Carson Optical, Inc. v. Prym Consumer USA, Inc.

11 F. Supp. 3d 317, 2014 U.S. Dist. LEXIS 42559, 2014 WL 1315255
CourtDistrict Court, E.D. New York
DecidedMarch 28, 2014
DocketNo. CV 11-3677(ARL)
StatusPublished
Cited by30 cases

This text of 11 F. Supp. 3d 317 (Carson Optical, Inc. v. Prym Consumer USA, 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
Carson Optical, Inc. v. Prym Consumer USA, Inc., 11 F. Supp. 3d 317, 2014 U.S. Dist. LEXIS 42559, 2014 WL 1315255 (E.D.N.Y. 2014).

Opinion

MEMORANDUM AND ORDER

LINDSAY, United States Magistrate Judge:

Plaintiff Carson Optical, Inc. (“Carson Optical” or “Carson”), a New York corporation that markets and sells optical products, and plaintiff Leading Extreme Optimist Industries, Ltd. (“Leading”), a Hong Kong company that manufactures optical products (collectively “plaintiffs”), commenced this action on July 29, 2011 against defendant Prym Consumer USA, Inc. (“Prym”), a manufacturer of magnification products, and commenced an action on January 6, 2012 against defendant Jo-Ann Stores, Inc., a retailer of Prym’s products (“Jo-Ann Stores”) (collectively “defendants”), alleging patent infringement under 35 U.S.C. § 271 et seq., trade dress infringement under the Lanham Act, 15 U.S.C. § 1125(a), and state law claims for unfair competition and tortious interference with prospective business relations in connection with four of plaintiff Carson Optical’s design patents. All of the claims relate to magnifiers that were sold by Prym to Jo-Ann Stores, and then sold at retail by Jo-Ann Stores.

By order dated March 9, 2012, the district court consolidated the two actions. On November 27, 2012, the parties consented to the undersigned’s jurisdiction pursuant to 28 U.S.C. § 636. Defendants each filed motions for partial judgment on the pleadings pursuant to Fed.R.Civ.P. [325]*32512(c), and by Memorandum and Order dated March 25, 2013, 2013 WL 1209041, the Court granted defendants’ motions and granted plaintiffs leave to replead. Plaintiffs filed their second amended consolidated complaint on April 16, 2013. Before the Court are each defendants’ partial motions to dismiss the second amended consolidated complaint pursuant to Fed.R.Civ.P. 12(b)(6). For the reasons set forth below, defendants’ motions are granted.

BACKGROUND

For purposes of this decision, the Court accepts as true the factual allegations set forth in the second amended consolidated complaint against defendants and documents attached thereto. Carson Optical markets and sells optical products throughout the country to retailers, including until recently, Jo-Ann Stores. (Second Am. Consol. Compl. ¶¶2, 32.) At issue in this case are three1 of Carson Optical’s design patents, to wit, U.S. Patent Nos. D495,726 S (“the '726 Patent”), D563,779 S (“the '779 Patent”), and D508,-063 S (“the '063 Patent”), which were issued by the United States Patent and Trademark Office. (Id. at. ¶¶ 10-21.) The commercial embodiment of the '726 Patent is a product that bears the trademark RimFree. (Id. at. ¶ 13.) The commercial embodiment of the '779 Patent is a product that bears the trademark Attach-A-Mag. (Id. at. ¶ 17.) The commercial embodiment of the '063 Patent is a product that bears the trademark Attach-a-Mag. (Id. at. ¶ 21.)

The designs of certain of Carson Optical’s products, such as the SureGrip2 and the Clip & Flip3, are not protected by design patents but have been marketed, promoted and sold under their trademarks. (Id. at. ¶¶ 22-31.) The Sure-GripTM and the Clip & FlipTM products have been a commercial success. (Id.) Carson Optical has also developed written materials, including packaging materials which describe the features and benefits of its Clip & FlipTM magnifier, and owns the copyright in the written marketing materials. (Id. at. ¶¶ 30-31.)

According to Carson Optical, Prym secured a manufacturer to copy and reproduce Carson Optical’s products, and Jo-Ann Stores conspired with Prym to accomplish this. (Id. at. ¶¶ 33-34.) Specifically, plaintiffs allege that defendants imported, offered for sale and sold (i) a magnifier that infringes the '726 Patent; (ii) a product that infringes the '779 Patent; (iii) a product that infringes the '063 Patent; (iv) a magnifier that is a copy of Carson Optical’s SureGripTM magnifier and infringes Carson’s trade dress rights; and (v) a copy of Carson Optical’s Clip & FlipTM magnifier. (Id. at. ¶¶ 35-39.) In addition, plaintiffs aver that Prym copied portions of Carson Optical’s written marketing materials associated with the Clip & FlipTM magnifier. (Id. at. ¶ 40.) Because of Prym’s alleged infringement, plaintiffs maintain that Prym displaced Carson Optical as a supplier to Jo-Ann Stores. (Id. at. ¶ 41.) Jo-Ann’s alleged infringement eliminated [326]*326Carson Optical as its supplier. {Id. at. ¶ 42.)

Plaintiffs commenced the instant action against defendants, alleging (i) infringement of the design patents; (ii) infringement of trade dress; and (iii) common law claims for unfair competition. In addition, plaintiffs allege against defendant Prym a common law claim for tortious interference with prospective business relations. Defendants now seek to dismiss plaintiffs’ common law tort claims and trade dress infringement claim, specifically Counts Seven and Nine in the second amended consolidated complaint against Jo-Ann Stores4 and Counts Seven, Eight and Ten in the second amended consolidated complaint against Prym.

DISCUSSION

(A) Legal Standard for Motion to Dismiss Pursuant to Fed.R.Civ.P. 12(b)(6)

In reviewing a motion to dismiss pursuant to Fed.R.Civ.P. 12(b)(6), the Court must accept “as true all allegations in the complaint and draw all reasonable inferences in favor of the non-moving party.” Matson v. Bd. of Educ. of the City Sch. Dist. of N.Y., 631 F.3d 57, 63 (2d Cir.2011) (internal quotation marks and citation omitted). However, “the tenet that a court must accept as true all of the allegations contained in a complaint is inapplicable to legal conclusions. Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). “In order to survive a motion to dismiss under 12(b)(6), a complaint must allege a plausible set of facts sufficient ‘to raise a right to relief above the speculative level’.” Operating Local 649 Annuity Trust Fund v. Smith Barney Fund Mgmt. LLC, 595 F.3d 86, 91 (2d Cir.2010) (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)); see Ruston v. Town Bd. for the Town of Skaneateles, 610 F.3d 55, 59 (2d Cir.2010) (“When there are well-pleaded factual allegations, a court should assume their veracity and then determine whether they plausibly give rise to an entitlement to relief’).

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11 F. Supp. 3d 317, 2014 U.S. Dist. LEXIS 42559, 2014 WL 1315255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carson-optical-inc-v-prym-consumer-usa-inc-nyed-2014.