Cuisinarts, Inc. v. Robot-Coupe International Corp.

509 F. Supp. 1036, 213 U.S.P.Q. (BNA) 551, 1981 U.S. Dist. LEXIS 12630
CourtDistrict Court, S.D. New York
DecidedMarch 11, 1981
Docket81 Civ. 731-CSH
StatusPublished
Cited by15 cases

This text of 509 F. Supp. 1036 (Cuisinarts, Inc. v. Robot-Coupe International Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cuisinarts, Inc. v. Robot-Coupe International Corp., 509 F. Supp. 1036, 213 U.S.P.Q. (BNA) 551, 1981 U.S. Dist. LEXIS 12630 (S.D.N.Y. 1981).

Opinion

MEMORANDUM OPINION AND ORDER

HAIGHT, District Judge:

Cuisinarts, Inc. brought this action against Robot-Coupe International Corporation (“RC-I”) for alleged violation of the Lanham Act, 15 U.S.C. §§ 1114(1), 1125(a), and the laws of the State of New York. Jurisdiction is predicated on 15 U.S.C. § 1121, 28 U.S.C. § 1338(a) and (b), and the doctrine of pendent jurisdiction. The case is before the Court on Cuisinarts’ motion for a preliminary injunction.

The dispute turns upon RC-I’s advertising, promotion and marketing of food processors and related accessories, designed for use in the home. The home food processor (as opposed to professional models used in restaurants) has achieved dramatic commercial success in the United States during the past decade. The present case pits Cuisinart, the most successful domestic distributor of home food processors, against the American affiliate of Robot-Coupe S.A., a French corporation founded by the inventor of the original device. The issues are hotly contested. The verbal exchanges between the parties in their affidavits, and counsel in their briefs, are as cutting in their own fashion as the whirling blades of a food processor, slicing and chopping, or reducing fruits and vegetables to a puree.

I.

The following undisputed facts emerge from the affidavits.

In 1963 a French inventor, Pierre Verdun, originated a food processor for use in professional kitchens. Verdun obtained a French patent on this device in 1964, and formed Robot-Coupe S.A. (“RC”) to produce and market the device. By 1971, RC’s professional food processors had been sold to restaurants throughout Europe and in the United States.

By 1971, Verdun had adapted the food processor so that it could be used in the home. He obtained a further French patent on his invention in 1973. RC sold its home food processors in Europe and the Middle East, marketing 21,366 units in these areas in 1972.

Carl G. Sontheimer, the President of Cuisinarts, observed RC’s home-adapted food processor while attending a trade show in France in 1971. Sontheimer, a retired physicist and engineer, had founded Cuisinarts in 1971 with his wife. Cuisinarts’ first commercial product, marketed under the Cuisinart trade name, was an imported line of stainless steel cookware. Sontheimer purchased some RC home food processors *1038 for testing, with a view towards marketing them in the United States. Sontheimer communicated with RC toward that end, and designed alterations in the machine' which he persuaded RC to incorporate. Certain of these alterations were designed to make the processor safe for home use. Sontheimer currently holds United States patents on some of these alterations.

In December, 1972, RC and Cuisinarts entered into a contract pursuant to which Cuisinarts became the exclusive distributor in the United States of RC’s home food processors. Under the terms of the contract, Cuisinarts could not sell food processors made by anyone else. Cuisinarts mounted a successful promotional, advertising and marketing campaign, and the device found ready acceptance with the American housewife. United States sales soared from 1200 units in 1973 to upwards of 290,-000 units in 1980.

In September, 1976, Cuisinarts obtained from the United States Patent Office federal trademark registration number 1,048,883 for the trademark “CUISINART.” The trademark registration recites that it was issued for:

“FOOD PROCESSOR KITCHEN MACHINES FOR CUTTING, SLICING, GRATING, RASPING AND CHOPPING FOOD ITEMS, AND FOR ACCESSORY ATTACHMENTS THERETO, IN CLAUSE 7 (U.S.CL.23).”

The first use, and appearance in commerce, is stated to be in or about July, 1973.

Burgeoning sales were accompanied by quality control problems in manufacture by RC, which led to recalls and other difficulties. In early 1978, Sontheimer threatened RC with termination of the distributorship, and the suspension by Cuisinarts of its entire food processor business, unless RC permitted Cuisinarts to sell food processors made by others, as well as the RC-manufactured line. RC agreed to this amendment in its contract with Cuisinarts.

Following the amendment, Cuisinarts contracted with Sanyei Corporation, a Japanese manufacturer, to build a food proc-' essor to Cuisinarts’ specifications, embodying Cuisinarts’ modifications. Sanyei commenced manufacture of Model DLC-7 in 1978, and Model DLC-8 in 1979. Cuisinarts marketed these models in the United States under its own trade name, and continued, during this period, to market processors manufactured by RC, also under its “Cuisinart” trade name.

Freed of its obligation to distribute only RC-manufactured food processors, Cuisinarts turned increasingly to its Japanese source of supply. In 1979, less than forty percent of Cuisinarts’ dollar volume represented food processors manufactured by RC. In 1980, that percentage was further reduced by half. RC, dissatisfied with its diminishing United States sales, gave notice in August, 1980 of its intention to terminate Cuisinarts’ distributorship. That termination became effective December 31, 1980. In October, 1980, in anticipation of its severed relationship with Cuisinarts, RC formed RC-I, a Delaware corporation, to market RC food processors in the United States under the name “Robot-Coupe.” The President of RC-I, Alvin B. Finesman, was until 1979 director of development at Cuisinarts. The advertising and marketing campaign launched by RC-I on behalf of the RC-manufactured food processors, now sold in the United States under the name “Robot-Coupe,” gives rise to this litigation.

II.

The litigation is acerbic because competition in a lucrative market is compounded by personal animosity. Messrs. Sontheimer and Finesman do not like each other. Finesman gave an interview to a trade publication in January, 1981 (“... A1 Finesman doesn’t like Carl Sontheimer ... ‘somebody’s got to stop him,’ he says ... He’s taken Sontheimer’s product, he’s taken his warehouse manager, he’s even taken his old secretary. Now he’s out to take his business.”); Sontheimer’s affidavit evidences a comparable personal regard for Finesman. Cuisinarts’ basic perception is that RC-I is stealing its successful trademark; RC-I responds that Cuisinarts has pirated RC’s successful invention.

*1039 Broader ramifications of these commercial and personal disputes are not before me. Neither party asserts a claim of patent infringement. I am concerned only with the question whether RC-I’s advertising and promotion campaign makes unauthorized use of the CUISINART trademark in such a manner as to violate the Lanham Act and pertinent state law. To answer that question, RC-I’s advertising and promotion campaign must be considered in some detail.

The evidence focuses upon RC-I’s advertisements in papers and trade journals, and its promotional demonstrations in department stores. A number of advertisements are in evidence, as exhibits to affidavits.

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509 F. Supp. 1036, 213 U.S.P.Q. (BNA) 551, 1981 U.S. Dist. LEXIS 12630, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cuisinarts-inc-v-robot-coupe-international-corp-nysd-1981.