Citrus Group, Inc. v. Cadbury Beverages, Inc.

781 F. Supp. 386, 21 U.S.P.Q. 2d (BNA) 1031, 1991 U.S. Dist. LEXIS 20763, 1991 WL 281615
CourtDistrict Court, D. Maryland
DecidedSeptember 26, 1991
DocketWN-91-2117
StatusPublished
Cited by2 cases

This text of 781 F. Supp. 386 (Citrus Group, Inc. v. Cadbury Beverages, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Citrus Group, Inc. v. Cadbury Beverages, Inc., 781 F. Supp. 386, 21 U.S.P.Q. 2d (BNA) 1031, 1991 U.S. Dist. LEXIS 20763, 1991 WL 281615 (D. Md. 1991).

Opinion

MEMORANDUM

NICKERSON, District Judge.

Pending before this Court is Plaintiff Citrus Group’s Motion for Preliminary Injunction (Paper No. 3) filed July 26, 1991. Defendants oppose the motion. (Paper No. 19) Upon a review of the pleadings, and after a hearing on September 10, 1991, this Court determines that Plaintiff’s motion should be denied.

BACKGROUND

Plaintiff Citrus Group (“Citrus”) distributes fruit juice concentrates and fruit juice drinks under the duly registered trademark “MAIN SQUEEZE.” (U.S. Patent and Trademark Office Reg. No. 1,572,274, registered 12-19-89). Defendants Cadbury Beverages, Inc. and its bottler, Canada Dry Potomac Corp., instituted an advertising campaign in March 1990 to promote two new products, cherry ginger ale and lemon ginger ale. The expression “main squeeze” was used in this campaign. The campaign consisted of seven television commercials, twenty-nine radio commercials, print advertisements and some promotional items, such as towels and t-shirts. Of these, only one of five radio commercials for Canada Dry lemon ginger ale used the expression “main squeeze.” 1 The print ad placed the expression “your new main squeeze” above a picture of a lemon squeezed by two cans. The towels and t-shirts displayed the phrase “your new main squeeze” with the Canada Dry trademark. 2

Citrus filed a three count complaint seeking relief under the Lanham Trademark Act of 1946. Count I alleges trademark infringement under 15 U.S.C. § 1114(1); Count II alleges unfair competition under 15 U.S.C. § 1125(a); Count III alleges trademark infringement under the common law of Maryland. Citrus also moves for a preliminary injunction to enjoin Defendants from using the trademark “MAIN SQUEEZE” in any manner. In doing so, Citrus claims that Defendants are using the trademark to promote, advertise and sell fruit juice drinks in direct competition with Citrus.

Defendants have not published the print ad or distributed the towels and t-shirts since the time Citrus filed the present complaint. . Additionally, the company in charge of Defendants’ advertising campaign instructed radio stations broadcasting the radio commercials to substitute another commercial pending the outcome of the preliminary injunction motion. Cad-bury has also instructed Canada Dry not to use any other materials (signs, point-of-sale materials, etc.) containing the “main squeeze” expression.

DISCUSSION

It is well settled in this circuit that the standard for interlocutory injunctive relief under Fed.R.Civ.P. 65(a) is the balance-of-hardship test. Blackwelder Furniture Co. v. Seilig Mfg. Co., 550 F.2d 189, 196 (4th Cir.1977). 3 Four factors must be considered:

1. the likelihood of irreparable harm to plaintiff if the preliminary injunction is denied;
2. the likelihood of harm to the defendant if the requested relief is granted;
3. the likelihood that the plaintiff will succeed on the merits; and
4. the public interest.

Blackwelder, 550 F.2d at 193-196.

In determining what relative emphasis to give these elements, the Blackwelder court stated:

*389 The two more important factors are those of probable irreparable injury to plaintiff without a decree and of likely harm to the defendant with a decree. If that balance is struck in favor of plaintiff, it is enough that grave or serious questions are presented; and plaintiff need not show a likelihood of success.

Id. at 196. If, however, the balance is struck in favor of the defendant, the likelihood of success becomes a more significant factor. “The importance of probability of success increases as the probability of irreparable injury diminishes.” Id. at 195. The above four elements will now be discussed seriatim.

A. Irreparable Harm to Plaintiff

Citrus alleges that it will incur irreparable harm because of the likely confusion between its products and those of Canada Dry. In other words, Citrus alleges that if the injunction is not granted it will suffer confusion and damage caused by loss of control of the quality of the goods associated with its trademark. This loss of control allegedly will result in injury to Citrus’ good reputation. The plaintiff does not otherwise, or more specifically, state what irreparable injury will result without the requested equitable relief.

B. Harm to Defendants

The likelihood of harm to Defendants if the injunction should issue is both more distinct and more readily identifiable. If the injunction is granted, for example, Defendants would be required to discontinue use of their radio commercial, to forego additional print advertising, to withhold or refrain from distributing promotional items such as towels and t-shirts, and to refrain from using valuable point-of-sale and premium materials created for Cadbury’s bottlers pending trial. They value this damage to the campaign at over $100,000.00.

Balancing the likelihood of alleged irreparable harm to Citrus and the likelihood of alleged harm to Defendants, this Court does not find a dramatic imbalance in favor of either party. The harm alleged by Citrus is unspecific at best, and the likelihood of that harm even less certain. In fact, association with Canada Dry products, which have enjoyed a favorable status in the carbonated beverage industry for nearly three quarters of a century, might actually benefit Citrus’ fledgling company. Additionally, Citrus’ evidence does not compel this Court to find that there is a likelihood of confusion or damage caused by a loss of control of the goods associated with the trademark, the injury alleged in this case.

Although the alleged injury to Citrus could be significant if it were actual, the likelihood of injury is attenuated. Conversely, the injury to Defendants is certain if the injunction should issue. This Court, then, must balance uncertain, and possibly great harm to a small company against certain harm to a very large company. In this light, this Court finds that the balance is not struck distinctly in favor of either party. Therefore, this Court must consider more the likelihood of success on the merits because, as stated in Blackwelder, “[t]he importance of probability of success increases as the probability of irreparable injury diminishes.” Blackwelder, 550 F.2d at 195.

C. Likelihood of Success on the Merits

The third factor to be considered under the Blackwelder

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

Related

Bell v. Harley Davidson Motor Co.
539 F. Supp. 2d 1249 (S.D. California, 2008)
Cornwell v. Sachs
99 F. Supp. 2d 695 (E.D. Virginia, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
781 F. Supp. 386, 21 U.S.P.Q. 2d (BNA) 1031, 1991 U.S. Dist. LEXIS 20763, 1991 WL 281615, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citrus-group-inc-v-cadbury-beverages-inc-mdd-1991.