Heisman Trophy Trust v. Smack Apparel Co.

637 F. Supp. 2d 146, 2009 U.S. Dist. LEXIS 64523, 2009 WL 2170352
District Court, S.D. New York·Decided July 17, 2009·No. 08 Civ. 9153(VM)·Published·Cited by 5 cases

Opinion

DECISION AND ORDER

VICTOR MARRERO, District Judge.

Plaintiff The Heisman Trophy Trust (“The Heisman Trust”) brought this action alleging that defendant Smack Apparel Company (“Smack Apparel”) breached a settlement agreement with The Heisman Trust, and continues to infringe and dilute The Heisman Trust’s trademarks. By Order dated January 9, 2009, the Court issued a preliminary injunction prohibiting Smack Apparel from using The Heisman Trust’s trademarks or service marks, or any confusingly similar marks, on or in connection with Smack Apparel’s goods or services. The Court subsequently set out its reasoning in a Decision and Amended Order dated January 23, 2009 (the “Decision and Amended Order”). 1

The Heisman Trust has now moved for partial summary judgment on its claim for breach of the settlement agreement, seeking a permanent injunction against Smack Apparel and an award of attorneys’ fees. For the reasons set forth below, the Court GRANTS The Heisman Trust’s motion for partial summary judgment. The Court will not issue a decision on The Heisman Trust’s application for an award of attorneys’ fees until The Heisman Trust has submitted further documentation in support of that application.

I. BACKGROUND 2

The Heisman Trust is a registered not-for-profit trust charged with supporting *151 public charities, especially those that support and encourage student athletics; providing scholarships; and promoting youth physical fitness in high school and college. The Heisman Trust owns the rights for all intellectual property relating to the Heisman Trophy. These rights were transferred to it by The Downtown Athletic Club of New York City, Inc. (the “Downtown Athletic Club”), the organization that was originally responsible for awarding the Heisman Trophy.

The Heisman Trophy is awarded each year in recognition of an outstanding college football player. The presentation of the award is generally preceded by coverage from national television networks, newspapers, magazines, and radio talk shows, and the award itself is presented on ESPN television network, with millions of viewers watching. The Heisman Trust owns the following federal trademark and service mark registrations relating to the Heisman Trophy (the “Heisman Marks”):

1) HEISMAN MEMORIAL TROPHY, U.S. Trademark Reg. No. 936,853, dated June 27, 1972, for “promoting interest, excellence and sportsmanship in intercollegiate football through the medium of an annual award” (Amended Complaint, Ex. A at 1);
2) HEISMAN MEMORIAL TROPHY AND DESIGN, U.S. Trademark Reg. No. 936,852, dated June 27, 1972, for “promoting interest, excellence and sportsmanship in intercollegiate football through the medium of an annual award” (id. at 2);
3) HEISMAN TROPHY AWARD, U.S. Trademark Reg. No. 1,397,161, dated June 10, 1986, for “promoting interest, excellence and sportsmanship in intercollegiate football through the medium of an annual award” (id. at 3);
4) HEISMAN TROPHY, U.S. Trademark Reg. No. 3,139,387, dated September 5, 2006, for “promoting interest, excellence and sportsmanship in intercollegiate football through the medium of an annual award” (id. at 4);
5) HEISMAN TROPHY, U.S. Trademark Reg. No. 3,477,047, dated July 29, 2008, for “clothing, namely T-shirts and hats” (id. at 5);
6) HEISMAN, U.S. Trademark Reg. No. 1,397,160, dated June 10, 1986, for “promoting interest, excellence and sportsmanship in intercollegiate football through the medium of an annual award” (id. at 6);
7) HEISMAN, U.S. Trademark Reg. No. 3,388,826, dated February 26, 2008, for “video games, namely video game software, interactive video game programs, and video game discs” (id. at 7);
8) HEISMAN, U.S. Trademark Reg. No. 3,311,769, dated October 16, 2007, for “footballs” (id. at 8); and
9) HEISMAN, U.S. Trademark Reg. No. 3,331,298, dated November 6, 2007, for “shirts, sweat shirts, hats, visors and jackets” (Tilly Declaration, dated December 16, 2008 (“Tilly Deck”), Ex. X).

The Heisman Trust alleges that it has also acquired common law trademark rights through its extensive use of its registered and unregistered trademarks. The Heisman Trust spends more than $650,000 each year advertising and promoting the *152 Heisman Trophy and the Heisman Marks, and it has licensed the use of the Heisman Marks to various third parties, including Reebok International Ltd. (“Reebok”), in exchange for royalty and other payments.

Smack Apparel is a clothing manufacturer that sells principally to retailers and operates a website through which it also sells its apparel. The Heisman Trust alleges that Smack Apparel first made unlawful use of the Heisman Marks in 1999, when a college football player who was a candidate for the Heisman Trophy that year was arrested for shoplifting. Smack Apparel produced a T-shirt with the word “Heistman” and a depiction of the football player from the Heisman Trophy statuette holding a shopping bag in his hand.

In 2000, Smack Apparel entered into a settlement agreement (the “Settlement Agreement”) with the Downtown Athletic Club. 3 In the Settlement Agreement, Smack Apparel stipulated that it would “cease and permanently refrain from manufacturing, displaying, selling or offering for sale any clothing or other merchandise bearing the [Heisman] Marks, or confusingly similar marks, and from displaying or otherwise using the [Heisman] Marks, or confusingly similar marks, on or in connection with any website.” (Declaration of Robert Whalen in Support of The Heisman Trophy Trust’s Application for a Preliminary Injunction (“WTialen Deck”), Ex. I at 3.) Smack Apparel also agreed that a breach of the Settlement Agreement “would result in continuing material and irreparable harm, and because it would be difficult or impossible to establish the full monetary value of such damage,” the holder of the Heisman Marks “shall be entitled to injunctive relief.” (Id. at 4.)

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Heisman Trophy Trust v. Smack Apparel Co., 637 F. Supp. 2d 146, 2009 U.S. Dist. LEXIS 64523, 2009 WL 2170352 (S.D.N.Y. 2009).

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