).

Opinion

MEMORANDUM AND ORDER

WEXLER, District Judge.

Plaintiffs Bill’s Birds Inc. (“Bill’s Birds”) and William Pelinsky (“Pelinsky”) (collectively the “Plaintiffs”), bring this action against Defendants seeking a declaratory judgment and injunctive relief, and claiming unfair trade practices and antitrust violations under federal and New York state law, in connection with automotive decorative trim pieces Plaintiffs sell or intend to sell. Defendant Chrysler Group LLC (“Chrysler”) and Trademark Resources Incorporated (“TRI”) (collectively the “Defendants”) move to dismiss for lack of subject matter jurisdiction and for failure to state a claim.

BACKGROUND

The facts outlined here are from Plaintiffs’ 39-page amended verified complaint1 [360]*360, and the 16-page affidavit of William Pelinsky, the president of Bill’s Birds, and the nine (9) exhibits attached thereto. Bill’s Birds is a New York corporation located in Dix Hills, New York and is in the business of making and selling aftermarket replacement automotive decorative trim pieces. According to Mr. Pelinsky, his business began in the early 1980s when he could not get a replacement decorative trim piece from the original car manufacturer after his car was damaged. He made his own, and over time, this hobby turned into a business. According to Pelinsky, the original equipment manufacturers (“OEMs”) were not interested in making these specialized parts that demanded relatively low quantities, and so independent sources, such as Pelinsky, stepped up to fill the void for these aftermarket replacement automobile decorative parts, and it became profitable.

On November 20, 2009, Bill’s Birds circulated a 7-page flyer, attached to Plaintiffs’ amended complaint as Exhibit C, “announcing new product.” Each page contains Bill’s Birds’ location and contact information and a photo, a description and a price for each item, totaling 7 items, for things such as a trunk lock cover, a radio plate, light surrounds, and three emblems, for Demon, Swinger and Plymouth.

In November 25, 2009, Mr. Rachuy, a representative of defendant TRI, Chrysler’s licensing agent, called Bill’s Birds and spoke with Pelinsky, saying he had a copy of the flyer and demanding that all sales of the items contained therein cease, stating that Chrysler retained the exclusive right to manufacture those trim items, saying “everybody knows that Chrysler owns everything.” Rachuy informed Pelinsky that if Bill’s Birds manufactured or sold any of those items, Chrysler would take criminal and civil action. Pelinsky, on behalf of Bill’s Birds, agreed to stop disseminating the flyer or selling the items, and Rachuy suggested that Bill’s Birds apply for a license to use the Chrysler trademark and manufacture trademarked items.

On February 11, 2010, Bill’s Birds submitted an application to Chrysler for a license “as a party with at least some interest in using Chrysler’s trademarks” to use some of its products. The application is attached to the amended complaint as Exhibit E. Though the application does not list any specific trademarks, it lists Fury, Monaco, Barracuda, Polara, Belvedere, Savoy and Demon as “desired products,” and projects sales of $5,000 per item for the first year. Though requested on the application, neither a detailed marketing plan nor a sample of the products were provided with the application.

The response to the application, an email dated April 6, 2010, is attached at Exhibit F. In that email, Mr Rachuy advised counsel for Bill’s Birds that it would not be allowed to produce, market or sell certain Plymouth, Demon and Swinger emblems, “or any other emblems containing Chrysler intellectual property such as model names, division brands, etc.” The email does not refer to the other items listed in the application.2

In the emails that followed to clarify Chrysler’s rejection of the application and the legal basis for the decision, Chrysler’s counsel reiterated Chrysler’s exclusive rights to the Plymouth, Demon and Swinger marks, and “Chrysler’s other heritage models names,” through prior use, customer recognition and licensing of the marks. In the letter, counsel also asserts that Bill’s Birds’ continued use of Chrysler’s marks is a violation of Section 43 of the [361]*361Lanham Act, for which Bill’s Birds would be liable. See Exhibits G and H.

This lawsuit followed. Plaintiffs argue that Chrysler’s sweeping claim that it has exclusive rights to “any marks associated with Chrysler,” without distinguishing between the various brands, or specifically responding to the brands listed in Plaintiffs’ application, is improper and warrants a declaratory judgment from the court. In addition to the exhibits outlined above, Plaintiffs also attached to their amended complaint a list of “Names of Automobile Models and Divisions Abandoned by Defendant Chrysler” (Ex. A), and a list “Automotive Decorative Trim Piece Parts that Do Not Include Emblems.” (Ex. B).

Plaintiffs allege that Defendant Chrysler has a monopoly in the aftermarket replacement decorative trim parts market throughout the United States, and that the aftermarket replacement parts are functionally interchangeable with the parts made originally by Chrysler for new automobiles.

Plaintiffs’ seek: (1) a declaratory judgment that the items listed in Exs. A, B and C are not the exclusive property of Chrysler; (2) a preliminary injunction and/or permanent injunction restraining Defendants from seizing Plaintiffs’ property or threatening Plaintiffs with civil or criminal liability; (3) restraining Defendants from threatening Plaintiffs in a manner that restrains trade in violation of the Sherman Act, 15 U.S.C. §§ 1-2; (4) damages resulting from Defendants’ alleged violation of the Lanham Act, 15 U.S.C. Chapter 22; (5) damages resulting from Defendants’ alleged conspiracy to restrain trade in violation of 15 U.S.C. §§ 1 and 1px solid var(--green-border)">2; and (6) damages resulting from Defendants’ alleged violations of New York state law forbidding restraint of trade, deceptive acts and practices, and unfair competition. Defendants move to dismiss the complaint in its entirety under Rule 12(b)(1) and 12(b)(6) of the Federal Rules of Civil Procedure.

DISCUSSION

I. Legal Principles

A. Standards on Motions to Dismiss

In considering a motion to dismiss made pursuant to Rule 12(b)(1), the Court must construe the complaint liberally, and accept all factual allegations as true, and dismiss when there is no “statutory or constitutional power to adjudicate” the dispute. Ford v. D.C. 37 Union Local, 579 F.3d 187, 188 (2d Cir.2009) (citations omitted). Similarly, when reviewing under Rule 12(b)(6), the court must review whether the complaint “contain[s] sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Absolute Activist Value Master Fund Limited v. Ficeto,

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920 F. Supp. 2d 357, 108 U.S.P.Q. 2d (BNA) 1313, 2013 WL 371646, 2013 U.S. Dist. LEXIS 13517, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bills-birds-inc-v-trademarketing-resources-inc-nyed-2013.