Hasbro, Inc. v. MGA Entertainment, Inc.

497 F. Supp. 2d 337, 2007 U.S. Dist. LEXIS 55772, 2007 WL 2182128
CourtDistrict Court, D. Rhode Island
DecidedJuly 31, 2007
DocketC.A. 06-262 S
StatusPublished
Cited by3 cases

This text of 497 F. Supp. 2d 337 (Hasbro, Inc. v. MGA Entertainment, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hasbro, Inc. v. MGA Entertainment, Inc., 497 F. Supp. 2d 337, 2007 U.S. Dist. LEXIS 55772, 2007 WL 2182128 (D.R.I. 2007).

Opinion

MEMORANDUM AND DECISION

WILLIAM E. SMITH, District Judge.

This case involves a trademark dispute between Hasbro, Inc. and MGA Entertainment, Inc. over the use and application of the word “Memory” as it applies to certain two- or three-dimensional matching games marketed and sold by each company. Hasbro seeks a preliminary injunction against MGA barring any further shipping or selling of MGA’s game “3-D Memory Match-Up,” and additionally seeks a recall order requiring MGA to recall its game from distributors and retailers. The basis for Hasbro’s action is its claim that MGA’s use of the word “Memory” infringes on Hasbro’s registered trademark of that word for a line of card-matching games it has sold since 1966. Because Hasbro is unable to establish its likelihood of success on the merits, the motion for a preliminary injunction is DENIED.

I. Background

In 1964, Hasbro’s predecessor Milton Bradley Co. acquired the rights to a game called “Memory” from a German company, Otto Maier Verlag Ravensburg, through a licensing agreement. With the knowledge and permission of Ravensburg, Milton Bradley applied for, and was granted, a trademark for the term “Memory” in 1966. The trademark was registered with the United States Patent and Trademark Office (“USPTO”) in 1967 for the single word “Memory” in a particular stylized design, for use with “equipment comprising cards with many matching pairs of designs for playing a matching card game.” 1

The initial game consisted of 36 pairs of matching cards that featured characters or other images on one side. The players mixed the cards up (akin to shuffling a deck of cards) and then placed them in rows, face down on a flat surface. Play began with each player, in turn, selecting two cards and turning them image-side up. If the two selected cards were identical, the player had made a match and could keep the two cards and select again, otherwise, the cards were replaced, face down and play passed to the next player. This process was repeated until all of the cards were out of play. The player who collected the most pairs of cards was declared the winner.

In 1972, Milton Bradley sent an affidavit to the USPTO to establish the 1967 mark’s incontestability. Milton Bradley averred that it “owned” the 1967 mark, that the mark was still in use, that the mark had been used for five consecutive years, and that there had been no final decision adverse to its claim of ownership of the mark. The “Memory” mark then underwent a series of font changes beginning in *339 1978, and next in 1984 when Hasbro acquired Milton Bradley. The mark was renewed in August of 1987.

In 2008, Hasbro, the now-owner of the 1967 trademark, filed a second application to register the “Memory” trademark. The USPTO registered the mark on October 19, 2004, for “card matching games, in Class 28.” The registration also reflected that “[t]he mark consists of standard characters without claim to any particular font, style, size, or color.”

Over the past thirty-nine years, Hasbro and Milton Bradley have issued numerous themed versions of the Memory game. Hasbro’s stated policy on themed versions is to allow the “core basic original game” to “grow to a state of awareness and significance that it has become big enough to expand” into a themed line of games. On several occasions, Hasbro has also licensed its Memory mark for use on a variety of merchandise. Hasbro also has licensed the use of “Memory” for software and books.

Total revenues from “Memory” sales exceed $130 million. In the past eight years, Hasbro has spent over $20 million in “Memory” advertisements and promotions. This includes two recent national campaigns, “My First Games” and “Games Make Great Gifts,” which each featured “Original Memory” (Hasbro’s original card-matching game), and advertisements on the radio; “Memory” is additionally often featured in periodicals as a favorite toy.

Sometime in either 2003 or 2004 MGA game developers came up with an idea for a three-dimensional version of a memory game. This version eschewed the traditional two-dimensional card model for a design that employed a set of plastic cups, under which certain objects could be placed.

This initial idea, however, was shelved for approximately two years, until MGA acquired a license from Marvel for the “Spider-Man & Friends” name, logo, images and characters. Having acquired the license, MGA reworked the memory game concept into its current form. The game contains 10 molded plastic characters (all “Spider-Man and Friends” characters) that come in two different halves which can snap together (an upper half corresponding with the head and torso and a lower half corresponding with the hips and legs of the character). Game play occurs after the characters are split apart and each half is placed under one of 20 plastic cups. Players take turns picking up two cups at a time to try and match the top half of a character with its corresponding bottom half. Upon finding two matching halves, the player snaps them together and keeps the character. Play continues until all matching character halves are found.

MGA’s game originally appeared on store shelves in December 2005 with the name “Memory Match-Up,” but after it received Hasbro’s initial complaint, it changed the name of the game to “3-D Memory Match-Up.” Additionally, MGA originally placed a “tm” next to the “Up,” but removed it when Hasbro complained. MGA has put very little effort into advertising its game, focusing promotion only on its own website’s Products page.

Six months after MGA acquired its license from Marvel for “Spider-Man and Friends,” Hasbro also obtained a similar license (both licenses were non-exclusive). Upon obtaining this license, Hasbro decided to issue a “Spider-Man and Friénds” themed version of its “Original Memory” game, which, based on past performance, it believed would be quite profitable. However, because Marvel places strict requirements on the style and color of any licensed product including the character ap *340 pearances for the Spiderman and Friends characters, Hasbro’s game would be forced to look very similar to MGA’s “3-D Memory Match-Up.”

On May 5, 2006, before Hasbro had released its “Spider-Man and Friends” memory game, it filed an action for injunc-tive relief against what it deemed to be MGA’s trademark infringement of its “Memory” mark. The Court held an evi-dentiary hearing that ranged over seven days and included testimony from each of the companies along with expert testimony in connection with the origin and history of the memory card-matching game and the use and understanding of the word “Memory.” The parties also submitted evidence, including advertising and product sales history, consumer surveys and market penetration reports, to establish both the nature of the mark itself and the likelihood of consumer confusion.

II. Analysis

During the evidentiary hearing, the parties fought unsparingly for every inch of legal ground. It appears that no potentially probative piece of evidence was left out and every possible argument, on either side, was vigorously pursued, proving that when it comes to fun and games, there is no fooling around.

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497 F. Supp. 2d 337, 2007 U.S. Dist. LEXIS 55772, 2007 WL 2182128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hasbro-inc-v-mga-entertainment-inc-rid-2007.