Floralife, Inc. v. Floraline International, Inc.

633 F. Supp. 108, 1985 U.S. Dist. LEXIS 15097
CourtDistrict Court, N.D. Illinois
DecidedOctober 9, 1985
Docket85 C 6214
StatusPublished
Cited by6 cases

This text of 633 F. Supp. 108 (Floralife, Inc. v. Floraline International, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Floralife, Inc. v. Floraline International, Inc., 633 F. Supp. 108, 1985 U.S. Dist. LEXIS 15097 (N.D. Ill. 1985).

Opinion

MEMORANDUM OPINION

WILL, District Judge.

This action, as its title may suggest, involves a trademark dispute between two businesses in the floral products and services industry. The plaintiff alleges that the similarities between its registered trademark FLORALIFE and the defendant’s FLORALINE mark have resulted or are likely to result in confusion to the public, damage to the plaintiff’s business, and invasion of its state and federal trademark protections. Before us are two fully-briefed motions: the defendant’s motion to dismiss for improper venue or, alternatively, to transfer to the Eastern District of Michigan; and the plaintiff’s motion for a limited preliminary injunction. For the reasons stated below, the defendant’s motion is denied and the plaintiff’s motion is granted.

I. Background

For nearly fifty years, the plaintiff Floralife, Inc. (“Floralife”) and its predecessor, Amling Company, have been engaged in the business of supplying specialty products for florists under the FLORALIFE trademark. Floralife has advertised its products extensively and its name is widely recognized among florists and consumers of floral supplies. From 1978 to 1983, its sales have been in the range of three to five million dollars annually. Its leading product is a preservative used to prolong the life and beauty of cut flowers.

Floralife is the owner of three registered trademarks employing the FLORALIFE name. U.S. Trademark Registration No. 398,694 was issued to Amling Company in 1942 for the word FLORALIFE rendered in special form as applied to the preservative product. Registration No. 366,178 comprises the mark FLORALIFE & DESIGN and includes the words “Helps Flowers Live Longer.” Registration No. 1,181,726 consists of the mark FLORALIFE and is used for a plastic cellular composition base for making and holding cut flower arrangements. Each of these registrations remain in full force and effect.

Prior to 1984, the defendant Floraline International, Inc. (“Floraline”) was doing business as a retail florist under the name Paul Kostoff Flowers, Inc. In April, 1981, the defendant filed two applications for federal registration, one on the word mark FLORALINE and the other on the composite mark FLORALINE & DESIGN. Each application claimed first use of March 7, 1981 for “retail flower store services, with the added feature of ordering floral gifts at remote booths.” Floralife, Inc. v. Flora-line Int’l, Inc., Opposition Nos. 67,107 & 67,108, slip op. at 1-2 (T.T.A.B. Nov. 9, 1984). Floralife instituted opposition proceedings in the United States Patent and Trademark Office (“U.S.P.T.O.”) against both applications and the two cases were consolidated for hearing and decision by the Trademark Trial and Appeal Board (“T.T.A.B.”).

In an opinion dated November 9, 1984, the T.T.A.B. sustained the oppositions and denied the applications for registration. Floraline filed a request for reconsideration *110 that was denied on January 28, 1985. Floraline then filed an emergency petition before the U.S.P.T.O. to convene a new hearing panel of the T.T.A.B. On May 30,1985, the Assistant Commissioner for Trademarks of the U.S.P.T.O. denied the petition. Pursuant to 15 U.S.C. § 1071(a), Floraline filed an appeal to the United States Court of Appeals for the Federal Circuit (No. 85-2594) that is still pending as of the date of this Memorandum Opinion.

II. Venue

Floraline urges that we dismiss or transfer this case under 28 U.S.C. § 1406(a) (1982) for lack of venue. The only issue is whether Floraline is “doing business” in this district or Floralife’s claim arises here. 28 U.S.C. § 1391(b), (c) (1982). If either of these elements are established, venue in this district is proper.

Floraline is a Michigan corporation with its principal place of business in Dearborn, Michigan. Its business consists of receiving floral gift orders from consumers and forwarding them to retail florists located in the vicinity of the gift recipient. The orders are placed from telephone terminals located in airports, department stores, and hotels or 24 hours a day from any telephone by calling a toll-free 800 number. They are forwarded via American Floral Services, a wire service with offices in Oklahoma City, Oklahoma. Customarily, they are charged to a credit card (Visa or Master Charge) of the person placing the order.

According to the affidavit of Floraline’s vice-president, Albert M. Pedrosi, Floraline has no offices, salesmen, representatives, or employees in Illinois. Its only Illinois property consists of four telephone terminals, or at least 4% out of a total of nearly 100 nationwide. All the Illinois terminals are located inside Zayre department stores and contain instructional and promotional materials. 1 From October 24, 1984 (the date the Illinois terminals were installed) through July 31, 1985, Floraline had sales of $444.00 resulting from orders placed at Illinois terminals; this figure represents less than 0.6% of its total sales of $71,-732.00 for that period. 2 The amount of orders placed outside Illinois for delivery by Illinois florists to residents of this district has not been disclosed by Floraline and may well be substantially greater. Nor have they disclosed the volume of orders placed through telephones in Illinois other than the four Zayre store terminals.

Clearly, Floraline is “doing business” in this district and its business contacts are “more than minuscule.” Tefal, S.A. v. Products Intern. Co., 529 F.2d 495, 497 (3d Cir.1976); Chicago Reader, Inc. v. Metro College Publishing Co., 495 F.Supp. 441, 443-44 (N.D.Ill.1980); McDonald’s Corp. v. Congdon Die Casting Co., 454 F.Supp. 145, 148 (N.D.Ill.1978). While in terms of dollar volume the amount of business may be rather small, Floraline’s commercial activities cannot be measured solely in terms of completed sales. Each of its telephone terminals functions as a sort of sales representative, soliciting orders, promoting Floraline’s services and familiarizing the public with its name. Moreover, as Floralife points out, Floraline must have contractual arrangements with Zayre department stores as well as with retail florists in this area. See Pl.Ex., Affidavit of William J. Gigler.

For similar reasons, Floraline’s order figures may not accurately reflect the scope of infringement occurring in this district. Infringement—the claim which must “arise” here—is a result of likely confusion in the public mind over the source of a product or service. LeBlanc Corp. v. Selmer, Inc., 310 F.2d 449, 457 (7th Cir.1962), cert. denied, 373 U.S. 910, 83 S.Ct. 1299, 10 L.Ed.2d 412 (1963). For each individual

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Bluebook (online)
633 F. Supp. 108, 1985 U.S. Dist. LEXIS 15097, Counsel Stack Legal Research, https://law.counselstack.com/opinion/floralife-inc-v-floraline-international-inc-ilnd-1985.