Genovese Drug Stores, Inc. v. TGC Stores, Inc.

939 F. Supp. 340, 1996 U.S. Dist. LEXIS 13003, 1996 WL 506457
CourtDistrict Court, D. New Jersey
DecidedSeptember 5, 1996
Docket96-3053
StatusPublished
Cited by22 cases

This text of 939 F. Supp. 340 (Genovese Drug Stores, Inc. v. TGC Stores, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Genovese Drug Stores, Inc. v. TGC Stores, Inc., 939 F. Supp. 340, 1996 U.S. Dist. LEXIS 13003, 1996 WL 506457 (D.N.J. 1996).

Opinion

POLITAN, District Judge.

This matter comes before the Court on the application of plaintiff Genovese Drug Stores Inc. for a preliminary injunction against defendant TGC Stores, Inc., seeking to enjoin defendant from using the name take good care for its new health care stores. The Court conducted an evidentiary hearing on August 12-13, 1996, and reserved decision. For the reasons stated herein, plaintiffs application for preliminary relief is DENIED.

BACKGROUND

Plaintiff operates a chain of retail drug stores in New York, New Jersey and Connecticut. Plaintiff has been in business for over seventy years. Defendant is a new company, specializing in home health care products. Within the last few months, defendant opened its first two stores in New Jersey. 1

Nine years ago, plaintiff registered the trademark ‘We’ll Take Good Care of You” as its slogan. Recently, defendant named its stores take good care. Plaintiff alleges that the name chosen by defendant infringes on its trademark. Accordingly, plaintiff filed the instant Complaint and an Order to Show Cause why defendant should not be preliminarily enjoined from using said name pending the outcome of this case.

DISCUSSION

The standards for issuance of a preliminary injunction in Lanham Act cases, as in all others, are well-settled. In ruling on a motion for preliminary injunction, the court must consider: (1) the likelihood that the plaintiff will prevail on the merits; (2) the extent to which the plaintiff is being irreparably harmed; and, where relevant, (3) the extent to which the defendant or other interested persons will suffer irreparable harm if the injunction is issued; and (4) the extent to which the public interest favors the granting of the requested relief. See Merchant & Evans, Inc. v. Roosevelt Bldg. Prods. Co., Inc., 963 F.2d 628, 632-33 (3d Cir.1992); Hoxworth v. Blinder, Robinson & Co., Inc., 903 F.2d 186, 197-98 (3d Cir.1990). See also Morton v. Beyer, 822 F.2d 364, 367 (3d Cir.1987). “[T]he grant of injunctive relief is an extraordinary remedy ... which *344 should be granted only in limited circumstances.” Frank’s GMC Truck Ctr., Inc. v. General Motors Corp., 847 F.2d 100, 102 (3d Cir.1988) (citing United States v. City of Philadelphia, 644 F.2d 187, 191 n.1 (3d Cir. 1980)). See also Falter v. Veterans Admin., 632 F.Supp. 196, 201 (D.N.J.1986) (“There is no power the exercise of which is more delicate, which requires greater caution, deliberation, and sound discretion, or more dangerous in a doubtful case, than the issuing [of] an injunction.”).

An injunction should issue only if the plaintiff produces evidence sufficient to convince the court that all four factors favor preliminary relief. Opticians Ass’n of Amer. v. Independent Opticians of Amer., 920 F.2d 187, 192 (3d Cir.1990). Because the Court finds that plaintiff has not successfully carried its burden of showing a reasonable probability of eventual success on the merits and because the irreparable harm to defendant outweighs any harm to plaintiff, the Court will deny the instant application for preliminary relief.

A. LIKELIHOOD OF SUCCESS ON THE MERITS

Plaintiffs Complaint asserts six causes of action: (1) trademark infringement, under 15 U.S.C. § 1114; (2) dilution, pursuant to 15 U.S.C. § 1125; (3) false designation of origin, false description and representation, and false advertising, under 15 U.S.C. § 1125(a); (4) unfair competition under state law, N.J.S.A 56:4-1 et seq.; (5) common law trademark infringement, unfair competition, misappropriation and passing off; and (6) common law dilution.

1. Trademark Infringement

Plaintiff alleges a cause of action for trademark infringement pursuant to Section 32, of the Lanham Act, 15 U.S.C. § 1114. To succeed on such a claim, the plaintiff must establish: (1) its mark is valid and legally protectable; (2) the mark is owned by the plaintiff; and (3) the defendant’s use of the mark is likely to create confusion. 2 Opticians Ass’n, 920 F.2d at 192 (citing Pedi-Care, Inc. v. Pedi-Care Nursing, Inc., 656 F.Supp. 449, 453 (D.N.J.1987)). The Court finds, and defendant does not challenge, that plaintiff has presented evidence to establish the first two elements. Accordingly, the issue before the Court is the requirement of confusion between the two marks.

The Third Circuit, in Scott Paper Co. v. Scott’s Liquid Gold, Inc., annunciated the factors which the Court must analyze to determine whether two marks are confusingly similar. 589 F.2d 1225, 1229 (3d Cir.1978). The ultimate inquiry is whether the marks create a likelihood of confusion. Plaintiff argues that a more relaxed standard, merely requiring a showing that the marks create a possibility of confusion, is applicable. See Versa Prods. Co., Inc. v. Bifold Co. (Mfg.), Ltd., 50 F.3d 189, 200 (3d Cir.) (citing Merchant & Evans, 963 F.2d at 637-38), cert. denied, — U.S. -, 116 S.Ct. 54, 133 L.Ed.2d 19 (1995); Country Floors, Inc. v. Partnership Composed of Gepner & Ford, 930 F.2d 1056, 1065 (3d Cir.1991); Telechron, Inc. v. Telicon Corp., 198 F.2d 903, 908-09 (3d Cir.1952).

“Where an alleged infringer was new to an area and the plaintiff was well-established, this court has at times replaced the ‘likelihood of confusion’ requirement with a lower ‘possibility of confusion’ standard.” Versa, 50 F.3d at 200. The primary reasons for lowering the standard in this situation are “the general lack of legitimate reasons for copying a competitor’s mark ... and the *345 high degree of reliance by consumers on trademarks as indicators of the source of products.” Id. at 201. The possibility of confusion test, however, only applies when the junior user and the senior user are in the same field. Barre-National, Inc. v. Barr Lab., Inc., 773 F.Supp. 735, 740 (D.N.J.1991). This requires the Court to determine and compare the relevant markets of the two parties. Id.

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939 F. Supp. 340, 1996 U.S. Dist. LEXIS 13003, 1996 WL 506457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/genovese-drug-stores-inc-v-tgc-stores-inc-njd-1996.