Home Box Office v. Showtime/The Movie Channel

665 F. Supp. 1079, 3 U.S.P.Q. 2d (BNA) 1806, 1987 U.S. Dist. LEXIS 6785
CourtDistrict Court, S.D. New York
DecidedJuly 24, 1987
Docket87 Civ. 4662 (RJD)
StatusPublished
Cited by4 cases

This text of 665 F. Supp. 1079 (Home Box Office v. Showtime/The Movie Channel) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Box Office v. Showtime/The Movie Channel, 665 F. Supp. 1079, 3 U.S.P.Q. 2d (BNA) 1806, 1987 U.S. Dist. LEXIS 6785 (S.D.N.Y. 1987).

Opinion

MEMORANDUM OF DECISION AND ORDER

DARONCO, District Judge.

This is an action for wrongful use in commerce of false designations of origin, false deceptions and false representations under Section 43(a) of the United States Trademark Act, 15 U.S.C, § 1125(a), for service mark infringement under Section 32(1) of the United States Trademark Act, 15 U.S.C. § 1114(1), for service mark and trade name infringement at common law, for unfair competition at common law, and for violation of the New York State Anti-Dilution Statute, New York General Business Law § 368-d.

Plaintiff, Home Box Office (“HBO”), claims that defendant, Showtime/The Movie Channel’s (“Showtime”) use of certain slogans is likely to cause confusion between defendant’s and plaintiff’s television services.

The five slogans in question are the following:

(1) “SHOWTIME & HBO. It’s Not Either/Or Anymore;”
(2) “SHOWTIME & HBO. Together is Better;”
(3) “Why SHOWTIME & HBO make such a perfect pair;”
(4) “Play the Showtime PERFECT (HBO, Showtime) PAIR Instant Winner Game;” and
(5) “The MOVIE CHANNEL & HBO. It’s Not Either/Or Anymore.”

HBO fears that consumers will misconstrue these ads, believing that HBO has merged with Showtime, or that HBO is endorsing, sponsoring or co-sponsoring Showtime, or that HBO has ceased to offer its services individually or with “Cinemax,” one of HBO’s affiliated cable services (HBO itself markets a cable television package: “HBO & Cinemax”).

The plaintiff, HBO, having moved for a preliminary injunction and the parties having submitted briefs video-tapes, affidavits and other evidence to the Court, and the Court having considered those materials and oral argument having been heard, the Court makes the following findings.

BACKGROUND

Plaintiff, Home Box Office, is the owner of a registered service mark HBO used in connection with advertising, offering for sale, and selling cable television services and related products. HBO leads the nation in the number of subscribers to its cable television services. In addition to its HBO services, plaintiff has for many years offered and now offers a companion television service under its service mark CINE-MAX. Plaintiff sometimes promotes its HBO and CINEMAX services together, using the slogans “HBO & CINEMAX” and “HBO CINEMAX.”

Defendant, “Showtime/The Movie Channel,” provides cable television services under its service marks SHOWTIME and THE MOVIE CHANNEL.

The parties apparently are in accord that they compete in the same market place providing the identical type of services, though not identical services. The parties are also apparently in accord that at the advent of cable television, and for a time thereafter, HBO and Showtime featured many of the same films. Gradually, over the last few years, these two services have negotiated “exclusive” agreements with certain studios for all or part of their cable products. This has resulted in a gradual, but growing dissimilarity between the films shown on the two cable services.

The cable services offered by the parties are purchased through local cable operators. Consumers deal directly with their local cable operators who, for a monthly fee, install equipment in the consumers’ homes which enable them to receive one or more cable services. Cable operators mar *1082 ket their services to consumers by direct mail or through bill-stuffers. These mailings describe available cable services and describe various combinations or packages in which the services can be purchased. It is not uncommon, therefore, to see the names of the various cable services presented in combinations. Indeed, in the past and on a limited basis, HBO and Showtime cooperated in the producton of marketing materials which featured the names of their respective services in various combinations. Whatever interval of good feeling, that may have once existed between the parties, came to an abrupt close at the opening of The National Cable Television Association convention in Las Vegas in May, 1987. At this trade convention, Showtime launched a new promotional campaign featuring the slogan “Showtime & HBO. It’s Not Either/Or Anymore,” among others. In connection with this campaign, Showtime distributed various promotional items, to wit: tote bags, buttons, sunglasses, and chocolate chip cookies bearing the slogan: “Showtime & HBO. It’s Not Either/Or Anymore.” These items, all distributed at the trade convention in Las Vegas, carried the slogan accompanied by minute disclaimers. For example, Showtime’s cookie, sunglasses, button and 3'5" x 2'3" poster bore a disclaimer in letters barely Vie of an inch in height. The 14" x 13" x 3" tote bag, on only one of the two sides where the slogan appeared, contained a disclaimer in letters Vi of an inch in height. The disclaimer on the three inches in diameter button was located well out of normal view on the back of the button’s outer edge. The disclaimer for the sunglasses does not even appear on the glasses themselves but on the accompanying cardboard packaging.

The content of the disclaimers on these items differs from item to item, with the most complete disclaimer appearing on the tote bag. There the disclaimer reads, “HBO is a registered service mark of Home Box Office, Inc. Showtime is a registered service mark of SHOWTIME — THE MOVIE CHANNEL, INC. which produced this piece © 1987. Showtime/The Movie Channel Inc. All Rights Reserved. Showtime/The Movie Channel Inc. is not affiliated with Home Box Office Inc.” Here the content of the disclaimer, without finding as to the adequacy of that content, is not as objectionable as its size and place. With specific respect to their respective media, these disclaimers are inadequate as being virtually undiscernible and appear calculated to escape ordinary notice. There has been some dispute as to whether some of these materials, specifically the tote bags, were distributed after the May convention. Counsel for Showtime represents that these materials are no longer in use and are not scheduled for promotional distribution either at trade shows or to consumers in the future.

In addition to the materials distributed at the May trade convention, Showtime had sponsored at least one large billboard in the area bearing the slogan, “SHOWTIME & HBO. It’s Not Either/Or Anymore” with no discernible disclaiming material, although it appears that the. billboard may have contained a minute disclaimer at its bottom. Finally, the promotional campaign for the trade convention featured a 60 second videotape (hereinafter, the “Trade Video”), with “Showtime & HBO. It’s Not Either/Or Anymore” as a repeated theme.

Subsequent to the trade show in Las Vegas, Showtime made changes in its consumer advertising and produced a second videotape intended for advertising to consumers (hereinafter “Consumer Video 1”). HBO objected to the use of all these materials and proceeded by Order to Show Cause to enjoin their use.

Counsel first appeared before the Court on June 30, 1987.

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665 F. Supp. 1079, 3 U.S.P.Q. 2d (BNA) 1806, 1987 U.S. Dist. LEXIS 6785, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-box-office-v-showtimethe-movie-channel-nysd-1987.