Del Laboratories, Inc. v. Alleghany Pharmacal Corp.

516 F. Supp. 777, 215 U.S.P.Q. (BNA) 421, 1981 U.S. Dist. LEXIS 12928
CourtDistrict Court, S.D. New York
DecidedJune 26, 1981
Docket80 Civ. 2719
StatusPublished
Cited by10 cases

This text of 516 F. Supp. 777 (Del Laboratories, Inc. v. Alleghany Pharmacal 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
Del Laboratories, Inc. v. Alleghany Pharmacal Corp., 516 F. Supp. 777, 215 U.S.P.Q. (BNA) 421, 1981 U.S. Dist. LEXIS 12928 (S.D.N.Y. 1981).

Opinion

MEMORANDUM DECISION

GAGLIARDI, District Judge.

Plaintiff Del Laboratories, Inc. (“Del”) distributes a line of skin care products under the trademark REJUVIA. Del commenced this action against defendant Alleghany Pharmacal Corp. (“Alleghany”) alleging both trademark infringement under the Lanham Act, 15 U.S.C. §§ 1051 et seq. and unfair competition as a result of Alleghany’s use of the trademark REJUVA-NAIL on a nail repair kit. The court held a combined hearing on plaintiff’s application for preliminary and permanent relief. Following are the court’s findings of fact and conclusions of law, together with its reasons for holding that Alleghany’s use of REJUVA-NAIL for a nail repair product does not infringe plaintiff’s REJUVIA mark.

Del is a manufacturer of various drug and cosmetic products. It acquired the REJUVIA mark, originally registered in 1931, in 1967. After 1967 and through the early 1970’s, the name REJUVIA appeared on several Del products, including nail polish, as a designation of a division of Del rather than as a trademark, in conjunction with another Del trademark “Flame-Glo”. In 1972, Del separated the REJUVIA and Flame-Glo divisions, continuing to distribute certain products, although not nail polish, under the Flame-Glo mark.

At approximately the same time, Del introduced a line of skin care products, intended to appeal to women over thirty, under the REJUVIA mark. Six products currently bear the REJUVIA MARK: Vitamin E Hand and Body Lotion, Vitamin E *779 Skin Beauty Creme, Vitamin E Skin Beauty Oil, Vitamin E Penetrating Moisture Formula, Peel-Off Mask and Musk Oil. Total gross sales for these products between 1975 and the first quarter of 1980 were nearly $3,000,000 with a high of $800,000 in 1976, a low of $355,000 in 1979, and approximately $425,000 in the two intervening years. During that same period, plaintiff expended approximately $150,000 in co-op advertising, its primary advertising form.

In the past two years plaintiff has spent a very small portion of its advertising dollar on Musk Oil and Peel-Off Mask, and sales of these two products account for a comparatively minor percentage of total sales. Thus, it can be fairly stated that the REJUVIA trademark is primarily used in conjunction with the Vitamin E skin care products. These products appear together in ads and promotional literature and are sometimes designated as the REJUVIA Vitamin E Skin Beauty Care Collection. Del’s 1979 Annual Report illustrates the four products together with the following description: “The Rejuvia trademark is applied to a selective group of skin care products formulated with Vitamin E.” The Rejuvia line is sold through both chain and independent drug stores and discount stores.

Del also distributes a complete line of hand and nail care products under the “Sally Hansen” trademark. Although sales figures were not produced, the 1979 report describes the Sally Hansen brand as a leader in its field, nationally advertised through television commercials and prominent women’s publications. One of the Sally Hansen products is “Mend-a-Nail”, described as a nail mending kit. Del's product research division is currently developing new hair products to be distributed through its Rejuvia division.

Defendant Alleghany distributes over-the-counter drugs, cosmetics and other consumer household products. In 1979 its net sales exceeded $12,000,000 and it spent $4,000,000 in advertising. The Larry Mathews division of Alleghany, responsible for developing new cosmetic products, conceived the idea of a nail repair product in 1979. It selected the name REJUVANAIL because it conveyed the impression of renewing a nail. A patent application submitted in February, 1980 was still pending at the time of the hearing.

The REJUVA-NAIL package contains a nail buffer, simulated nails in various sizes and an adhesive containing the ingredient alpha cyanoacrylate. This adhesive is popularly known as “Krazy Glue”. The adhesive is intended to bond the simulated nail to the natural nail. The adhesive can also bond skin, a fact which is not revealed on the REJUVA-NAIL package, but is stated on the directions inside the package and on the glue tube itself. In the event that skin bonding occurs, the directions rather obliquely suggest that the user apply nail polish remover immediately. Persons with bonded skin may be treated by a physician who can effectively apply the same treatment within a few hours. Attempts to separate skin without application of polish remover may result in torn skin.

Promotion of REJUVA-NAIL was commenced in 1979 and orders were shipped in January 1980. During the first five months of 1980 sales totalled approximately $145,-000 to $150,000. Alleghany spent $50,000 in advertising from the product’s inception, and at the time of trial was committed to spend $50,000 to $100,000 more. REJUVANAIL is distributed through the same outlets as are plaintiff’s products.

Plaintiff introduced the results of a survey of 300 women conducted on plaintiff’s behalf at three suburban shopping malls in the metropolitan New York area. The respondents, selected randomly as long as they were at least 18 years of age and used or purchased cosmetics, were shown five products, among them REJUVA-NAIL and REJUVIA Penetrating Moisture Formula and three unrelated products, and were asked to select which, if any, were made by the same manufacturer. 38% of the respondents selected the plaintiff’s and defendant’s products, along with at least one other; 28% selected only the two products at issue.

*780 Discussion

The issue in a trademark infringement case is “ ‘whether there is any likelihood that an appreciable number of ordinarily prudent purchasers are likely to be misled, or indeed simply confused, as to the source of the goods in question.’ ” McGregor-Doniger Inc. v. Drizzle Inc., 599 F.2d 1126, 1130 (2d Cir. 1979) (hereinafter “McGregor”), quoting Mushroom Makers, Inc. v. R.G. Barry Corp., 580 F.2d 44, 47 (2d Cir. 1978), cert. denied, 439 U.S. 1116, 99 S.Ct. 1022, 59 L.Ed.2d 75 (1979). When the products are different, as in the instant case, the court is guided by the following factors in determining whether the senior user is entitled to relief:

The strength of his mark, the degree of similarity between the two marks, the proximity of the products, the likelihood that the prior owner will bridge the gap, actual confusion, and the reciprocal of defendant’s good faith in adopting its own mark, the quality of defendant’s product, and the sophistication of the buyers. Even this extensive catalogue does not exhaust the possibilities — the court may have to take still other variables into account.

Polaroid Corp. v. Polorad Electronics Corp., 287 F.2d 492, 495 (2d Cir.), cert. denied, 368 U.S. 820, 82 S.Ct. 36, 7 L.Ed.2d 25 (1961); accord, McGregor, supra, 599 F.2d at 1130.

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516 F. Supp. 777, 215 U.S.P.Q. (BNA) 421, 1981 U.S. Dist. LEXIS 12928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/del-laboratories-inc-v-alleghany-pharmacal-corp-nysd-1981.