Duraco Products, Inc. v. Joy Plastic Enterprises Ltd.

822 F. Supp. 1202, 1993 U.S. Dist. LEXIS 7457, 1993 WL 183131
CourtDistrict Court, W.D. Pennsylvania
DecidedMay 25, 1993
DocketCiv. A. 92-270E
StatusPublished
Cited by2 cases

This text of 822 F. Supp. 1202 (Duraco Products, Inc. v. Joy Plastic Enterprises Ltd.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duraco Products, Inc. v. Joy Plastic Enterprises Ltd., 822 F. Supp. 1202, 1993 U.S. Dist. LEXIS 7457, 1993 WL 183131 (W.D. Pa. 1993).

Opinion

OPINION

COHILL, District Judge.

This is an action for trade dress infringement and false advertising under § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a) (“the Act”) brought by plaintiff Duraco Products, Inc. (“Duraco”) against defendants Joy Plastic Enterprises Ltd. (“Joy”), d/b/a Backyard Products (“Backyard”) and Travis Products, Inc. (“Travis”). We have jurisdiction pursuant to 28 U.S.C. § 1338.

Presently before the Court is Duraco’s Motion for a Preliminary Injunction, seeking to enjoin the defendants from any further marketing and sales of its Grecian style plastic planters. After a hearing, and pursuant to Fed.R.Civ.P. 52, we make the following findings of fact and conclusions of law.

J. Findings of Fact

Duraco, a manufacturer of plastic planters previously doing business as Phillips Products Co., Inc., is a profitable Delaware corporation having its principal place of business in Illinois with roughly $35 million in annual sales. About ten percent of Duraco’s business is attributable to the sales of its “Grecian Classics” plastic planters, they being the most profitable item sold by the company. Duraco’s competitors in the Grecian urn market include, inter alia, Tucker Manufacturing Co., Rubbermaid, Inc. and one of the defendants, Joy d/b/a Backyard Products.

Defendant Joy Enterprises, located in Erie, Pennsylvania, uses the name “Backyard Products” for its lawn, garden, and patio items. Defendant Travis manufactures the molds for the plastic planters, and Joy sells the planters. The Joy planters are marketed as “Ultimate Urns.”

Duraco Grecian Classics planters or urns are hour-glass shaped, plastic containers that are available on the market in two models having diameters of twelve and eighteen inches and standing roughly ten and fifteen inches high, respectively. Although lightweight because they are made of plastic, they *1205 look like they are made of marble, cement or stone. They are also comparatively inexpensive because of their construction. The manufacturing process involves injecting molten plastic into molds or dies, allowing the plastic to cool for a time, and then emitting the planter onto a cooling surface before packaging and shipment.

Plaintiff Duraco prides itself in its excellent quality control division. For example, quality control workers remove any “flashing,” or strips of plastic that form on the sides of the planters as a result of cracks in the molding or overly high production rates. Flashing may have sharp edges which can prove harmful to consumers, and is unsightly and is indicative of poor quality. Richard Husby, the Vice President of Marketing and Sales at Duraco, purchased several of Backyard’s planters at a G.C. Murphy store and testified as to their comparatively poor quality, such as drooping flash, poor color and sharp edges and ridges.

The Grecian Classics planters are structured such that there are two parts, including the top “bowl” section, which the purchasing consumer manually connects at a joint to the “base” or “pedestal” of the planter. The Backyard urns have a similar construction. The Duraco planters vary in color from white, granite, blue and rose via a process in which liquid color is injected into plastic in its molten state. Travis uses a less expensive coloring process in making the Backyard Ultimate Urn.

Duraco’s direct customers are largely retailers, but it also supplies the urns to distributors. Its largest customer for Grecian Classics planters is K-Mart, which buys roughly half of all planters sold by Duraco, followed by Walmart, which buys nearly one-fourth of the total number of planters sold by Duraco. Duraco manufactures the urn for roughly 52 percent of its selling price.

Duraco and the retailers typically engage in cooperative advertising, whereby they share the cost of advertising, with Duraco giving to the retailer an allowance of advertising funds based on the percentage of sales. Usually the ad allowance is for two percent of sales, whereby the buyer bills Duraco and Duraco, upon proof of advertisement and its cost, in turn gives a credit memorandum for future sales, or sometimes gives cash to the buyer. With K-Mart, Duraco has a less flexible arrangement whereby it pays K-Mart a two percent quarterly fee without actual proof of advertising being required.

Advertisements for the Duraco Grecian Classics planter appear in Sunday newspaper fliers, magazines, circulars and newspaper ads. They are depicted in concert with other outdoor garden products such as plant food and watering cans. Duraco’s advertising is also directed to the retailers to whom Duraco sells its goods. Such retail-directed advertising comes in the form of brochures and trade advertisements.

The registered trademark of Duraco is the “Garden Scene” logo. Duraco encourages its retailer customers to include either the Duraco tradename or the registered trademark Garden Scene logo in their advertisements, although Duraco has not been able consistently to enforce compliance with the advertising agreement. The agreement with retailers provides that the inclusion of the logo is voluntary on the part of the retailer. When Duraco employees notice that an advertisement fails to include the Duraco logo, they report their complaints to the retailers. The Garden Scene logo appears on over half of the Duraco planters.

The Duraco urn was first conceived at the suggestion of Robert Armstrong, a K-Mart Senior Buyer who has been with that company for 35 years. He suggested the design of the Duraco planter after having attended a trade show in Cologne, Germany in 1984, when he saw similar urn-shaped planters which he knew were not as yet marketed in the United States. Armstrong met with Duraco officials, including Kenneth Sanderson, who was then the vice president of manufacturing. Sanderson Dep. at 2. 1 Armstrong described the urn he had seen as an outdoor planter with much detail.

Duraco then designed a comparable and acceptable sample. To attain the look de *1206 sired by Armstrong, Duraco sought information from a number of sources. Richard Husby, Duraco Vice President of Sales and Marketing, searched for Grecian urns at statuary stores, where he bought some concrete urns to study. He also searched the Duraco literature, because the company had previously sold “rotationally molded” Grecian products.

In fact, Duraco had previously tried to sell the “Cotswold planter” (Def.Ex.D), an English-made Grecian plastics planter, around 1978 or 1979, after being approached by salesman Colton Hough of Colton Creators. Duraco abandoned the Cotswold planter in 1981 due to poor sales, which may have resulted from its relatively high price, $14.99 when compared to the Duraco/Backyard prices of under $5.00. The Cotswold planter has a higher base than the Duraco planter, but has a similar hourglass-like design. The Duraco planter has sharper lines, a lower center of gravity and a more realistic texture to it.

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822 F. Supp. 1202, 1993 U.S. Dist. LEXIS 7457, 1993 WL 183131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duraco-products-inc-v-joy-plastic-enterprises-ltd-pawd-1993.