Grout Shield Distributors, LLC v. Elio E. Salvo, Inc.

824 F. Supp. 2d 389, 2011 U.S. Dist. LEXIS 132091, 2011 WL 5560296
CourtDistrict Court, E.D. New York
DecidedNovember 16, 2011
Docket11-CV-3543 (JFB) (ARL)
StatusPublished
Cited by11 cases

This text of 824 F. Supp. 2d 389 (Grout Shield Distributors, LLC v. Elio E. Salvo, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grout Shield Distributors, LLC v. Elio E. Salvo, Inc., 824 F. Supp. 2d 389, 2011 U.S. Dist. LEXIS 132091, 2011 WL 5560296 (E.D.N.Y. 2011).

Opinion

MEMORANDUM AND ORDER

JOSEPH F. BIANCO, District Judge.

Plaintiff Grout Shield Distributors LLC (“Grout Shield Distributors” or “plaintiff’) brought the instant action against defendant Elio E. Salvo, Inc., doing business as Miracle Sealants Company (“Miracle Sealants” or “defendant”), under the Lanham Act for trademark infringement, false designation of origin, and trade dress infringement, as well as under New York law, regarding defendant’s use of an unregistered trademark, described in detail infra, in connection with its grout protection products. Grout Shield Distributors seeks a preliminary injunction that would enjoin Miracle Sealants from using the trademark in connection with its grout stain protection product line until a final determination is made on the merits of plaintiffs claims.

The Court held an evidentiary hearing on the motion for a preliminary injunction on September 9, 2011, which was continued to September 12, 2011, and after which the parties submitted written letters to supplement briefs submitted prior to the hearing. At the preliminary injunction hearing, the parties had the opportunity to examine witnesses and present documentary evidence.

Having carefully reviewed the evidence and assessed the credibility of the witnesses, the Court makes the following Findings of Fact and Conclusions of Law, pursuant to Rules 52(a) and 65 of the Federal Rules of Procedure, and denies the motion for a preliminary injunction for the reasons set forth in this Memorandum and Order. Specifically, the Court concludes that plaintiff has failed to demonstrate irreparable harm because of (1) plaintiffs acknowledgement that, as of the date of the hearing, defendant’s product had not affected plaintiffs sales; and (2) the unreasonable delay by plaintiff in *393 bringing the preliminary injunction motion — namely, over 18 months after plaintiff became aware of defendant’s product, and approximately 5 months after settlement discussions broke down. In the alternative, even assuming arguendo that plaintiff had demonstrated irreparable harm, plaintiff has failed to demonstrate a likelihood of success on the merits. As a threshold matter, given that plaintiff never registered the “Grout Shield” mark, it cannot rely on any presumption of validity that a registration would provide. Moreover, plaintiff has failed to demonstrate likelihood of success on the merits because (1) plaintiff has failed to put forth sufficient evidence that the descriptive mark has acquired secondary meaning, such that it is protectable; and (2) even if plaintiff has established secondary meaning, plaintiff has failed to demonstrate a likelihood of consumer confusion. Finally, even if plaintiff demonstrated sufficiently serious questions going to the merits to make them a fair ground for litigation, plaintiff has failed to demonstrate a balance of hardships tipping decidedly in plaintiffs favor.

I. Background

Before proceeding to delineate the Court’s Findings of Fact for purposes of Rule 52(a), the Court begins by providing a summary of the instant matter and the foundation of the factual dispute between the Parties.

A. The Mark

The controversy in the instant case centers on a dispute over the rightful owner of the Grout Shield word mark (hereinafter “Grout Shield mark”). (Compl. ¶¶ 14-15, 47.) The Grout Shield word mark consists of the words “Grout Shield.” 1 Plaintiff does not claim rights to a particular font, style, size or color of the text. It is undisputed that plaintiff has not registered the Grout Shield mark.

B. Plaintiffs Allegations

Plaintiff claims that it has been using some variation on the Grout Shield mark since 2006, displayed prominently on its products related to coloring, cleaning, and sealing grout. (Id. ¶¶ 11, 14, 17, 20.) Plaintiff further claims that it owns the rights to use GROUTSHIELD.com and GROUTSHIELDS.com domain names. (Id. ¶ 16.) Grout Shield Distributors sells its products over the internet throughout the United States, in retail stores on Long Island, and has established distributorships in a number of states. (Id. ¶ 19.)

Plaintiff seeks a preliminary injunction to bar defendant from using the Grout Shield mark. 2 (Pl.’s Mot. at 3.) Plaintiff contends that defendant’s product is confusingly similar to its own and that its business will be harmed if defendant continues to sell its products using the Grout Shield mark.

*394 II. Findings of Fact

After reviewing the testimony and documentary evidence, the Court makes the findings of fact discussed below.

A. Grout Shield Distributors— Development and Use of Grout Shield Mark

In November 2006, Michael Stracuzza (“Stracuzza”), plaintiffs president and owner, started Grout Shield Distributors to sell the grout products central to this dispute. (Preliminary Injunction Hearing, dated September 9, 2011 (hereinafter “Tr. Sept. 9”) at 51:15-18, 52:1-23.) The products include a grout cleaner, a grout enhancer, and a color seal. (Id at 52:15-16; Def.’s Ex. 3 A-C.) Plaintiff has been using the Grout Shield mark as well as “Grout Shields” on its products since 2006. (Preliminary Injunction Hearing, dated September 12, 2011 (hereinafter “Tr. Sept. 12”) at 34:11-18.)

In addition, plaintiff has been using other word marks and logos on its products. For example, plaintiff has used the word mark “GroutShield” to promote its products. (Def.’s Ex. I (on a YouTube video uploaded on June 13, 2007)); (Def.’s Ex. J (on a YouTube video uploaded on December 25, 2006).) Plaintiff has also used a logo with a gladiator beside the words “Grout Shields” and “Grout Restoration System.” (Pl.’s Ex. 10 at 1, 7; Tr. Sept. 9 at 112:9-12.) Within the past year, plaintiff started using the Grout Shield mark on a background of a red shield with a banner running between the words “Grout” and “Shield” (hereinafter the “red shield logo”). 4 (Tr. Sept. 12 at 59:7-20; see also Def.’s Ex. A-C, Def.’s Ex. F-G.) The word “GROUT” appears at the top of the red shield and the word “SHIELD” is at the bottom; a banner with the words “Grout Restoration System” in uppercase letters runs across the red shield in-between “GROUT” and “SHIELD.” (See, e.g., Def.’s Ex. A-C; Tr. Sept. 9 at 108:24-109:9.)

All three of plaintiffs products are advertised on their labels as protecting grout from mold, mildew and stains. (Def.’s Ex. A-C.) The color seal is advertised as restoring the color of grout. (Id. Ex. A.) It is a “finish top coat” that is applied onto *395 the grout line. (Id.) The tile and grout deep cleaner “lifts dirt from the grout” and, like the color seal, requires topical application onto set grout. (Id. Ex.

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824 F. Supp. 2d 389, 2011 U.S. Dist. LEXIS 132091, 2011 WL 5560296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grout-shield-distributors-llc-v-elio-e-salvo-inc-nyed-2011.