Gazette Newspapers, Inc. v. New Paper, Inc.

934 F. Supp. 688, 40 U.S.P.Q. 2d (BNA) 1900, 25 Media L. Rep. (BNA) 1428, 1996 U.S. Dist. LEXIS 12053, 1996 WL 478811
CourtDistrict Court, D. Maryland
DecidedJuly 2, 1996
DocketCivil JFM-96-1564
StatusPublished
Cited by8 cases

This text of 934 F. Supp. 688 (Gazette Newspapers, Inc. v. New Paper, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gazette Newspapers, Inc. v. New Paper, Inc., 934 F. Supp. 688, 40 U.S.P.Q. 2d (BNA) 1900, 25 Media L. Rep. (BNA) 1428, 1996 U.S. Dist. LEXIS 12053, 1996 WL 478811 (D. Md. 1996).

Opinion

MOTZ, Chief Judge.

Plaintiff Gazette Newspapers, Inc. alleges that defendant New Paper, Inc. violated federal and Maryland laws against trademark infringement and unfair competition when defendant changed the name of the newspaper it operates to “The Frederick Gazette.” For the reasons that follow, I conclude that plaintiff is entitled to relief.

I

Findings of Fact

After considering the testimony and documentary evidence offered by both sides, I make the following findings of fact:

A

Plaintiff publishes eighteen weekly newspapers in Maryland communities just outside Washington, D.C. Each paper has a name consisting of the name of the community in which the paper is primarily distributed followed by the word “Gazette.” 1 Most papers are circulated primarily or exclusively in Montgomery County, Maryland. One paper, the “Mount Airy Gazette,” circulates widely both in Montgomery County and in adjacent Frederick County.

Plaintiffs predecessor in interest first began publishing a newspaper under the name “Gazette” in 1959 with the “Gaithersburg Gazette.” Over the next thirty-seven years, plaintiff expanded by creating newspapers in other area communities. Most recently, in February, 1996, plaintiff launched the “Wheaton Gazette” and the “Kensington Gazette.” In 1982, plaintiff gained a foothold in Frederick County when it purchased a paper in Mt. Airy and renamed it the “Mt. Airy Courier-Gazette.” In 1984, it changed the name to “Mt. Airy Gazette.” Plaintiff currently distributes more than 270,000 newspapers per week, most through free deliveries to individual residences and some through bulk drops at various locations. Approximately 65 percent of the space in a typical paper is devoted to news, 35 percent to advertising. The papers cover primarily local and regional news. The vast majority of plaintiffs revenue comes from advertising.

Although each of plaintiffs papers uses the name of a community as well as the name “Gazette,” plaintiff frequently refers to itself or its publications as “Gazette Newspapers” or simply “Gazette.” For example, “Gazette Newspapers” appears on the editorial page of the papers and on special pullout sections. Plaintiff also uses “Gazette Newspapers” in *691 sponsoring charity and community events and on promotional items like t-shirts and coffee mugs. Plaintiff also sponsors a cable television program called “Gazette News-makers,” which appears on a local access channel in Montgomery County.

Although plaintiff’s newspapers circulate mainly in Montgomery County, they are known throughout Frederick County as well. 2 Plaintiff distributes about 4700 copies of its papers a week in Frederick County. Although most of those papers are distributed in the Mount Airy area, a few are distributed in the city of Frederick. Plaintiff also conducts a number of its promotional activities in Frederick County.

Others in Frederick County have been exposed to plaintiffs newspapers as a result of the close economic and social relationship between Frederick County and Montgomery County. Approximately 32,000 Frederick County residents — nearly a quarter of the county’s workforce — commute to work into Montgomery County. Approximately 22,000 people moved into Frederick County from Montgomery County between 1980 and 1990. Many others travel from Frederick County to Montgomery County to shop or visit. Because plaintiff’s papers circulate throughout Montgomery County, these Frederick County residents have had many opportunities to become familiar with the Gazette chain.

The advertising revenue for plaintiffs newspapers demonstrates another aspect of the close relationship. Over the past three years, plaintiffs eighteen papers have received approximately $1 million a year in advertising revenue from approximately 1000 Frederick County businesses and other sources. 3 Of that $1 million, about 30 percent comes from the Mt. Airy area. After Mt. Any, the city of Frederick contains the single largest concentration of advertisers in Frederick County.

In recent months, plaintiff has actively explored the possibility of creating a “Frederick Gazette.” In February, 1996, Charles A. Lyons, president of Gazette Newspapers, asked Maury Hassett, a longtime employee, to investigate expansion of the Gazette chain into additional communities in Frederick County. In April, 1996, Hassett recommended creation of a paper called the “Frederick Gazette” with a target date for the first issue in September or October, 1996.

B

Defendant has published a newspaper in Frederick County for the past eight years. Until May 1, 1996, that publication used the name “The New Paper.”

The New Paper distributes about 25,000 newspapers in Frederick County, mainly in or near the city of Frederick. Like the Gazettes, The New Paper is delivered through free deliveries to individual residences and bulk drops at locations like offices, stores and restaurants.

On more than one occasion, The New Paper’s publisher, William Lafferman, has expressed interest in joining forces with the Gazette chain. On November 9, 1995, Lafferman wrote to Donald Graham, president of the Washington Post Co., which owns the Gazette chain, to tout the benefits of a business relationship. In that letter Lafferman noted that “Northern Montgomery County ... and Frederick are in many respects one community. A large percentage of Frederick’s workforce commutes to Montgomery County. Likewise, Frederick County acts as Montgomery County’s rural playground.” On November 28, 1995, Lyons, the president of Gazette Newspapers, responded in a letter to Lafferman. Lyons wrote that “[wjhile long-term the Frederick market looks very attractive,” the Gazette chain was not interested in joining forces with The New Paper.

In its March 27, 1996, edition, The New Paper told its readers that it intended to change its name and was soliciting suggestions. A column authored by Lafferman *692 said, “We’ll change the name to whatever the majority opinion says it should be. Or if someone comes up with a real gem of a name, we’ll go with that.” The paper received about 60 responses, many of which included multiple suggestions. Five responses included the suggestion of “Frederick Gazette,” one suggested “The Lafferman Gazette,” and one suggested “Clustered Spires Gazette” [sic]. Depending on how the numbers were tabulated, “Gazette” finished either second or third among the responses. In the May 1, 1996, edition — the issue in which the paper first appeared as “The Frederick Gazette” — a column written by Lafferman indicated that “Gazette” finished third, behind “The Other Paper” and a category that included names associated "with Frederick landmarks and historic figures.

Lafferman has testified that he was seeking a more traditional newspaper name. Although he has conceded that any of number of names, such as “Chronicle,” “News” or “Tribune,” would have served his legitimate purposes, he selected the name “The Frederick Gazette.” Shortly after making his decision, Lafferman spoke with Karl Spain, who owns an eighteen percent share of The New Paper, Inc. and Ryan Phillips, whose wife owns a fifty-one percent share.

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934 F. Supp. 688, 40 U.S.P.Q. 2d (BNA) 1900, 25 Media L. Rep. (BNA) 1428, 1996 U.S. Dist. LEXIS 12053, 1996 WL 478811, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gazette-newspapers-inc-v-new-paper-inc-mdd-1996.