HMH Publishing Co. v. Turbyfill

330 F. Supp. 830, 171 U.S.P.Q. (BNA) 461, 1971 U.S. Dist. LEXIS 11848
CourtDistrict Court, M.D. Florida
DecidedAugust 30, 1971
DocketNo. 70-132-Civ-J
StatusPublished
Cited by9 cases

This text of 330 F. Supp. 830 (HMH Publishing Co. v. Turbyfill) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HMH Publishing Co. v. Turbyfill, 330 F. Supp. 830, 171 U.S.P.Q. (BNA) 461, 1971 U.S. Dist. LEXIS 11848 (M.D. Fla. 1971).

Opinion

OPINION AND ORDER

CHARLES R. SCOTT, District Judge.

Plaintiff, HMH Publishing Co., Inc. (hereinafter “HMH”) is a corporation organized and existing under the laws of the State of Delaware, with its principal offices and place of business in Chicago, Illinois. The individual defendants are resident citizens of the State of Florida and the corporate defendants were organized and exist under its laws. In addition to this diversity of citizenship between the parties and an amount in controversy exceeding $10,000 (28 U.S.C. § 1332), the Court’s jurisdiction is invoked through a claim arising under the Lanham Act of 1946, 15 U.S.C. § 1051 et seq.

HMH brought this action to halt the defendants’ use of the word “Playboy” in the names and advertising of their two Florida theaters, on grounds that such use constitutes unfair competition and infringes trade or service marks registered with the United States Patent Office. See 28 U.S.C. § 1338.

Undisputed evidence reveals the following sequence of events:

1954: The United States Patent Office issued certificate No. 600,018 to HMH for the trademark “Playboy” in connection with magazines.
1964: The United States Patent Office issued certificate No. 769,702 to HMH for the service mark “Playboy” in connection with establishments featuring food, drink and entertainment. Also, HMH opened its “Playboy Theater” in Chicago.
1967: Defendants opened the “Playboy Drive-In Theatre” in Jacksonville, Florida.
1968: Defendants opened the “Playboy Theatre” in Lake Worth, Florida.
1969: The United States Patent Office issued certificate No. 875,827 to HMH for the service mark “Playboy” in connection with theaters.

HMH bases its claim of trademark infringement upon 15 U.S.C. § 1114, which states in part:

(1) Any person who shall, without the consent of the registrant—
(a) use in commerce any reproduction, * * * copy, or colorable imitation of a registered mark in connection with the sale * * * or advertising of any goods or services on or in connection with which such use is likely to cause confusion, or to cause mistake, or to deceive; * * *
shall be liable in a civil action by the registrant.

Standing alone, this Lanham Act provision could create problems of considerable scope for any established local or statewide business which suddenly found itself challenged by a federally-registered newcomer of similar name. To avoid such difficulties, Congress tempered § 1114 by providing that even where the right to use a registered mark had become “incontestable” under 15 U.S.C. § 1065, a defense to charges of infringement would lie where the defendant could show his mark

* * * was adopted without knowledge of the registrant’s prior use and has been continuously used * * * from a date prior to registration of the mark * * *. Provided, however, That this defense or defect shall apply only for the area in which such continuous firior use is proved. * * * (15 U.S.C. § 1115(b) (5)).

Defendants take the position (1) that their use of “Playboy” for the theaters opened in 1967 and 1968 was without knowledge of a prior use of the word [832]*832in like context by HMH, and hence is superior to HMH’s 1969 registration, and (2) that their adoption of the term was not connected with either magazines or “food and entertainment clubs,” and therefore raised no “likelihood of confusion” with HMH’s previous registrations (1954, 1964). The premise behind this latter contention is that if no actionable confusion existed when the theaters opened in 1967 and 1968, HMH may not now prevail by expanding into the theater business and thus generating such confusion.

The legal aspects of defendants’ first line of argument appear sound. It seems clear that HMH’s 1969 registration of “Playboy” in connection with theaters cannot by itself preempt rights to the word established prior to such registration. 15 U.S.C. § 1115(b) (5); Burger King of Florida, Inc. v. Hoots, 403 F.2d 904 (7th Cir., 1968). Their second argument, however, is equally vital to their case, and is considerably more complex.

It is well established that a geographical expansion by a business covered by a federally-registered mark is protected as against all later-registered (or unregistered) enterprises in the same field. Turner v. HMH Publishing Co., 380 F.2d 224 (5th Cir., 1967); John R. Thompson Co. v. Holloway, 366 F.2d 108 (5th Cir., 1966). Indeed, 15 U.S.C. § 1115(b) gives the registered party the “exclusive right to use” its “mark in commerce” to the exclusion of all conflicting marks. Defendants note, however, that it also explicitly limits this protection to uses of the mark “in connection with the goods or services specified in the affidavit filed [upon registration].” (Emphasis added.) Perhaps due in part to the broader language of § 1114, necessity has dictated that this restriction be construed to allow the registrant priority over all businesses, whether or not in direct competition, whose adoption of a similar mark (1) was subsequent to his own registration, and (2) created a likelihood of confusion as to the source of the goods and services sold under the marks. Turner, supra. (Those whose adoption without notice preceded the plaintiff’s registration have rights to the mark within their geographical area. § 1115(b) (5), supra.) This protection has been consistently extended as a shield for geographical expansion of a registered business, in plain recognition of the fact that

[t]he language of the Federal Trademarks Act, as well as its legislative history, shows an intent to provide nationwide protection for expanding businesses. (John R. Thompson Co. v. Holloway, supra, at 114.)

Defendants argue, however, that regardless of the power of this shield in guiding a registrant’s geographical expansion, its protection is lost when he enters a new type of business (as opposed to the same type in a new location).

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Bluebook (online)
330 F. Supp. 830, 171 U.S.P.Q. (BNA) 461, 1971 U.S. Dist. LEXIS 11848, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hmh-publishing-co-v-turbyfill-flmd-1971.