Buzz Bee Toys, Inc. v. Swimways Corp.

20 F. Supp. 3d 483, 2014 U.S. Dist. LEXIS 67376, 2014 WL 2006799
CourtDistrict Court, D. New Jersey
DecidedMay 15, 2014
DocketCivil Action No. 14-1948 (JBS/KMW)
StatusPublished
Cited by17 cases

This text of 20 F. Supp. 3d 483 (Buzz Bee Toys, Inc. v. Swimways Corp.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buzz Bee Toys, Inc. v. Swimways Corp., 20 F. Supp. 3d 483, 2014 U.S. Dist. LEXIS 67376, 2014 WL 2006799 (D.N.J. 2014).

Opinion

OPINION

SIMANDLE, Chief Judge:

I. INTRODUCTION.489

II.BACKGROUND.490

A. Factual Background.490

1. Plaintiff Buzz Bee .490
2. Plaintiffs WATER WARRIORS Product Line.490
3. Swimways’ FLOOD FORCE Product Line.493
4. Defendants’ Alleged Infringement.493
5. Third Parties’ Water Shooter Toys.494
6. Impact of the Alleged Infringement on Plaintiff.494

B. Parties’ Arguments.494

III.STANDARD OF REVIEW .496

IV. DISCUSSION. 05
A. Likelihood of Success on the Merits.
1. Functionality of the Trade Dress .
2. Secondary Meaning.
3. Likelihood of Confusion .
B. Irreparable Harm.
1. Irreparable Harm Must Be Independently Established
2. Likelihood of Irreparable Harm.
C. Public Interest.
Y. CONCLUSION. .514
I. INTRODUCTION

This matter comes before the Court on the motion [Docket Item 12] of Plaintiff Buzz Bee Toys, Inc., (“Buzz Bee”) for a preliminary injunction against Defendants Swimways Corporation (“Swimways”) and Target Corporation (“Target”). Buzz Bee claims that Defendant Swimways copied four models of Plaintiffs WATER WARRIORS waterguns by using confusingly similar and infringing trade dresses and that Defendant Target now offers Swim-ways’ infringing products instead of Plaintiffs products, which Target used to offer. (Am. Compl. ¶ 99.) Plaintiffs principal claim for purposes of this preliminary injunction motion is that the Defendants have infringed Plaintiffs unregistered trade dress in violation of § 43(a) of the Lanham act, 15 U.S.C. § 1125(a).1 The Court held a preliminary injunction hearing on May 14, 2014.

[490]*490Plaintiff seeks a preliminary injunction precluding Defendants from selling Swim-ways’ allegedly infringing products and ordering them to recall the infringing products. Defendants’ products are remarkably similar to Plaintiffs products, but Plaintiffs motion will be denied. A preliminary injunction is an extraordinary remedy that should only be used in limited circumstances. Plaintiff has not shown that these circumstances warrant injunc-tive relief: Plaintiff has not shown a likelihood of success on the merits because it has not shown that its trade dresses have acquired secondary meaning. In addition, Plaintiff has not shown that irreparable harm is likely, if the injunction does not issue.

The following constitute the Court’s findings of fact and conclusions of law in this preliminary injunction motion pursuant to Rule 65(a), Fed.R.Civ.P.

II. BACKGROUND
A. Factual Background
1. Plaintiff Buzz Bee

Buzz Bee designs, markets, and distributes various toys, including water squirting toys. Buzz Bee was formed in 2002 and has less than 50 employees. (Zimmerman 2nd Decl. [Docket Item 37J ¶ 47.) Jeffrey C. Zimmerman has been Buzz Bee’s president since 2002. (Zimmerman 1st Decl. [Docket Item 13] ¶ 1.) Since Zimmerman has worked for Buzz Bee, he has launched over 100 waterguns. (Zimmerman 2nd Decl. ¶ 40.) Only 10-15% of those toys have been successful enough to last more than one or two seasons. (Id.)

Buzz Bee’s design process begins with meetings to decide what product is needed, and then the company designs, prepares drawings, determines a target price, engineers, and manufactures a hand sample. (Id. ¶ 19.) This initial process lasts five to six months. (Id.) The manufacturer then requires three to four months to produce commercial products. (Id.)

Buzz Bee packages its toy water shooters in open front packaging because customers wish to see the actual product before purchasing, because open packaging spotlights the product design, and because water shooters with open packaging sell better than those with closed packaging. (Id. ¶ 60.)

Buzz Bee sells primarily through retail stores and does not advertise its toys; however, at least ten times per year, its water shooters are advertised in retailers’ print advertising inserts. (Id. ¶ 62.) No such advertising, however, is in evidence. The annual value of the retailers’ advertisements of Buzz Bee’s products is estimated by Plaintiff as approximately $500,000.00. (Id.) Retailer customers, such as Target and Wal-Mart, have also advertised Buzz Bee’s toys on their websites. (Id. ¶ 64.)

2. Plaintiffs WATER WARRIORS Product Line

Buzz Bee has a product line entitled WATER WARRIORS, which includes the AVENGER, KWIK GRIP XL, ARGON, and XENON water squirting toys, which are the four models whose trade dress Buzz Bee seeks to protect. WATER WARRIORS products are some of Buzz Bee’s most popular models, and they rep[491]*491resent approximately 25% of Buzz Bee’s annual revenue. (Id. ¶¶ 50-51.) The target customers for these toys are children aged 4-12. (Zimmerman 1st Decl. ¶ 75.) Buzz Bee’s president Zimmerman estimates that, until the current infringement, Buzz Bee’s WATER WARRIORS had 35% of the relevant market share. (Zimmerman 2nd Decl. ¶ 49.) The WATER WARRIOR toys appear regularly on independent fan and industry news sites like buffdaddynerf.com, isoaker.com, sscen-tral.org, and waterwar.net. (Id. ¶ 64.)

Zimmerman asserts that the WATER WARRIORS trade dresses are non-functional because the water, squirting elements are internal mechanisms.

Plaintiff articulates the AVENGER’S trade dress as:

(i) a raised portion along the top of the rear body portion, having a downwardly sloping body element crossing forwardly along the rear body portion, a forward wavy top projection and a forward wavy lower projection with a wave-like arcuate design pointing rearward formed between the top projection and the lower projection; (ii) an irregularly shaped inlay having a forward point located in the rear body portion; (iii) a front and bottom body portion having a complementary wave-like shape to meet the rear body portion, a grip portion having a raised back, a downwardly extending trigger guard portion having an arcuate design inlay pointing forward, a forward raised conical portion; " (iv) a forward stock portion having three sloped ridges; and (v) a cylindrical orange muzzle portion.

(Am. Compl. ¶ 17 (letters referencing arrows on diagram omitted).) The AVENGER trade dress has been used since 2007. (Zimmerman 1st Decl. ¶ 11.)

AVENGER toys are sold through the internet, catalogs, and retail chains, such as Target and K-mart. (Id.

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20 F. Supp. 3d 483, 2014 U.S. Dist. LEXIS 67376, 2014 WL 2006799, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buzz-bee-toys-inc-v-swimways-corp-njd-2014.