CPC International, Inc. v. Caribe Food Distributors

731 F. Supp. 660, 16 U.S.P.Q. 2d (BNA) 1856, 1990 U.S. Dist. LEXIS 2200, 1990 WL 17750
CourtDistrict Court, D. New Jersey
DecidedFebruary 14, 1990
DocketCiv. A. 89-5359
StatusPublished
Cited by15 cases

This text of 731 F. Supp. 660 (CPC International, Inc. v. Caribe Food Distributors) 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
CPC International, Inc. v. Caribe Food Distributors, 731 F. Supp. 660, 16 U.S.P.Q. 2d (BNA) 1856, 1990 U.S. Dist. LEXIS 2200, 1990 WL 17750 (D.N.J. 1990).

Opinion

OPINION AND ORDER

LECHNER, District Judge.

The plaintiff, CPC International, Inc. (“CPC”), has brought this motion for a preliminary injunction seeking to enjoin the defendant, Caribe Food Distributors (“Car-ibe”), from alleged trademark infringement and unfair competition under the common law and sections 32(1) and 43(a) Lanham Act, as amended 15 U.S.C. §§ 1114(1) & 1125(a). The complaint, filed 27 December 1989, alleges subject matter jurisdiction is founded on 15 U.S.C. § 1121 and 28 U.S.C. §§ 1331, 1332 & 1338. For the reasons which follow, the motion for a preliminary injunction is granted to the extent discussed below.

Facts

CPC, a Delaware corporation with its principal place of business in New Jersey, manufactures and sells a variety of grocery products including “Mazóla” brand corn oil. Complaint, ¶¶ 1, 7. CPC is the sole holder of all right, title and interest in the Mazóla name, which has been used to market corn oil since 1911. 1 Id. at ¶ 8. This action arises from the introduction by Caribe of a corn oil under the name “La Mazorca” in a package which, CPC claims, is confusingly similar its product.

Mazda corn oil is manufactured in the United States and sold throughout the world. It is available in virtually all of the retail supermarkets in the United States. Affidavit of Michael H. Lyon, filed 22 January 1990 (“Lyon Aff.”), ¶ 4. CPC sales people market Mazóla corn oil to large grocery chains and wholesalers who distribute it to retail grocery stores. Id. at H 5. CPC spends more than six million dollars annually to advertise Mazóla corn oil on television and radio, through direct mail and in publications. Id. at ¶¶ 8-9.

As is common among corn oils, Mazda corn oil and La Mazorca corn oil are sold in a yellow, jug-shaped container with a green, screw-on cap. Affidavit of Raul Quiroz, filed 19 January 1990 (“Quiroz Aff.”), II 21, Ex. 2. The Mazda container holds 128 fluid ounces (one gallon), while the La Mazorca container holds 96 fluid ounces (three quarts). CPC also sells Mazda corn oil to institutional purchasers in larger containers utilizing the same trade dress as is used on the one gallon containers. CPC Brief 2 at 8.

CPC claims the Mazóla corn oil label and trade dress are “distinctive” and consist of the following elements:

(a) A yellow jug-shaped bottle;
*662 (b) A green screw-on cap;
(c) A label, consisting of a yellow, white, green and red color scheme affixed to the front panel of the bottle;
(d) The prominent display of the trademark MAZOLA across the center of the label;
(e) The prominent display on the label of a partially husked ear of corn;
(f) The words “NO CHOLESTEROL” in a banner across the top of the label;
(g) Use of the term “100% PURE” on the label.

CPC Brief at 5. Described in this manner, the Mazóla corn oil label and trade dress are similar to Caribe’s allegedly infringing La Mazorca corn oil label, with two qualifications: the use of the word “MAZORCA” across the center of the La Mazorca corn oil label and the use of the words “100% PURE CORN OIL” on the La Mazorca corn oil label. Id.

La Mazorca corn oil is marketed and distributed by Caribe, which is a New York corporation located in the Bronx, New York. Quiroz Aff. at ¶¶ 1, 3. Caribe develops and markets quality food products to Hispanic communities in the New York metropolitan area, including northeastern New Jersey. According to the affidavit of Caribe’s president, the company concentrates its marketing efforts on Hispanics with ties to the Dominican Republic. Id. at ¶ 4.

Caribe began marketing La Mazorca corn oil in December 1988 primarily to stores patronized by Hispanics. Id. at ¶ 22. The product is marketed directly to grocery stores and bodegas. It is not advertised in the media. Id. at ¶¶ 23, 24. La Mazorca corn oil is manufactured by the second largest private packer in the United States, which also supplies corn oil to national supermarkets. Caribe represents that La Mazorca corn oil meets all applicable federal and state regulations. Id. at ¶¶ 26, 27.

Corn oil is a staple of Latin-American cooking. Caribe Brief at 3. Competition among corn oil sellers for Hispanic customers appears strong. There are at least five other brands of corn oil sold in the New York metropolitan area. Id. at ¶ 21, Ex. 2. Some of the brand names are Spanish references, such as “La Spagnola” corn oil, “Iberia” corn oil and “La Isla” corn oil. 3 Id. CPC advertises Mazóla corn oil to Hispanic communities in the Spanish language. Complaint at ¶ 14.

Caribe claims it chose “La Mazorca” as the name for its corn oil because it means “ear of corn” in Spanish. 4 Id. at ¶ 6. The decision to market corn oil under that name in the United States was also motivated by the fact that “La Mazorca” has been a brand name for corn oil in the Dominican Republic for many years. The name “La Mazorca” was available for use in the United States at the time Caribe began marketing its corn oil here. The president of Caribe stated: “I chose the name because I thought it would appeal to Hispanic customers and remind them of the products from their home countries.” Id.

By contrast, “Mazóla” is a coined term, with no meaning in English or Spanish. CPC Brief at 1; Affidavit of Nicolas Shumway, Ph.D., filed 19 January 1990 (“Shumway Aff.”), ¶ 3. However, Mazóla corn oil is sold in Latin America, where it has a significant share of markets in Puerto Rico, Argentina and Brazil. Reply Brief at 3; Affidavit of Eric Stenshoel, Esq., filed 19 January 1990 (“Stenshoel Aff.”), at Ex. H. CPC claims, without supporting affidavits, “it is ... likely that the corn oil most Hispanic consumers recognize is MAZOLA corn oil.” Reply Brief at 2.

The crux of this dispute is the label and trade dress of Caribe’s La Mazorca corn oil. At the outset, it is noted that the La Mazor-ca corn oil label displays the word “Mazor-ca” prominently across the center of the label, but the word “La” is presented in very small letters above the “M” in Mazor-ca. Even from a short distance, the La *663 Mazorca corn oil label appears to read “Ma-zorca.”

CPC claims the label of La Mazorca corn oil “closely mimics” that of Mazola corn oil. CPC Brief at 11. As previously mentioned, describing the two labels as CPC does leads to no conclusion other than they are identical.

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731 F. Supp. 660, 16 U.S.P.Q. 2d (BNA) 1856, 1990 U.S. Dist. LEXIS 2200, 1990 WL 17750, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cpc-international-inc-v-caribe-food-distributors-njd-1990.